Closing Activities in Asset Accounting  in SAP r/3

You run various closing reports, and display the closing postings that were created.

In this process, you carry out the year-end closing for Asset Accounting.

You will carry out the following steps:

 Creating and evaluating the asset list

 Manual depreciation

 Settlement of investment orders

 Periodic depreciation

 Creation of the inventory list, and printing of labels

 Fiscal year change and year-end closing

Select , to see more information about this demo.

To avoid errors in the output controller, please check your printer settings before you start
working on this process chain.

To do this, select System  User profile  Own data.

Select Defaults on the Maintenance screen and enter the following data:

Field Data

Start Menue Name of your printer

Select Save.

Demo Information 
For some processes, you first have to create a master record for an asset, so the process can be
repeated as often as necessary.

In order to carry out the scenario, you will need to create the following documents:
An invoice, for posting costs to an investment order. You will later settle the invoice to an asset
under construction.

A master record for a completed factory building. You will later transfer the asset under
construction to this completed asset.

If the following processes have already been carried out by another IDES user, it is not possible
for you to carry them out completely. You can, however, carry out the transactions up to the
running of the reports. We will describe the usual results of the transactions.

Manual depreciation: this process can only be repeated if you reverse the manual depreciation
after completing this part of the process.

Periodic depreciation: you can post periodic depreciation monthly. The process can therefore be
repeated 12 times.

Fiscal year change: the process can only be carried out once. However, it is possible to use only
test mode.

Year-end closing: the process can only be carried out once. However, it is possible to use only
test mode. You also have the option of reversing the year-end closing.

Data used during this Demo 

Fields Data Description

Company code 1000  

Asset 3108  

Cost center for asset being 1220  

depreciated

Plant for asset being 1300  

depreciated

Vendor 1000 Example vendor

Expense account 415000 External procurement costs

Investment order 65000024  

Asset under construction 4010  

Asset class for new master 1100  
record

Business area for new master 2000  

record

Cost center for new master 3150  

record

Plant for new master record 1300  

Form name for inventory list FIAA_0003  

Call the Asset List  

In this first process, you call the asset list from the Info system, in order to see a list of all
assets.

1. Select in the SAP R/3 System screen Information systems  Accounting  Financial
accounting.

2. On the Financial Accounting Information System screen, select Fixed assets  Asset values.

3. On the Asset Balance screen, enter the following data:

Field Data

Cost center Blank

Company code 1000

Report date 31.12.1999

Depreciation area 01 (book depreciation)

Sort version 0002 (by company code, plant, cost center)

List assets X (select)

Current book value X (select)

Plant Blank

4. Select Execute.

The list contains all assets in the company code, sorted by plant and cost center.

Each asset is identified by a main number. Assume that you want to have more information on a
particular asset.

5. On the Retirement w/o Revenue screen, select the following asset and select Choose.

Field Data

Asset 3293

Plant 1300

Cost center 1200

The system displays the Asset Values Display: Dep. Planned Values screen, where it shows the
planned values for the asset in the current fiscal year. The system shows the planned
depreciation for the fiscal year, and the planned net book value at the end of the year.

The asset is a vehicle. Assume that it was recently in an accident, and it will have to be
completely depreciated as a result.

6. Make a note of the net book value that appears in the Change column.

Later on you will have to write-off this vehicle. Therefore you need the current book value.

7. On the Asset Value Display: Dep. Planned Values select Asset master.

The system displays the general data for the asset. You can see the account determination and
the capitalization date, along with other data.

8. Return to the Retirement w/o Revenue screen.

9. Select List  Print.

10. On the Print Screen List screen, enter the following data:

Field Data
Output device Your printer name

Print immed. X

Delete after print X

11. Select Print.

12. Collect your printout.

You can use this list during the closing activities.

13. Return to the SAP R/3 System screen.

Unplanned Depreciation: Posting 

You called up the asset list and looked at an asset in the first step of this process. The asset was
a vehicle. For our demo, we will make the assumption that the vehicle was totaled, and
therefore has to be depreciated completely.

Therefore you should now carry out the manual depreciation of this vehicle. You need the net
book value that you wrote down in step one.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Postings  Manual val. correct.  Unplanned deprec.

3. On the Unplanned depreciation: Initial Screen , enter the following data:

Field Data

Company code 1000

Asset 3293

Transaction type 650

4. Select Enter.

5. On the Create Asset Transaction: Unplanned depreciation on old asset data, enter the
following data:
Field Data

Amount posted Net book value noted in step one

Text Complete depreciation: Vehicle totaled

6. Select Enter.

The dialog box Area 02 spec tax dep.

7. Select Execute.

A second dialog box Area: 10 Networth tax. appears.

8. Select Execute.

A third dialog box Area: 15 Tax. bal. shr. appears.

Select Execute.

A second dialog box Area: 20 Cost-acc. appears

Select Execute.

A third dialog box Area: 30 Group DEM appears

Select Execute

A fourth dialog box Area: 31 Group USD appears. In this area, the amount corresponds to the
amount posted in USD at the current rate of exchange. This amount is used for consolidation in
USD.

Select Execute.

You are back on the Create Asset Transaction: Unplanned depreciation on old assets data
screen.

Post the document.

Return to the Asset Accounting screen.

Manual Depreciation: Display Planned Values  

In this process, you look at the values of the asset and the posting document that was updated
in Financial Accounting when you posted manual depreciation in the previous step.

1. Select on the Asset Accounting screen Asset  Asset value display.

2. On the Display Asset Values: Initial Screen, enter the following data:
Field Data

Company code 1000

Asset 3293

Depreciation area(s) 01

Fiscal year Current fiscal year

3. Select Current book value.

On the Display Asset Values: Current Net Book Values screen, the system displays the net book
value of the vehicle in the current period in the current fiscal year.

4. In order to see the net book value following the manual depreciation, select simulate
depreciation posting several times, until the Posted upto field shows the period in which you
posted the manual depreciation.

The net book value is at the end of the year zero. The asset is fully depreciated as of this point.

5. Return to the Display Asset Values: Initial Screen.

6. Select Transactions.

The list contains the transactions on the asset up to this point. When you enter manual
depreciation of the vehicle, the system posts unplanned depreciation on prior-year asset
acquisitions.

At this point, you still cannot display a Financial Accounting document. The data is posted
initially only in Asset Accounting. The posting to the general ledger takes place when you carry
out the depreciation posting run.

7. On the Display Asset Values: Intial screen select Environment  Asset values.

The Asset Values Display : Dep.Planned Values screen shows the current values of the asset
under construction.

8. Return to the Asset Accounting screen.

Manual Depreciation: Reverse document  

Please reverse the asset document you just posted. This will allow other users of the IDES
System to carry out manual depreciation using the master data provided.
1. On the Asset Accounting screen select Postings  Reverse document  Other asset
document.

2. On the Documents for asset screen, enter the following data:

Field Data

Company code 1000

Asset 3293

Fiscal year 1999

3. Select Enter.

The system displays a list of asset documents for this asset. You can identify the manual
depreciation document by its text: Unplanned depreciation on old assets data.

4. Mark the depreciation document on the Overview of Asset Accounting Documents screen.

5. Select Reverse.

6. On the resulting dialog box, enter the following data:

Field Data

Document type AA

Posting date Today’s date

Period Current period

It is possible that the dialog box doesn’t appear. In this case the document was posted with
document type AA.

7. Select Enter.

8. Select Save.

The manual depreciation is now reversed. The asset has a value again, and another user can
practice manual depreciation.

9. Return to the SAP R/3 System screen.

Settlement from Investment Order to an Asset under Construction:
Posting Costs to an Investment Order 
Assume that the IDES group wants to have a factory building built. A master record already
exists in Asset Accounting for this object. It is an asset under construction. Costs are incurred at
regular intervals (preliminary work, first building segment, and so on).

In order to collect these costs, we created an investment order. The system settles the order
regularly to the asset under construction.

In this step, you enter costs on the investment order. In this example, we will enter an invoice
from the city for connecting the water supply.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Accounts payable.

2. On the Accounts Payable screen, select Document entry  Invoice

3. On the Enter Vendor Invoice: Header Data screen, enter the following data:

Field Data

Document date Today’s date

Document type KR

Company code 1000

Posting date Today’s date

Currency DEM

PstKey 31

Account (vendor) 1000

4. Select Enter.

5. On the Enter Vendor Invoice: Create Vendor Item screen, enter the following data:

Field Data

Amount 12,000.00 (gross amount, including sales tax)

Calculate tax X (select)

Tax code V1

PstKey 40

Account 415000

6. Select Enter.

7. On the Enter Vendor Invoice: Create G/L account item screen, enter the following data:

Field Data

Amount *

Tax code default from previous screen

Order 65000024

8. Select Enter.

In the resulting dialog box Information , the system asks for a quantity.

9. Ignore this message and select Enter.

10. On the Enter Vendor Invoice: Correct G/L account item screen, select Document overview.

11. The posting in should appear as follows on the Enter Vendor invoice: Display Overview
screen:

Credit Account 1000 (Europe) or 3000 (North America) (payables account)

Settlement from Investment Order to an Asset under Construction:

Carrying Out Settlement 
It is now the end of the period, and we have to settle the costs from the investment order to an
asset under construction.

The asset master record for the asset under construction exists already in the
IDES System. It does not have any values yet. Its number is

Field Data

Asset number 4010

Select in the SAP R/3 System screen Accounting  Capital Investment managment  Internal
orders.

On the Internal Orders screen, select Actual postings  Period-end closing  Settlement 
Individual processing.

Enter Controlling area 1000 in the dialogbox Set controlling area .

Select Continue.

On the Actual Settlement: Order screen, enter the following data:

Field Data

Order 65000024

Settlement period current month (0XX)

Fiscal year current fiscal year

Processing type 1

Test run x (mark)

Select Execute.

On the Actual Settlement: Detailed List screen, you see the values that have to be settled from
the order to the asset (FXA).

The settlement amount is a net amount, that is, without input tax.

It is possible for you to settle only a part of the balance from the order to the asset. You can
then settle the remaining amount to a cost center. You need to define distribution rules in order
to make this distribution.

However, we will use a simple example.

Return to the Actual Settlement: Order screen.

Remove the Test run indicator.

Select Execute.
The system displays the detail list of the settlement as it did for the test run. The investment
order is now actually settled to the asset under construction.

Double click on the settlement line on the Actual Settlement: Detailed List screen.

On the Actual Settlement: Receiver Debit screen, the system displays the debit to the receiver
(in this case the asset under construction). The amount is posted to cost element 811000
(capitalized activity).

Select Accounting documents.

The dialog box List of the Documents in Accounting appears.

Double click on Accounting document.

The following posting is shown on the Display Document: Overview :

Credit Account 811000 (revenue from capitalization of settled orders)

Debit Account 32000 (the asset under construction)

This shows how the system offsets the cost from external procurement (account 415000) with
the revenue from capitalization of settled orders. (The external procurement costs were posted
in the previous step when you entered the invoice.)

Return to the SAP R/3 System screen.

Settlement from Investment Order to an Asset under Construction:

Value Display for Asset under Construction  
In this process you check the values that were updated on the asset under construction in Asset
Accounting, and see the posting document in Financial Accounting.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Asset  Asset value display.

3. On the Display Asset Values: Initial Screen enter the f ollowing data:

Field Data

Company code 1000

Asset 4010

Depreciation areas 01

Fiscal year Current fiscal year

4. Select Transactions.

On the Overview of Asset Accounting Documents screen, you see a list of the transactions on the
asset. When you settled the investment order, an acquisition was posted to the asset.

5. Select FI document.

Final Settlement of Asset under Construction: Create Master Record 

Once all the costs for the asset under construction have been entered, you have to settle this
asset to a completed asset.

Let’s assume that all the costs for constructing the factory building have been entered, and that
the investment order was settled completely. At the close of the period you have to settle the
asset under construction to a completed asset.

In our example we have only posted costs for connecting the water. In reality, we would have
had many more costs on the asset under construction. However, to keep the example simple,
let’s settle the asset under construction to a completed asset even though only the first
settlement of the investment order has been posted.

Before you can carry out settlement, you have to create a master record for the completed
asset.

In this process, you create an asset master record for the factory building that was constructed.
The master record should be in asset class 1100 (Buildings).

1. Select on the Asset Accounting screen Asset  Create  Asset.

2. On the Create Asset: Initial Screen screen enter the following data:

Field Data

Asset class 1100

Company code 1000

Asset (reference) 1100

Company code (Asset) 1000

3. Select Enter.

4. On the Create Asset: Master Data screen, enter the following data:
Field Data

Description South factory building, Frankfurt

Capitalized on leave blank

5. Select Enter.

6. On the Create Asset: Master data screen select The tab page Time-dependent, enter
the following data:

Field Data

Business area 2000

Cost center 3150

Plant 1300

7. Select Save. Make a note of the asset number.

The asset does not yet have any values, and is not yet capitalized.

8. Return to the SAP R/3 System screen.

Final Settlement of the Asset under Construction: Specifying

Distribution Rules  
In this procedure, you specify how the values from the asset under construction should be
distributed to completed assets. In our example, this is very simple, since the asset under
construction is transferred completely to one completed fixed asset.

Select in the SAP R/3 System screen Accounting  Capital investment managment  Internal
orders.

On the Internal Orders screen, select Actual postings  Period-end closing  Settlement 
Capital investment order: Line items.

On the Distribute Line Items for Capital Investment Order: Inital Screen screen, enter the
following data:

Field Data

Order 65000024
Select Execute.

The list contains the line items that you posted to the investment order. In this example there is
only one line item.

Mark this line item.

On the Distribute Line Items for Capital Investment Order screen, select Edit  Final settlement
 Enter final settlement

The system displays the list for the settlement rules.

On the Maintain Settlement Rule: Overview screen, enter the following data:

Field Data

Cat FXA

Settlement receiver Your asset number

Percent 100

This means that the full amount of the expenditures posted to the asset under construction will
be settled to the completed asset.

Return to the Distribute Line Items for Capital Investment Order screen.

Select Save settlement rule.

Return to the Internal Orders screen.

Final Settlement of the Asset under Construction: Carrying Out

Settlement  
Once you have defined the distribution rule, you can carry out the settlement of the asset under
construction.

1. Select on the Internal Orders screen Actual postings  Period-end closing  Settlement 
Individual processing.

2. On the Actual Settlement: Order screen, enter the following data:

Field Data

Order number 65000024

Settlement period Current month (0XX)

Fiscal year Current fiscal year

Processing type 3

Test run x (mark)

3. Select Execute.

4. On the Actual Settlement: Detailed List screen, you see the values that should be settled from
the order to the completed fixed asset (FXA).

The settlement amount is a net amount, that is, without input tax.

It is possible for you to settle only a part of the balance from the order to the asset. You can
then settle the remaining amount to a cost center. You need to define distribution rules in order
to make this distribution.

However, we will use a simple example.

5. Return to the Actual Settlement: Order screen.

6. Remove the Test run indicator. Make sure that the processing type is 3.

7. Select Execute.

The system displays the detail list of the settlement as it did for the test run. The investment
order is now actually settled to the completed asset.

8. Double click on the settlement line on the Actual Settlement: Detailed List screen.

On the Actual Settlement: Receiver Debit screen, the system displays the debit to the receiver
(in this case the completed asset). The amount is posted to cost element 811000 (capitalized
activity).

9. Select Accounting documents.

The dialog box List of Documents in Accounting appears.

10. Double click on Accounting document.

The following posting is shown on the Display Document: Overview :

Debit Account 1000 (description 00000000XXXX, where XXXX represents the number of the
completed asset)
Credit Account 32000 (description 000000004010, where 4010 represents the numberof the
asset under construction)

This shows how the system transferred the values of the asset under construction to the
completed asset.

11. Return to the SAP R/3 System screen.

Final Settlement of the Asset under Construction: Asset

Value Display  
In this process you can verify the values updated on the asset in Asset Accounting, and also see
the Financial Accounting posting document.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Asset  Asset value display.

3. On the Display Asset Values: Initial Screen enter the following data:

Field Data

Company code 1000

Asset Your asset number

Depreciation areas 01

Fiscal year Current fiscal year

4. Select Transactions.

The list on the Overview of Asset Accounting Documents screen contains the transactions on the
asset up to this point. When the investment order was settled, an acquisition was posted to the
asset.

5. Return to the Display Asset Values: Initial Screen and select Environment  Evaluation 
Transactions  Proof of origin.

The list on the List of Origins of Asset Charges screen shows the date the asset was capitalized,
and the amount of the acquisition to the asset.

The system also displays the capitalization document. It is a settlement document.

6. Double click on the capitalization document.

On the Display Document: Overview screen, you see an overview of the Financial Accounting
document that shows the transfer from the asset under construction to the completed asset.

7. Return to the SAP R/3 System screen.

Periodic Depreciation: Carrying Out the Depreciation Run  

In this process, you run the report for periodic depreciation. When you do this, the depreciation
is posted only in Asset Accounting at first. The general ledger is updated when you carry out the
next processing step.

We have not conducted a depreciation run in 1999 so that you can carry out this step yourself.

You can only carry out this process once in each month. You can execute the depreciation run
12 times. However, if you plan to carry out this process several times, we recommend executing
the depreciation run in test mode.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Periodic processing  Depreciation run  Execute.

3. On the Depreciation Posting Run screen, enter the following data:

Field Data

Company code 1000

Fiscal year Current year

Posting period 2

Planned posting run x (select)

List assets x (select)

Test run x (select)

4. Select Execute.

5. The system informs you that the system is limited to 1000 assets online. Confirm with Yes,
since there are less than 1000 assets in our IDES company code.
If another user already carried out this process, you will receive a message telling you the next
period that can be posted. Confirm the message with Enter. Change your entry for the posting
period to that period.

6. On the Depreciation Posting Run for company code 1000 screen, the program log should tell
you that the test run was successfully completed.

The list is organized according to account groups and business areas. It displays planned
depreciation, posted depreciation and depreciation to be posted, in separate columns for each
asset.

7. Return to the Depreciation Posting Run screen.

8. Enter the same parameters as in step 3. However, remove the Test run option.

If it seems likely that other users will also want to carry out the depreciation run, we
recommend that you do not carry out a production run.

9. Select Program  Execute in background.

The dialog box Backround Print Parameters appears.

10. Enter the following data:

Field Data

Output device Your printer name

New spool request x (select)

11. Select Save.

12. If necessary, confirm the format by selecting Enter.

The dialog box Start time appears ,select Immediate and save.

The system issues a message saying that the background job was scheduled for the RABUCH00
program.

13. On the Depreciation Posting Run screen, select System  Services  Jobs  Job overview,
in order to see when your job will be finished.

14. Select Enter on the Select Background Jobs .

You receive an overview of the jobs running under your name today. Normally you will only see
the job for the depreciation run.

The status is either released, active or finished.

You can only make postings once the job is finished.

15. On the Job Overview: Alphabetic screen, select Refresh once in awhile to change the status.

The job could run for several hours, depending on how much data has to be processed, and how
busy the system is.

Therefore, you might want to interrupt the process here for awhile until the job has run.

16. Return to the SAP R/3 System screen.

Periodic Depreciation: Processing the Document Session 

After the job has been executed, depreciation is posted in Asset Accounting. In addition, the
system created a batch input session. In this process, you will process this batch input session,
thereby updating the general ledger with the data in the depreciation documents.

Select , to see further information on this process.

1. Select in the SAP R/3 System screen System  Services  Batch input  Edit.

2. On the Batch Input: Initial Screen select Overview.

Choose your batch input session, which you find under your name and the session name
RABUCH.

3. Place the cursor on your session, and select Process session.

4. The dialog box Process Session RABRUCH appears. Mark the run mode Display errors only
and the additional functions Expert mode and Dynpro standard size.

If an error occurs, the update stops where the error occurred. If this occurs, using the expert
mode will allow you to correct errors directly on the screen.

If you have not selected expert mode, you have to stop updating the batch input session when
errors appear.

5. Select Process.

The system now automatically posts collective documents to the general ledger in the
background.
6. If an error occurs, look at the status line at the bottom of the screen to see what type of error
it is.

A possible error might be: ‘Cost center 1000 / 4200 belongs to business area 3000 rather than
1000’.

This means that cost center 4200 in company code 1000 is assigned to business area 3000.
However, the posting should be made to business area 1000, according to the proposal. This is
not possible. You have to change the entry.

7. In this case, you should enter the correct key in the business area field.

8. Select Enter.

The system resumes the updating of the batch input session.

9. The system informs you when the updating of the batch input session is finished.

10. Return to the SAP R/3 Systems screen.

Demo Information - 1 
A batch input session is a collection of a series of transactions that were provided with user
data by a program.

These transactions that were provided with data are stored as a stack in a batch input session.
This session can be processed later online. The system makes changes to the database only when
the batch input session is processed. In our example, this means that the transaction figures are
updated in Financial Accounting.

This procedure makes it possible to enter large amounts of data in the SAP R/3 System in a
short amount of time.

Periodic Depreciation: Verification of Postings in the General

Ledger  
Once you have processed the batch input session, depreciation is now posted: planned
depreciation is posted to the general ledger, and cost-accounting depreciation is posted to cost
accounting. In this process, we verify which documents were updated in the general ledger.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  General ledger.

2. On the General Ledger screen, select Account  Display line items.

3. On the Display G/L Account Line Items: Initial Screen screen enter the following data:

Field Data
G/L account 211100

Company code 1000

Open items x (select)

4. Select Selection criteria....

The dialog box Selection Criteria: Field List appears.

5. Mark Document date.

6. Select Enter.

A second dialog box Select Criteria: Values appears.

7. Enter the following data:

Field Data

Document date Last day of the period in which you posted

depreciation

8. Select Enter.

You return to the Display G/L Account Line Items: Initial Screen screen.

9. Select Enter.

You see a list of the documents that were updated to the general ledger when the batch input
session was processed.

You can clearly see how important it is to process the posting session created by the
depreciation posting program. If you do not process it, you will have large differences between
the general ledger and asset accounting that will become apparent, at the latest, at your fiscal
year-end. Correcting these differences can be very time-consuming.

10. Double click on one of the documents.

You will see the depreciation line item on the Display Document: Line Item XXX screen.
11. Select Document overview.

The posting shown in the Display Document: Overview screen is:

Debit Account XXXXX (Accumulated depreciation)

Credit Account 211100 (Asset depreciation)

12. Double click on the first line item in the document.

There is an asterisk in the Asset field: depreciation was posted for all assets that belong to the
same asset class and are assigned to the same cost center and business area.

13. Return to the SAP R/3 System screen.

Periodic Depreciation: Verification in Cost Accounting  

In this process you call up a report on all cost centers for cost element 481000 (cost-accounting
depreciation) and analyze which documents were updated in cost accounting.

1. Select Accounting  Controlling  Cost centers.

2. On the Cost Center Accounting screen, select Information system  Report selection.

3. Select Line items in the application tree.

4. Mark Cost Centers: Actual Line Items and select Execute.

5. On the Display Actual Cost Line Items for Cost Centers: Initial Screen screen, enter
the following data:

Field Data

Cost center group H1

Cost element 481000

Posting date From the first to the last day of the period in
which you posted depreciation. (The date of
our example is 28.02.1998)

Display variant 1SAP

6. Select Execute.
You see the list on the Display Actual Cost Line Items for Cost Centers screen. The list is sorted
by cost centers and shows the amounts posted to cost element 481000 (cost-accounting
depreciation).

7. Double click on one of the totals records.

The system displays the line items for the selected cost group.

8. Double click on one of the line items.

You see an overview of the document that was updated in financial accounting.

The posting shown on the Display Document: Overview is as follows:

Credit 261000 Clearing of cost-accounting depreciation

Debit 481000 Cost-accounting depreciation

9. Return to the SAP R/3 System screen.

Periodic Depreciation: Verification in Asset Accounting  

In this process you verify the net book value of an asset in Asset Accounting after the
depreciation run has been executed.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Asset  Asset value display.

3. On the Display Asset Values: Initial Screen, enter the following data:

Field Data

Company code 1000

Asset 1124

Depreciation area(s) 01

Fiscal year Current fiscal year

The example asset is a factory building.

4. Select Current book values.

The table shows the acquisition value of the asset. In the field Ordinary depreciation posted it
shows the depreciation posted up to this point.

In the Posted to field (on the upper right of the screen) you see up to (and including) which
period depreciation was posted.

5. Return to the SAP R/3 System screen.

Inventory: Setting Up and Printing the Inventory List  

In this process you create an inventory list for physical inventory. The list is based on plant and
cost center. In a real-life situation practice, you would then distribute this list to the persons
who are conducting the actual physical inventory.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Info system  Report selection.

3. On the Application Tree Report Selection Assets Management screen, select the following in
the report tree: Asset portfolio  Inventory lists  Inventory list.

4. Mark.... by cost center and select Execute.

5. On the Inventory List screen, select Get variant.

The dialog box ABAP: Variant Directory of Programm AQZZ/SAPQUERY/AM01 appears.

6. Mark the variant SAP&WERK (Inventory by plant) and select Choose.

7. On the Inventory List screen, enter the following data:

Field Data

Company code 1000

Report date Dec. 31 of the current fiscal year

Depreciation area 01

8. Select Execute.

The list contains all assets that have the inventory indicator set in their master records.

The assets are sorted according to the plant and the cost center they belong to.

9. Select List  Print.

10. Enter the name of your printer in the dialog box.

Mark Print immed.

11. Select Print. Get your printout from the printer.

12. Return to the SAP R/3 System screen.

Inventory: Printing Inventory Labels with Barcodes 

After you have carried out the inventory using the inventory list, you will usually find you need
to make some adjustments. For example, an asset may belong to a different cost center, or you
may need to carry out manual depreciation due to the loss of an asset or damage to an asset.

In this example, we assume that no adjustments were necessary. Now you can proceed to label
the fixed assets with barcode labels.

1. Select in the SAP R/3 System screen Accounting ® Financial Accounting ® Fixed assets.

2. On the Asset Accounting screen, select Info system ® Report selection.

3. In the Application Tree Report Selection Assets Management screen, select the following in
the report tree: Asset portfolio ® Inventory lists ® Print barcode.

4. Mark SAP: Standard variant and select Execute.

5. On the Barcodes screen, ent er the following data:

Field Data

Company code 1000

Asset class 2000

Plant 1000

Sort version 0002

Date created leave blank

Form name for printing barcode FIAA_0003

6. Select Execute.

You receive a list of the fixed assets in the plant you selected. You see their asset number, date
they were created, and a description.

7. Select Print barcodes.

The dialog box Print appears.

8. Enter the name of your printer.

Select Print immediately.

9. Select Print preview.

The labels and their barcodes are displayed.

10. On the Print preview for.... screen, select Goto ® List display.

The system displays the content of the labels.

11. Select Print.

The labels will be printed without barcodes if your printer does not have the correct settings.
For information on setting your printer correctly for barcodes, see note 5196.

12. Return to the SAP R/3 System screen.

Fiscal Year Change 

The main purpose of the fiscal year change is a technical one. It opens a new year segment for
fixed assets. It calculates depreciation and replacement values for the new year. It carries
forward cumulative acquisition values and depreciation. Since it calculates depreciation for all
fixed assets, the program also indicates assets that could have incorrect depreciation.

Select , to see further information on this process.

1. Select in the SAP R/3 System screen Accounting  Financial accounting  Fixed assets.

2. On the Asset Accounting screen, select Periodic processing  Fiscal year change.

3. On the Asset fiscal year change screen, enter the following data:

Field Data

Company code 1000

New fiscal year next fiscal year

Test run x (select)

4. Select Execute.

You receive a message saying that a maximum of 1000 assets can be processed online. Select
Yes.

You now receive a log that contains information about the significance of the year end closing
program. Please read this information carefully.

In order to allow other users to also test this example, we recommend that you only carry out a
test run.

5. Return to the SAP R/3 System screen.

Demo Information - 2 
You should run this program close to the time of your actual fiscal year change.
For example, if your new fiscal year begins on October 1, you should run this
program approximately between September 25 and October 5. At the same time,
you should initiate the carry forward of balances for the FI general ledger
accounts

Year-End Closing 
From a technical viewpoint, the main role of the year-end closing in FI-AA is to block the values from
prior years to further depreciation calculation. From an accounting viewpoint, this function is needed in
order to guarantee that asset values that were included in the balance sheet are not subsequently
changed. Carrying out the year-end closing, therefore, is absolutely necessary for the consistence of
accounts.

Select , to see further information on this process.

Before you carry out the year-end closing, you must have already completed the following:

1. Adjustment postings related to year-end closing preparations

2. If needed, depreciation simulation and corrections to depreciation records for acquisitions in the year
being closed

3. Depreciation posting for the last period of the year being closed
4. Fiscal year change

In our example, however, you have not made any adjustment postings, and it is possible that all
depreciation was not posted up to the end of the year. The following process should therefore only to
be seen as an illustration of the year-end closing. You carry it out in test mode.

1. Select in the SAP R/3 System screen Accounting ® Financial accounting ® Fixed assets.

2. On the Asset Accounting screen, select Periodic processing ® Year-end closing ® Execute.

3. On the Year-end closing Asset Accounting screen, enter the following data:

Field Data

Company code 1000

Fiscal year 1999

Test run x (select)

4. Select Execute.

A dialog box appears. Select Yes to continue.

You receive a log for the test run. The year-end closing was not carried out. No errors were found.

In a production system, it is possible that errors might be found, for instance, because master data is not
complete, or depreciation was not completely posted. If this is the case, you have to correct these errors
before you carry out the test run again.

If you really want to close the fiscal year, you have to carry out the process without selecting test mode.
However, once you do this, it is no longer possible to post in Asset Accounting in the old fiscal year.

5. Return to the SAP R/3 System screen.

End of the process chain

Demo Information - 3 
For purposes of organization, please note that the year-end closing in Asset Accounting should always
be carried out in parallel with the year-end closing for the general ledger. You should carry out the year-
end closing for assets before you close the general ledger accounts to posting for the previous year. Just
BEFORE you run the year-end closing program, you have to run another depreciation posting run for the
last posting period in the fiscal year being closed. You might have posted transactions to the fiscal year
being closed during your preparations for closing. Running another depreciation posting run is the only
way to guarantee that the depreciation for these transactions is posted correctly to the general ledger.

Define Depreciation Areas

In this step, you define your depreciation areas. You can change the definition of depreciation areas adopted from the
standard chart of depreciation, and you can add new depreciation areas if needed.

For parallel financial reporting (that is, valuation based on different accounting principles) you can define real
depreciation areas and derived depreciation areas. The values in the derived depreciation area are calculated from
the values of two or more real areas, using a formula you define. The system does not store the values from the
derived depreciation area. Instead they are determined dynamically at the time of a request. Otherwise you can use
the same system functions for derived depreciation areas as real depreciation areas. Most important, they can be
evaluated in the same way, and posted to the general ledger (for example, for showing special reserves).

Requirements

You have added at least one chart of depreciation of your own in the Copy Reference Chart of
Depreciation/Depreciation Areas IMG activity.

Standard settings

The country-specific charts of depreciation (such as 0US for the United States, 0DE for Germany) contain standard
charts of depreciation, for example for:

 Book depreciation

 Tax depreciation

 Cost-accounting depreciation

 Special reserves

 Investment support

These standard depreciation areas provide a reference. From the point of view of SAP, this reference meets all
requirements for accounting and legal considerations. You always have to copy one of the standard depreciation
areas in order to create a new depreciation area. Therefore, you should delete standard depreciation areas only after
careful consideration. It is usually better to avoid deleting them, and instead set unneeded standard depreciation
areas to inactive in the asset class (in the Determine Depreciation Areas in the Asset Class IMG activity).

Activities

1. Check the definition of the depreciation areas that were created by reference to a standard chart of
depreciation (in the detail screen).
2. If necessary, define new depreciation areas by copying an already existing depreciation area.
 3. Specify the characteristics of your depreciation area in the detail screen:

Procedure for Setting Up Online Posting and Periodic Posting

Management of Values Group Box:

a) Specify the type of value management that is allowed for the different types of valuation (such
as, acquisition and production costs (APC), depreciation, interest).
You must allow APC and positive net book values in all areas in which you want to depreciate
capitalized asset values (the usual case). Allow negative net book values in depreciation areas that
depreciate below zero, and in areas for managing value adjustments posted on the liabilities side
(special reserves). The second of these also are not allowed to manage APC or positive net book
values.
Define Depreciation Areas Group Box:
b) Specify if the APC values/depreciation of the area should be posted (APC values:
online/periodic/direct).
The system can only automatically post asset balance sheet values from one depreciation area
online (with the exception of retirement transactions). Generally, this area is the book depreciation
area. Other areas (for special reserves or cost accounting depreciation) can be posted
automatically to the general ledger using background processing (application menu: Periodic
Processing), when the Post to G/L Account indicator is set). Depreciation can only be posted
during periodic processing.
There is also direct posting, a different approach than automatic online posting to the general
ledger. With this approach, the values are also posted relatively quickly, as with online posting. Any
documents that could not be updated in direct mode due to technical problems have to be posted
at a later date during periodic posting (in the application menu: Periodic Processing). Also keep in
mind that direct posting considerably increases the document volume as compared to periodic
posting, which creates collective documents.
You can choose either a new account set in the general ledger or a parallel general ledger as the
target for posting. If you choose a parallel general ledger, then you can post using the account set
of a different depreciation area if you enter that differenent depreciation area here. (Usually you
choose the master depreciation area here.)
In the Assign G/L Accounts IMG activity, you can enter all reconciliation accounts and offsetting
accounts for reconciliation for all depreciation areas that post to the general ledger.
Entries for Derived Depreciation Area Group Box:
c) If you need depreciation areas that derive their values from other depreciation areas, you can
define derived depreciation areas (for example, for special reserves). For this purpose, enter the
depreciation areas that are to form the basis for its values. Enter whether the values from these
areas should be included as positive or negative values in the formula. Make sure that the Real
Depreciation Area indicator is not set.
The effect of setting the Derived Depreciation Area as Real Area indicator is that APC differences
are posted in this depreciation area, rather than the special reserves procedure being used. Make
sure that, in this case, you enter the asset balance sheet accounts for the depreciation area, rather
than the special reserves accounts.
A derived depreciation area can be for reporting only (that is, its values are not posted). In this
case, you can specify that the system does not perform a value check for this derived area
(indicator: Area for reporting purposes only).
4. In the Specify area type action, check the standard classification of the depreciation areas.
The depreciation areas in the standard chart of depreciation all have a type. When you create a chart of
depreciation, the system takes over these types from the referenced standard chart of depreciation. For
example, the type of depreciation area 01 is Valuation for trade balance sheet.
The area type is especially important in the following case:
If you are also using the Investment Management (IM) component, the depreciation area with type
07 (cost accounting valuation) has special importance. At the present time, you cannot transfer
capitalization differences as nonoperating expense to this depreciation area. This limitation is
required in order to make sure that all non-capitalized debits on a capital investment measure are
accounted for in Controlling.

Procedure for Setting Up Direct Posting

To set up direct posting (single posting) in a periodically posting depreciation area, follow this procedure:
 4. Make all settings for the depreciation area as described above. In the Posting in G/L field (automatic
posting indicator), enter 2 (Area Posts APC and Depreciation on Periodic Basis) or 5 (Area Posts APC
Only).
5. Start the periodic posting run for APC values, RAPERB2000 (transaction ASKBN), in test mode for a few
posted assets. During this test run, the system performs all checks that it would also perform in update
mode or during direct posting. Analyze the log and correct any errors that occurred.
6. Once the test run was completed successfully, then activate direct posting for the depreciation area. In
the Posting in G/L field (automatic posting indicator), enter 4 (Area Posts APC Only) or 6 (Area Posts Only
APC Directly).
7. Make several test postings. If errors still occur, these are recorded in the application log. You can
navigate to these entries using transaction ARAL. In the Object field, enter FIAA and in the Subobject field
enter 006 and run the report. In the posting run for APC values, RAPERB2000, you can check in the log at
any time to see which line items were posted successfully in direct posting mode.

Notes on Deleting a Depreciation Area

You can also delete depreciation areas. The area you want to delete must meet the following requirements:

 It cannot be the master depreciation area (01).

 The area cannot be a reference area for another area (for APC values or depreciation terms).

 The area cannot be used in the calculation formula for a derived depreciation area. In this case, you need to
change the calculation formula for the derived depreciation area.

 The area cannot be defined for automatic posting of APC values to the general ledger.

 If the depreciation area is one used for investment support, then you first have to delete all investment
support keys that reference this depreciation area.

The system then deletes the selected depreciation area in the chart of depreciation and in the valuation specifications
for all affected assets and asset classes.