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Tangible asset - which can be seen, touched ex: computers, land and building,
plant and machinery etc
Intangible Assets - which cannot e seen ex: goodwill, patents etc
In Financial accounting module, we have lot of components:
If you are implementing the FI-AA Component, Asset will become a sub ledger,
you would have an asset master record and all the asset transactions are posted
into the asset master record (in turn the system would update automatically the
asset GL accounts)
For ex: when you are purchasing an asset from a vendor
Dr Asset master record (asset number)
cr vendor account
Stage of learning the asset accounting:
-> Organization structure
-> Chart of Depreciation
-> Asset classes
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The first and the foremost is to understand the org. structure relevant for asset
accounting
Sap provides with the minimum structure to be set up to work on the asset
accounting
-> Define chart of accounts
-> Define chart of depreciation
-> Both the chart of accounts and the chart of depreciation should be assigned
to the company code
-> Then, add the necessary data for asset accounting
-> Then, you are ready to do the asset accounting in your company code.
Observer the figure 5 on the page no.14
Out of the several dep areas, dep area 01 is the leading depreciation area. This is
the most important dep area (book dep) - from here, the figures would go into
the local financial statements
Except 01, if you want to delete the other dep area, you can do the deletion of
other dep areas except 01.
The system would give the message as chart of dep 1IN copies to SONY"
Clicks enter and then click on completed activities
Chart of dep 1IN copied to SONY
Path in IMG
FA -> Asset accounting -> Organizational structures -> Assign chart of dep to the
company code
When you are doing this step, you would get an error.
The error is:
Company code entries for SONY are incomplete.
There are some setting that are missing for doing the asset accounting
Check the following settings
-> Currency
-> Chart of accounts
->fiscal year version
-> Input tax indicator for non-taxable acquisition (this is the pending step)
Path in IMG:
FA -> Asset Accounting -> Integration with the general ledger -> Define how the
depreciation areas post to the general ledger
Click on the clock and for each dep area, you can see the indicatoGBP.
Posting in GL controls:
0 -area does not post
1 - Area posts in real time
2- Area posts apc and depreciation periodically
3 - Area posts depreciation only
4 - Area posts apc directly and depreciation
5 - Area posts apc only
6 - Area posts only apc directly
Out of the 6 above, 0,1,2,3 are the most important which you find in real time
Dep area 01 -> Will always have 1 (area posts in real time)
Dep area 15 -> 0 (area does not post)
You can prepare several financial statement versions per chart of accounts in the
company code.
-> If you are having more than one financial statement version, you should have
more than one depreciation area.
Path in IMG:
FA -> Asset Accounting -> Integration with the general ledger -> specify the
financial statement version for asset reports
A, Number ranges
B, Screen layout
C, account determination (defining the GL accounts)
-> Depreciation area section
A, depreciation terms (screen layout)
Once you create an asset class with these two sections, then only you are ready
to crate the asset master record in the sap easy access.
In other words, you cannot create an asset master record without the asset
classes.
Observer the figure 12 on the page no.38
-> Asset class
-> Asset master record
-> Acquisition entries
Path in IMG
Financial Accounting -> Asset Accounting -> organizational structures -> Asset
Classes -> Define Number Range intervals
You can define the number range with internal or external number assignment
Simply copy form Standard company code 1000.
Step 11: Defining the screen layout for the master data section of the
asset master record
================================================
=========================
Path in IMG
FA -> AA -> Master data -> Screen layout -> Define Screen layout for Asset
master data
In this, we have to two activities
Click on the second activity first -> Create screen layout rules
Create a new screen layout by copying an existing screen layout
-> by a 4 character alphanumeric key and description
Click on the first activity - Define the screen layout for the asset master data
Double click on it
Select the screen layout - NEAS and then on the left side, click on logical field
groups
Step 12: Defining the Account Determination
===========================================
Path in IMG for account determination
FA -> AA-> organizational structure -> Asset classes -> Specify the account
determination
click on the clock and then click on new entries
Enter a 4 character alphanumeric key and short description Account
determination - NEAS
Step 13: Assigning the GL account to the account determination
================================================
==============
Path in IMG
FA -> AA -> Integration with the general ledger -> assign GL Accounts
Click on the clock and then enter the chart of depreciation
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Select the chart of accounts and then on the left side, click on account
determination
Define the GL accounts for balance sheet accounts, depreciation and special
reserves
Since, you are implementing FI-AA component, the asset GL account will become
a reconciliation account to the asset sub ledger
If you post the transactions on the asset master record, the asset GL account
would get updated automatically.
Like for exam: If you are posting on the customer account (debit /credit side) the relevant account receivable (reconciliation account) will get updated
automatically.
Similarly it is the case with the asset master record and asset GL account
Once you have defined all the three settings
-> Number ranges
-> Screen layout
-> Account determination,
Then you are ready to create the asset class with the master data section
Step 10 B : Creation of Asset classes
==================================
Asset class like an account groups
When you are creating a GL account, we have 5 account groups
When you are required to create an asset master record, you should have asset
classes
Asset Class are created at the client level, it can be used in any company codes.
Path in IMG
FA -> AA -> Organizational Structures -> Assets Classes -> define Asset classes
Click on the clock and then click on new entries
Asset Class -> NEAS
Step 14: Defining the screen layout for the depreciation area section of
the asset Master record
================================================
==============================
Path in IMG
FA -> AA -> Master data -> Screen Layout -> Define the screen layout for the
Asset Depreciation areas
You are creating a new screen layout by copying an existing one
for each screen layout, define the field group rules
Step 15: Determining the depreciation areas in the asset classes
================================================
=================
Path in IMG
FA -> AA -> Valuation -> Determine the depreciation areas in the asset class
Click on the clock
Select the asset class NEAS
And then on the left side, click on depreciation area
1, Remove the deactivation indicator
2, assign the screen layout NEAS
3, define the depreciation key ( 0000)
You have to assign these settings for each depreciation area
So, if you have done up to 15 steps, then you are ready to create the asset
master record.
NOTE: Before doing AS01 please check following setting for Dep.key
0000
Path in IMG
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Whenever you change an asset master record, the system will create a change
document.
From the menu bar, click on Environment -> change documents -> on
asset
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Step 20: Creation of asset class for asset under construction (Auc)
================================================
==================
For example: your company is constructing staff quarters to the employees and
the tenure of the construction is 5 years.
Until the 5th year i.e until the construction is completed, it will not be a
completed asset (capitalized asset)
For the first 1st 5 years, it will be considered as AuC asset under construction.
An asset under AuC- no depreciation is charged. You would have special tax
depreciation at a fixed percentage
At the end of the 5th year, when you are doing the capitalization, you do
settlements.
Instead of creating it one by one, you can create all the asset record for the 5
computers at the same time
tcode - AS01
No. of similar asset master record - 5
When you click on save, the system will pop up a window to maintain and create
Click on Maintain first
Then click on create
The message is : Assets 1002 to 1006 have been created
================================================
=================================
Plant - 0005
Location - 1
Used from 01.01.2011 to 31.05.2011
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-----------------------------------BA - 1000
Plant - 0005
Location - 2
Used from 01.06.2011 to 31.12.9999
================================================
=====================
ASSET SUBNUMBERS:
================
Figure 29 on the page no.66
One main asset is classified into various sub numbers
A, computer - main asset
-> Monitor - sub number
-> Key board - sub number
-> CPU - sub number
Asset values can be managed at the sub numbers also.
How to create an asset master record with the sub numbers?
Asset Transactions
-> Acquisition
-> Retirements
-> Transfers
ACQUISITIONS
When you are implementing FI-AA, asset is a sub ledger
i.e you would be posting all the transactions in the asset master record and the
system would update the relevant gl accounts linked to the asset master record.
Figure 33 on the page no.84
Asset Acquisition entries can be of three types:
================================================
1, Asset acquisition - with integration (integrated with the AP
component)
The entry is:
Dr asset
Cr vendor
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In-house production -> track all the costs incurred on a product -> create an
investment measure (this is done in investment management module) -> settle
to AuC -> capitalize the asset
Path in easy access: Asset acquisition (with integration)
Accounting -> FA -> Fixed Assets -> Posting -> acquisition -> External
acquisition -> with vendor
tcode - F-90
The most important point:
=========================
When you are posting an acquisition entry in the asset line item, there are two
important fields
-> Asset value date
-> Transaction type
Observe the figure 35 on the page no.86
Dr Asset -> in the asset line item -> transaction type and the asset value date
Cr vendor
Dr Asset - 70
trans type
cr vendor - 31
ASSET EXPLORER:
===============
Path in easy access:
Accounting -> Financial accounting -> Fixed assets -> Asset -> asset explorer
tcode - AW01N
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Whenever you are posting a transaction relating to asset, you have to enter the
transaction type for every posting.
The transaction type identify the acquisition, retirement and transfers
Each transaction type has lot of control settings:
-> The transaction type specifies which field are to be updated
A) Asset balance sheet accounts
B) Depreciation areas
C) Value field
Path in IMG
FA -> AA -> transactions -> Acquisitions -> Define Transaction types for
acquisitions
click on the clock and then click on first activity
-> Define transaction type for acquisitions
Example: TType 100
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Path in IMG
FA -> AA -> Transactions -> Acquisition -> Define transaction type for acquisition
Click on the clock and then click on the second activity -" Limit the transaction
types to depreciation areas"
-> You can limit transaction type groups to asset classes
dr asset
cr clearing account
================================================
======================
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RETIREMENTS:
============
Different types of retirements
- Retirement with or without customer
-> Retirement with or without sales
-> Partial or full retirements
-> Mass retirements
-> Retirement of several assets
There are lot of GL and sub ledger accounts that are getting affected when you
sell the asset.
Observer the figure 48 on the page no.117
dr asset GL account
cr asset clearing account
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First go and check the asset master record in the master data section under the
posting information
The system will update the field deactivation on
Secondly, go to the asset explorer
3, Purchase an asset for GBP.10000 and sell 50% of the asset value (GBP.5000 )
for GBP.6000 (without depreciation )
Dr Asset
cr Asset clearing account
4, Try to do an example
Purchase an asset for GBP.10, 000 and then sell the asset for GBP.7000.
6 months
Original asset - 10000
Less dep - 500
Net book value 9500
Less sales value 7000
Loss on asset sale 2500
Intra-company asset transfer - when the transfer is taking place within the
company code (one singe company code)
Inter-company asset transfer - transfer taking place between two company
codes in a company and
Transfer taking place from one company code in one company to another
company code in another company
Reasons for intra company asset transfer
-> You have crate an asset in a wrong asset class
-> Asset has changed the location
-> Asset needs to be split
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When you are posting a transaction for intra company asset transfer, you have to
use a transfer variant 4.
Observer the figure 50 on the page no.125
Reasons for inter company asset transfer
-> Asset has changed the location
-> org structure for the asset accounting is changed
A) Transfer of an asset from one company code to another company code in a
company
> For this, you use the transfer variant of relationship type 02
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NET METHOD
-> In the source company code
Original asset value 100
dep 20
net book value 80
This would be the sale value - is equal to the net book value
In the target company code
Asset value - 80
NEW VALUE METHOD
-> In the source company code
Original asset value 100
dep 20
Net book value 80
Sale value 70
B) Retirements
-> Retirement with or without sales
-> Retirement with or without the customer
-> Mass retirements
C) Transfers
-> intra-company asset transfers
-> Inter-company asset transfer
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DEPRECIATION KEYS
Specifies the methods of depreciation
Figure 61 on the page no.163
Path in IMG
FA -> AA -> Depreciation -> Valuation methods -> Depreciation key ->
Calculation methods
Observe the depreciation area section of the asset master record
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-> The system will update the relevant GL Account and also to the sub ledger.
You can also do the test run
go and check the dep keys for the assts in the company code NEAS....
Some of the errors when you are running the program RAPOST2000:
-> Incorrect account assignment objects
-> Accounts for posting missing
-> Posting period was entered incorrectly.
-> Settings missing in the asset master record for deprecation key - 0000
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-> The year end closing program is done at the end of the last posting period
For ex: Jan to dec - in the month of dec you can do year end closing program
-> The year end closing program for the whole company code.
-> For example
Books of accounts are prepared for
2009
2010
2011
If you want to do the year end closing for 2011, then you have to see that the
year end closing program is done for 2009 and also for 2010 then only you can
do the year end closing program for the year 2011.
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List viewer
-> Output is in the form of the list
-> apply lot of feature for the output
-> do in ascend GBP or descending order
-> totalling. Subtotalling
-> Increase /decreasing the columns
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You can crate various simulation version -= each version having different
depreciation methods.
Simulation can be applied to a single asset or for the whole asset portfolio.
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