SAP - FIXED ASSETS ACCOUNTING
Upcoming SlideShare
Loading in...5
×
 

SAP - FIXED ASSETS ACCOUNTING

on

  • 11,162 views

FIXED ASSETS ACCOUNTING

FIXED ASSETS ACCOUNTING

Statistics

Views

Total Views
11,162
Views on SlideShare
11,162
Embed Views
0

Actions

Likes
8
Downloads
769
Comments
5

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 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.
  • Page HR HR07: HR PAYROLL
  • Page HR HR07: HR PAYROLL

SAP - FIXED ASSETS ACCOUNTING SAP - FIXED ASSETS ACCOUNTING Presentation Transcript

  • Fixed Assets
  • Asset AccountingAA 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 timeyou post.Overview: Asset Accounting as a Sub-LedgerAsset accountAsset account VendorVendorAssets LiabilitiesAssets LiabilitiesGeneral LedgerGeneral Ledger1000 10001000 1000
  • The asset class is used to:sub-classify the General ledger accounts andgroup master records by specific criteria.Overview: Asset Classes
  • Asset ClassGeneralledgeraccountsBalancesheetAssetclassesAssetmasterrecordsA LVehicles Fixtures andfittingsBuildings 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 ClassAssetsAsset ClassAccountallocationScreenlayoutNumberassignmentSpecialfeaturesDefaultvaluesSelectionfeaturesAssets LiabilitiesAsset portfolioReal estateMachineryFinance. assetsFixtures+fit.. . .. . .. . .Bal. sheet itemsAcct. determinationAsset classLathe02200000CreateassetDrillpress021150001
  • Functions of the Asset ClassThe asset class contains default values and control elements which arepassed on to the individual assets when you open a new asset masterrecord.By entering useful default values, you reduce time and effort needed forcreating new asset master records. You also ensure that the records in agiven class are handled uniformly.The asset class is the most important criteria for structuring fixed assetsfrom an accounting point of view. Every asset has to be assigned toexactly one asset class. The asset class is used to assign the assets (andtheir business transactions) to the correct general ledger accounts. Themost important tasks of the asset classes are:The assignment of default values when creating assets (particularlydepreciation terms)The grouping of assets for reporting purposes
  • Definition of the AssetClassesClient levelClient levelAccount allocationScreen layout ruleNumber rangeDefault valuesChart of depreciationChart of depreciationlevellevelSection forvaluation dataSelection ofdepreciation areasDefault valuesMaster datasectionAsset classes
  • Asset Classes in the Chart of DepreciationAreasDepreciationkeyProposeduseful lifeMinimumuseful lifeMaximumuseful lifeBook dep.10/00____DG30decl-bal.3 X3 XTax dep.Tax dep.10/00____SNFGinvest.supportGroup8/00____LINRstr.-lineBook dep.12/00__LINBstr.-lineGroup8/00____LINRstr.-lineACRSACRS. . . .. . . .____. . . .. . . .. . . .. . . .. . . .. . . .8/00. . . . . .ClassChart ofdepreciationMachinesUSAGermany1
  • Points from the Asset Class / Dep’n SlideThe Chart of Depreciation is assigned to company code, therefore a classmay have multiple Charts of Depreciation relevant to it.The asset classes are valid across company codes. The catalog of assetclasses, therefore, applies uniformly to all company codes. This is true,even if the company codes use different charts of depreciation, andtherefore different depreciation areasYou can assign different charts of depreciation to an asset class, so thatall assets in this class will be treated differently in each country.
  • 15Transaction type groupsSpecial Asset Class: AuCClass: Assets u. const.ExtrasAuC statusDown payment16Down payment carried forwardfrom previous years AuC managed as total line item settlement capital investment measuredepreciationareasdeprec.keyBook dep. 0000Tax dep. 0000Cost-acc. LINAnegative values alloweddepreciation is not calculated indepreciation areas intended for thebalance sheet
  • AUC without line item settlementAssets under construction in this asset class are managed without theoption of line-item final settlement to receiver assets or cost centers. As aresult:Only complete transfers or simple partial transfers are possible (in otherwords, you can only transfer either prior-year acquisitions or current-yearacquisitions in one given posting transaction).You can only transfer to one target asset per posting transaction. Youhave to enter the amount of the transfer manually.There is no connection to the original asset under construction in thecapitalized asset. Therefore, there is no exact proof of origin for the originalpostings.
  • Assets under Construction with Line item settlementAssets under construction in this asset class are managed with the optionfor final line item settlement to receiving assets or cost centers. As a result:On the capitalized asset, you can then see the relationship between thecapitalized asset and original postings to the asset under construction - youcan 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 forcapital investment measures (internal orders or projects).The assets in this class can not then be directly created and posted inAsset Accounting. The assets can only be processed by means of anorder or WBS element, to which they are assigned.
  • AUC Asset Class: Points from previousslideAssets under construction require their own asset class.Choosing the depreciation key ‘0000’ ensures that depreciation is notcalculated for the asset under construction in depreciation areas that areposted to the balance sheet.Assets under construction have to be shown separately in the balancesheet.The component IM (Investment Management) is available for managingmore 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 previousslideAssets under construction require their own asset class.Choosing the depreciation key ‘0000’ ensures that depreciation is notcalculated for the asset under construction in depreciation areas that areposted to the balance sheet.Assets under construction have to be shown separately in the balancesheet.The component IM (Investment Management) is available for managingmore 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 variousbusiness and legal purposes (for example, for bookdepreciation, cost-accounting depreciation and so on). In theR/3 FI-AA system, it is therefore possible to manage valuesin parallel in as many depreciation areas as you want.
  • The Chart of DepreciationChart ofdepreciationDepreciationarea 01Depreciationarea 02Depreciationarea 03Depreciationarea 20Bookdeprec.Taxdeprec.SpecialreservesCost-acc.deprec.Depreciationarea 30Groupdeprec.
  • 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 chartof accounts and chart of depreciation.Company codes in Financial Accounting are assigned to a chart ofdepreciation – refer following slide.
  • Asset Accounting CompanyCodeChart of accounts Chart ofdepreciationFinancial AccountingCompany Code+Data for Asset AccountingAsset Accounting CompanyCode==
  • Master Data
  • Creating the Asset MasterRecordusing a referenceusing asset classtaking over the defaultvalues from the asset classcopying anexisting assetCreateasset
  • Time-Dependent DataASSET MASTER RECORD- Time-dependent data -Enter period under considerationValid from MMDDYYYYValid to MMDDYYYYCost 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 Interval01MonthCalendar
  • Master Data Creation/Change: Key PointsWhen you create the asset master record, you have twooptions:Use the asset class, to which the asset will belong, toprovide default values. The asset class then supplies themost important control parameters in the asset masterrecord.Use an existing asset as a reference for creating thenew asset master record.Some information in the asset master record can bemanaged as time-dependent data. This is of particularsignificance for cost accounting assignments (for example,cost center, order, project).
  • Acquisitions
  •  Asset transaction postedusing clearing account (notintegrated(Accounts PayableAssetsFixed Asset Vendor100100General LedgerAssetsFixed Asset Clg Acct100100Accounts PayableAssetsFixed Asset Vendor100100 Asset transaction integratedwith Accounts Receivable orAccounts Payable100Acquisitionpurchase110Acquisition in-houseproductionAqcuisition with VendorAqcuisition with Auto-offsetting EntryAsset Acquisition - Integration)Only for direct Asset purchases()Only for direct Asset purchases)No PO Asset transaction postedfrom Materials Management)MM(MMAqcuisition with MM-PO
  • Purchase RequisitionPurchase OrderGoods ReceiptGoods ReceiptInvoice ReceiptBuildingorrequiredCapitalizationCapitalizationValuated Non-ValuatedCreate Master RecordWith assignment toWBSoptionalAsset Acquisition – MM IntegrationWBSAssignment ofInternal OrdersTo managebudgetexpenditure
  • Retirement
  • Assets can be retired:With RevenueWithout Revenue (scrapped)Retirement
  • Please retire me, I amno longer productive Types of asset retirement1. Retirement with revenue -selling of an asset either at amarket price, net book value orother settlement price2. Retirement without revenue -writing off an asset which isno longer productive or has noresidual valueAsset Retirement: Types
  • 123Retirement: - Acquis .date 01/01/20xx - 1,APC = 6000- Complete retirement of APC on 03/15/20xx- Revenue 4000+400 sales taxAPCAmount retiredAPCAPCAPCAmount retiredAmount retiredA/R postingCustomerCustomer44004000RevenueRevenueAsset RetirmtAsset Retirmt40004000Assets postingAsset6000700Clearing ofAsset Retirmt4000Loss13006000Proportional value adjustmentClearing of retirementProportionalProportionalProportional value adjustmentvalue adjustmentvalue adjustmentClearingClearingClearing of retirementof retirement4P+L or FinStmt NotesP+L21 43210Retirementsale200RetirementscrappingAsset Retirement w/ Customer :Accounts
  • Depreciation
  • SAP supports the following direct types of depreciation:Ordinary Depreciation: planned reduction in asset value dueto normal wear and tear.Special Depreciation: depreciation that is solely based on taxregulations.Unplanned Depreciation: depreciation resulting from unusualcircumstances, such as damage to the asset, that lead to apermanent reduction in its value.Depreciation
  • The depreciation areas are identified in the system by a two-characternumeric key. You make this specification in the asset classes, and candefine it directly in the given asset master record.The system allows you to define an almost indefinite number ofdepreciation areas. This feature enables you to handle a large number ofdifferent 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 assetmaster. The most important influences on the calculation of depreciationare:The value date of the document. It is used to set the depreciation startdate in the asset.The depreciation key.The depreciation calculation method is the most important feature of theinternal calculation key. It is used to carry out the different types ofdepreciation calculation.Elements of the Depreciation Calculation
  • Transfers
  • Assets can be transferred within a company code or acrosscompanies within the GroupTransfersAssets can be transferred in full or partially. Controllingobject assignment can be changed as can asset class.
  • Asset transfers can be one of the following scenarios:1. Transfer within same Company CodeEg. From one asset class to another2. Inter-company transfers between companies in SAPEg. From one company to another12Transfer within Company Code (ABUMN(Intercompnay Transfer (ABT1N(Asset Transfers
  • Period End Closing
  • Fiscal Year Change/Year-End ClosingAsset valuesat fiscal year start Year 2Transaction 10000 0APC 10000 10000Ordinary dep. 3000 - 2100-Net book value 7000 4900Asset valuesat fiscal year start Year 1Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000Asset valuesat fiscal year start Year 1Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 700031DecCalendarFiscal Year Change31DecCalendarFiscal Year ChangeYear-end closingYear-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 perpercompany codecompany codeClosing reportsClosing reports- Asset history sheet- Asset history sheet- Asset list- Asset list- . . .- . . .Depreciation posting runDepreciation posting run1.1.2.2.3.3.Year-end closingPeriodic processingPeriodic processingFiscal year changeFiscal year changeFiscal Year Change
  • Points from Fiscal Year Change/Year-End Closing The fiscal year change program opens new annual value fields for eachasset. The earliest you can start this program is in the last posting period ofthe old year. You have to run the fiscal year change program for your wholecompany code. SAP provides you with a check report for year-end closing. It checkswhether the fiscal year change was completed for all assets, whetherdepreciation was fully posted, whether errors exist for any assets. If the program finds no errors, it updates the last closed fiscal year foreach depreciation area.
  • Asset Reports …..Summary of the main reports
  • Standard Fixed Asset ReportsStandard reports are available via the standard SAP menu: “FixedAssets / Information System / Reports on Asset Accounting” Keyreports: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 berestricted 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.