sap asset accounting configuration steps as a subledger

Asset Accounting configuration

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:

-> General ledger ( FI-GL)

-> Account receivable (FI-AR)

-> Accounts payable ( FI-AP)

-> Fixed assets ( FI-AA)

There would be few companies who can implement only asset accounting ( FI-AA) and there can be few companies who can implement all the components in the fi module.

If you are not implementing FI-AA component, all the asset transactions are posted into the asset GL account.

No asset master record maintained.

For ex: when you purchase an asset from a vendor

Dr Asset Gl account

Cr Vendor account

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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-> Asset master record

-> Posting the business Transactions

Acquisition -

Retirements -

Transfers -

-> Depreciation calculation and posting

-> Reporting and the closing process

-> Validation and substitution

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

CHART OF ACCOUNTS - is a chart specifying the list of all the GL ACCOUNTS

CHART OF DEPRECIATION:======================

-> Chart of depreciation is a chart specifying the list of all the depreciation areas

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-> Each chart of depreciation is identified by a 4 character alphanumeric key

-> SAP provides with the country specific charts of depreciation. If you want to create your own chart of depreciation, you can also do it by copying an existing one.

-> Chart of depreciation is a country specific and it contains lot of depreciation areas

-> Every company code implementing the asset accounting must have one chart of accounts and one chart of depreciation assigned

-> One chart of accounts can be assigned to several company codes (follows variant principle)

-> One chart of depreciation can also be assigned to several company codes (follows a variant principle)

-> Depreciation area represents different types of valuations

For Example: in GREAT BRITAIN

Depreciation calculation is done as per the companies Act -> one dep area

Depreciation calculation is done as per the income tax act ->another dep area

Depreciation calculation is done for costing purposes -> another dep area


Each dep area represents different type of valuations

Each dep area results into different balance sheet values and different depreciation area values.

Different valuation approaches are used for

-> Financial statement for local reporting - for which you want to follow one dep area

-> Balance sheet for tax purposes - another dep area

-> Internal accounting (for cost accounting purposes) - another dep area

-> Parallel financial reporting as per the US gaap or ifrs - another dep area

-> For consolidation in group currency - dep area

-> Depreciation area is identified by a 2 digit numeric key

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-> SAP provides with the country specific chart of depreciation and also the dep areas in each chart of depreciation.

If you want to copy or delete the dep areas, you can also do it.


ex: Chart of depreciation 1DE - you have lot of dep area

Another chart of depreciation 1US - you have lot of dep areas

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.

Step1: Create a new chart of depreciation by copying an existing C.O.D

Path in IMG:FA -> Asset Accounting -> organizational structures -> Copy reference chart of depreciation /depreciation areasclick on the clock and the system will pop up a window with the three activitiesclick on the first activity

-> Copy reference chart of depreciation

Double click on this activity

And then click on the second icon

From which chart of dep (source) => 1IN

To which chart of dep ( target) -> SONY

The system would give the message as “chart of dep 1IN copies to SONY"

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Clicks enter and then click on completed activities

Chart of dep 1IN copied to SONY

Step 2: Changing the description of the chart of depreciation===============================================================

Path in the IMG - it is the same path

Click on the second activity

-> Specify the description of chart of depreciation

Double click on it and then change the description

Step 3: Copy/delete the depreciation areas==========================================

Click on the third activity

The new chart of depreciation is SONY

You have lot of depreciation areas,

I am going to keep two dep areas and delete all the remaining dep areas.

01 -> book depreciation

15 -> tax depreciation

Step 4: Assign the chart of accounts to the company code=======================================================

Path in IMGFA -> GL Accounting -> GL accounts -> master data -> Preparations => Assign company code to chart of accounts

Step 5: Assign the chart of depreciation to the company code============================================================

Path in IMGFA -> Asset accounting -> Organizational structures -> Assign chart of dep to the company code

When you are doing this step, you would get an error.5

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)

Step 6: Assign the input tax indicator for non-taxable acquisition==================================================================

SAP recommend to assign input tax code of 0% and output tax code of 0% for the non-taxable acquisitions.

Path in IMGFinancial accounting -> Asset Accounting -> integration with the general ledger -> Assign input tax indicator for non-taxable acquisitions

Click on the clock and then select your company code

Once you have done this step, then you can assign the chart of depreciation to the company code and then do the step 5 .

Step 7: Posting to the general ledger=====================================

Chart of depreciation contains lot of dep area and each depreciation area contains important control settings:

-> Controls how the posting is done to the general ledger

-> Value maintenance

Depreciation areas contains the depreciation attributes/settings

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.

6

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)

Select the dep area and then click on details

-> Value maintenance

A, Only positive values or zeros allowed

B, only negative values or zeros allowed

C, no values allowed

D, all values allowed

Step 8: specifying the financial statement version for asset reports====================================================================

Financial statement version - formats of the financial statements.

I can prepare one financial statement version for companies act

Another financial statement version for income tax purpose

One more financial statement version for bank loans.

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.

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Path in IMG:FA -> Asset Accounting -> Integration with the general ledger -> specify the financial statement version for asset reports

Step 9: Creation of financial statement version===============================================

Path in IMGFA -> GL Accounting -> Business Transactions -> Closing -> Document -> Define the financial statement versions

Click on the clock and then click on new entries

Each financial stateme3tn version will have financial statement items and for each financial statement item, assign the GL accounts

We have two financial statement versions

-> SONY

-> NEAS

Go back to step 8, and then assign the financial statement versions to each dep area.

Step 10 A: Overview and Defining the Asset classes===================================

Fixed Asset are classified into various asset classes

-> Plant and machinery

-> Furniture and fixtures

-> Computers

Asset classes are created at the client level .this means that you can use the asset classes in any company code.

Asset Class have two sections

-> Master data section-> Depreciation area section-> Master data section

A, Number ranges

B, Screen layout

C, account determination (defining the GL accounts)

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-> 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.


-> Asset class

-> Asset master record

-> Acquisition entries

COMPANY CODE: SONY,NEAS

Remember, with the asset accounting

-> created a new chart of depreciation by copying an existing chart of depreciation

-> changed the description of the chart of depreciation

-> copy/deleted depreciation areas (except 01 and 15)

-> Assigned the chart of accounts and the chart of depreciation to the company code

-> Assigned input tax indicator for non taxable transactions (input tax code of 0% and output tax code of 0%)

-> Posting to the general ledger

-> Separate financial statement version for each depreciation area.

Step 10 Main: Creation of Number ranges==================================

Path in IMGFinancial Accounting -> Asset Accounting -> organizational structures -> Asset Classes -> Define Number Range intervals

You can define the number range with internal or external number assignment

9

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 IMGFA -> 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 determinationFA -> AA-> organizational structure -> Asset classes -> Specify the account determinationclick 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 IMGFA -> AA -> Integration with the general ledger -> assign GL Accounts

Click on the clock and then enter the chart of depreciation

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.

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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

Fixed Asset are classified into various Asset classes

Example: Computer, Plant and Machinery, Furniture and Fixtures etc.

Asset class - Plant and machinery

Asset master records- machinery1

Asset master record - machinery2

You cannot create an asset master record without asset classes. Why? Because Asset classes contain important control settings:

Asset Class are created at the client level, it can be used in any company codes.

Asset class contains two sections:==================================

-> Master data Section

-> Valuation Section

Master data section of the Asset class consists of three settings:===================================================================

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-> Number Range (internal or external)

-> Screen layout (like a field status - which fields are required, which fields are optional etc)

-> Account determination (assign the GL accounts for automatic postings)

Valuation section of the Asset Class contains one settings:===========================================================

-> Screen layoutthese two sections contains the control parameter and the default values which are copied into the asset master record.

Again, Asset master record is classified into two sections:

-> Master data section

-> Depreciation area section

The control parameters and the default values from master data section of the asset class will be copied into the master data section of the asset master record

The control parameters and the default values from the valuation section in the asset class will be copied into the depreciation area section of the asset master record.

Before creating the asset class, you have to create the master data section of the asset class with all the three settings

->Number ranges

-> Screen layout

-> Account determination

The asset class which I am going to create -> plant and machinery

Path in IMGFA -> 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==============================================================================

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Path in IMGFA -> 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 onefor each screen layout, define the field group rules

Step 15: Determining the depreciation areas in the asset classes=================================================================

Path in IMGFA -> 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

Fin. Accounting asset accounting dep. valuation method dep.key maintain dep.key click on clock

Make sure dep.key 0000 status is ACTIVE

If its not active, select row for dep.key 0000 and click on above TAB ACTIVE and status will change and save it.

CREATION OF THE ASSET MASTER RECORD:====================================

Step 16: Creation of asset master record========================================

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Path in EASY ACCESS:Accounting -> Financial Accounting -> Fixed Assets -> Asset -> create -> Asset

Tcode -> AS01

Change -> AS02

Display -> AS03

The message is "The asset 1000 0 is created"

The asset 1001 0 is created

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

CHANGE and DISPLAY the asset master record:==========================================

Change - AS02

Display - AS03

Step 17: Activating additional account assignment objects=========================================================

Path in IMGFA -> AA -> integration with the general ledger -> Additional account assignment objects -> Activate account assignment objects

Step 18: Changing the layout of the asset master record========================================================

-> The no. of tab pages

-> The title of the tab pages

-> The field groups and their position

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Path in IMGFA -> AA -> Master data -> Screen layout -> Specify the tab layout for the asset master record

Step 19: Maintenance levels============================

The screen layout for the master data section of the asset master record can be maintained at the three levels

-> At the asset class

-> At the main asset

-> At the asset sub number

You can create various asset classes

-> Asset class for regular asset (Plant and machinery, computers

-> Asset class for AUC (Asset under construction)

-> Asset class for Low value assets

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.

Step 21: Creation of asset class for low value assets=====================================================

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Try to do the exercises from page no.49 to 61

ASSET MASTER RECORD===================

There are two ways of creating the asset master record

-> You create an asset master record using the asset class

or

-> You can create an asset master record by copying an existing master record (with reference)


CREATING MULTIPLE SIMILAR ASSET MASTER RECORDS==============================================

You are having 5 computers and you have to the master record for 5 computeGBP. All the computers have the same settings.

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

=================================================================================

Company code: SONY

In the last session, we have seen how to create the asset master record

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TIME DEPENDENT DATA:=====================

Some asset master records may be considered as time -dependent

This because of cost accounting assignments

Figure 25 on the page no.64

We will see how to create an asset master record on a time dependent basis

The asset 2001 0 is created

Use the tcde AS02

Click on time dependent tab page and then click on more intervals

Click on add interval

Asset is used in the business area, plant and location

Example: BA - 1000

Plant - 0005

Location - 1

Used from 01.01.2011 to 31.05.2011

------------------------------------

BA - 1000

Plant - 0005

Location - 2

Used from 01.06.2011 to 31.12.9999

=====================================================================

ASSET SUBNUMBERS:================


One main asset is classified into various sub numbers

A, computer - main asset

-> Monitor - sub number17

-> 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?

The main asset is 2002

For this asset 2002 , I will have three sub numbers

From the menu bar, click on Asset -> Create the sub number

Enter as "Number of similar sub number as 3"

Click on maintain and then click on create

The message is "Assets 2002 1 to 2002 3 have been created"

For one main asset, you can create "n" no. Of sub numbeGBP.

Exercise from page no.69 to 78

================================================================================

Unit 3:=======

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.


Asset Acquisition entries can be of three types:================================================

18

1, Asset acquisition - with integration (integrated with the AP component)

The entry is:

Dr asset

Cr vendor

The relevant GL accounting entry is

Dr Asset GL account

cr accounts payable account

2, Asset Acquisition - without integration ( not integrated with the AP component)

The entry is:

Dr Asset master record

cr asset clearing account

3, Asset acquisition - integrated with MM Module

Figure 34 on the page no.85 shows the different types of asset acquisition.

When we discuss about acquisition

-> External acquisition (from a vendor)

-> Internal acquisition (in-house production)

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:=========================

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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

Asset value date - is the date on which the asset is capitalized

Transaction type - specified the type of transactions (whether it is acquisition or a retirement or a transfer) you are posting and this would be shown in the asset history sheet


Dr Asset - 70 trans type asset value date

cr vendor - 31

The relevant GL account that would get affected are

Dr Asset GL account

cr account payable GL account

ASSET EXPLORER:===============

Path in easy access:Accounting -> Financial accounting -> Fixed assets -> Asset -> asset explorer

tcode - AW01N


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-> It is a tool which would be display the asset values

-> The asset explorer contains all the functions of the asset value display as well as the option of simulation different dep areas.

-> From here, you can directly go to the FI document

-> You can also display the asset master data

-> You can have planned and posted values

-> You can also take the print outs.

-> You can view all account assignment objects linked to the asset master record


When you are doing the first acquisition,

-> It will update the posting information in the master data section of the asset master record under the general tab page

A) Capitalized on (derived from the asset value date)

B) First acquisition on (derived from the asset value date)

C) Acquisition year (derived from the posting date)

These three fields would be updated

-> It will update the ord.dep start date in the depreciation area section of the asset master record

A) ord.dep start field

This field would be updated.

Based on the asset value date and the transaction type, the system would update the posting information and the depreciation start date.

IMPORTNAT NOTE:==============

The system determines the depreciation start date for ordinary depreciation using the asset value date of the acquisition posting and the period control method and writes this date to the depreciation areas in the asset master record.

21

This is a very important note.

The asset value date (which is the capitalized date) helps in determine the depreciation start date.


When you do the acquisition integrated with AP component, the system would also update the vendor information in the "ORIGIN" data field in the asset master record.

--------------------------------------------------------------------------------------

Document types used for asset posting:

Gross posting AA - you take into the discount and taxes

Net posting AN - you take into account the taxes.

Path in IMG

FA -> FA Global settings -> Document -> Document header -> document types

For document type AN, there will be tick mark for the field "Net document type"

=================================================================================

TRANSACTION TYPES:=================

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 IMGFA -> AA -> transactions -> Acquisitions -> Define Transaction types for acquisitions

click on the clock and then click on first activity

-> Define transaction type for acquisitions

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Example: TType 100

-> Whether it is to be posted on debit or credit transaction

-> Whether to capitalize the asset or not

-> What is the document type allowed for this transaction type

-> Whether the posting related to affiliated company

You can also create your own transaction type

Acquisitions -> 1

Retirements -> 2

Transfers -> 3


Every transaction type which you create belongs to a transaction type group. The transaction type group define the features of the transaction type.

-> You can limit transaction type to depreciation areas

Path in IMGFA -> 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

The transaction type groups are fixed and cannot be changed.

==================================================================================

ASSET ACQUISTION - NOT INTEGRATED WITH AP (using clearing account)

-> Sometime when you purchase the asset, the asset been received but the invoice not yet received

Dr Asset

cr clearing account

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at a later stage, the invoice received

dr clearing account

cr vendor

Finally the entry is

dr asset

cr vendor

-> The invoice received but asset not yet delivered

===================================================

dr clearing account

cr vendor account

Later, when the asset is delivered

dr asset

cr clearing account

Observe the figure 44 on the page no.93

ASSET ACQUISITION INTEGRATED WITH MM Module"

============================================


Exercise on page no.95 to 114 dealing with the exercise on asset acquisition

======================================================================

Company code: SONY

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In Last session,

Acquisition transactions

-> with integration

-> Without integration

-> integrated with the mm module

Dr Asset 70 - TTY - ASSET VALUE DATE

Cr vendor 31

When you are making posting to the asset line item, you have to enter the transaction type and the asset value date

Transaction type - specifies the type of transaction you are posting

Asset value date - is the capitalization date - date on which the asset is capitalized

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

Retirement with integration (with the customer)

dr customer

cr asset

This will be entry25

Retirement without integration (without customer)

Dr Asset clearing account

cr asset

When you sell an asset, what are the accounts that will get affected?

-> Asset

-> bank/customer

-> gain/loss

There are lot of GL and sub ledger accounts that are getting affected when you sell the asset.


Important point to be noted:===========================The system determines the depreciation date for the asset retirement based on the asset value date and the period control method of the depreciation key.

Before posting the transactions, create few important GL accounts

-> Gain on asset sale GL account - I1960

-> Loss on asset sale GL account - E1960

-> Asset clearing GL account - in the form of asset account - A1960

-> Clearing revenue from asset sale GL account- I1961

-> Accumulated |dep.account A1970

i.e

When you are selling an asset without a customer

Dr Clearing revenue

cr asset

And then assign them in IMG

Company code: SONY

26

Path in IMGFA -> AA -> integration with the GL -> Assign GL accounts

1, Purchase an asset for GBP.10000

(Asset acquisition without integration)

Path in the easy access:Accounting -> FA -> Fixed Assets -> Posting -> Acquisition -> Ext Acquisition -> Acquisition with automatic offsetting entry

T-tcode: ABZ0N

We are purchasing an asset on 01.06.2011 for GBP.10000

Asset value date as 01.06.2011

The message is:

Asset transaction posted with the document no. 0100000004"

Dr Asset

cr clearing account

The relevant GL account that are affected are

dr asset GL account

cr asset clearing account

go to the asset master record.......

In the master data section, observer the posting information

-> Capitalized on -01.06.2011 (from the asset value date)

-> First acquisition on - 01.06.2011 (from the asset value date)

-> Acquisition year - 2011 003 (from the posting date and the posting period)

go to the dep area section of the asset master record

Then go to the asset explorer - AW01n

27

Also check the asset GL account - A1501

2, Sell the asset for GBP.9000

(Retirement of an asset reclogging there revenue without integration)

There is a loss of GBP.1000

Path in the easy accessAccounting -> FA -> Fixed Assets -> Posting -> Retirements -> Retirement with revenue -> Asset sales without a customer

T-code -> ABAon

Click on post

The message is: Asset transaction posted with the document no.SONY 0100000005"

Dr Clearing revenue GL account 9000

dr loss on sale of asset 1000

cr asset master record 10000

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 )

-> Balance of 5000 in the asset

-> Gain of GBP.1000

-> clearing revenue GBP.6000

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We have purchased an asset, the document number is 0100000006

Dr Asset

cr Asset clearing account

Sell 50% of GBP.10000 for GBP.6000

Path in the easy access:Accounting -> Fa -> Fixed assets -> posting -> Retirement -> retirement with revenue -> asset sale without customer

T-code: ABAON

The document number is 0100000007

Dr Clearing account 6000

cr gain on asset sale 1000

cr asset master record 5000 (asset GL account)

Go and check the asset explorer

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

In the material, have a lot of exercises on acquisition and retirements.29

===============================================================================

TRANSFERS:==========

Transfer of assets

-> There are two types of transfers

A) intra-company asset transfer

B) Inter-company asset transfer

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

-> Stock materials to be transferred to an asset

When you are posting a transaction for intra company asset transfer, you have to use a transfer variant 4.


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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B) Transfer of an asset from one company code in a company to another company code in another company, for this, you use the transfer variant of relationship type 01

When you are doing the intra or inter-company asset transfer, at what price the transfer should take place.

We have three methods

-> Gross method

-> Net method

-. New value method

For intra company asset transfers - we follow gross methods

For inter company asset transfer - either net method or new value method can be followed

There is an asset transfer from source company code to the target company code

In case of intra company asset transfer, the source and the target company code is one and the same.

The original values remain the same.

NET METHOD

-> In the source company code

Original asset value 100dep 20net 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

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Sale value 70

Loss or gain in the source company code

-> In the target company code

Purchase value 70



Company code: SONY

Unit 4: Periodic Processing============================

In the last few session

Unit 1, 2, and 3 on Asset Accounting

-> How to create an asset master record (16 steps)

-> Post the asset transactions

A) Acquisition

- Acquisition integrated with ap component

-> Acquisition non-integrated with the ap component

-> Acquisition from mm module

B) Retirements

-> Retirement with or without sales

-> Retirement with or without the customer

-> Mass retirements

C) Transfers

-> intra-company asset transfers

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-> Inter-company asset transfer

What are the two important fields?

-> Transaction type -specifies the type of transaction you are posting

-> Asset value date - is the date on which the asset is capitalized or the asset is sold in case of retirements.

The depreciation is calculated using the DEPRECIATION KEYS.

DEPREICAITON KEY is a field appearing in the depreciation area section of the asset master record.

The posting of depreciation is done automatically by running a program called

RAPOST2000.

Before we do the execution of this program, make note of the following points


-> Primary cost planning (check whether there is to be co account assignment objects like cost centre, internal order, profit centre, business processes etc)

-> Investment support (capital subsidy received). Each investment support is identified by an investment support key.

-> Inflation management (this is a county specific setting)

Depreciation posting is done on a periodical basis

Don’t get confused between depreciation areas and depreciation keys

Dep area represents different type of valuation and appears in the chart of depreciation

dep key specifies the method of depreciation

-> SAP support three types of depreciation

A) Ordinary depreciation - due to wear and tear

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B) Special depreciation - for asset under construction

C) Unplanned depreciation - manual depreciation.

DEPRECIATION KEYS

Specifies the methods of depreciation


-> Basic method

-> Declining balance method

-> Maximum amount method

-> Multilevel method

-> Period control method

Path in IMGFA -> AA -> Depreciation -> Valuation methods -> Depreciation key -> Calculation methods

Observe the depreciation area section of the asset master record


Depreciation area for cost accounting purposes

-> The system takes into the imputed interest portion

-> indexing

The important diagram is on figure 70 page no.171

If you run the program RAPOST2000

-> The system will identify the ordinary depreciation, special depreciation, unplanned depreciation, interest, revaluations etc

-> The system will update the relevant GL Account and also to the sub ledger.34

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

Exercise on Page no.175 to 190

Fiscal year change and year end closing =======================================

Year end closing - when you are closing books of accounts of the end

Fiscal year change - change of the account year


-> 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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The yearend closing program checks whether

-> The depreciation and the asset values have been posted in full or not

-> The asset contains any error or are incomplete

By chance, you have done the closing process and after closing, you have realised that you have done a mistake; you have re-run the whole program again.

Program names for

Fiscal year change -> ====================

Path in easy accessAccounting -> Financial Accounting -> Fixed Assets -> periodic processing -> fiscal year change

T-code -> AJRW

RAJAWE00

Year end closing -> ==================

Path in easy accessAccounting -> financial accounting -> fixed assts -=> periodic processing - year end closing

Tcode > AJAB executive

Program name -> RAJABS00Exercise on page no.195 to 202

INFORMATION SYSYSTEM -> Standard reports

In order to run the standard reports in asset accounting

Path in the easy access:Accounting -> FA -> Fixed Assets -> Information system -> Reports on Asset Accounting

List viewer36

-> 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

ASSET HISTORY SHEET -> this is a yearend closing report.

This sheet shows the transactions that occurred on an asset.

You can also customize the asset history sheet

Exercise 12 on the page no.209 to 214

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DEPRECIATION SIMULATION

For instance, you are following straight line method and also simultaneously you would like to know how much would be thee amt of depreciate under base level method

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.

Report name -> RASIMU02


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sap asset accounting configuration steps as a subledger

Economy & Finance

new chart of depreciation

depreciation asset classes

chart of accounts

chart of dep source

leading depreciation

dep area results

asset transactions

lot of depreciation