scenario overview sap aa

Asset AccountingSAP Best Practices Baseline Package

SAP Best Practices

Scenario Overview – 1

Purpose The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets

with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

Benefits Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as

an asset under construction) through its retirement. Calculate values for depreciation and interest Depreciation forecast

Key process flows covered Acquisition from purchase with vendor Acquisition with Automatic Offsetting Entry Retirement with revenue Asset Sale without customer Post-Capitalization Write-Ups Settlement Assets Under Construction Down Payment Request for Assets under Construction Depreciation Posting Run Posting Acquisition and Production Costs Values Depreciation Simulation/Primary Cost Planning

Purpose and Benefits:


Required SAP enhancement package 4 for SAP ERP 6.0

Company roles involved in process flows Assets Accountant Accounts Payable Accountant Finance Manager

SAP Applications Required:


Acquisition from purchase with vendor An external asset acquisition is a business transaction resulting from the

acquisition of an asset from a business partner. The acquisition can post integrated with Accounts payable or without Accounts payable.

Acquisition with Automatic Offsetting Entry The asset can be posted automatically against the Clearing account fixed

asset acquisition.

Retirement with revenue An asset is sold, resulting in revenue. The sale is posted with a customer. An asset is sold, resulting in revenue. The sale is posted against a clearing

account. An asset had to be scrapped, with no revenue.

Asset Sale without customer Asset Sale with partial retirement without customer

Detailed Process Description:


Post-Capitalization Post-capitalization represents subsequent corrections to the acquisition and

production costs (APC) of a fixed asset.

Write-Ups A write-up is generally understood to be a subsequent change to the

valuation of an asset.

Settlement Assets Under Construction Assets under construction (AuC) are a special form of tangible asset. Assets under construction can be managed for summary settlement or by

line item.

Down Payment Request for Assets under Construction Down payments for assets under construction are fixed asset acquisitions

that have to be capitalized and reported as a separate item on the balance sheet.



Depreciation Posting Run The depreciation posting should be run periodically because the depreciation

accounts are not updated immediately. The system creates posting documents for each depreciation area and

account group in accordance with the posting cycles specified in Customizing

Posting Acquisition and Production Costs Values In addition to the posting of depreciation (using the depreciation posting run),

the most important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on.

Depreciation Simulation/Primary Cost Planning You can also post the planned depreciation as planned costs to the cost

centers or internal orders to which the individual fixed assets are assigned.


Process Flow DiagramAsset Accounting - Overview

Ass

et A

ccou

ntan

tEv

ent

Asset Explorer

Asset Master Data Needs to

Be Created

Fina

nce

Man

ager

Asset Acquisition

Retirements

Intercompany Transfer

Post - Capitalization

Write-up

Transfer of Reserves

Unplanned Depreciation

Assets under Construction

Periodic Processing

Information System

Check Consistency

Process Flow DiagramAsset Accounting – Asset Acquisition

Ass

et A

ccou

ntan

tEv

ent

Acquisition with

Accounts Payables

Acquisition with Automatic

Offsetting Entry

Asset Acquired

Acquisition Integrated with

Accounts Payable Accounting

162 Overview

Yes

No

Process Flow DiagramAsset Accounting – Retirements

Ass

et A

ccou

ntan

tEv

ent

Retirement with

Revenue Expected

Retirement Due to Scrapping

Asset to Be Retired

Retirement with Revenue and

Customer

162 Overview

No

Retirement with

Customer

Retirement with Revenue without

CustomerNo

Yes

Yes

Process Flow DiagramAsset Accounting – Asset under Construction

Ass

et A

ccou

ntan

tEv

ent

Capitalize Asset under Construction

Captial Asset Needs to Be Constructed without

Investment Order

162 Overview

Acc

ount

s Pa

yabl

e

Post Down Payment Request Post Down Payment

Down Payment Approved

Post Closing Invoice Clear Down Payment

Process Flow DiagramAsset Accounting – Periodic Processing

Ass

et A

ccou

ntan

tEv

ent

Periodic End

Closing

Recalculate Values

162 Overview

Open and Close Financial

Period Asset

Depreciation Posting Run

Post Acquisition and Production

Cost Value

List of Individual

Postings for Assets

Depreciation Simulation and Primary Cost

Planning

Year End

Fiscal Year Change for Asset

Account Reconciliation

Year End Closing for

fixed Assets

Asset under Construction Settlement

(164)

Yes

No

Depreciation Run

Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

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xter

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AP

Business Activity /

Event

Unit Process

Process Reference

Sub-Process

Reference

Process

Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Proces

s

Existing Version /

Data

System Pass/F

ail Decisio

n

scenario overview sap aa

Documents