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The Asset Accounting (FI-AA) component is used for managing and supervising fixed
assets with the SAP R/3 System. In SAP R/3 Financial Accounting, it serves as a
subsidiary ledger to the FI General Ledger, providing detailed information on
transactions involving fixed assets.
Traditional asset accounting encompasses the entire lifetime of the asset from purchase
order or the initial acquisition (possibly managed as an asset under construction) through
its retirement. The system calculates, to a large extent automatically, the values for
depreciation, interest, insurance and other purposes between these two points in time.
Rules:
Sub Asset Master is to be created WRT Main Asset Master
Main Asset Master is to be created WRT Asset Class
In Asset Class we mention Account Determination
For Account Determination we assign Accounts on the basis of Transaction like
Purchase, Sale, Profit, Loss, Scrapping, Depreciation, Accumulated Depreciation etc.
Charts of depreciation are used in order to manage various legal requirements for the
depreciation and valuation of assets. These charts of depreciation are usually country-
specific and are defined independently of the other organizational units. A chart of
depreciation can be used for all the company codes in a given country. In the simplest
scenario, all of your company codes are in the same country and are subject to the same
legal requirements for asset valuation, meaning that you only need one chart of
depreciation
The chart of depreciation consists of depreciation areas. You use depreciation areas to
calculate different values in parallel for each fixed asset for different purposes. For
example, you may require different types of values for the balance sheet than for cost
accounting or tax purposes. Therefore, the Asset Accounting component enables you to
manage values for assets in parallel in up to 99 depreciation areas. You manage the
depreciation terms and values necessary for this valuation in the depreciation areas of
each asset.
SAP supplies typical reference charts of depreciation for each country. They have
different depreciation areas and depreciation keys depending on that country’s specific
requirements. You cannot use these charts of depreciation directly. You must create your
own chart of depreciation by copying the reference chart of depreciation. Delete any
depreciation areas that are not needed. Copy the UNI chart of depreciation and delete the
depreciation areas that you don't need. E.g. Keep the Book Depreciation and Tax
depreciation.
The most important control feature in the Asset Accounting company code is the chart of
depreciation . It contains the parameters (such as the depreciation keys for every
depreciation area) that are used for calculating asset values in a given country. You have
to assign each company code defined in Asset Accounting to exactly one chart of
depreciation. In the interests of keeping asset values uniform in your company, you
should restrict the number of charts of depreciation used to as few as possible. Company
codes in countries with the same valuation rules or company codes of a certain industry
sector generally use the same chart of depreciation.
The assignment of a company code to a chart of accounts is independent from its
assignment to a chart of depreciation. This means that several company codes can use the
same chart of accounts, although they have different charts of depreciation (and vice
versa).
Using the FI-AA component, you can automatically update all relevant transactions to the
general ledger. These include all accounting transactions that are posted to assets, and all
changes to asset values that are automatically calculated by the system (particularly
depreciation). This update takes place immediately online for one depreciation area, or as
part of periodic processing for all other depreciation areas. The account determination
key defines the reconciliation accounts in Financial Accounting that should be posted
during asset transactions. This definition is effective for each chart of accounts and for
each depreciation area that is defined as an automatic posting area in the respective chart
of depreciation. The chart of depreciation itself is not the key criterion for account
determination. This fact is important for company codes that have different charts of
depreciation, but use the same chart of accounts.
One of the most important functions of the asset class is to establish the connection
between the asset master records and the corresponding accounts in the general ledger in
Financial Accounting. This connection is created by entering an account determination
key in every asset class. Doing so guarantees that the account assignment will be the
same for all assets in the given asset class. SAP provides account determination keys for
the standard charts of depreciation and standard charts of accounts.
The asset master record in the FI-AA component has a large number of fields in order to
meet the needs of its many functions. To make master data maintenance nonetheless as
simple and efficient as possible, the following Customizing functions enable you to
design the asset master record to best suit your needs.
Specification of field characteristics (required entry, optional entry, suppressed) and the
maintenance level (asset class/main number/sub-number) for master data fields
Specification of the layout of the tab pages in the master record
You specify the field attributes in the asset master record, and the maintenance level of
the fields, using screen layout control. You can define as many types of screen layout
control as you need, and enter them in the asset classes.
In each screen layout control, you can make specifications for the individual field groups.
The corresponding maintenance fields are assigned to every field group.
Screen layout control ® Field groups ® Individual fields
The field groups and their respective fields are defined in system tables. When you define
the screen layout, the system proposes all existing field groups, and you maintain each
one individually. You define specifications for the screen layout and for the maintenance
level of the field groups, and you specify whether the field contents can be copied as a
reference.
SAP supplies several predefined screen layout controls. In regard to depreciation terms
(areas), the system offers the following depreciation procedures:
Depreciation terms are maintainable on sub-number level.
Depreciation is uniform for main assets and their sub-numbers.
Depreciation is uniform for the asset class
Using the screen layout, you control whether the fields of the field group are required
fields, optional fields, display fields, or whether they should be suppressed completely.
By using the screen layout to control fields, you guarantee that the necessary fields are
processed for each asset class.
The asset number uniquely identifies a fixed asset. It always consists of the main asset
number and the asset sub-number. There are two ways of carrying out number
assignment in the system:
External number assignment
Internal number assignment
In the case of external number assignment, the user directly assigns the asset number. The
system displays only the defined number interval, and issues an error message if a
number is already assigned. In the case of internal number assignment, the system
automatically assigns consecutive numbers.
You define the number ranges at company code level. In Customizing for the asset class,
specify the number range per company code, and specify whether assignment from the
number range should be carried out externally or internally. Alphanumeric intervals can
only be assigned externally.
The asset main number has 12 alphanumeric characters. Number assignment is controlled
by the asset class. You specify the number range for an asset class in the asset class. In
this way you ensure that number assignment is uniform for the asset class. You can
choose between external and internal number assignment by specifying a correspondingly
defined number range. Several asset classes can use the same number range. You do
not have to define number ranges for the sub-number assignment.
Asset classes are the most important means of structuring fixed assets. You can define an
unlimited number of asset classes in the system. You use the asset classes to structure
your assets according to the requirements of your enterprise. Asset classes apply in all
company codes. The asset class catalog, therefore, is relevant in all company codes in a
client. The preceding is also true when the company codes have different charts of
depreciation and therefore different depreciation areas.
Depending on the functions you want the asset class to have, consider the following when
creating asset classes:
The asset class provides default values to all asset master records in the class. In this way,
the asset class functions as a sample master record, and makes it possible to create new
asset master records simply and without errors.
The screen layout, tab layout and the field characteristics (required/optional/suppressed)
of the asset master record can be set for the asset class.
The assignment of asset numbers can be controlled by the asset class.
Creating the asset class is a Customizing activity. Account determination is the most
important function of the asset class. Note that several asset classes can use the same
account determination key. The asset class, as a result, can provide a more detailed
classification of assets than the asset G/L accounts. When you create an asset in an asset
class, the chart of depreciation of the asset company code has to be assigned to the asset
class.
Create Asset Classes:
New Entries
Asset Class: X10000 Freehold Land
Account Determination: 10000
Screen Layout Rule: 1000
Number Range Group: 01
Select ‘Include Asset’ under ‘Inventory Data’
Select ‘No AuC or Summary Management of AuC’
Save
Depreciation Keys
The depreciation key contains the value settings which are necessary for determining
depreciation amounts. You assign calculation methods to each depreciation key for the
actual determination of depreciation amounts. Depreciation keys are defined at the level
of the chart of depreciation. Therefore, they are available in all company codes. With the
help of the depreciation keys defined within a chart of depreciation, you can set up the
chart of depreciation with uniform depreciation terms based on the special rules for
valuation in an economic area (country, geographical region and so on).
The standard charts of depreciation in the R/3 System contain depreciation keys that are
predefined to meet country-specific depreciation needs.
Base methods for certain depreciation calculation methods (Stated percentage and Total
percentage in concessionary period) use either a total percentage rate or a periodic
percentage rate to calculate depreciation. You can divide these calculation keys into as
many levels as you like. A level, in this sense, represents the period of validity of a
certain percentage rate. This percentage rate is then replaced by the next percentage rate
when its period of validity has expired.
New Entries
M_Level_Method: X1 (any)
Description: 5% SLM
Validity Start: From Ordinary Depreciation Start Date
Save & Double click ‘Levels’
New Entries
Acquisition Year: 9999 Years: 999 Periods: 12
Base Value: 01 Acquisition Value Percentage: 5
Save & Back Arrow 3 times
New Entries
M_Level_Method: X2 (any)
Description: 5% WDV
Validity Start: From Ordinary Depreciation Start Date
Save & Double click ‘Levels’
New Entries
Acquisition Year: 9999 Years: 999 Periods: 12
Base Value: 24 Net Book Value Percentage: 5
Maintain Period Control Methods (AFAMP)
SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods
> Depreciation Key > Calculation Methods > Maintain Period Control Methods
For determining the depreciation start and end date for asset transactions, you can set an
appropriate period control in the period control method for the four transaction
categories:
Acquisitions
Subsequent acquisitions/post-capitalization
Intracompany transfers
Retirements
This enables you to set the depreciation start date for all acquisitions within the same year
to the beginning of the year, for example. You can also set the depreciation start date for
retirements to the first or last day of each period. Using the asset value date of a
transaction (acquisition or retirement), the system determines the start date or end date of
depreciation calculation using the period control.
New Entries
Period Control Method: 006 (any)
Acquisition: 01 (Pro rata at period start date)
Add: 06 (At the start of the year)
Retire: 06 (At the start of the year)
Transfer: 06 (At the start of the year)