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INDEX
S No Particulars Page no
1 Introduction to asset accounting 3
2 Chart of Depreciation 6
3 Assign Chart of Depreciation to Company Code 12
4 Specify Account Determination 14
5 Create Screen Layout Rules 16
6 Maintain asset number ranges 18
7 Define Asset Classes 21
8 Determine Depreciation area in the Asset Class 23
9 Assignment of General Ledger Accounts 26
10 Asset Accounting Integration with General Ledger Accounting (FI-AA) 30
11 Define Screen Layout for Asset master data 38
12 Define Screen Layout for Asset Depreciation Areas 41
13 Maintain Depreciation key 44
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14 Summary table of Asset Accounting 49

 Introduction to asset
accounting
Asset Accounting (FI-AA) is a sub-module of SAP Financial Accounting (FI) that focuses on managing an
organization’s fixed assets. It helps in tracking the complete lifecycle of assets, from acquisition to
retirement, ensuring proper financial reporting and compliance with statutory regulations.

Asset Accounting is used to record and monitor fixed assets such as:
• Buildings
• Machinery
• Vehicles
• Office equipment
It ensures that assets are accounted for accurately and their values are updated in the financial statements
over time through processes like depreciation, revaluation, and write-offs.

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 Basic Features

1.Asset Master Data:

Each fixed asset has a master record containing essential information like asset category, acquisition
cost, useful life, and depreciation methods.
2.Asset Classification:
Assets are categorized into asset classes (e.g., machinery, buildings) for better management.
3.Depreciation Management:
Calculates periodic depreciation automatically based on asset type and accounting rules.
4.Transaction Handling:
Handles various asset-related transactions, such as:
1. Asset acquisitions
2. Transfers
3. Retirements or disposals
5.Real-time Integration:
All asset-related transactions are directly reflected in the General Ledger, ensuring real-time financial
reporting.

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 • Ensures proper
tracking and valuation
of fixed assets.

Importance of • Facilitates compliance

Asset
Supports accurate
with legal and
financial reporting
accounting standards.

Accounting

• Enhances decision-
making by providing
transparency in asset
management.

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 Chart of Depreciation
The Chart of Depreciation is a framework in SAP Asset Accounting that defines the rules and
guidelines for calculating depreciation on fixed assets. It is country-specific and ensures compliance
with the legal and financial reporting requirements of the country where the organization operates.
Key Features of the Chart of Depreciation
1. Country-Specific Configuration: The Chart of Depreciation is tailored to meet local accounting
regulations and tax laws (e.g., IFRS, GAAP).
2. Depreciation Areas: It contains multiple Depreciation Areas, which represent different purposes
for asset valuation, such as:
• Book depreciation (for financial reporting)
• Tax depreciation (for tax compliance)
• Cost-based depreciation (for internal reporting)
3. Assignment to Company Codes: Each company code is assigned to a specific Chart of
Depreciation based on its country of operation.
4. Depreciation Keys: The Chart of Depreciation includes Depreciation Keys that determine how
depreciation is calculated (e.g., straight-line, declining balance).
5. Valuation Rules: It defines rules for valuation, including revaluation, impairments, and
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 Components of the Chart of Depreciation

1.Depreciation Areas:
Depreciation Areas represent different accounting principles. Examples:
1. 01: Book Depreciation (local legal requirements)
2. 10: Tax Depreciation
3. 30: IFRS Depreciation (parallel valuation)
2.Depreciation Keys:
Predefined methods of calculating depreciation for each Depreciation Area. For example:
1. STRA: Straight-line depreciation
2. DB: Declining balance depreciation
3. USL: Unit-of-production method
3.Account Determination:
Specifies the General Ledger accounts where asset postings are recorded (e.g., acquisition cost,
accumulated depreciation, depreciation expense).
4.Useful Life and Indexing:
The useful life of an asset and indexing for inflation are configured to ensure accurate
depreciation.
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 IMG menu path:– SPRO> Financial accounting> Asset Accounting
> Organizational structures> Copy reference Chart of Depreciation
/Depreciation area

Transaction Code :- EC08 EC08

Steps to Configure Chart of Depreciation/Define Depreciation Areas

Step 1 :- Double click on copy reference Chart of Depreciation

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 Step 2 :- From the menu select organizational object ( Copy org. object (F6) and update the
following and enter.
From Chart of Depreciation :Select ORM (Maximum valuation: Germany)
To chart of Depreciation : ADAR
After copying you will get a message chart of
depreciation ORM copy to ADAR and press enter

Step 3 :- Select back arrow and double click on specify depreciation of Chart of Depreciation.

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 Select position button and give the Chart of Depreciation ADAR, press enter

Change the description to Chart of Depreciation for ADAR and click on save icon.

Step 4 :- Select back arrow and double click Copy /Delete Depreciation areas.Give the Chart of
Depreciation ADAR and enter

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Here we delete the unwanted depreciation area which were copied from the reference chart of
depreciation, Delete depreciation area other than 01 (Book Depreciation) . From the menu Edit >
Delete (Shift + F2 ). Press enter continuously and save.

Save the
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configuration .
 Assign Chart of Depreciation
to Company Code
Once we have created the Chart of Depreciation, the next step is to assign it to a Company Code in
SAP. Below is a detailed guide on how to perform this assignment.

IMG Menu Path :- SPRO > IMG > Financial accounting > Asset
Accounting > Organizational structures > Assign chart of depreciation to
company code
Transaction Code :- OAOB

OAOB

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 Steps to Configure Chart of Depreciation/Define Depreciation Areas

Step 1 :- Select Position and update company code. For company code AD06 update Chart of
Depreciation ADAR.

Save the
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 Specify Account Determination
Account Determination in SAP Asset Accounting (FI-AA) links asset transactions (like acquisitions,
retirements, and depreciation) to the appropriate General Ledger (G/L) accounts. This ensures proper
posting and financial reporting in the General Ledger.
Account determination is assigned at the Asset Class level and helps automate postings by mapping
asset-related activities to predefined accounts.

IMG Menu Path :- Implementation Guide for Customizing (IMG) >

Financial Accounting > Asset Accounting > Organizational Structures > Asset
Classes -> specify Account Determination
Steps to Specify Account Determination

Step 1 :- Below Image show the FI-AA account

determination screen, Click the new entries icon
located at the upper left-hand corner.

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Step 2 :- Update the Account Determination rule and name of the account determination rule
fields. Click on save icon to save the data.

Save the
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configuration .
 Create Screen Layout Rules
Screen layout rules in SAP Asset Accounting (FI-AA) determine the fields displayed and their status
(required, optional, or hidden) when maintaining Asset Master Records. These rules are linked to Asset
Classes and ensure that only relevant fields are displayed based on the asset type.

IMG Menu path :- Implementation Guide > Financial accounting >Asset

Accounting > Organizational Structures > Asset Classes > Create Screen
Layout Rules
Steps to Create Screen Layout Rules
Step 1 :- Follow the IMG menu Path and select Create Screen Layout Rules Next screen select
screen layout that you want to copy and select copy as icon

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Step 2 :- Next Change screen update field screen and name of screen layout rule and press enter
Click on Save icon to save the data.

Save the
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configuration .
 Maintain asset number
In SAP Asset Accounting, Asset Numberranges
Ranges define the format and range of numbers assigned to
assets. Number ranges are associated with Asset Classes and can be internal (automatically generated)
or external (manually assigned by the user).

IMG Menu path : IMG –> Financial Accounting –> Asset Accounting –>
Organisational Structure –> Asset Classes–> Define Number range Interval

Transaction Code : – AS08

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 Steps to Maintain Asset Number Ranges
Step 1 : –Enter Company code and click on change interval.
Step 2 : – In next screen, select insert interval (Shift+F1)
Update the following data
1. Enter the number to identity the number ranges
2. Update the starting number of asset number
3. Update the end number of asset number range
4. By default, the current number will be “0”.
5. Select Ext option if you want this number range for
external assignment.

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After updating all the required data, choose save icon and again choose save icon to save the data. you
have successfully maintained asset number ranges.

Save the
configuration .

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 Define Asset
Classes
Asset Classes are fundamental in SAP Asset Accounting (FI-AA) as they categorize fixed assets
based on their type and usage (e.g., machinery, buildings, vehicles). Each asset class controls the
behavior of assets, such as accounting rules, depreciation methods, screen layout, and number
ranges.

SAP Menu Path :- IMG >> Financial Accounting >> Asset Accounting >>
Organisational Structure >> Asset Classes > Define Asset Classes
Transaction Code : – OAOA
Steps to Define Asset Classes
Step 1 : –Select “New Entries” button

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Step 2 : – Update the following information
1. Asset class : – Enter the Asset class
2. Short text : – Enter description and short test
3. Asset type : – Enter Account determination, screen layout rule.
4. Number assignment : -Enter the number range no for asset classes
5. Select include asset under inventory data.
6. Select No AUC (Asset under construction) or summary management of AUC

Save the
configuration.

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 Determine Depreciation area in
the Asset Class
Depreciation Areas in SAP are used to calculate depreciation based on different purposes, such as financial
reporting, tax reporting, or internal management. When you define depreciation areas in an asset class, you
determine how depreciation is calculated and posted for assets belonging to that class.

IMG Menu Path : IMG –> Financial Accounting –> Asset Accounting–>
Valuation –> Determine Depreciation areas in the Asset Class

Transaction code : – OAYZ

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 Steps to Determine Depreciation In The Asset Class

Step 1 : –Give the chart of depreciation To find existing asset class select position button
and update asset class Select Asset class and double click depreciation areas folder.

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Step 2 :- Deselect deactivation check for area 01 Book Depreciation, select 2000
(depreciation on asset sub-no level) in layout.
Step 3 :- Click on save icon to save the data. You have successfully determined depreciation
area in the asset class.

Save the configuration.

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 Assignment of General Ledger
Accounts
The assignment of General Ledger (G/L) accounts in SAP Asset Accounting ensures that asset-related
transactions (e.g., acquisition, depreciation, and retirement) are posted to the correct G/L accounts. This is
controlled via the Account Determination key assigned to the Asset Class.

Purpose of G/L Account Assignment

• To map specific Asset Accounting transactions (e.g., acquisitions, depreciation, retirements) to the
correct G/L accounts in Financial Accounting.
• To enable seamless integration between Asset Accounting and Financial Accounting.
• To ensure compliance with accounting standards and financial reporting requirements.

IMG Menu Path :Financial Accounting → Asset Accounting

→ Integration with General Ledger Accounting → Assign
Accounts.
Transaction code : – AO90
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 Steps to Assign G/L Accounts
Step 1 : – Access the Configuration Screen. In this configuration, you will define accounts for specific
Account Determination Keys.

AO90

.Step 2:-Assign Accounts to Account Determination Keys

The Account Determination Key groups assets based on how they should post to the G/L (e.g.,
machinery, vehicles). Each key is linked to a set of G/L accounts for different types of transactions.
Steps:
•Choose an Account Determination Key (e.g., MACH for machinery).
•For each Transaction Type (e.g., acquisitions, depreciation), assign the corresponding G/L account.
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 Example of Common G/L Accounts for Asset
Transactions:
Transaction Type Account Category G/L Account Description
Asset Acquisition Fixed Asset Account
Asset Acquisition 120000
Account (Balance Sheet)
Depreciation Depreciation Depreciation
400000
Expense Expense Account Expense (P&L)
Accumulated
Accumulated Accumulated
130000 Depreciation
Depreciation Depreciation
(Balance Sheet)
Retirement Asset Retirement Gain/Loss on Asset
510000
(Gain/Loss) Account Disposal (P&L)

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 Step 3: Configure G/L Accounts for Depreciation Areas
•Assign the accounts for Depreciation Areas (e.g., book depreciation, tax depreciation).
•Define which depreciation area posts to which G/L account:
• Real-Time Postings: Depreciation is posted immediately to the G/L.
• Periodic Postings: Depreciation is updated in the G/L only during a depreciation run.
Step-4: Save and Transport Configuration
•After completing the assignment, click Save.
•Assign the changes to a transport request for consistency across the system landscape.

Save the configuration.

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 Asset Accounting Integration with
General Ledger Accounting (FI –
AA)as acquisitions, transfers, depreciation, and
Asset Accounting (FI-AA) in SAP is tightly integrated with Financial Accounting (FI). This integration
ensures that all transactions related to fixed assets—such
retirements—are accurately posted in the General Ledger (G/L) in real-time or through periodic postings.
This linkage is crucial for generating consistent and compliant financial statements.

Purpose of Integration
• To align fixed asset accounting (FI-AA) with the overall financial accounting process (FI).
• To ensure asset-related transactions automatically update the G/L without manual intervention.
• To facilitate accurate financial reporting for both internal and external stakeholders
Key Components of Integration
1. Account Determination
• Definition: Maps asset transactions to specific G/L accounts.
• Purpose: Ensures that each transaction type (e.g., acquisition, depreciation, sale) is posted to the
correct accounts in the G/L.
• Configuration: Each Asset Class is linked to an Account Determination Key, which specifies the
relevant G/L accounts.
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2. Depreciation Areas
• Definition: Represents different purposes for which depreciation is
calculated (e.g., book depreciation, tax depreciation).
• Integration: You can define which depreciation areas post to the G/L and
whether the posting happens in real-time or periodically.
3. Real-Time Posting
• Asset-related transactions, such as acquisitions or retirements,
automatically generate G/L entries at the time of posting.
4. Periodic Posting
• For depreciation, the amounts calculated in Asset Accounting are posted
to the G/L periodically (e.g., monthly) using the Depreciation Run (AFAB).
5. Reconciliation
• Ensures that the Asset Accounting Subledger is always reconciled with
the General Ledger.
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 Steps for Asset Accounting Integration with General
Ledger Accounting (FI – AA)
Step 1:- Define how depreciation areas post to general ledger Access the transaction using the following
navigation options.
SAP IMG Path: – SPRO>IMG(F5) >Financial accounting >asset
accounting>integration with the general ledger accounting>define how
depreciation areas post to general ledger
Enter chart of depreciation key and press enter

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 Step 2: – Specify Posting Key for Asset Posting 309 In this step we define posting keys for
automatic posting when postings are done for fixed asset accounts.
SAP IMG Path: – SPRO > IMG > Financial accounting > Asset Accounting
> Integration with General Ledger Accounting > Specify Posting Key for
Asset Posting
Transaction Code: – OBYD OBYD

Assign posting keys by selecting transaction (note: posting keys are independent of chart of accounts
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(COA).)
Step 3: – Change the Field Status Variant of the Asset G/L Accounts
SAP IMG PATH:- SPRO > IMG > Financial accounting > Asset
Accounting > Integration with General Ledger Accounting > Change the
Field Status Variant of the Asset G/L Accounts.

By selecting “define field status variants” we can control which fields are contained in the entry
screens of posting transaction, which fields are required , optional, suppress entry fields.
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Step 4: – Specify Financial Statement Version for Asset Reports In this configuration step we
specify which financial statement version is to use as a default per depreciation area.
SAP IMG PATH:- SPRO > IMG > Financial accounting > Asset
Accounting > Integration with General Ledger Accounting > Specify
Financial Statement Version for Asset Reports
Transaction Code: – OAYN
Select company code and double click on “Assign financial statement version”

Assign financial statement version for depreciation areas. we can assign different financial
statementBYversion
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for depreciation areas.
 Step 5: – Specify Document Type for Posting of Depreciation.
SAP IMG PATH :- SPRO > IMG > Financial accounting > Asset
Accounting > Integration with General Ledger Accounting > Post
Depreciation to the General Ledger > Specify Document Type for Posting of
Depreciation.

Step 6: – Document Type for Cross-Company Code Cost Accounting in External CoCode
SAP IMG PATH :- SPRO > IMG > Financial accounting > Asset
Accounting > Integration with General Ledger Accounting > Post
Depreciation to the General Ledger > Document Type for Cross-
Company Code Cost Accounting in External CoCode.

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 Step 7: – Specify intervals and posting rules: In this step we define how often depreciation is
posted i.e monthly, bi-monthly, quarterly, semi-annual or annual postings.
SAP IMG PATH: - SPRO > IMG > Financial accounting > Asset
Accounting > Integration with General Ledger Accounting > Post
Depreciation to the General Ledger > Specify intervals and posting rules.
Select company code and double click on “posting rule”

Select appropriate period as per your business requirements. Choose save button to the configured data.
Successfully asset accounting is integrated with General ledger (GL).
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 Define Screen Layout for
Asset master data
The Screen Layout for Asset Master Data in SAP controls how fields appear (mandatory, optional,
suppressed, or display-only) when maintaining asset master data. This configuration allows companies to
tailor the input fields based on business needs for specific asset classes or groups.
Purpose of Screen Layout
• Flexibility: Customize fields to align with business requirements for different types of assets.
• Data Accuracy: Ensure critical fields are mandatory to avoid incomplete or incorrect data.
• Simplicity: Suppress irrelevant fields to simplify data entry
Key Components of Screen Layout
1.Screen Layout Rule:
• A set of rules controlling the field properties.
• Linked to the Asset Class.
2.Field Status:
• Mandatory: Field must be filled before saving.
• Optional: Field is available but not required.
• Suppressed: Field is hidden and cannot be accessed.
• Display: Field is visible but cannot be edited.
3.Field Groups : Logical grouping of related fields (e.g., Asset Description, Time-
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Dependent Data, Depreciation Terms).

 SAP IMG Path: – SPRO > IMG > Financial accounting (new) > Asset
Accounting > Master Data > Screen Layout > Define Screen Layout for
Asset Master Data.
Steps for Define Screen Layout For Asset Master Data
Step-1: Select “Define Screen Layout for Asset Master Data”.
Step-2: Select “layout” and double click on “logical field groups”

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 Step-3: Select “general data” and click on “field group rules”
Step-4: On the change view “field group rules”: overview screen, you can maintain which field is
required, optional, display and suppressed entry .

Save the
configuration.
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 Define Screen Layout for Asset
Depreciation Areas
The Screen Layout for Asset Depreciation Areas in SAP controls how fields related to depreciation areas
are displayed when maintaining asset master data. It allows companies to define the behavior of
depreciation-related fields (mandatory, optional, display-only, or suppressed) for different depreciation
areas.

Purpose of Screen Layout for Depreciation Areas

• Customization: Tailor depreciation fields to meet specific business and regulatory requirements.
• Data Accuracy: Ensure critical depreciation-related data is captured correctly.
• Simplification: Suppress or hide irrelevant fields to streamline data entry.

SAP IMG Path: – SPRO > IMG > Financial accounting (new) > Asset
Accounting > Master Data > Screen Layout > Define Screen Layout for Asset
Depreciation Areas
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 AO21
Transaction Code: – AO21

Steps for Define Screen Layout For Asset Depreciation Area

Step-1: Select “Screen layout” and double click on “Field group rules”

Step-2: On the change view “screen layout for”: overview, you can maintain which field is
required, optional, display and suppressed entry .
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 Save the configuration.
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 Maintain Depreciation key
The Depreciation Key in SAP is a critical component of Asset Accounting that defines how depreciation is
calculated for a particular asset or asset class. It specifies the method, rates, period control, and other
parameters for calculating depreciation.
Purpose of a Depreciation Key
• Standardization: Ensures consistent depreciation calculation across assets.
• Flexibility: Allows customization for different types of assets and accounting standards (e.g., book
depreciation, tax depreciation).
• Compliance: Aligns depreciation methods with legal and company-specific requirements.
Key Elements of a Depreciation Key
• Base Method: Defines the general rules for calculating depreciation (e.g., straight-line, declining
balance).
• Multi-Level Methods: Specifies different rates or calculations for certain time periods or
conditions.
• Period Control: Determines how depreciation is calculated based on asset acquisition or
retirement dates.
• Indexing: Adjusts
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 SAP IMG Path: – SPRO > IMG > Financial accounting (new) > Asset
Accounting > Depreciation > Valuation Methods > Depreciation Key >
Maintain depreciation key.

Steps To Maintain Depreciation Key

Step-1: Enter chart of depreciation key and press enter to continue.

It is sufficient to use the system defined keys for all business purpose, click on new entries to define
new keys as per business requirements.
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Step-2: On the “new entries: details of added entries screen, enter new depreciation key and its
description..

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Step-3: Click the assignment of calculation procedure and enter the following information.

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Step-3: Choose save button to save the configured depreciation key.
Go back and click on activate key to activate depreciation key.

Save the configuration.

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 Summary table of aSSET
ACCOUNTING
S . No Particulars Transaction Code Menu Path

SPRO > Financial

Accounting > Asset
Accounting >
1 Chart of Depreciation EC08 Organizational Structures
> Copy Reference Chart
of Depreciation /
Depreciation Area

SPRO > IMG > Financial

Accounting > Asset
Assign Chart of Accounting >
2 Depreciation to Company OAOB Organizational Structures
Code > Assign Chart of
Depreciation to Company
Code
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S . No Particulars Transaction Code Menu Path
SPRO > Financial
Accounting > Asset
Accounting >
Specify Account
3 - Organizational Structures
Determination
> Asset Classes >
Specify Account
Determination

SPRO > Financial

Accounting > Asset
Create Screen Layout Accounting >
4 -
Rules Organizational Structures
> Asset Classes > Create
Screen Layout Rules

SPRO > Financial

Accounting > Asset
Maintain Asset Number Accounting >
5 AS08
Ranges Organizational Structures
> Asset Classes > Define
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S . No Particulars Transaction Code Menu Path
SPRO > Financial
Accounting > Asset
Accounting >
6 Define Asset Classes OAOA
Organizational Structures
> Asset Classes > Define
Asset Classes

SPRO > Financial

Accounting > Asset
Determine Depreciation
7 OAYZ Accounting > Valuation >
Areas in Asset Class
Determine Depreciation
Areas in the Asset Class
SPRO > Financial
Accounting > Asset
Assign General Ledger Accounting > Integration
8 AO90
Accounts with General Ledger
Accounting > Assign
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Accounts
S . No Particulars Transaction Code Menu Path
SPRO > IMG > Financial
Accounting > Asset
Screen Layout for Asset Accounting > Master
9 -
Master Data Data > Screen Layout >
Define Screen Layout for
Asset Master Data

SPRO > IMG > Financial

Accounting > Asset
Screen Layout for Accounting > Master
10 AO21
Depreciation Areas Data > Screen Layout >
Define Screen Layout for
Asset Depreciation Areas

SPRO > IMG > Financial

Accounting > Asset
Accounting >
Maintain Depreciation
11 - Depreciation > Valuation
Key
Methods > Depreciation
Key > Maintain
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Depreciation Key
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