Financial Accounting TFIN 52

Summary

Prepared by:
Zeeshan R Haryani

Financial Accounting TFIN 52
Summary

Prepared By
Zeeshan Raza Haryani
ACA, ACCA Finalist
Certified FICOBW
Zeeshan.haryani@gmail.com

Page 1 of 45

.................................................................................................................................................................................................................................................................................................................... 24 Lesson 2 – Characteristics and Key Figures ................................................................................................................................................ 4 Lesson 2 – Cost Accounting Assignment ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 33 Page 2 of 45 ..................................................................................................................................................... 15 Lesson 2 – Fiscal Year Change and Year End Closing in Assets ............. 32 Lesson 2 –Parking Documents & Processing Parked Documents ................................................................ 19 Lesson 3 – Assets History Sheet ....................................................................................................................................................................................... 21 Unit 7 – List Viewer . 19 Unit 6 – Standard Reports in General Ledger Accounting................................................................................................................................... 25 Lesson 4 – Navigation in Reports .. 22 Lesson 1 – SAP List Viewer Design....................................... 27 Unit 9 – Special GL Transactions ....................................................................................................................... 14 Unit 4 – Periodic Processing and Valuation ......................................................................................................................... 22 Lesson 2 – Selections ....................... Accounts Receivable Accounting and Accounts Payable Accounting .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 21 Lesson 1 – Information System ............ 23 Unit 8 – Drilldown Reporting in Financial Accounting .............................................................. 4 Lesson 1 – Assignment Company Code ..................................................................... 26 Lesson 5 – Form & Report Definition ......................... 32 Lesson 3 –Document Parking and Workflow .............................................. 13 Lesson 4 –Assets Under Construction .... 22 Lesson 3 – Changing the Screen Layout................................ 5 Lesson 3 – Introduction to Assets Class .. 18 Unit 5 – Information System............................................................................................... 15 Lesson 1 – Function of Assets class ................ 7 Lesson 1 – Function of Assets class ............................................................................. 9 Lesson 3 – Mass Change................................................................................................... 29 Lesson 2 – Configuration of Special GL Transactions ....... 12 Lesson 3 – Intercompany & Intracompany Assets Transfer .... 24 Lesson 1 – Architecture of Drilldown Reporting ............................................................ 32 Lesson 1 – Basics of Parking Documents .............................................................................................................................................................................................................. 5 Unit 2 – Master Data .............................................................................................................................. 19 Lesson 1 – Report Selection . 9 Unit 3 – Assets Transactions............................................ 29 Lesson 1 – Application view for Special GL Transactions ..................................................Chart of Depreciation ....................................................................... 26 Lesson 6 – Report/Report Interface and Report Assignment ....................................................................................................................... 31 Unit 10 – Parking Documents .................. 11 Lesson 2 – Assets Retirement ........................ 19 Lesson 2 – Value Simulation ................................................................................................................................................... 13 Lesson 5 – Unplanned Depreciation .................................Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Contents Unit 1 – Organizational Structure ......................... 7 Lesson 2 –Assets Master Record ....................................................................... 24 Lesson 3 – Form Types ........................................................................................Chart of Accounts ....................................................... 21 Lesson 2 – Report Variant and Variables ...................................................................................................... 11 Lesson 1 – Assets Acquisition ................................................................................................................................................

. 42 Lesson 3 – Executing Archiving in Financial Accounting Using example .................................... 43 Page 3 of 45 ........... 36 Lesson 2 – Definition and Execution of Validation in Financial Accounting ...................................................................................................................................................................................................................................................................... 39 Lesson 5 – Validation Rule for Account Assignment combination ...................................................................................................... 36 Lesson 1 – Basics of Validation / Substitution .......................... 39 Unit 12 – FI Archiving................Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Unit 11 – Validation & Substitution ......................................................................................................... 41 Lesson 2 – Preparatory Activities – System Settings ...................................................... 41 Lesson 1 – Basics of Parking Documents ................................................. 38 Lesson 4 – Additional Technique for Substitution/Validation ............................................................................................................. 37 Lesson 3 – Definition and Execution of Substitution in Financial Accounting ...

The chart of depreciation must be country-specific.. Each company code is an independent accounting unit. o Then allocate a chart of depreciation to the company code (in a separate project. and so on). The depreciation areas in a chart of depreciation are defined with a two-digit numeric key. such as for creating a consolidated balance sheet according to IFRS and/or US GAAP.Chart of Accounts . These various valuation approaches are mapped in the SAP system by means of depreciation areas.. It also denotes the specific logical system you are working on. completely set up the company code(s) in Financial Accounting. Book depreciation (according to local requirements) o . for example. if possible). Parallel accounting.. book depreciation or tax depreciation. different valuation approaches should/have to be used for: o . Each depreciation area represents a specific type of valuation (for example. Balance sheets for tax purposes (insofar as another valuation is permitted) o . All or several company codes can work with the same chart of accounts and the same chart of depreciation. Depreciation area 01 is always what is known as the leading depreciation area. Asset Accounting (FI-AA) works with the chart of accounts assigned to the company code in Financial Accounting (FI). o * The company code is then expanded by means of various Customizing activities to include the necessary data and information. Other depreciation areas can contain the following valuations..Chart of Depreciation · · · · · · · · · · · · · The client is the highest level in the SAP system hierarchy. Each business area is to be regarded as a financially separate unit for which an internal balance sheet and profit and loss statement can be created... The leading area 01 (currently) reflects the local accounting principles in each sample chart of depreciation. Specifications that you make on this level apply to all company codes.. o The company code is then ready for use by Asset Accounting Page 4 of 45 . for example: o Tax balance sheet valuation o Costing-based valuation o Valuation approaches in other currencies and/or valuation approaches (=> such as group valuation) o Capital tax valuation o Differences between book and country-specific tax-based depreciation Asset portfolios and transactions are often valued differently for different purposes. The legally required balance sheet and profit and loss statement are created at this level. Steps in Assets Accounting o First. Each company code uses one (operative) chart of accounts and one chart of depreciation.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Unit 1 – Organizational Structure Lesson 1 – Assignment Company Code . Internal accounting (=> cost accounting) o ..

Page 5 of 45 . it is not possible to assign an asset to two cost centers. The technical management of assets is d one using (logistical) Plant Maintenance or Enterprise Asset Management (=> EAM). This will be addressed in further detail in the next chapter. Asset classes consist of a master data section and a depreciation area section. If the depreciation attributes are specified by the system. Lesson 3 – Introduction to Assets Class · · · · · · Assets are assigned to asset classes. you can assign the following basic Cost Accounting objects to an asset: o Cost center o (Internal) order: the order can be “real” or “statistical” o Activity type: as purely statistical information These CO objects are assigned to a controlling area which can. It is also possible to assign objects from other applications (with controlling functions) in addition to original the CO objects. include one or more company codes. For each depreciation area. you can choose that they be specified by the system. they are not changeable.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Lesson 2 – Cost Accounting Assignment · · · · · In the master record. There is also at least one special asset class each for assets under construction and low value assets. Fixtures and Fittings and Machines classes. so you can complete the asset class with default values for the depreciation terms for each depreciation area. you can propose the depreciation attributes for the assets. They are also assigned to at least one chart of depreciation *. Examples of asset classes are the Vehicles. in turn. Asset classes are created at client level. examples: o WBS element o Real estate object o Maintenance order: as purely statistical information o Objects from Public Sector Management (=> PSM) As such we can post the following (CO) objects: o A cost center o A (real) order o A cost center and a statistical order o A WBS element o A cost center and a statistical WBS element o A real estate object o Objects from Public Sector Management However.

you can manage different valuation approaches for each asset in depreciation areas. With FI-AA. which do not post any values to the general ledger. You can post both the asset values and the depreciation values from the individual depreciation areas to separate financial statement accounts or profit and loss accounts. periodically) o (4) Area posts asset values and depreciation (depreciation is. With periodic asset value posting (program RAPERB2000).Financial Accounting TFIN 52 Summary · · · · · · · Prepared by: Zeeshan R Haryani The Treasury system is used to manage financial assets. Page 6 of 45 . You specify in the financial statement version the financial statement item or the profit and loss statement item in which the account values should appear. You can also define depreciation areas for reporting purposes only. you enter the financial statement versions to be used for each depreciation area. posted periodically) o The settings (5) and (6) are only required when using the Ledger Approach in the New General Ledger. of course. if the asset report is also to create financial statements items for these areas in FIAA Reporting. you have the following options: o (0) Area does not post (no values posted to FI) o (1) Area posts in real-time (asset values are posted to FI online – periodic depreciation) o (2) Area posts asset values and depreciation periodically o (3) Area only posts depreciation (of course. It is a part of Financial Supply Chain Management (=> FSCM). Program RAPOST2000 is used for this. Depreciation is always posted on a periodic basis. In Customizing for Asset Accounting. When using the Account Approach (see Periodic Processing and Depreciation unit) . financial statements are not created / required for the values of all depreciation areas. However. you can post asset values from depreciation areas other than area 01 to the general ledger.

In addition to the information on the field selection (required entry. The screen layout determines which input fields in the asset master records can be processed or whether these fields are to be defined as required fields or if the fields are not displayed at all. or specify cross-company code number assignment. By entering useful default values. if necessary/desired. you need only one account determination key to post asset values of the asset of one class to different accounts in different charts of accounts For those depreciation areas that post depreciation to the general ledger.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Unit 2 – Master Data Lesson 1 – Function of Assets class · · · · · · · · · · · The asset class definitions apply to all company codes in a client. you can post (cost-accounting) depreciation to account assignment objects. however. you must assign the following additional G/L accounts: o For ordinary depreciation: o Accumulated depreciation accounts o Expense accounts o Revenue accounts for a write-up o For unplanned depreciation: depreciati o Accumulated depreciation accounts o Expense accounts o Revenue accounts for a write-up o And for revaluations of depreciation and for interest (cost accounting area). such as direct Page 7 of 45 . you can reduce the time and effort needed to create new asset master records The asset class is the main selection criterion in all standard reports in FI-AA. suppress). If you use different company codes with different operational charts of accounts. The maintenance level specifies at which level maintenance of each data field is permitted possible maintenance levels are: o Asset class o Main asset number o Sub number On the one hand. You define number assignment as either internal or external. on the other hand. You can assign each company code its own number ranges. It also determines whether the master data fields are allowed to be used as a reference. the screen layout specifies the maintenance level of master data fields. optional entry. display. An asset class consists of two main sections: o A master data section with control data and default values for the administrative data in the asset master record o A depreciation section with control parameters and default values for depreciation terms for each depreciation area When you create asset master records. The number range controls the assignment of the number of the asset master record. this data is automatically adopted from the asset class you specify. account assignment objects can also be used for making APC postings.

You can also enter down payments on assets under construction in accounts payable pa accounting processes. The entries made in the asset class are adopted in the asset master record. It integrates internal orders and projects with assets under construction. that are to appear on the tab pages. Asset class: This maintenance level ensures uniform control of valuation at asset class level. You can choose whether to manage low value assets (LVAs) using individual management or collective management. o 2. if several assets are to be assigned to an asset super number (for example. such as the visible logical field groups General data and Posting information in the figure above). Page 8 of 45 . This is useful. Assets under construction (AuC) require a separate asset class and corresponding G/L account. For each type of management. o Reason for investment: In this field you can enter an explanation for a capital investment (for example. These rules apply to the (input) fields of the in the depreciation data section / depreciation area. you have to set up a separate asset class. o 3. new climate-protection regulations). The layout defines: o The number of tab pages o The names of the tab pages o The logical field groups (groups / field group boxes. Main asset number: The control of valuation is unifor uniform at the level of the asset master record. Asset sub numbers can receive their own individual depreciation terms. a base unit of quantity must be specified for this asset class. you enter a screen layout rule for each depreciation area. You can specify a layout for the master data of each asset class. By choosing ing the standard depreciation key 0000 you can ensure that depreciation is not calculated for assets under construction in depreciation areas (at least for the depreciation areas in the financial statement). o Asset super number: This can be assigned to an asset. business unit or production line). Asset sub number: Valuation can be controlled more flexibly. Defining allowed entries for user fields and other information fields: In the asset master record the following fields are available as standard for general and user-specific structure of fixed assets: o Evaluation groups (evaluation group 1 to 5): These are asset master record fields that are used to map customer-defined / customer-specific information. SAP supplies screen layout rules 1000 and 2000 in the standard system. special tax depreciation and investment support are also possible for assets under construction. If you select collective management for low-value assets. There are three options: o 1. because they have to be shown separately in the financial statement.Financial Accounting TFIN 52 Summary · · · · · · · · · · · Prepared by: Zeeshan R Haryani capitalization as part of an investment measure (when the IM component is also in use) or for (statistical) budget monitoring for asset purchases. The maintenance level guarantees that depreciation is controlled uniformly. o Environmental protection indicator: In this field you can save the reason for an environmental protection investment (for example. you can still post credit memos. For this to be possible you must permit negative (APC) values in the detail screen of the depreciation data section. Investment Management (IM) is available to help you manage more extensive asset investments. for example. These screen layout rules also contain a maintenance level. However. Even after an asset under construction truction has been fully capitalized. In each asset class. All asset sub numbers that belong to this asset master record adopt these values from the main number. and can be changed there. replacement acquisition).

select the defined substitution rule for the mass change and save your data. the system creates a change document. The method for assigning equipment to an asset was to enter the asset number in the relevant master record still exists. o You want to manage the values for individual parts of assets separately. change master data). This might be useful for both technical and accounting reasons. o 6. you can create multiple similar assets. This is of particular significance for the assignment of assets to CO organizational units. The purpose is a pre-defined standard task in the system (for example. o 8. the Company Code and the Inventory Number). Some information in the asset master record can be managed as time-dependent data. you may want to manage these component assets as separate sub numbers. buildings. di Shift operation and asset shutdown can have a direct effect on depreciation. the system automatically creates an equipment master record while copying the values of certain master data fields (for example. Create a substitution rule to specify which fields you want to change and how you want to change them o 2. select the master data to be changed and press the Create Work list pushbutton in the results screen. Therefore you should enter them in the time-dependent data. o 4. for example. Create a list of assets to be changed (=> a work list). If you change master data in the asset at a later point in time. The change document contains a list of fields that were changed and the number of changes to a field. A substitution rule consists of two parts: Page 9 of 45 . If a fixed asset is made up of many component assets. where they can be changed on a monthly basis. In the dialog window that appears. o 7. you have two options: o Enter the company code and asset class for the new asset master record o Use an existing asset master record as a reference When creating asset master records. o 5. You can divide up assets by sub numbers. Using the program called. Each time you change an asset master record. o You want to split the asset according to various technical aspects Lesson 3 – Mass Change · · The individual steps for a mass change to asset master data can be summarized as follows: o 1. You can set up the system so that when you create an asset master record. but a piece of equipment can only belong to one asset. if: o You want to manage the values for subsequent acquisitions in following years separately for example.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Lesson 2 –Assets Master Record · · · · · · · · · When you create an asset master record. The saved substitution rule ule must then be assigned to a company code o 3. Enter a description and select a purpose for your work list. cost center or project). Several pieces of equipment can be assigned to an asset. the system then automatically updates the fields in the equipment master record and the other way around. the name of the user and the old and new contents of fields are stored. Check whether your mass change was successful by displaying the assets or running an appropriate report. In addition. Now (only) the work list still has to be processed.

Substitutions (if the conditions are met) that identify the replacement values.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani o 1. or user exits Page 10 of 45 . These can be constant values. o 2. you have to know the (technical) field and table descriptions of the input fields involved. To use expert mode. field-field assignments. Conditions that identify the records to be selected: You can create conditions using the Form Editor or in expert mode.

or the segment. for both departments to make postings in the opposite order: An asset is entered with automatic offsetting entry. The asset posting then also clears the clearing account. the business area. you must enter a transaction type. When you post the acquisition integrated with FI-AP. The offsetting account also has to be cleared. Acquisition from in-house production is the capitalization of goods or services that are partially or completely produced in your own enterprise. The asset value date is the actual date the asset is updated and determines the depreciation start date along with the deprecation key (for each depreciation area). o In Materials Management (MM): The posting/activation of the assets takes place in Logistics. You can display planned values. The system determines the start date for ordinary depreciation using the asset value date of the acquisition posting and the period control method (see Deprecation Key for more information). and the clearing account is cleared with the credit creation of the incoming invoice. for example. the system automatically enters the vendor in the origin data field of the asset master record. Generally. o In FI-AA with automatic offsetting entry. Standard (document splitting) characteristics are the profit center. The transaction type identifies the different transactions in the asset history sheet. It is also possible. book values and transactions directly in the Asset Explorer in a print preview format. and writes this date to the depreciation areas in the asset master record. o Date of initial acquisition on the relevant master record (also derived from the asset value date). and you can print and export this information. Transaction type When posting to assets. you can enter default values for the asset value date for each type of accounting transaction. but without reference to a purchase order. however. you capitalize production costs by creating an investment measure (=> order/project) in Investment Management (IM) and settling to an asset under construction and then to the final asset. usually if an incoming invoice is available. o Acquisition year and acquisition period (derived from the posting date) In Customizing for Asset Accounting.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Unit 3 – Assets Transactions Lesson 1 – Assets Acquisition · · · · · · · · · · · · · Acquisition of an asset from a business partner: External acquisition: o In FI-AA with integration with accounts payable. o In FI-AA with offset clearing: The first posting is usually made in FI-AP. The posting date and the asset value date must always be in the same fiscal year! Page 11 of 45 . Document splitting is a functionality that is enabled by the new G/L. It is used to create (complete) balance sheets on characteristics under the company code. but without a link to a purchase order and without integration with Accounts Payable. The following information is automatically set in the asset master record at the time of the first acquisition posting: o Date of asset capitalization (derived from the asset value date).

Using the period control method (=> period control key of the depreciation key). you determine whether the asset is posted directly to Asset Accounting when the goods receipt is posted (=> valuated goods receipt). or whether capitalization does not take place until the invoice (=> invoice receipt) is posted (non-valuated goods receipt). Transaction types identify acquisitions. you would normally use a clearing account. Although the document type is defined across all clients. Page 12 of 45 . o Process the work list. o Goods receipt When you enter the purchase order. The first process steps in case of FI-AA and MM could proceed as follows: o Create Purchase Requisition (optional) o Create Asset Master Record if required o Create Purchase Order (from PReq) with assignment category A (=> A = asset). The system determines the period for the asset retirement based on the asset value date of the asset retirement (= asset retirement date). and transfers. amongst other things. In the purchase order. the system posts the asset retirement. or edit the work list before releasing it. The system automatically determines the proportional value adjustments (depreciation) up to this period that apply to the part of the asset being retired. At the same time. but the invoice has not been delivered.Financial Accounting TFIN 52 Summary · · · · · Prepared by: Zeeshan R Haryani The number range interval for the assignment of FI document numbers is defined in the document type. Lesson 2 – Assets Retirement · · · · · There are different ways of posting retirements: o Retirement with revenue and customer (=> integrated asset retirement) o Retirement with revenue. follow these steps: o Use an asset report to create a list of the assets to be retired. you can specify an asset master record number in the Item Detail screen area. o Select a purpose for the work list: § Retirement without revenue § Retirement sale (with revenue) o Enter the revenue distribution. and thereby capitalized. Transaction types must be used with every posting. Reasons for not making integrated postings: o The invoice arrived before the asset o The asset has already been delivered and should be used. the FI document number range interval should be created specifically for the company-code. but without customer (=> not integrated) o Retirement without revenue (=> Asset retirement by scrapping) o The first three points can each be entered either as complete or as partial retirement o Mass asset retirement (with work list) o Retirement of several assets (within the manually posted retirement transaction). retirements. To carry out a mass retirement. and cancels this depreciation. This should be a general ledger account with open item management to guarantee that you can clear the account (later). the system automatically calculates how long depreciation is (allowed to be) posted for the asset. o Create a work list. If asset acquisition postings are not integrated.

depending on circumstances: o transactions within one company code (=> Intra-company Transfer) or o Transactions between different company codes (=> Intercompany Transfer).. If company codes are assigned to different charts of depreciation. SAP refers to a transfer of relationship type 02. the charts may contain different depreciation areas (=> different keys/different area IDs) but have the same functions. o You would like settle an asset under construction and transfer it to a finished asset. This arrangement can also be redefined using a relationship type it is a relationship type 01 transfer. the sales revenue equals the net book value of the asset. One of the functions of the transfer variant is to determine the transaction types with which the transfer is recorded in the source and the target asset. Lesson 4 –Assets under Construction · Assets under construction have two phases that are relevant to Asset Accounting: Page 13 of 45 . Whether it is a transfer within a legal unit (within a company). In the case where both company codes belong to the same company. the net book value (of the source company code) is capitalized on the target asset.. When this is the case. The standard SAP assumption is that transfers of relationship type 02 (=> two company codes but one company (number)) are always transfers within one legal unit (=> the company within a corporate group). o When you use the Net method or the New Value Method. you must define cross-company depreciation areas before asset transfer. this method transfers the historical values of the asset to the target company code. you have to enter sales revenue.. o If you select the Gross transfer method. Possible reasons for intercompany code transfers: o A master record was created and posted to in the wrong class (in the previous year). The Transfer function can be used when: o an asset has been sold to another company code. o Using the Net Method. and are therefore always represented as intra-company transfers (=> with intracompany transfer transaction types and the gross method).. the system capitalizes the amount of the sales revenue on the target asset. o If there is no gain or loss on the asset retirement. the system enters an asterisk (*) as a generic entry for the cross-company areas.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Lesson 3 – Intercompany & Intra-company Assets Transfer · · · · · · · · · Asset Accounting distinguishes between different types of transfers. and does not create balance sheets for external purposes. The individual company code is not an independent legal entity. The transfer method is used to control how the values are transferred from the source to the target company code. o You would like to split up an asset or move part of an asset. The following distinction is made for transfers: o . Part of the asset must thus be transferred to a new asset. o When you use the New Value Method. or whether the transfer is taking place between legally independent organizational units (=> company codes) which are each assigned to a different company. The system uses transfer variant 4 by default for intra-company asset transfers. If a corresponding cross-company depreciation area is not defined. o • .

you do not have to settle all line items at once. the system automatically separates the transactions from the previous years from the transactions from the current year. Therefore. assign a settlement profile to your company code o Select all line items that you want to settle in the same proportion to the same receiver. o Post the settlement of line items to the specified receivers using the distribution rule.Financial Accounting TFIN 52 Summary · · · · · · Prepared by: Zeeshan R Haryani o The under construction phase o The useful life phase The assets have to be shown in two different balance sheet items during these two phases. Page 14 of 45 . the system does not create an FI document. When you settle. o Define distribution rules for these line items. they have to be managed using different objects or asset master records for the under-construction phase and for the completed asset(s). Proceed as follows to settle the asset under construction on a line-item basis to one or more completed assets: o First. Assets in the under construction phase in FI-AA can be managed in the following ways o As a normal asset master record (=> for summary settlement) o As an asset master record with line item management When capitalizing the asset under construction. This is done by using different transaction types. Note that this posting procedure settles all line items to which a distribution rule is assigned. Lesson 5 – Unplanned Depreciation · · When you enter the relevant transaction type. This FI document is not generated until the depreciation posting program is run. As you have only manually scheduled the depreciation. and you do not have to distribute 100% of each line item. The transfer from the under-construction phase to completed asset is referred to here as capitalization of the asset under construction. the system recognizes that you want to perform manual depreciation.

for the balance sheet. The system supports the following depreciation types: o Ordinary depreciation: This is the planned reduction in asset value due to normal wear and tear. process. o Unit-of-production depreciation: This allows you to take fluctuations in activity into account for the depreciation calculation. for cost accounting. We can define Depreciation area for following reasons: o Define how to post the asset balance sheet values and depreciation to the general ledger accounts.Financial Accounting TFIN 52 Summary Prepared by: Zeeshan R Haryani Unit 4 – Periodic Processing and Valuation Lesson 1 – Function of Assets class · · · · · · · · · If you want to plan primary costs on a cost center basis. but will not post any values to G/L accounts. Depreciation areas are identified in the system by a two-character numeric key. o For reporting reasons only. Investment support is a subsidy that a company receives for certain asset investments. APC or positive/negative net book values)? o To define how posting values and depreciation terms should or can be transferred to other areas. you can periodically determine planned depreciation and interest and pass these on to primary cost planning in the CO system via a report. You can post the claim manually or in a mass procedure. that lead to a permanent reduction in its value. o Special depreciation: This represents a purely tax-based type of depreciation for wear and tear. without taking the actual wear and tear on the asset into consideration. and control periodically recurring activities. All specifications for claiming the investment support are stored in the definition of this key. and this percentage may be staggered within a tax concession period. This form of depreciation usually allows for depreciating a percentage of the asset value. schedule. such as damage to the asset. Inflation management is required in countries with high rates of inflation or deflation. It makes the amount of depreciation dependent upon seasonal usage of the asset (example: Driven kilometers of a truck or produced units of a machine) Specifications and parameters that the system requires to calculate depreciation amounts are entered in calculation methods which are assigned to the depreciation key Individual calculation methods are: o The base method o The declining-balance method o The maximum amount method o The multilevel method Page 15 of 45 . o Unplanned depreciation: This is concerned with unusual circumstances. Assets that are eligible for such a subsidy are marked in the asset master records with an investment support key. You can now also use the Schedule Manager in FI-AA to define. or for taxes). They will show values and calculate depreciation. o To define which values have to be managed (for example. o To calculate different values in a depreciation area for a specific purpose (for example.

You can use index series for indexing the acquisition value and thus calculate a replacement value. Changes to the settings of the depreciation keys (=> customizing changes) do not automatically lead to a correction of depreciation amounts for already posted/active assets.Financial Accounting TFIN 52 Summary · · · · · · · · · · · · Prepared by: Zeeshan R Haryani o The period control method The depreciation terms are stored in the asset master record. this is not a standard method. The Asset Explorer displays the values and the depreciation for every transaction and each area. it must be implemented using the BAdI (Business Add-In) FAA_DC_CUSTOMER If time-dependent depreciation terms are not used. Summary: Whats new in FI-AA deprecation calculation with ECC 6. and whether depreciation should continue below zero. However.0 and active Enterprise Extension EA-FIN (=> Financial Extension) : o Depreciation calculation on the basis of period intervals/use of the Depreciation Engine o Time-dependent depreciation terms o Support for an (automatic) changeover method to period/months. For that to happen. The new logic of the depreciation calculation creates a new period interval for a mid-year changes to the term. The logic and method for working with time-dependent depreciation terms is comparable with the procedure for time-dependent data in the master data area.0. You make these specifications when you define the depreciation areas. Automatic calculation of Depreciation Indicator means: o Depreciation after planned life end: This indicates that you want the system to continue depreciation after the end of the planned useful life. (and active Enterprise Extension EA-FIN. a change would have the effect that all open (and future) fiscal years are/were recalculated. Time-dependent changes can therefore also be defined by creating new intervals. the new way of calculating depreciation (=> nwc also mentions the use of the Depreciation Engine) does enable in principle a more exact and precise calculation of depreciation amounts. The system determines the depreciation start date using the asset value date and the period control method. the calculation logic for depreciation changed from “transaction based calculation” to “calculation on the basis of period interval” Nonetheless. You can define whether interest should be calculated for the cost-accounting depreciation area. you have to execute a recalculation of depreciation: With SAP Solution ERP 6. Page 16 of 45 .

you might have to calculate imputed interest on the capital tied up in assets. or also include depreciation/interest. also) to additional account assignment objects. or define such a key user-specifically. Only real CO account assignment objects can be posted. However. Furthermore. the system switches to a simulated annual rate. The depreciation area must allow negative net book value (=> a changeover key may be used). statistical postings to other objects Page 17 of 45 . An indexed revaluation can also be calculated for accumulated depreciation and imputed interest (if the interest calculation key is based on replacement value). The system posts interest (periodically) during the periodic depreciation posting run. Specify in the depreciation area if you want to post to the general ledger. o Determine that interest should be posted for the company code and the corresponding depreciation area. not the planned life determines the rate of depreciation. If revaluation (indexing) is used in a depreciation area.Financial Accounting TFIN 52 Summary · · · · · · · · · Prepared by: Zeeshan R Haryani o Depreciation below book value: Set this indicator if you want the system to continue depreciation after the book value is zero. indicating whether you want to post revaluation of APC only. you can specify a default index series for calculating the replacement value in the asset or asset class. you can make additional. The depreciation position program RAPOST2000 can be used to post (if required) o Ordinary depreciation (book depreciation and cost-accounting) o Tax depreciation. For each fiscal year. Specify the following settings: o Allow the calculation of imputed interest for the depreciation area. you should specify index figures for the index series. It posts to the accounts that are entered in the account determination for each depreciation area. o Use a depreciation key to which calculation methods for the depreciation type Interest are assigned. or allocation and write-off of reserves due to special tax depreciation o Unplanned depreciation (or other manually planned depreciation) o Imputed interest o Revaluation of APC or of accumulated depreciation Program RAPOST2000 posts without session directly to the G/L accounts and (if you want. the system calculates indexed interest. o Effective life after planned end (=> with curb): The actual. If they are missing. For cost accounting. o If the calculation of the interest is based on a replacement value. an additional account assignment can be made to the cost center or the internal order entered in each asset master record (as is the case with depreciation).

You receive the error message Account xxxx requires an assignment to a CO object o Accounts for depreciation posting missing o Posting period was entered incorrectly (related to the posting interval entered in Customizing) on the initial screen of RAPOST2000 o Settings missing for the depreciation posting cycle in the depreciation area Lesson 2 – Fiscal Year Change and Year End Closing in Assets · · · · · The fiscal year change program opens new annual value fields for each asset. If a closed fiscal year is subsequently released for posting. and records any errors: o Incorrect account assignment objects (for example. it updates the last closed fiscal year (for each depreciation area). it can only be closed again once the year-end closing program RAJABS00 has been run again. o If you change any depreciation values. you must run depreciation posting again. o If the final result is not satisfactory. The year-end closing program (=> RAJABS00) checks whether: o Depreciation and asset balances are posted in full o Assets contain errors or are incomplete If the program does not find any errors. depreciation is posted.Financial Accounting TFIN 52 Summary · Prepared by: Zeeshan R Haryani Carry out all essential checks during the test run. The report also locks all closed fiscal years against postings from the asset area. you can carry out depreciation simulation or (bulk) changes. a cost center that is locked in CO) o Account assignment types missing in Customizing for Asset Accounting. o If an area posts asset balances periodically to the general ledger. you must start the report for periodic asset balance postings (=> RAPERB2000) (at least once in the update run). Settings for using program RAPERB2000: o Define(new)document type: o Create number range interval: o Now create the new document type for your company code(s): Page 18 of 45 .Preparations: o After the depreciation lists and asset history sheet have been checked. o You have to run the fiscal year change program for your whole company code. o The earliest you can start this program (in the production system) is in the last posting period of the current year. or make adjustment postings. o You can only process a fiscal year change to a subsequent year if the previous year has already been closed for business Year-End Closing (in Asset Accounting) .