sap - fixed assets accounting
DESCRIPTION
FIXED ASSETS ACCOUNTINGTRANSCRIPT
Fixed Assets
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
Asset Accounting
Transfers
Period / Year End Closing
Reporting
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
The asset class is used to:
sub-classify the General ledger accounts andgroup master records by specific criteria.
Overview: Asset Classes
Asset Class
Generalledger
accounts
Balancesheet
Assetclasses
Assetmaster
records
A L
Vehicles Fixtures andfittings
Buildings Assets underconstruction
Asset Classes
Asset Classes Configured 910000 Land
910001 Building
910002 Plant and Machinery
910003 Vehicles
910004 Asset under construction
Functions of the Asset Class
Assets
Asset Class
Account allocation
Screenlayout
Number assignment
Special features
Default values
Selectionfeatures
Assets Liabilities
Asset portfolio
Real estate
Machinery
Finance. assets
Fixtures+fit.. . .
. . .
. . .
Bal. sheet items
Acct. determinationAsset class
Lathe
02200000
Create asset
Drillpress
02115000
1
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
Definition of the Asset Classes
Client levelClient level
Account allocationScreen layout ruleNumber rangeDefault values
Chart of depreciation Chart of depreciation levellevel
Section for valuation data
Selection of depreciation areas
Default values
Master data section
Asset classes
Asset Classes in the Chart of Depreciation
Areas
Depreciationkey
Proposeduseful life
Minimumuseful life
Maximumuseful 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
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.
15
Transaction type groups
Special Asset Class: AuC
Class: Assets u. const.
Extras
AuC status
Down payment
16 Down payment carried forward from previous years
AuC managed as total line item settlement capital investment measure
depreciationareas
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
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.
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
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.
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
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
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.
The Chart of Depreciation
Chart ofdepreciation
Depreciationarea 01
Depreciationarea 02
Depreciationarea 03
Depreciationarea 20
Bookdeprec.
Taxdeprec.
Specialreserves
Cost-acc.deprec.
Depreciationarea 30
Group deprec.
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.
Asset Accounting Company Code
Chart of accounts Chart of depreciation
Financial Accounting Company Code
+
Data for Asset Accounting
Asset Accounting Company Code
==
Master Data
Creating the Asset Master Record
using a referenceusing asset class
taking over the defaultvalues from the asset class
'copying' anexisting asset
Create asset
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/YYCost center B from 08/28/YY to 11/30/YYCost center C from 12/01/YY to 03/14/YY
. . . . .
. . . . .
. . . . .
New Interval
01Month
Calendar
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).
Acquisitions
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
100Acquisitionpurchase
110Acquisition 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
Purchase Requisition
Purchase Order
Goods Receipt
Goods Receipt
Invoice Receipt
Building
or
required
Capitalization
CapitalizationValuated Non-Valuated
Create Master Record
With assignment to
WBS optional
Asset Acquisition – MM Integration
WBS
Assignment of
Internal Orders
To manage
budget
expenditure
Retirement
Assets can be retired:With RevenueWithout Revenue (scrapped)
Retirement
Please retire me, I amno longer productive Please retire me, I amno 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
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
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
APCAmount retiredAPCAPCAPCAPCAPCAmount retiredAmount retired
A/R posting
CustomerCustomer
44004000
RevenueRevenueAsset RetirmtAsset Retirmt
40004000
Assets posting
Asset
6000700
Clearing ofAsset Retirmt
4000
Loss
13006000
Proportional value adjustmentClearing of retirementProportionalProportionalProportionalProportionalProportional value adjustmentvalue adjustmentvalue adjustmentvalue adjustmentvalue adjustmentClearingClearingClearingClearingClearing of retirementof retirement4
P+L or FinStmt Notes
P+L
21 43
210Retirement
sale
200Retirementscrapping
Asset Retirement w/ Customer : Accounts
Depreciation
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
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
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
Transfers
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.
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
Period End Closing
Fiscal Year Change/Year-End Closing
Asset valuesat fiscal year start Year 2
Transaction 10000 0APC 10000 10000Ordinary dep. 3000 - 2100-Net book value 7000 4900
Asset valuesat fiscal year start Year 1
Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000
Asset valuesat fiscal year start Year 1
Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000
31Dec
Calendar
Fiscal Year Change
31
Dec
Calendar
Fiscal Year ChangeYear-end closing
Year-end closing program Year-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 per per 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 processingFiscal year changeFiscal year change
Fiscal Year Change
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.
Asset Reports …..
Summary of the main reports
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.