Step 1 Asset Class Basic Settings

1 Copy Reference Chart of Depreciation/Depreciation Areas

Copy Reference Chart of Depreciation Copied from 1IN

Chart Of Depreciation
The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The
particular country or economic region.
we must assign a chart of depreciation to each company code that is defined in Asset Accounting.
SAP provides country-specific charts of depreciation with predefined depreciation areas.
These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are theref
have to copy the reference chart of depreciation.

When you create a chart of depreciation, the system copies all of the depreciation areas in the reference chart of d
chart of depreciation.

Dep.Area
Depreciation area is basically used for different reporting requirements. as per different laws, depreciation may be

lets take an example. In India, a company needs to calculate depreciation as per Companies Act and as per Income
calculation is different in both the laws. Hence we need to paralelly calculate depreciation for both the requiremen
creating two different depreciation areas. We can maintain different settings with respect to depreciation rates,me
depreciation areas and calculate depreciation accordingly.

2 Assign Chart of Depreciation to Company Code

3 Assign Input Tax Indicator for Non-Taxable Acquisitions

4 Specify Account Determination

Acct.Det Description Didn't Copied. Just Created

Z10 Land
Z11 Building
Z12 P&M
Z13 F&F
Z14 Vehicles
Z15 AUC/CWIP

5 Create Screen Layout Rules

Select below and copy Created as

1000 Real estate Z10 Real estate (Land)
1010 Buildings Z11 Buildings
2000 General machines Z12 General machines
2100 Special machinery Z13 Special machinery
3000 Fixtures and Fittings Z14 Fixtures and Fittings
4000 Assets under construction Z15 Assets under construction

6 Define Number Range Interval

01 1000 1999
02 2000 2999
03 3000 3999
04 4000 4999
05 5000 5999
06 6000 6999

7 Define Asset Classes

X10 Land Land

X11 Building Building
X12 P&M P&M
X13 F&F F&F
X14 Vehicles Vehicles
X15 AUC/CWIPAUC/CWIP

Asset Class Acc.Det Scr.Rule No:Range Ext.Sub.Ast no Include Asset

X10 Z10 Z10 01 X
X11 Z11 Z11 02 X
X12 Z12 Z12 03 X
X13 Z13 Z13 04 X
X14 Z14 Z14 05 X
X15 Z15 Z15 06 X
Step 2 Integration with General Ledger Accounting

1 Define How Depreciation Areas Post to General Ledger

Already done in STEP 1

2 Assign G/L Accounts

Note: Dep.areas appearing based on the point no 1 in step 2.

B/S Accounts Z10 Z11

Acquistion account assignment
Acquisition:Acquis. and production costs 300002 300000
Acquisition: down payments
Contra account: Acquisition value
Down-payments clearing account
Acquisition from affiliated company
Revenue frm post-capitaliz: 200009

Retirement account assignment

Loss made on asset retirement w/o reven. 110018
Clearing acct. revenue from asset sale 200008 200008
Gain from asset sale 200007 200007
Loss from asset sale 110019 110019
Clear.revenue sale to affil.company

Revaluation acquis. and production costs 300012

Offsetting account: Revaluation APC 300015

Depreciation

Acc.dep. accnt.for ordinary depreciation 300001

Expense account for ordinary depreciat. 110004
Expense account for ord. dep. below zero 110004
Revenue from write-up on ord.deprec.

Accumulated dep. account special dep.

Expense account for special depreciation
Expense account for spec.dep.below zero
Revenue from write-up on special deprec.

Accumulated dep. account unpl. deprec.

Expense account for unplanned deprec.
P&Lact.unpl.dep.below 0 300001
Revenue from write-up on unplnd. deprec. 110004
110004
Val. adj. acct. for transfer of reserves
 Contra account for transferring reserves
Revenue from w-up transfer of reserves

Reval. accumulated ord. depreciation 300014

Offsetting accnt: Reval. ordinary deprc. 110022

Expense account for interest

Clearing interest posting
Intrst expense when book val.below zero

Note-----> If we are facing any issues in maintaing GLs at depreciation, then go to SE11 and maintain the entri

3 Specify Posting Key for Asset Posting

Just observe the posting keys and don't make any changes

4 Specify Financial Statement Version for Asset Reports

5 Specify Document Type for Posting of Depreciation

6 Specify Intervals and Posting Rules (Do the same for the remaining Dep.Areas too)
Step 3 Additional Account Assignment Objects
1 Activate Account Assignment Objects

2 Specify Account Assignment Types for Account Assignment Objects

Note In this step we need to specify which transaction types you want to allow to post for account assign
Do this setting only for Book Dep only
Didn't make any settings. Have some doubt in this step

3 Process Error Table

You only need to carry out this step if you have set the agreement indicator for account assignment objects.

Step 4 Valuation

1 OAPL Set Chart Of Depreciation

2 Specify Max. Amount for Low-Value Assets + Asset Classes (Amount Specifications (Company Code/Depreciation A
3 Specify Rounding of Net Book Value and/or Depreciation

4 Specify Changeover Amount

 Note:- System, it changes the method of calculation as soon as Net Book Value is less than the specified am

Step 5 Valuation Methods (Asset Accounting-->Depreciation-->Valuation Methods)

Calculation Methods

1 Define Base Methods

Example for Dep.After planned Life

Case (i)
Asset Value 100000
Planned useful life 5 Years
Manual Dep % 10%
Capitalisation Date 01.04.2014

Asset Planned Life

Year Dep Asset Value
2014 10000 90000 If we select Dep after planned life end as "NO", then Dep will be "0
2015 10000 80000
2016 10000 70000
2017 10000 60000
 2018 10000 50000
2019 0 50000

Year Dep Asset Value

2019 10000 40000 If we select Dep after planned life end as "YES", then Dep to be con
2020 10000 30000
2021 10000 20000
2022 10000 10000
2023 10000 0

Case (ii)
Asset Value 100000
Planned useful life 5 Years

Dep Caluculates based on 100%/

20%
useful life 5Yrs

Capitalisation Date 01.04.2014

Asset Planned Life

Year Dep Asset Value If we select Dep after planned life end is "NO", Because of Asset Va
2014 20000 80000 So that, Dep will not be calculated.
2015 20000 60000
2016 20000 40000
2017 20000 20000
2018 20000 0

2 Define Maximum Amount Methods

Maximum amount for 1999: 1000

Depreciation 1998: 800
Depreciation 1999: 300

If this indicator is set, then depreciation for 1999 (300) is not reduced, since the maximum amount for 1999 is set at 1000 and this am

If the indicator is not set, depreciation is reduced by 100, since the accumulated depreciation of 800 for 1998 plus the 300 for 1999 e
3 Define Multi-Level Methods

4 Define Declining-Balance Methods

 5 Period Control

5(i) Maintain Period Control

5 (ii)
5 (iii) Generate Period Controls

Only perform this step if you use a year-dependent fiscal year variant

5(iv) Maintain Period Control Methods (T.Code - AFAMP)

6 Maintain Depreciation Key

We can have more than one Dep.Key for one chart of depreciation.
 Cutoff Value Key.
Whatever the % you specified in the cutoff value key, it reduces from 100% and then it calculates DEP on remainin
Ex: 10% maintained in cutoff value key.
now it calculates Dep on 90% of asset.

Dep. to the day.

if we activate "Dep. to the day, then system calculates day wise depreciation. And it will ignore the period control m
Once the transactions are posted into Asset master, then, either in daywise dep or period control method not poss
method in b/w the year. If business wants to change, all existing Assets, need to convert into new Assets or create
depreciation.

Multiple Shift.
Normal shift dep% = 10%
Single Shift 10%
Double shift (Normal shift % + 50% Single shift) = 10%+5% 15%
Third shift (Normal shift % + 100% Single shift) = 10%+10% 20%

Shut-Down.
This indicator is used to stop the dep calcualtion .
case (i) Factory Shut down
In case of factory lock out, it stops the depreciation for the specific period fro the asset.
Case (ii) Rental Asset
Assume, we gave particulat Asset for rental basis for 4 months. After 4 months we will get back tha
calculate Depreciation on this Asset. to achieve this requirement, will use the shut down option.

If we select "NO", then this field is not enabled in the Asset master.

Step 6 Screen Layout

1 Define Screen Layout for Asset Master Data
it controls all the Asset master data fields except Dep Tab fields in the Asset Master.
This screen layout assignment is at Asset Class level.
The below screen layouts are already created in STEP 1. Now select the screen layout and change the required field

Field Usage
Required This field is required when creating asset Master.
Optional This field is optional field when creating asset Master.
No(Suppress) This field will be suppressed when creating asset Master.
Display This field will be Displayed when creating asset Master.
Class If we select this check box, field status control is at Asset class level. For testing, we have deflagged
and in Asset class.now refreshed the Asset class, History field vanished.
Main Number If we select this check box, when we create the sub asset for a main asset, the selected fields will b
Sub Number If this indicator is set, the screen layout rule defines the sub-number as the maintenance level for t
Copy When you create the Asset with reference to some Asset, the same values will be copied.
 2 Define Screen Layout for Asset Depreciation Areas
Select 1000, and Copy

Step 7 Determine Depreciation Areas in the Asset Class

Asset Class Dep.Key Useful Life Periods Screen Layout

X10 Z5 999 ZRAJ Land
X11 Z1 30 ZRAJ Building
X12 Z2 30 ZRAJ P&M
X13 Z3 20 ZRAJ F&F
X14 Z4 15 ZRAJ Vehicles
X15 Z5 999 ZRAJ AUC/CWIP

Step 8 Evaluation Groups

Evaluation Group is nothing but, further classification/further grouping of Assets for various reporting purpose.
Evaluation Group has two types.

8-Character Evaluation Groups

 4-Character Evaluation Groups

Evaluation Groups will be assigned to asset master.

In Asset Master, Max 5 Evaluation Groups are allowed to single asset. Out of 5, Max 4 char evaluation groups 4 and

1 Define 4-Character Evaluation Groups

Number EG 1 to 4 Description
01 10 Factory Building
01 20 Office Building

2 Define 8-Character Evaluation Groups

Number EG 8 Description
11 10 Com-l Vehicals
12 20 Non-Com Vehicals
s and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a

Accounting.
as.
depreciation, and are therefore not directly accessible in the SAP system. When creating a chart of depreciation, you

eas in the reference chart of depreciation. You have to delete any depreciation areas that you do not need in your

nt laws, depreciation may be calculated differently.

panies Act and as per Income tax Act. the basis of

ation for both the requirement. This can be done by
pect to depreciation rates,methods for different
Status of AUC History Status
No AuC X
No AuC X
No AuC X
No AuC X
No AuC X
Line Item Set X
Z12 Z13 Z14 Z15

300003 300005 300004 300006

200009 200009 200009 200009

110018 110018 110018 110018

200008 200008 200008 200008
200007 200007 200007 200007
110019 110019 110019 110019

300007 300009 300008

110015 110017 110016
110015 110017 110016

300007 300009 300008

110015 110017 110016
110015 110017 110016
o SE11 and maintain the entries. This only for training and don't do it in production
 KOSTL Activate all these
LSTAR
PS_PSP_PNR
PS_PSP_PNR2
FKBER
CAUFN

ow to post for account assignment objects.

ompany Code/Depreciation Area)-->Specify Max. Amount for Low-Value Assets + Asset Classes)
ue is less than the specified amount.

Doubt

d as "NO", then Dep will be "0" but Asset Value is 50000.

d as "YES", then Dep to be continued till Asset Value Becomes "0".

d is "NO", Because of Asset Value is "ZERO".

or 1999 is set at 1000 and this amount was not exceeded.

0 for 1998 plus the 300 for 1999 exceeds the maximum amount of 1000 that was set
 t calculates DEP on remaining.

will ignore the period control method.

riod control method not possible to change from one method to other
ert into new Assets or create the new Asset and activate Daywise

riod fro the asset.

4 months we will get back that Asset. Till we find new customer, will no
use the shut down option.
and change the required fields.

or testing, we have deflagged "History Indicator" in screen layout

d.
sset, the selected fields will be copied from main to sub asset.
s the maintenance level for the corresponding field group.
lues will be copied.
arious reporting purpose.
char evaluation groups 4 and one 8 characteristic Eval.Group
B/S GLs Dep GLs
110018 300001
110019 300007
200007 300009
200008 300008
200009 300014
300000 110004
300002 110015
300003 110017
300004 110016
300005 110022
300006
300011
300012
300015

COA GL A/c GL Description P&L A/c B/S Account Retained Earnings A/c
RJOP 110004 Depreciation-Building X R1
RJOP 110015 Depreciation-P&M X R1
RJOP 110016 Depreciation-Vehicles X R1
RJOP 110017 Depreciation-F&F X R1
RJOP 110018 Loss on scrap of asset X R1
RJOP 110019 Loss on sale of asset X R1
RJOP 110022 Revaluation Depreciation-Building X R1
RJOP 200007 Gain on sale of asset X R1
RJOP 200008 Sale of asset X R1
RJOP 200009 Revenue from post capitalization X R1
RJOP 300000 Building G/L X
RJOP 300001 Dep-reserves-building X
RJOP 300002 Land G/L X
RJOP 300003 P&M G/L X
RJOP 300004 Vehicles G/L X
RJOP 300005 F&F G/L X
RJOP 300006 AUC/CWIP G/L X
RJOP 300007 Dep-reserves-P&M X
RJOP 300008 Dep-reserves-Vehicles X
RJOP 300009 Dep-reserves-F&F X
RJOP 300011 Contra Account X
RJOP 300012 Revaluation Building GL X
RJOP 300014 RevaluationDep-reserves-building X
RJOP 300015 Revaluation Reserve Building GL X
A/c Group A/c Group Description FSG Recon A/c type Tax Curr Line Item Display
1100 OH Exp>110000to119999 G004 INR X
1100 OH Exp>110000to119999 G004 INR X
1100 OH Exp>110000to119999 G004 INR X
1100 OH Exp>110000to119999 G004 INR X
1100 OH Exp>110000to119999 G001 INR X
1100 OH Exp>110000to119999 G001 INR X
1100 OH Exp>110000to119999 G004 INR X
2000 Incomes>200000to209999 G001 * INR X
2000 Incomes>200000to209999 G052 * INR X
2000 Incomes>200000to209999 G001 * INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G006 * INR X
3000 FA>300000to309999 G007 A * INR X
3000 FA>300000to309999 G007 A INR X
3000 FA>300000to309999 G007 * INR X
Sort Key
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
002
 In case of Useful Life in Base Method
Case (i) Case (ii)
1 Asset C;lass wise - Asset Useful life
Based on the above point Dep% Cal. 20% 10%
Say ex: 20%

2 Declining At max Dep 15% At max Dep 15%

Factor 2%. And Max 15%. Min 7%
20%*2%(factor%) = 40%.
Result Now available Deps 40%
and 15%. System takes
whichever is lower. In this
case 15%
10%*2%(factor%) = 20%.
Now available Deps 20%
and 15%. System takes
whichever is lower. In this
case 15%

In case of stated% in Base Method

2 Multi level method - Say Ex: 10% 10% 20

Case (iii) Case (iv)

5% 2%

At max Dep 15% At max Dep 15% and Min 7%

5%*2%(factor%) = 10%. 2%*2%(factor%) = 4%. Now

Now available Deps 10% available Deps 4% ,Max 15%
and 15%. System takes and Min &%. In this case 7%
whichever is lower. In this
case 10%
 Period Number
Asset Value 120000 1
Dep 10% 12000 2
Permonth Dep to be posted 1000 3
4
Assume we have decided to change the Dep% from 10% t0 15% after 6 periods 5
6
New Dep is (15%) 18000 7
Permonth Dep to be posted 1500 8
9
Catch-Up 10
11
As per new Dep% (15%), Dep to 12
be posted till date for 6 periods 9000

Dep posted till now 6000

Diff amount to be posted is 3000

If we post this 3000 amount in Oct period (7th
Period, then will call it as Catch-Up Method

As per cath-up 7th period Dep is 4500 (3000+1500)

Smoothing

Dep for full year as per new %

is 18000

Dep posted till now 6000

Dep to be posted in remaining

months is 12000

Total remaining months now 6

2000
 Periods Catch-Up Smoothing
Apr 1000 1000
may 1000 1000
Jun 1000 1000
Jul 1000 1000
Aug 1000 1000
Sep 1000 1000
Oct 4500 (1500+3000) 2000
Nov 1500 2000
Dec 1500 2000
Jan 1500 2000
Feb 1500 2000
Mar 1500 2000

(3000+1500)
Case (i) Depreciation to be calculated From Next Month for Current Month Acquisitions.
In Case of Retirement, Depreciation to be calculated Till Current Period.

FV Period Controls Year Month Day Period Mid Month

10 R3 1 31 10
10 R3 2 29 11
10 R3 3 31 12
10 R3 4 30 1
10 R3 5 31 2
10 R3 6 30 3
10 R3 7 31 4
10 R3 8 31 5
10 R3 9 30 6
10 R3 10 31 7
10 R3 11 30 8
10 R3 12 31 9

Case (ii) Depreciation to be calculated from start of the Month, if Acquisition is on or before 15th of the month.
After 15th, then Depreciation to be calculated from the Next Month Onwards.

FV Period Controls Year Month Day Period Mid Month

10 R4 1 15 9
10 R4 2 15 10
10 R4 3 15 11
10 R4 4 15 0
10 R4 5 15 1
10 R4 6 15 2
10 R4 7 15 3
10 R4 8 15 4
10 R4 9 15 5
10 R4 10 15 6
10 R4 11 15 7
10 R4 12 15 8

Ex:-Sales/Retirements

Assume, if Asset sold before 15th of the Month, then Depreciation Assume, if Asset sold after 15
calculates till previous period. Example,Assume, if Asset Sold from 1st calculates till that same perio
Apr TO 15th Apr, then Depreciation to be calculated till Previous from 16th Apr, then Deprecia
period. In this case 12th period of last fiscal year. this case 1st period of same fi
Case (iii) Acquisition/Add case
Depreciation to be claculated for full year if asset purchases on or before September. And Half year incase Asset pu

FV Period Controls Year Month Day Period Mid Month

10 R5 1 31 6
10 R5 2 29 6
10 R5 3 31 6
10 R5 4 30
10 R5 5 31
10 R5 6 30
10 R5 7 31
10 R5 8 31
10 R5 9 30
10 R5 10 31 6
10 R5 11 30 6
10 R5 12 31 6

Sales/Retirement case
Depreciation to be claculated for full year if asset sale after September. And Half year incase Asset sales before sep

FV Period Controls Year Month Day Period Mid Month

10 R6 1 31 12
10 R6 2 29 12
10 R6 3 31 12
10 R6 4 30 6
10 R6 5 31 6
10 R6 6 30 6
10 R6 7 31 6
10 R6 8 31 6
10 R6 9 30 6
10 R6 10 31 12
10 R6 11 30 12
10 R6 12 31 12

Case (iv) Mid Month Convention

FV Period Controls Year Month Day Period Mid Month

10 R7 3 31 2X
10 R7 6 30 5X
10 R7 9 30 8X
10 R7 12 31 11 X
 Blank Means, Applicable for all years

This field specifies, Dep to be calculated

after the period specified in the period
column in case of Acquisitions/Add.

This field specifies, Dep to be calculated till

the period specified in the period column
in case of Sales/Retirements.

If we keep blank in the period column,

then Depreciation calculates from the
beginning of the year in case of
Acquisitions. NO Dep Calculated in case of
Retirement.
15th of the month.

Working Notes

Ex:- Acquistions/Add

Assume, if Asset Purechased from 1st Apr TO 15th

Apr, then Depreciation to be calculated from starting
of the same period i.e 1st Period.

Assume, if Asset Purechased from 16th Apr TO 30th

Apr, then Depreciation to be calculated from next
period i.e 2nd Period i.e MAY.

Assume, if Asset sold after 15th of the Month, then Depreciation

calculates till that same period. Example, Assume, if Asset Sold
from 16th Apr, then Depreciation to be calculated till April. In
this case 1st period of same fiscal year
. And Half year incase Asset purchases after september

r incase Asset sales before september

Need to try
Asset Cutover Strategy

Step 1 Date Specifications

1 Specify Transfer Date/Last Closed Fiscal Year

2 Specify Last Period Posted in Prv.System (Transf.During FY)

In this field, the system enters the period, for which depreciation was last posted. If the legacy data transfer is carried out during t

Step 2 Set Company Code Status

Status
0 We can't upload legacy data transfers. But we can post the Asset Transactions.
1 In this case, we can upload the legacy data transactions, but it is not possible to post the regular tran
2 We can upload the Asset balance as well as we can post the Asset regular transations.

Step 3 Set or Reset Reconciliation Accounts (T.Code OAMK)

When we are uploading Asset Balance along with Asset Master, then the pre-requisite is, we need to deactive A
OAMK - it is the Best/Suggestable option.
This can be done in two ways
FS00 - We can also SET/RESET the Reconcilation accounts.
Once deleted Recon Accounts from OAMK, check recon account status for Asset GLs in FS00.
Step 4 Upload the Assets along with the Asset Balances through T.Code AS91 (For Group Asset uploads T.Code is AS81

Depreciation area wise we can upload the Asset Balances

During uploading Asset Balances system it won't generate any FI entries. Just it will update to Asset Accounting
The reason is we have deactivated Asset Recon A/cs before uploading.
 This date is picking based
Click on "Takeover Values"

Go to T.Code AS03 and observe the Asset Values.

Step 5 Post Manula FI JV to update the Asset Balances to GL A/c (T.codes F-02 or OASV)

Asset takeover date.

 Initial Balance upload GL A/c

FBL3N - Check the GL Balances for the above three 3 GL accounts.

Step 6 Ensure Reconcilation b/w GL balances and Asset Balances ----> This is manual Activity

Step 7 Set or Reset Reconciliation Accounts

Step 8 Set Company Code Status as Productive

Preferably put "ZERO".

 Calender date

This is the date as of which the transferred assets are managed in SAP Asset Accounting.

This is DD/MM/YYYY

Till which period Dep posted in Non-SAP.

transfer is carried out during the fiscal year, you must update this field manually.

ble to post the regular transactions.

transations.

e is, we need to deactive Asset Reconcilation GLs.

lation accounts.
et uploads T.Code is AS81)

pdate to Asset Accounting and it won't update to GL A/c.

This date is picking based on period control.
AS01 Create Asset Master.

Case (i) Single Asset Creation

If we want to create more Assets at a time, then m

 Click on

Case (ii) Multiple Asset Creation at a time.

Maintian the other required Paramers.

Click on
Click on "Maintain" and then change the required fields.
more Assets at a time, then mention the number of Assets to be created.
1 F-90 Asset Acquisition with Vendor

Click on Enter
Click on "SAVE"
 GL picked from Account determination.

2 AS03 Display the Asset

Check Dep.Key

Check with Kishore on this

70000
 0.083333
0.166667 0.142857 0.02381
200000
4761.9

3 AW01N Display Asset Explorer

Double click
Need to explore on period co
Vendor name from whom we have purchased the Asset
 This date will be picked based on period control concept.
Period control method is assigned to "Dep.Key"

12 5833.333
0.16667
0.833333
Need to explore on period control

Explore the Depreciation calculation

1 AS03 Check the Asset Balances before we sale of the Asset using ABAON

2 ABAON Sale of the Asset w/o Customer

 Click on "Simulate"

Working Notes
Dep.Area Asset.Val.Date T.Type Amount Posted Ord.Dep
1 31.12.2016 260 200,000- 4,762
99 31.12.2016 260 200,000- 4,762

Click on "SAVE"

3 FB03 Display the document

4 AS03 Check the Asset Values
Revenue from Sale Loss NBV
100,000 95,238 195,238
100,000 95,238 195,238
1 F-92 Sale of the Asset With Customer

Click on "Enter"
Click on "Enter"

Click on "SAVE"
2
1 AS03 Check the Asset Balances before we sale of the Asset using F-92

2 F-92 Sale of the Asset With Customer

Click on "Enter"

Click on "Enter"
Auxiliary account assignment to asset not possible, remove entry

Message no. AA449

1 AS03 Before retirement of Asset, Check the Asset balances

2 ABAVN Asset Retirement by Scrapping

 Entry
Dr Loss on Scrap of Asset 292857
To Calculate Dep, System checks the
Dr Dep.Reserve 7143 period control for TILL WHICH PERIOD
Cr Asset -300000 DEPRECIATION HAS TO BE POSTED.

FB03 Check the Accounting document

3 AS03 Display the Asset Balances

Observe the deactivation button
1 ABUMN Asset Transfer with Co.Code

FB03
Check the Asset balances for the both of the Assets
P.Key GL A/c Asset# Amount
75 17443000 43000068 -100000
70 18443000 43000068 40120
70 17443000 43000071 100000
75 18443000 43000071 -40120

Entry
Cr. Sending Asset
Dr.Dep Reserve (Sending Asset's)
Dr. Receiving Asset
Cr.Dep Reserve (Receiving Asset's)
1 AS01 Create Asset Master by Selecting "post capitalisation" indicator.

Pre-Requisit is as below
At the time of Creation of the Asset
Need to Select the indicator "post capitalisation".
Capitalisation date should be entered manually.
Capitalisation date should not be Current Fiscal Year's Date.

Tried to enter current fiscal year's date. But system didn't allowed.
2 ABNAN Post Capitalisation

Example entry as below

Dr. Asset 100000

Cr. Dep.Reserve 20000
Cr. Rev.From.Post Capt 80000
 Reversal of Asset Document

AB08 Reversal of Normal Asset Document

AIST Reversal ofAUC Document

Click on Enter. Now you will see the list of documents posted against the Asset.

Click on To see each accounting document for each and every line.

Click on
Click on

Click on
Sub Asset
The purpose of Sub Asset is to track the key parts of the main asset separatly.
if busniss wants to apply different depreciation% for each sub asset wise.
if busniss wants to apply different useful life for each sub asset wise.
To maintain, different Dep.Keys, Different Useful Life of Different Depreciation% for each sub asset wise.

Ex:-
Cmputer is Main Asset.
Parts computer will be the sub assets i.e. CPU is one Sub Asset and Monitor is one Sub Asset.

1 AS01 Create Main Asset

2 AS11 Create Sub Assets for the above main Asset.

Observe that, few values are copied from the main Asset. Useful is also copied from the main
the Asset. I have changed this from 7 to 10.

Note:-
Process acquisition, retirement and sale of the assets will be the same for Main and Sub Assets too.
ach sub asset wise.

Sub Number created Automatically by the

System.
 Observe that, few values are copied from the main Asset. Useful is also copied from the main
the Asset. I have changed this from 7 to 20.

ub Assets too.
Asset Shutdown Scenario
Purpose is, To stop the Depreciation for Specific Shutdown Period
Ex
3yrs 10
8yrs 12
999yrs 15
Depreciation to the Day method
The purpose is to calculate daywise Depreciation.
If we use the "Dep To the Day", then system ignores the period control method.
We can't activate/deactivate once the Asset is Capitalised.
Activation of "Dep To the Day" is activated in Dep.Key.
It specifies that system calculates the depreciation on day basis i.e. Depreciation is calculated to the exact day.
This condition applies for all the transacions i.e. Acquisitions, Additions, Retirements & Transfers.

Note:- This indicator becomes active for the Asset, as soon as the Asset is capitalized.
Once it takes place, it is not possible to switchoff this function for the Asset even if you are changing the
On the other hand, it is not possible to activate this function for the specific Asset after the Capitalisation

Testing

1 AFAMA Create Dep.Key with activation "Dep.To.The Day" indicator.

(Maintain period control method also in the Dep.Key. Deactivated
2 AS01 Create Asset Master Activated
3 F-90 Asset Acquisition with Vendor
4 AS03 Check the Asset Values
lculated to the exact day.
& Transfers.

t even if you are changing the Dep.Key in the Asset Master.

c Asset after the Capitalisation of Asset.

Deactivated purchased now we can't activate

purchased now we can activate
Multi Shift Factors

Example:-

First Shift 10%

Second Shift 15% Meaning here is Variable Portion of Dep is 50%
Third Shift 20%

Conntrol points as below

1 Config
In the Configuration, we need to allow to activate Multi Shift Indicator.
( Multiple Shift ---> Select "Increase in Depreciation and Expired Useful Life".

2 Master Data Settings

In the Asset Master, we need to specify or activate the multi shift indicator.
Once activate the multi shift indicator for the specific Asset, then we need to specify compulsory assi
In the Asset Master, we need to specify Variable portion of Dep%. That means……………

PROCESS in SYSTEM
1 AS01 (No Change…As useual)
2 F-90 (No Change…As useual)
3 AS03 Display Asset

4 AS02 Change the Asset Master

Apply the 2nd shift indicator for for the periods NOV and DEC.
Apply the 3rd shift indicator for for the periods JAN and MAR.

Click on More Interval, Shift Factor 1.

Click on Insert Row----> From date of new Interval 01.11.2016. Shift Indicator 2.
Click on Insert Row----> From date of new Interval 01.01.2017. Shift Indicator 3.
Click on Insert Row----> From date of new Interval 01.04.2017. Shift Indicator 1.

Depreciation area TAB

Specify the Variable Portion% for each Dep Area.
Double click on Book Depreciation area, and maintain variable Dep.Portion 50. ENTER and SAVE
Click on Asset Values to View the values based shiftwise.

Variable Dep Portion

The Variable % rate determines the variable portion of periodic depreciation as below.
 TRY TO USE THE STRAIGHT LINE METHOD

to specify compulsory assign shift indicator in the Asset Master.

ans……………

n 50. ENTER and SAVE

on as below.
Calcultion methods
Maximum Amount Methods
1 AFAB Depreciation Posting Run

Planned Posting Run

This indicator needs to be selected while executing the Depreciation for the first time in the posting periods as p

Repeat Run
1 This indicator needs to be selected, when the Dep Program/run needs to be performed again after e
2 If New Asset Posted in the previous period after executuion of the planned posting run.
3 If Dep method changes are made in the Asset Master after execution of the planned Dep Run.
From the above cases, system it recalculates the Dep and it posts the Dep only incase of if

Re-Start
This option can be used only when planned Depreciation posting run is terminated due to different reasons like

Unplanned Posting Run

When defining the posting cycle for Dep Posting, we must specify a posting cycle. EX:- Monthly, Bi-Monthly, Qu
As per this setting, we need to execute the Dep Run with the option Planned Posting Run.
If we want to skip the planned cycle run, then we need to select the option unplanned posting run instead of pl
If we select the unplanned posting run, system it won't validate whether the Dep is executed or not for the prev
 Note:- 1 Unplanned Posting Entries Can't be reversed.
Note:- 2 All the Assets periodic process can be allowed to perform only through batch-job

The Depreciation Program name is RAPOST2000

2 SM37
 in the posting periods as per the Dep Cycle.

e performed again after executing the planned posting run.

d posting run.
e planned Dep Run.
ts the Dep only incase of if any changes b/w Planned Posting Run and Repeat Run.

ue to different reasons like Technical Reasons, Master data issues like no valididyt of the Cost center/Profit Center.

- Monthly, Bi-Monthly, Quarterly….etc.

d posting run instead of planned posting run.

xecuted or not for the previous period as per Dep Cycle.
1 AFAR Recalculate Depreciation
2 ASKB
3 AFAB Depreciation Run
1 AJRW Open the Asset New FY on the day 1st of year beginning
This is only the technical step.System allowed to post the Asset Transactons for both Prevoius and Current Fiscal ye
If you don't perform the FY change in the Asset Accounting, then system won't allow to post any Asset Transactions
Inorder to carryforward all assets into the new FY.

2 Ensure all the Assets Transactions Accounted/Posted.

In this case, as a consultant we will not have any control.
User has to care this step.

3 AFAB Run the Depreciation.

Ensure Dep posted or not for all the assets
We can check by running Dep with the option repeat run with Test Mode.
If any amount is showing as diffrence, then we need to perform the Dep Run once again with the repeat run option

4 ABST2 Perform the A/c Reconcilation b/w AA and Financial Accounting.

If system shows any diff b/w Financial Accounting and Asset Accounting, then we need to check and rectify the diffe

5 AJAB Close the Previous FY of the Asset.

This step needs to perform after completing the below Steps.
Depreciation Run has to complete for all the Assets, for all the periods.
All Asset Transactions have to complete.
Accounts reconcilation b/w FI and AA.
NOTE:- Sytem it won't allow to post any Asset Transactions in the previous FY after executing the T.Code AJAB.
Prevoius and Current Fiscal years.
to post any Asset Transactions in the Current FY(New FY).

ain with the repeat run option, without test mode.

d to check and rectify the differences.

r executing the T.Code AJAB.

The below steps need to be followed if any Asset Transactions to be posted in the prevoius year after closing the Asset FY.

Step 1 OAAQ For Entire Co.Code

OAAR For Specific Co.Code

Step 2 Post the required Asset Transactions in the Previous FY.

Step 3 ASKB

Step 4 AFAB Run the Dep Calculation with Repeat Run in the previous FY.

Step 5 ABST2 Execute the Account reconcilation and rectify the diff manually.

Step 6 Re-open the Asset FY using OAAQ or OAAR

after closing the Asset FY.
Asset Balance Reports AR01 TO AR29