2. 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
4. Asset Accounting is a subsidiary ledger of Financial Accounting.
The appropriate General Ledger accounts are updated each time
you post.
Overview: Asset Accounting as a Sub-Ledger
Asset accountAsset account VendorVendor
Assets LiabilitiesAssets Liabilities
General LedgerGeneral Ledger
1000 1000
1000 1000
5. The asset class is used to:
sub-classify the General ledger accounts and
group master records by specific criteria.
Overview: Asset Classes
7. Asset Classes
Asset Classes Configured
910000 Land
910001 Building
910002 Plant and Machinery
910003 Vehicles
910004 Asset under construction
8. Functions of the Asset Class
Assets
Asset Class
Account
allocation
Screen
layout
Number
assignment
Special
features
Default
values
Selection
features
Assets Liabilities
Asset portfolio
Real estate
Machinery
Finance. assets
Fixtures+fit.
. . .
. . .
. . .
Bal. sheet items
Acct. determinationAsset class
Lathe
02200000
Create
asset
Drill
press
02115000
1
9. 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
10. Definition of the Asset
Classes
Client levelClient level
Account allocation
Screen layout rule
Number range
Default values
Chart of depreciationChart of depreciation
levellevel
Section for
valuation data
Selection of
depreciation areas
Default values
Master data
section
Asset classes
11. Asset Classes in the Chart of Depreciation
Areas
Depreciation
key
Proposed
useful life
Minimum
useful life
Maximum
useful life
Book dep.
10/00
__
__
DG30
decl-bal.
3 X3 X
Tax dep.Tax dep.
10/00
__
__
SNFG
invest.
support
Group
8/00
__
__
LINR
str.-line
Book dep.
12/00
__
LINB
str.-line
Group
8/00
__
__
LINR
str.-line
ACRSACRS
. . . .. . . .
__
__
. . . .. . . .
. . . .. . . .
. . . .. . . .
8/00
. . . . . .
Class
Chart of
depreciation
Machines
USAGermany
1
12. Points from the Asset Class / Dep’n 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.
13. 15
Transaction type groups
Special Asset Class: AuC
Class: Assets u. const.
Extras
AuC status
Down payment
16Down payment carried forward
from previous years
AuC managed as total
line item settlement
capital investment measure
depreciation
areas
deprec.
key
Book dep. 0000
Tax dep. 0000
Cost-acc. LINA
negative values allowed
depreciation is not calculated in
depreciation areas intended for the
balance sheet
14. 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.
15. 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.
AUC’s can be settled to multiple final assets / asset classes
16. 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.
17. 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
18. 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
19. 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.
20. The Chart of Depreciation
Chart of
depreciation
Depreciation
area 01
Depreciation
area 02
Depreciation
area 03
Depreciation
area 20
Book
deprec.
Tax
deprec.
Special
reserves
Cost-acc.
deprec.
Depreciation
area 30
Group
deprec.
21. 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.
22. Asset Accounting Company
Code
Chart of accounts Chart of
depreciation
Financial Accounting
Company Code
+
Data for Asset Accounting
Asset Accounting Company
Code
==
24. Creating the Asset Master
Record
using a referenceusing asset class
taking over the default
values from the asset class
'copying' an
existing asset
Create
asset
25. Time-Dependent Data
ASSET MASTER RECORD
- Time-dependent data -
Enter period under consideration
Valid from MMDDYYYY
Valid to MMDDYYYY
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
. . . . .
. . . . .
. . . . .
New Interval
01Month
Calendar
26. 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).
28. Asset transaction posted
using clearing account (not
integrated(
Accounts PayableAssets
Fixed Asset Vendor
100100
General LedgerAssets
Fixed Asset Clg Acct
100100
Accounts PayableAssets
Fixed Asset Vendor
100100
Asset transaction integrated
with Accounts Receivable or
Accounts Payable
100
Acquisition
purchase
110
Acquisition in-
house
production
Aqcuisition with Vendor
Aqcuisition with Auto-offsetting Entry
Asset Acquisition - Integration
)Only for direct Asset purchases(
)Only for direct Asset purchases)
No PO
Asset transaction posted
from Materials Management
)MM(
MM
Aqcuisition with MM-PO
29. Purchase Requisition
Purchase Order
Goods Receipt
Goods Receipt
Invoice Receipt
Building
or
required
Capitalization
Capitalization
Valuated Non-Valuated
Create Master Record
With assignment to
WBS
optional
Asset Acquisition – MM Integration
WBS
Assignment of
Internal Orders
To manage
budget
expenditure
31. Assets can be retired:
With Revenue
Without Revenue (scrapped)
Retirement
32. Please retire me, I am
no longer productive 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
Asset Retirement: Types
33. 1
2
3
Retirement: - Acquis .date 01/01/20xx - 1,APC = 6000
- Complete retirement of APC on 03/15/20xx
- Revenue 4000+400 sales tax
APC
Amount retired
APCAPCAPC
Amount retiredAmount retired
A/R posting
CustomerCustomer
44004000
RevenueRevenue
Asset RetirmtAsset Retirmt
40004000
Assets posting
Asset
6000
700
Clearing of
Asset Retirmt
4000
Loss
13006000
Proportional value adjustment
Clearing of retirement
ProportionalProportionalProportional value adjustmentvalue adjustmentvalue adjustment
ClearingClearingClearing of retirementof retirement4
P+L or FinStmt Notes
P+L
21 4
3
210
Retirement
sale
200
Retirement
scrapping
Asset Retirement w/ Customer :
Accounts
35. 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
36. 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
37. Depreciation is calculated according to the depreciation key in the asset
master. The most important influences on the calculation of depreciation
are:
The 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
39. 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.
40. 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
1
2
Transfer within Company Code (ABUMN(
Intercompnay Transfer (ABT1N(
Asset Transfers
42. Fiscal Year Change/Year-End Closing
Asset values
at fiscal year start Year 2
Transaction 10000 0
APC 10000 10000
Ordinary dep. 3000 - 2100-
Net book value 7000 4900
Asset values
at fiscal year start Year 1
Transaction 0 10000
APC 0 10000
Ordinary dep. 0 3000 -
Net book value 0 7000
Asset values
at fiscal year start Year 1
Transaction 0 10000
APC 0 10000
Ordinary dep. 0 3000 -
Net book value 0 7000
31
Dec
Calendar
Fiscal Year Change
31
Dec
Calendar
Fiscal Year Change
Year-end closing
Year-end closing programYear-end closing program
- Check:- Check:
Can the year-end closing be carried out?Can the year-end closing be carried out?
- Maintenance of the last closed fiscal year- Maintenance of the last closed fiscal year perper
company codecompany code
Closing reportsClosing reports
- Asset history sheet- Asset history sheet
- Asset list- Asset list
- . . .- . . .
Depreciation posting runDepreciation posting run1.1.
2.2.
3.3.
Year-end closing
Periodic processingPeriodic processing
Fiscal year changeFiscal year change
Fiscal Year Change
43. 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.
45. 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.
Notes de l'éditeur
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL The asset class is used to: sub-classify the General ledger accounts and group master records by specific criteria.
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL 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.
Page HR HR07: HR PAYROLL 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.
Page HR HR07: HR PAYROLL Asset classes are made up of a master data section and a section for valuation data. You define the master data section of an asset class once on the client level. The valuation data section is dependent on the assigned chart of depreciation, which in turn is directly linked to the company code.
Page HR HR07: HR PAYROLL You can define any number of asset classes in Customizing. You use the asset classes to categorize assets according to the needs of your enterprise. 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.
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL 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 (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support are possible even on uncompleted assets. Assets under construction have to be shown separately in the balance sheet. It is possible to post down payments on assets under construction if you enter transaction type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL 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 (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support are possible even on uncompleted assets. Assets under construction have to be shown separately in the balance sheet. It is possible to post down payments on assets under construction if you enter transaction type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
Page HR HR07: HR PAYROLL 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 (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support are possible even on uncompleted assets. Assets under construction have to be shown separately in the balance sheet. It is possible to post down payments on assets under construction if you enter transaction type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL 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. The chart of depreciation is therefore best described as a catalog of depreciation areas structured according to various business aspects. You can specify the characteristics and thereby the significance of the individual depreciation areas in each chart of depreciation. The country-specific charts of depreciation, which are supplied as standard, are for reference purposes only. You can only open a new chart of depreciation by using an existing chart of depreciation as a reference.
Page HR HR07: HR PAYROLL
Page HR HR07: HR PAYROLL You have to set up company codes in Financial Accounting first. Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting. You can use the company code for Asset Accounting only after making these modifications.
Page HR HR07: HR PAYROLL When you create the asset master record, you have two options: You can 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. Or you can use an existing asset as a reference for creating the new asset master record. (Possibly the reference asset has default values that are more suitable than those in the asset class.) Enter additional information, such as an asset text. When you save, you receive an asset number (if the asset class is assigned to a number range that uses internal number assignment). This asset number is also the account number of the individual asset account.
Page HR HR07: HR PAYROLL 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). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, should also be recorded on a monthly basis as part of this time-dependent data. The history of time-dependent assignments is stored in the system over the entire life of an asset.
Page HR HR07: HR PAYROLL 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). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, should also be recorded on a monthly basis as part of this time-dependent data. The history of time-dependent assignments is stored in the system over the entire life of an asset.
The acquisition posting can be created in the department that is primarily responsible for this business transaction. Acquisition of an asset from a business partner => External acquisition: In Asset Accounting (FI-AA) integrated with Accounts Payable (incoming invoice), but without reference to a purchase order. In FI-AA with automatic offsetting entry, but without link to a purchase order and without integration with Accounts Payable. This posting is normally used when the invoice has not yet been received, or when the invoice was posted by the Accounts Payable department beforehand in a separate step. The offsetting account also has to be cleared. In FI-AA with automatic clearing of the offsetting entry: The first posting usually is made in FI-AP. The clearing account is cleared at the same time as the asset posting is made. It is also possible, however, for both departments to make postings in the opposite order: An asset is entered with automatic offsetting entry, and the clearing account is cleared with the credit posting of the incoming invoice. In Materials Management (MM): The asset is posted in MM. Acquisition from in-house production is the capitalization of goods or services that are partially or completely produced in your own enterprise. The costs for these in-house produced goods or services (such as maintenance) have to be capitalized to assets. Generally, you capitalize production costs by creating an order or project in Investment Management (IM) and settling to an asset under construction and then to the final asset.
The example shows an asset acquisition with MM integration. It shows the following activities: purchase requisition, purchase order, goods receipt, invoice receipt, and creation of an asset. The steps are: creation of a purchase requisition, creation of an asset master record, creation of the purchase order: Using account assignment type A (A=asset) you can enter an asset master record when creating the purchase order. It is not possible yet to create an asset master record directly when you use purchase order transaction ME21N. However, it is still possible using the "old" purchase order transaction ME21. Goods receipt: When you enter the purchase order, you determine whether the asset is posted directly to Asset Accounting, and thereby capitalized, when the goods receipt is posted (valuated good receipt), or whether capitalization does not take place until the invoice receipt is posted (non-valuated goods receipt). The first option would be used when the goods receipt takes place before the invoice receipt. When the invoice is received later, there may be differences between the invoice amount and the amount posted at the time of the goods receipt. In this case, adjustment postings are made to the asset. No corrections are necessary for an non-valuated good receipt, since the asset was not yet capitalized. However, the system uses the date of the goods receipt as the capitalization date. Invoice receipt: If the goods receipt was non-valuated, the asset is capitalized, line items are created and the value fields are updated.
Asset Accounting distinguishes between different types of transfers, depending on the circumstances: - Transactions within a company code (intracompany transfer) or - Transactions between different company codes (intercompany transfer). Possible reasons for intracompany transfers: 1) A master record has been created and posted in the wrong asset class. 2) The asset has changed location. As a result, you have to change organizational allocations (such as asset class, business area) in the master record that cannot otherwise be changed. 3) The asset needs to be split, or a portion of the asset rebuilt. Therefore, a portion of the original asset will be transferred to a new asset. 4) The standard system uses transfer variant 4 for intracompany transfers. The transaction types for transfer postings to source and target assets are determined by the transfer variant. When you create a new master record within the transfer transaction, you can use "copy rules" to define which entry fields should be copied from the source asset to the target asset.
Page HR HR07: HR PAYROLL 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. In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciation area.