CLASS - 6

ASSETs ACCOUNTING
1. COD (Highest Node)  Assigned to Co. Code all dep. calculation are stored.
2. Configure ASSET Accounting
i. Copy a ref cod area.
ii. Assign input tax indicator for non taxable acquisition.
iii. Assign cod to company code.
iv. Specify A/C determination.
v. Define no. ranges interval.
vi. Define asset class.
vii. Define dep. areas postings to G/L.
viii. Define dep. key.

3. LEAN IMPLEMENTATION
Scaled down version of the regular FI-AA configuration in IMG, minimal
configuration required to enable asset accounting suitable for small companies where
asset catalogue is not large. You should not opt Lean Implementation if
 You Need More Than 1 Dep. Areas.
 You Need To Depreciate In Foreign Currencies As Well.
 You Have Group Assets.
 You Need To Define Your Own Dep. Keys/Transaction Keys/Reports.
 You Need A Group Consolidation.

Simple  Asset Main No.

4. Asset

Complex  Consists Of Many Sub-Assets Each Of Them Identified As

Asset. Sub Number Made Of Many Master Records.

You need to manage subsequent acquisitions repeatedly from the initial one (for
eg- your initial acquisition was a PC & you are adding a printer later ), you want to
manage various parts separately from the line of initial acquisition. you need to divide
Assets based on certain technical qualities.
In complex asset, the system enables you to evaluate the assets in such possible ways:-
i. Single sub number
ii. All sub number
iii. Select sub number

5. GROUP ASSETS - It is a normal asset except that it can have any no. of assets denoted by
Asset sub numbers. It becomes necessary when you need to carry out dep. at a group
level, for some special such as tax reporting for the legal requirements of the countries.
It needs special depreciation areas meant for group assets. You will not be able to
depreciate a group asset using normal dep. areas. You can delete a group asset only
when all the associated sub number have been marked for deletion. It is different from
complex assets.

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6. ASSET SUPER NUMBER - Used for only reporting purposes. Here, you will assign a
number of individual assets to a single asset number. you will be able to see all the
associated assets with the asset super number as a single asset.
7. DEP KEYS - The specification & parameters that the system requires to calculate
depreciation amount are entered in calculation methods. Calculation methods replace
the internal calculation key of the dep. key. Dep. keys are defaulted in asset master from
the asset class. It is defined at the cod level & are uniform across all company codes. A
dep. key can contain multiple internal calculation keys.
8. INTERNAL CALCULATION KEYS - It is a control indication within a dep. key. Together with
the dep. key these calculation keys helps in determining dep. amounts. Internal keys
contain:-
i. Dep. type (ordinary/unplanned)
ii. Dep. method (SLM or WDV)
iii. Base value iv. Rate of % for dep. calculation
v. Period control for transaction (acquisition, retirement etc
vi. Change over rules (in case of declining, double declining methods
of calculation)
vii. Treatment of dep. after useful life period.

9. Asset Class - is the main criteria of classifying assets. Every asset is assigned to only one
asset class. Asset class contains the G/L A/Cs which are defined when any asset is
procured, G/l for depreciation, scrapping etc. You have to mention the asset class in
asset master record while creating assets. Whenever any asset transaction happens the
G/L A/Cs are attached to the asset class is automatically picked up & entry is passed. It is
the link between Asset master record & relevant G/L a/cs. The a/c determination in the
asset class enables you to post the relevant G/L A/Cs.
10. Evaluation Groups - are an option for classifying assets for reports or user defined match
code (search code). You can configure 5 different evaluation groups. You can update
these evaluation groups on to the asset master records.
11. COD - contains list of country specific dep areas. It provides the rules for evaluation of
assets that are valid in a given country or economic area. It also serve as " reference
charts " from which you can create a new COD or can copy it. After copying, you may
delete the dep areas which you don’t need. Deletion must be done before creation of
assets.
12. DEP Areas - Fixed assets are valued differently for different purposes (business, legal
etc). SAP manages this different valuation by means of different areas. These are
various dep. areas such as book, cost, tax dep. etc. It is denoted by 2 digit code in the
system. It decides how & for what purpose asset is evaluated. It contains the dep. terms
that are required in the asset master record or asset class.
13. A company has its book prepared based on Jan-Dec calendar year for reporting to its
parent company. It is also required to report after to tax authorities based on April-
March. Asset can be managed in another dep. area based on different FY variant.
No, AA module can’t manage different FY variant which has different start date (Jan for
book & April for Tax) & different end date (Dec for book & March for Tax). In this case,
you need to implement special purpose ledger.
14. DEP Calculated To The Day - Switch On The Indicator "Dep. To The Day" In Dep. Key
Configuration.
15. Is it possible to ensure that no capitalization be posted in subsequent years?
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 Yes, it is set in Dep. key configuration.
16. Is Possible To Calculate Multiple Shift Depreciation? Is Any Special Configuration
Required?
Yes it is possible for all type dep. except unit of production. No special
configuration is required.

17. How do you maintain multiple shift dep. in asset master?

Following steps are needed to maintain multiple shift dep.
1). The variable dep. portion as a % rate is to be maintained in the detail screen
of the dep. area.
2). The multiple shift factor is to be maintained in Time-Dependant data in Asset
master record. This shift factor is multiplied by variable portion of ordinary dep.
Dep. Amount = Fixed Dep. + (Variable Dep. × Shift Factor)
18. Let’s say you have changed the dep. rates in one of the dep. key due to changes in legal
requirements. Does system automatically calculate the planned dep. as per the new
rate?
No, system does not automatically calculate the planned dep. after the change is
made. You need to run a program for recalculation of planned dep.
19. The Company Has Procured 10 Cans. You Want To Create Asset Master For Each Of The
Can. How Do You Create 10 Asset Masters At The Same Time?
While Creating Asset Master There Is A Field On The Initial Create Screen Called
No. Of Similar Assets. Update This Field With 10. When You Finally Save This Asset
Master You Will Get A Pop-Up Asking Whether You Want To Maintain Different Text For
These Assets. You Can Update Different Details For 10 Cans.
20. What Are The Steps To Be Taken Into A/C During A Dep. Run To Ensure That The
Integration With The G/L Works Smoothly?
For Each Dep. Area & Company Code, Specify The Following:-
1. The Frequency Of Posting Dep. (Monthly, Quarterly Etc)
2. Co A/C Assignment (Cost Centre)
3. For Each Co. Code You Must Define A Doc. Type For Automatic
Dep. Posting. This Doc. Type Require Its Own External Number
Range.
4. You Also Need To Specify The A/C For Postings (A/C Determination)
To Maintain Consistency FI-AA, You Must Process The Batch Input Session
Created By The Posting Report. If You Fail To Process The Batch Input Session, An Error
Message Will Appear In The Next Posting Run.
Dep. Run Is A Month End Process Which Is Run In Batches & Then Once The Batch
Input Is Run, The System Post Accounting Entries In Finance.
21. Capital WIP & Assets accounted in SAP
Capitals WIP is AUC in SAP and are represented by a specific Asset class, usually
dep.
not changed on capital WIP. All cost incurred on capital asset can be booked to an
internal order and through the settlement procedure can be posted onto an AUC.
Subsequently on the actual readiness of the asset for commercial production, the AUC
gets capitalized as capitalized asset. AUC - Normal asset or Asset with Line item mgt.

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 22. Asset Explorer - is a single interface transaction that helps you
to display asset value, dep.
Details

Planned Posted
23. Repeat DEP Run - Used At The End Of FY To Carry Out Posting Adjustments Or Corrections
That May Arise Due To Changes In Dep. Terms Or Manual Dep. Calculation.
24. Restart DEP Run - Is Used Only When There Has Been A Problem With The Previous Run
Resulting In The Termination Of That Run.
25. Asset Class Catalogue - Contains All The Asset Classes In An Enterprise & Is Therefore
Valid Across The Client.
26. In Loan Implementation, Asset Classes Created Automatically From The Asset G/L A/C.
Prerequisites:- i) Co. code assigned to COD
ii) Dep. areas defined
iii) G/L a/c no. not more than 8 digits
27. Asset Value Date - Start Date of Depreciation For The Asset. AVD & Posting Date Must Be
In Same Fiscal Year
28. Asset Master - Can Be Created By Copying An (AS01) Existing Asset In The Same Company
Code Or Another Company. It Can Be Created From Scratch When It Is Done For The 1st
Time.
Info:-
 Capitalization Date / Acquisition Period.
 Dep. Areas Relevant To The Asset.
 Dep. Key
 Useful Life / Expired Useful Life.
 Change Over Year, If Any.
 Scrap Value, If Any.
 Start Date Of ORD Dep.

29. Time Dependent Data in Asset Master

All Cost Accounting Assignment Related Data Such As Cost Centre, Internal Orders Or
Investment Objects Etc, Need To Be Maintained. Information Related To Asset Shut
Down &
Shift Operation. SAP Maintain All The Time Dependent Data For The Entire Life Span Of
Assets.
30. Asset Acquisition
i) Purchase, ii) In house Production / Acquisition iii) Subsequent acquisition.
31. Block Asset Master
Do not want to post any more acquisition to an existing asset, set a block
indicator in asset master usually happens in AUC Block further posting but not transfer
or retirement or dep.

32. Deletion of Asset Master - only when there are no transaction posted to it. Even deletion
is not possible in reversal.
33. Asset TT Type in FI-AA

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 TT type in FI-AA identify the nature of an asset transaction to specify what is
updated among, (a) Dep. area (b) Value Field (c) Assets a/c
100 - Asset acquisition - Purchase
110 - Asset acquisition - In house Production
200 - Asset retirement - without revenue
210 - Asset retirement - with
revenue used in Asset reports, Asset History
sheets
34. Intra Company Asset transfer between Co.Code
Intra Company Asset Transfer Within Same Co.Code.

35. Asset transfer Date - is the cut-off date for the transfer of old assets from your existing
system.
36. How do you set up Dep. areas postings to FI from FI-AA?? Define various dep. areas
Any of the scenarios
i) Post dep. through Periodic processing
ii) Post both APC & dep. through periodic processing
iii) No values are posted
You need to ensure that at least 1 dep. area is configured to post values
automatically to the FI-GL. Normally the dep. area 01 (book dep.). For the rest of dep.
areas, it may be configured that they derive their values from this area and the
difference thus calculated is automatically posted to FI-GL. May be dep. areas just for
reporting purpose and these areas need not post to the GL.

37. Year Closing in FI-AA

The year end is closed when you draw the Final balance sheet. But you need to
ensure that dep. is posted properly by checking Dep. List & Asset history sheets. Correct
the discrepancies if any in adjustment posting. You need to re-run the dep. Posting
program if you change any of the dep. values when you run the "year end closing
Program" the system ensure that the Fiscal year is completed for all the assets, dep. has
fully posted & there are no errors logged for any of the assets. If there are errors, you
need to correct the errors before rerunning the year end program. When you reach a
stage where there are no errors, the system while update the last close Fiscal year for
each of the dep. areas for each of the assets. The system while also block any further
posting in FI -AA for the closed Fiscal year. If you need to re-open the closed Fiscal year
for any adjustment and posting or otherwise ensure that you rerun the year end
program so the system blocks for the postings.
38. Periodic Processing in FI-AA:-
"Periodic Processing'' In FI AA Relates To the Tasks You Need To Carry Out At Periodic
Interval To And Post Some Transaction. The Task Includes:-Dep. Calculation and Postings
As You Are aware , SAP Allows Automatic Postings Of Values From Only One Dep. Area
(Normally 01-Book Dep.). For Dep. Areas Including the Derive Once You Need To Perform
The Task Periodically So That FI Is Updated Properly.
Planed Dep /Interest For Co Primary Cost Planning, Claiming And Posting Of
'Investment Support' (Either Individually Or Through Mass Change.
39. Transfer of Legacy Asset Data to SAP –
Preferable:-
1. Batch Data Inputs (large no. of old assets)

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2. Directly updating the SAP tables (very large no.)
3. Manual Entry (Few old assets)
You need to reconcile the data transferee. You may use Business Application Programme
Interface (BAPI) to link & process the asset info in SAP FI-AA from non SAP systems.
Transfer can be done at the end of the last closed Fiscal year or during the current Fiscal
year following the last closed Fiscal year. You will be able to transfer both master data &
ace. Code of the last closed Fiscal year. You can also transfer Asset transactions including
dep. during the current Fiscal year. G/l A/C balances of the old assets to be transferred
separately.
40. Capitalization of AUC in SAP:-
AUC is capitalized & transferred to regular assets by distribution/settlement.
While doing so, the system with the help of different TT types, segregates the
transactions relating to the current year with that of the PY. Capitalization can be :- 1.
Lump-sum Capitalization
2. Line item settlement (when capitalized using line item settlement, it is not
necessary to settle all the line items & 100% in particular line item.
In case of integration with SAP-IM (*), capital Invest can be managed as an AUC
by:
• Converting the production costs associated with an order/project.
• Settling the collected costs to an AUC.
• Capitalizing the AUC into new assets by distribution/settlement.

41. COD
Screen Layout A/C Determination
1 Which Field are Required, Optional, The Recon. A/C is the GL a/c as
Suppressed. well as their offsetting accounts
while transaction posted.
2 The Maintenance Level in Asset
Hierarchy
3 Which Field are Copied when creating an One Account Determination can
asset using another Asset Master Records be assigned to multiple Asset
as Ref. Class while the condition is it
must be posted in same GL and
Chart of Accounts.
42. Low Value Asset
Low Value Asset is a term which denotes the assets that will be depreciated in
the yr of purchase or in the period of acquisition. The categorization follows the
statutory requirements of country of the company code, wherein you define a monetary
limit & consider those asset filling below the value (say $ 1000) as Low value assets. You
have the flexibility of managing these assets either on as individual check basis or
collective basis (quality check).SAP uses a special dep. key LVA & the expected useful life
of such an asset is considered to be period (month)

APC (Aquisition & Production Costs)

Acquisition means any asset, which you purchase/acquire externally. It includes
Invoice price & other related expenses like customers, freight needed for the
capitalization of asset. Production means created internally. It’s AUC.

OADB – Dep. Area 01 APC activated

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 AUC :- 1. Define AUC – OAOA  Status of AUC Line Item Settlement
Assign A/C Determination & No. Range To The Asset Class.
2. Assign G/L  AO90
3. Define Asset Master AS01
4. Post Transaction
5. Define Dist. Rule A1ab - Where You Define Other Real Asset Or Receiver In
Settlement Profile.
6. Do The AUC Settlement AIBU

43. What is period control?

Determining depreciation start and end date for asset transaction. You can set a
appropriate period control in period control method in 4 category. Actuation,
Subsequent Actuation, Retirement and Transfer posting.