Asset Acquisition:

Dr.
Cr.
o
o
o
o

F-90 - With Vendor

Fixed Asset Acquisition Cost

Vendor (Accounts payable)

Posting date of the document will be copied into the asset master as the capitalization date.
The depreciation start date of each depreciation area will also be determined and updated in
the depreciation area data tab page.
Asset acquisition posting could also be done without PO from the MM module.
Posting could be done in FI posting only.

Asset Disposal Sales to a Customer:

F-92 - With Customer

Supposed an asset with historical cost $1,000 and accumulated depreciation of $100 is being sold to a
customer at a price of $1,100, the posting entries will be as follows:
Dr. Customer account (A/R)
Cr. Revenue for asset disposal
Cr. Fixed asset acquisition cost
Dr. Accumulated depreciation
Dr. Clearing account for asset disposal
Cr. Gain/loss of fixed asset disposal

1,100
1,1001,000100
1,100
200-

The posting date of the retirement posting will also be updated into the field "deactivation date" in the
asset master as the retirement date.
Asset Disposal Scrap without Revenue

ABAVN - Asset Retirement by Scrapping

Instead of selling, an asset could be disposed as a scrap. In this case, no revenue is expected and a loss
will be realized in the P&L if the fixed asset being scrapped still carries a net book value.
For the same asset with historical cost $1,000 and accumulated depreciation of $100, the posting of
the scrapping will be as follows:
Cr. Fixed asset acquisition cost
Dr. Accumulated depreciation
Cr. Gain/loss of fixed asset disposal

1,000100
900

Asset Transfer within a Company Reclassification

The NBV of an existing asset master record could be transferred to another asset within the same
company. The transaction could be used in the following scenarios:
o
Reclassify an existing asset to a new class or to correct an error
o
Transfer an asset to a new one with the same class. This may be necessary to execute the
change of the remaining useful life of an asset but still spread the net book value evenly throughout
the remaining life without allowing the system to catch up the postings of the missing or extra
depreciation of the past periods
For an asset with historical cost $1,000 and accumulated depreciation of $100, the posting of the intracompany transfer posting will be follows:
Cr. Fix asset acquisition cost (old asset)
Dr. Accumulated depreciation (old asset)

1,000100

Dr. Fix asset acquisition cost (new asset)

Cr. Accumulated depreciation (new asset)

1,000
100-

The old asset being transferred will become a retired asset and the transfer posting date will be
updated as the retirement date in the asset master record.
For the new receiving asset, the transfer will be the same as if it is being acquired.
The transfer posting date will be used as the capitalization date.
Month End Processing Depreciation Run

AFAB-Depreciation Run

Dr. Depreciation expense

Cr. Accumulated depreciation
Note that the above posting to G/L will be done in a summary level by G/L accounts and cost center
levels because the depreciation expense has to be charged to cost center in CO. However, the detailed
depreciation amount of each asset will also be stored in Asset Accounting such that each unique asset
master record will also have its unique posted depreciation amount. Besides, after each depreciation
run, the system will issue a report which list out the depreciation posting amount of each individual
assets as a record. This is advised that this report should be kept as an additional audit trail.
Asset Under Construction (AUC) Config & Process Steps:
Internal Order as Investment Measure:
1. Define the AuC Asset Class (with investment measure) - OAOA
2. Define the Asset Class for Main Asset - OAOA
3. Define Investment Profile - OITA
a. Assign the AuC Asset Class (Step-1) in the investment profile
4. Assign Investment Profile to Model Order - OITA
5. Define Order Type (Investment) - KOT2
a. Settlement Profile - OKO7
b. Maintain Allocation Structures - OKO6
c. Planning Profile - OKOS
d. Budget Profile - OKOB
6. Create an Internal Order - KO01
a. With the Investment Profile (Step-2)
b. AuC automatically created by the system using Asset Class given in the Investment Profile
7. Post the amounts to IO - FB01
Dr. Material supplied to Asset (Expenditure)
Cr. Cash account
8. Settle the amounts to AuC from IO (Prcg type: Automatic) - KO88
Dr. Asset Under Construction account
Cr. Contra Capitalized
9. Create the Main Asset - AS01
10. Settle the amounts to Main Asset from AuC (Prcg type: Full) - KO88
Dr. Final Asset account
Cr. Asset Under Construction account
AuC using Line Item Settlement:

1.
2.
3.
4.
5.

Define the AuC Asset Class (with Line Item Settlement) - OAOA
Define the Asset Class for Main Asset - OAOA
Define Order Type (Overhead) - KOT2
Create an AuC-Asset (using Step-1 Asset Class) - AS01
Create an Internal Order - KO01
a. Assign the AuC Asset in Settlement Rule in IO
6. Post the amounts to IO - FB01
7. Settle the amounts to AuC from IO - KO88
8. Create Main Asset (using Step-2 Asset Class) - AS01
9. Assign the Main Asset in IO (Step-5) - KO02
10. Settlement AuC Line Item List - AIAB
11. Settlement AuC - Receiver - AIBU

Ko88

AIBU

FKMT

Configure Automatic Postings

In this step, you enter the system settings for Inventory Management and Invoice Verification transactions
for automatic postings to G/L accounts.
You can then check your settings using a simulation function.
Under Further information there is a list of transactions in Materials Management and their definitions.

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory
Management transactions relevant to Financial and Cost Accounting.
Example:
Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account

Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the R/3
System automatically finds the accounts to which postings are to be made using the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the R/3 System determines the
chart of accounts which is valid for the company code.
You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company
codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.
You must define the automatic account determination individually for every valuation grouping code within
a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.
If the user enters a company code or a plant when entering a transaction, the system determines the
valuation area and the valuation grouping code.

Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions
relevant to accounting. Posting records, which are generalized in the value string, are assigned to each
relevant movement type in inventory management and each transaction in invoice verification. These
contain keys for the relevant posting transaction (for example, inventory posting and consumption
posting) instead of actual G/L account numbers.

You do not have to define these transaction keys, they are determined automatically from the transaction
(invoice verification) or the movement type (inventory management). All you have to do is assign the
relevant G/L account to each posting transaction.

Account grouping (only for offsetting entries, consignment liabilities, and price differences)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for
example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for
example, consumption account, scrapping, expense/income from inventory differences), it is necessary to
divide the posting transaction according to a further key: account grouping code.
An account grouping is assigned to each movement type in inventory management which uses the
posting transaction "Offsetting entry for inventory posting".
Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for
every account grouping, that is, assign G/L accounts.
If you wish to post price differences to different price difference accounts in the case of goods receipts for
purchase orders, goods receipts for orders, or other movements, you can define different account
grouping codes for the transaction key.
Using the account grouping, you can also have different accounts for consignment liabilities and pipeline
liabilities.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the
material. for example: you post a goods receipt of a raw material to a different stock account than if the
goods receipt were for trading goods, even though the user enters the same transaction for both
materials.
You can achieve this by assigning different valuation classes to the materials and by assigning different
G/L accounts to the posting transaction for every valuation class.
If you do not want to differentiate according to valuation classes you do not have to maintain a valuation
class for a transaction

Foreign currency valuation T-code F.05