Chart of Depreciation:-

1 Defined at the client level and is the highest entity in the Asset Accounting
2 Usually COD is defined for a country
3 Copy from SAP provided standard templates
4 Multiple company codes can use the same CoD

Depreciation Area/s:-

1 Multiple Depreciation areas can be defined under one COD

2 Each individual depreciation area represents diff valuation principle like IFRS, USGAAP, UKGAAP etc.
3 A Depreciation area may be statistical, meaning it is for reporting purpose only and does not post to GL
4 Various settings are defined at the level of depreciation area like
- APC Value
- NBV
- Special Dep/Unplanned dep etc
- Revaluation
- Transfer of Reserves etc…

Books APC Dep Ledger Dep Area

INGAAP 100 10 0L 01
IFRS 80 8 N1 20

Shortcut transaction code for Asset Accounting IMG Screen - ORFA

GL Indicators for Depreciation Area:

0 Information purpose only 01

1 Always assigned to '01 - Meaning posts in Real-time 15
2&4 Ignore 20
3 For additional Depreciation Area 16
5 For Delta Depreciation Area 21
6 For Delta Depreciation Area - Recommended

Area 01 Area 20
(1) F-90 1200 1200
(2) ABSO - -200
(3) ASKBN
AAP, UKGAAP etc.
d does not post to GL

Book 1
IFRS 3
USGAAP 3
Delta - IFRS 6
Delta - USGAAP 6

APC APC
Area 40 LL (0L) NL (N1)
- 1200 1200
- - -
-200 - -200
1200 1000
 Sub Asset
10001
10001-0 Monitor
10001-1 Key board

Liab Asset Dr. Cr.

Balance Sheet Profit & Loss A/C
F&F - 100000 Dep-1000 Dep…..Dr
Less- Dep -1000 To F&F A/c
NBV - 99000

SAP Liab Asset Dr. Cr.

Balance Sheet Profit & Loss A/C Depreciation ….Dr
Acc Dep-1000 F&F - 100000 Dep-1000 To Accumulated Depre

F-90 Asset Purchase F-02

100 Asset A/C…Dr. 70 100001 1000 Tel Exp..>Dr. 40 100002

To vendor 31 J001 1000 To Vendor A/C 31 J001

15th August 2014

Internal Order Budget Check:-

1 Statistical Internal Order with object Class - Investment created - 100319

2 Main Asset Created - 100002-0
3 Document Posted -

AUC Asset settlement to Main Asset:-

Co. Code - B900
1 AUC Asset created - 500002 0
2 Acquisition posted in AUC Asset - 100003 (Doc No.)
3 Main Asset Created - 300002
4 Document Posted - 200004
16-08-2014

Internal Order Settlement to AUC> Main Asset

Internal order Created - 100339
1
2 AUC Asset created - 500003 0
3 Main Asset - 100003-0
4 Expenses posted on IO - Document 100004
5 IO settlement to AUC - 200006
6

Budget check on Internal order after the IO is settled

Scenario 1

Create a real IO and assign a budget check

Post expenses on that IO and settle it to AUC at the end of the period for which there is no budget check
Try posting in the system to IO more than the amount that is left to see how system behaves
Scenario 2

Create a real IO and assign a budget check

Post expenses on that IO and settle it to AUC at the end of the period for which there is budget check
Try posting in the system to IO more than the amount that is left to see how system behaves
 To F&F A/c

Depreciation ….Dr P/L

To Accumulated Depreciation B/S with a recon account setting

1000
1000
o budget check

udget check
Depreciation :-
Yr 1 Yr2 Yr3
Asset Acq 10000 9000 8100
10%
Dep. 1000 900 810
WDV 9000 8100 7290
Base 10000 9000 8100

SLM 1000 1000 1000

Base 10000 10000 10000

MLM Based on Total useful Lif

Dep. Method Base Method Base Value % Rem. UL Period Control Acq Value
UL(Original UL) 0011 01 - - As per need Yr1 10000
UL (Rem. UL) 0011 24 - X As per need Yr2
Based on Remaining Use
SLM % 0014 01 5% - As per need Yr1 10000
WDV 0014 24 5% - As per need Yr2 8000

MLM MLM
Dep. Method Base Method Base Value % Rem. UL Period Control Acq Yr No. of Yrs
Ordinary 0014 01 5% - As per need 9999 999
Special 0014 01 20% - As per need 2014 1

Acq Value Dep

10000 5%

Ordinary Spl
Y1 500 2000
Y2 500 -
Y3 500 -
.. 500 -
.. -
. -
Based on Total useful Life :- SLM
Useful Life Dep Acq Value Dep % Dep
5 2000 Yr1 10000 5 500
2000 Yr2 2000
Based on Remaining Useful Life:-
5 2000
4 2000

MLM
Periods
-
-

NBV
7500
7000
6500
6000
 Requirement Gathering from client during implementation

1 Chart of Depreciation B900 Company Code - B900

- How many countries in scope

2 Depreciation Areas
- Different Valuation requirements for each country/Co. Code like Local, IFRS, Group reporting, Income Tax etc..

3 Requirement gathering for Asset configuration:-

SL. No. Asset Class Asset Classes Descrip Screen layout Account DeterminatNo. Range
1 B901 Land & Building B900 B901 01
2 B902 Furniture & Fixtures B900 B902 02
3 B903 Plant & Machinery - 5% B900 B903 03
4 B904 Plant & Machinery - 15% B900 B903 03
5 B905 AUC asset class B905 B905 05
6 B906 Low Value Asset B906 B906 06
reporting, Income Tax etc..

GLC ACC DEPRECIA GAIN ON LOSS ON

From No To No. Total Range APC GL DEP Accu TION SALE SALE
100000 200000 100000 10000000 10000500 10000700 15000001 15000000
200001 300000 99999 10000001 10000501 10000700 15000001 15000000
300001 400000 99999 10000002 10000502 10000700 15000001 15000000
300001 400000 99999 10000002 10000502 10000700 15000001 15000000
500001 600000 99999 10000003 N.A. N.A. 15000001 15000000
600001 700000 99999 10000004 10000503 10000700 15000001 15000000
 CLEARING
LOSS ON ACCOUNT - Sale DEP KEY -
SCRAP Offsetting Account Co.'s ACT
15000002 100005010
15000002 100005010
15000002 100005010
15000002 100005010
15000002 100005010
15000002 100005010