FI Asset Accounting

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Fixed Assets
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Asset Accounting

• AA Overview
• Asset Accounting as a Sub-ledger
• Asset Class
• Chart of Depreciation
• Master Data
• Create/Change Asset Master Record
• Acquisitions
• Settlement of an Asset Under Construction (AUC)
• Retirement
• Depreciation

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Asset Accounting

• Transfers
• Period / Year End Closing
• Reporting

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Overview Asset Accounting as a Sub-Ledger
Asset Accounting is a subsidiary ledger of
Financial Accounting. The appropriate General
Ledger accounts are updated each time you post.

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Overview Asset Classes

• The asset class is used to
• sub-classify the General ledger accounts and
• group master records by specific criteria.

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Asset Class
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Asset Classes

• Asset Classes Configured
• 910000 Land
• 910001 Building
• 910002 Plant and Machinery
• 910003 Vehicles
• 910004 Asset under construction

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Functions of the Asset Class
Assets
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Functions of the Asset Class

• The asset class contains default values and
  control elements which are passed on to the
  individual assets when you open a new asset
  master record.
• By entering useful default values, you reduce
  time and effort needed for creating new asset
  master records. You also ensure that the records
  in a given class are handled uniformly.
• The asset class is the most important criteria
  for structuring fixed assets from an accounting
  point of view. Every asset has to be assigned to
  exactly one asset class. The asset class is used
  to assign the assets (and their business
  transactions) to the correct general ledger
  accounts. The most important tasks of the asset
  classes are
• The assignment of default values when creating
  assets (particularly depreciation terms)
• The grouping of assets for reporting purposes

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Definition of the Asset Classes
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Asset Classes in the Chart of Depreciation
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Points from the Asset Class / Depn Slide

• The Chart of Depreciation is assigned to company
  code, therefore a class may have multiple Charts
  of Depreciation relevant to it.
• The asset classes are valid across company codes.
  The catalog of asset classes, therefore, applies
  uniformly to all company codes. This is true,
  even if the company codes use different charts of
  depreciation, and therefore different
  depreciation areas
• You can assign different charts of depreciation
  to an asset class, so that all assets in this
  class will be treated differently in each
  country.

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Special Asset Class AuC
Transaction type groups
Class Assets u. const.
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Down payment
Extras
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Down payment carried forward from previous years

• AuC managed as total
• line item settlement
• capital investment measure

AuC status
depreciation areas
deprec.key
depreciation is not calculated in depreciation
areas intended for the balance sheet
Book dep.
0000
Tax dep.
0000
Cost-acc.
LINA
negative values allowed
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AUC without line item settlement

• Assets under construction in this asset class are
  managed without the option of line-item final
  settlement to receiver assets or cost centers. As
  a result
• Only complete transfers or simple partial
  transfers are possible (in other words, you can
  only transfer either prior-year acquisitions or
  current-year acquisitions in one given posting
  transaction).
• You can only transfer to one target asset per
  posting transaction. You have to enter the amount
  of the transfer manually.
• There is no connection to the original asset
  under construction in the capitalized asset.
  Therefore, there is no exact proof of origin for
  the original postings.

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Assets under Construction with Line item
settlement

• Assets under construction in this asset class are
  managed with the option for final line item
  settlement to receiving assets or cost centers.
  As a result
• On the capitalized asset, you can then see the
  relationship between the capitalized asset and
  original postings to the asset under construction
  - you can accurately identify the origin of the
  postings.
• AUCs can be settled to multiple final assets /
  asset classes

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Assets under Construction from Investment measure

• Assets under construction in this asset class to
  be created solely for capital investment measures
  (internal orders or projects).
• The assets in this class can not then be directly
  created and posted in Asset Accounting. The
  assets can only be processed by means of an order
  or WBS element, to which they are assigned.

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AUC Asset Class Points from previous slide

• Assets under construction require their own asset
  class.
• Choosing the depreciation key 0000 ensures that
  depreciation is not calculated for the asset
  under construction in depreciation areas that are
  posted to the balance sheet.
• Assets under construction have to be shown
  separately in the balance sheet.
• The component IM (Investment Management) is
  available for managing more extensive asset
  investments from a controlling-oriented
  perspective.
• There are three asset classes for Assets Under
  Construction configured. These are
• Asset under Construction
• Asset under Construction with Line item
  settlement
• Asset under Construction from Investment measure

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AUC Asset Class Points from previous slide

• Assets under construction require their own asset
  class.
• Choosing the depreciation key 0000 ensures that
  depreciation is not calculated for the asset
  under construction in depreciation areas that are
  posted to the balance sheet.
• Assets under construction have to be shown
  separately in the balance sheet.
• The component IM (Investment Management) is
  available for managing more extensive asset
  investments from a controlling-oriented
  perspective.
• There are three asset classes for Assets Under
  Construction configured. These are
• Asset under Construction
• Asset under Construction with Line item
  settlement
• Asset under Construction from Investment measure

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Overview Depreciation Areas

• You will generally need values for fixed assets
  for various business and legal purposes (for
  example, for book depreciation, cost-accounting
  depreciation and so on). In the R/3 FI-AA
  system, it is therefore possible to manage values
  in parallel in as many depreciation areas as you
  want.

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The Chart of Depreciation
Chart of depreciation
Depreciation area 01
Book deprec.
Depreciation area 02
Tax deprec.
Depreciation area 03
Special reserves
Depreciation area 20
Cost-acc. deprec.
Depreciation area 30
Group deprec.
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Depreciation Charts/Areas in A Ltd.

• Depreciation Charts
• Z910 Chart of Depreciation A Ltd
• Depreciation Areas
• 01 Local reporting Y1
• 02 Parent reporting Y2
• 31 Consolidated balance sheet in group currency
• 32 Book depreciation group currency (profit
  center)

There is no set relationship defined in the
system between the chart of accounts and chart of
depreciation. Company codes in Financial
Accounting are assigned to a chart of
depreciation refer following slide.
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Asset Accounting Company Code
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Master Data
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Creating the Asset Master Record
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Time-Dependent Data
ASSET MASTER RECORD - Time-dependent data -
New Interval
Cost center A from 01/12/YY to 08/27/YY Cost
center B from 08/28/YY to 11/30/YY Cost center
C from 12/01/YY to 03/14/YY . . . . . .
. . . . . . . . .
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Master Data Creation/Change Key Points

• When you create the asset master record, you have
  two options
• Use the asset class, to which the asset will
  belong, to provide default values. The asset
  class then supplies the most important control
  parameters in the asset master record.
• Use an existing asset as a reference for creating
  the new asset master record.
• Some information in the asset master record can
  be managed as time-dependent data. This is of
  particular significance for cost accounting
  assignments (for example, cost center, order,
  project).

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Acquisitions
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Asset Acquisition - Integration
Aqcuisition with Vendor

• Asset transaction integrated

with Accounts Receivable or
Accounts Payable
(Only for direct Asset purchases) No PO
Aqcuisition with Auto-offsetting Entry

• Asset transaction posted

using clearing account (not
integrated)
(Only for direct Asset purchases)
Aqcuisition with MM-PO

• Asset transaction posted

from Materials Management
(MM)
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Asset Acquisition MM Integration
Create Master Record With assignment to WBS
Purchase
Requisition
optional
Building
Purchase
Order
required
Goods Receipt
Valuated
Non-Valuated
Capitalization
Capitalization
or
Goods Receipt
Assignment of Internal Orders To manage budget
expenditure
WBS
Invoice Receipt
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Retirement
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Assets can be retired With Revenue Without
Revenue (scrapped)
Retirement
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Asset Retirement Types
Types of asset retirement 1. Retirement with
revenue - selling of an asset either at a market
price, net book value or other settlement
price 2. Retirement without revenue - writing
off an asset which is no longer productive or
has no residual value
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Asset Retirement w/ Customer Accounts
Retirement

-
Acquis
. date 01/01/20xx
-
1, APC 6000
-
Complete retirement of
APC
on
03/15/20xx
-
Revenue
4000 400
sales tax
A/R
posting
PL
or FinStmt
Notes
Revenue
Revenue
Customer
Customer
Asset Retirmt
Asset Retirmt
4400
4000
4000
4000
Assets posting
PL
Clearing
of
Asset
Loss
Asset Retirmt
2
1
4
6000
4000
1300
6000
700
3
APC
APC
1
3
APC
Proportional
Proportional
value adjustment
value adjustment
Proportional
value adjustment
Amount retired
Amount retired
Amount retired
Clearing
Clearing
of retirement
of retirement
Clearing
of retirement
2
4
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Depreciation
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SAP supports the following direct types of
depreciation Ordinary Depreciation planned
reduction in asset value due to normal wear and
tear.Special Depreciation depreciation that is
solely based on tax regulations.Unplanned
Depreciation depreciation resulting from unusual
circumstances, such as damage to the asset, that
lead to a permanent reduction in its value.
Depreciation
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The depreciation areas are identified in the
system by a two-character numeric key. You make
this specification in the asset classes, and can
define it directly in the given asset master
record.The system allows you to define an
almost indefinite number of depreciation areas.
This feature enables you to handle a large number
of different types of valuation in parallel.
You define the required depreciation keys per
chart of depreciation.
Depreciation Key
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Depreciation is calculated according to the
depreciation key in the asset master. The most
important influences on the calculation of
depreciation areThe value date of the
document. It is used to set the depreciation
start date in the asset.The depreciation
key.The depreciation calculation method is the
most important feature of the internal
calculation key. It is used to carry out the
different types of depreciation calculation.
Elements of the Depreciation Calculation
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Transfers
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Assets can be transferred within a company code
or across companies within the Group
Transfers
Assets can be transferred in full or partially.
Controlling object assignment can be changed as
can asset class.
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Asset Transfers
2
1
Asset transfers can be one of the following
scenarios 1. Transfer within same Company
Code Eg. From one asset class to another
2. Inter-company transfers
between companies in SAP Eg. From one
company to another
Transfer within Company Code (ABUMN)
Intercompnay Transfer (ABT1N)
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Period End Closing
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Fiscal Year Change/Year-End Closing
Calendar
Calendar
Dec
Dec
31
31
Year-end closing
Fiscal Year Change
Fiscal Year Change
Year-end closing
Fiscal Year Change
Asset values at fiscal year start Year
1 Transaction 0 10000 APC 0 10000 Ordinary
dep. 0 3000 - Net book value 0 7000
Depreciation posting run
1.
Year-end closing program - Check Can the
year-end closing be carried out?- Maintenance of
the last closed fiscal year per company
code Closing reports- Asset history sheet-
Asset list- . . .
2.
Periodic processingFiscal year change
3.

• Asset values at fiscal year start Year
  2Transaction 10000 0APC 10000
  10000Ordinary dep. 3000 - 2100 -Net book
  value 7000 4900

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Points from Fiscal Year Change/Year-End Closing

• The fiscal year change program opens new annual
  value fields for each asset.
• The earliest you can start this program is in the
  last posting period of the old year.
• You have to run the fiscal year change program
  for your whole company code.
• SAP provides you with a check report for year-end
  closing. It checks whether the fiscal year
  change was completed for all assets, whether
  depreciation was fully posted, whether errors
  exist for any assets.
• If the program finds no errors, it updates the
  last closed fiscal year for each depreciation
  area.

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Asset Reports .. Summary of the main reports
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Standard Fixed Asset Reports

• Standard reports are available via the standard
  SAP menu Fixed Assets / Information System /
  Reports on Asset Accounting Key reports
• S_ALR_87011963 - 70 Asset Balances
• A series of query programs based on different
  selection criteria.
• S_ALR_87011979 - 82 Physical Inventory Lists
• A series of query programs based on different
  selection criteria.
• S_ALR_87012936 Depreciation on Capitalized
  Assets (Depn Simulation)
• Simulated depreciation on assets/asset classes
  and Projects (can be restricted to specific WBS
  elements).
• S_ALR_87012026 Depreciation Current Year
• Depreciation analysis by asset.
• S_ALR_87012075 Asset history
• Complete detailed history of each asset.

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