Asset accounting


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Asset accounting

  1. 1. SAP FINANCIALS Asset Accounting
  2. 2. COURSE OBJECTIVES Configure Asset Accounting Use Asset Accounting Reporting for Assets
  3. 3. Asset Accounting
  4. 4. Asset Accounting
  5. 5. Asset Accounting :Organization structure Objective: After completing this unit, you will be able to : Define a chart of depreciation Assign a chart of accounts and a chart of depreciation to a company code Describe how Asset Accounting is integrated with Cost Accounting Name asset classes Assign asset classes to assets Define which depreciation areas post their values to the general ledger
  6. 6. Asset Accounting :Organization structure Each company code uses one chart of accounts and one chart of depreciation. All or several company codes can work with the same chart of accounts and the same chart of depreciation. The chart of depreciation is always country-specific.
  7. 7. Asset Accounting :Organization structure Each depreciation area represents a specific type of valuation The depreciation areas are defined with a two-digit numeric key. The numeric keys represent depreciation terms that you can enter in the asset master record or in the asset classes
  8. 8. Asset Accounting :Organization structure Depreciation area 01 is the leading depreciation area. Values and depreciation are posted to the general ledger. Other depreciation areas may show: . Country-specific valuation (for example, net-worth tax, state calculation) . Values or depreciation that differ from area 01 (for cost-accounting reasons ,for example) . Consolidated versions in company code or group currency . Book depreciation in group currency . Difference between book and country-specific tax-based depreciation Different depreciation areas can have the same values and depreciation terms, but can be displayed in different currencies (for example, areas 01 and 32 or areas 30 and 31).
  9. 9. Asset Accounting :Organization structure Company code is created in Financial Accounting. Assign the chart of depreciation to the company code. The necessary data for asset accounting is added to the company code. The company code is now available for use by Asset Accounting.
  10. 10. Asset Accounting: Integration with Cost Accounting In the Asset master record, the following original Cost Accounting objects can be assigned to an asset:  Cost center  (Internal) order (real or statistical)  Activity type
  11. 11. Asset Accounting : Integration with Cost Accounting Objects from other applications can also be assigned in the asset master record, for example: WBS elements, Real Estate objects, PSM objects, maintenance orders. Depreciation from each depreciation area can be posted in Cost Accounting. In doing so, the (costing-based) depreciation can be posted to: • a cost center • a (real) order • a cost center and a statistical order. • a WBS element • a cost center and a statistical WBS element • a Real Estate object • objects from PSM (Public Sector Management)
  12. 12. Asset Accounting : Asset Classes Fixed assets are classified into asset classes. Some examples of asset classes could be vehicles, furniture, or machines. The asset class consists of a master data section and a depreciation area section. Asset classes are created at client level. They are then assigned to at least one chart of depreciation. Several charts of depreciation can also be assigned to an asset class. This ensures that the asset class catalog is uniform, despite using different depreciation areas.
  13. 13. Asset Accounting : Asset Classes The Asset class is the main criterion for classifying assets. Each asset is assigned to only one asset class. Assets that are to appear in different places/balance sheet items (for example, buildings and machines) have to be assigned to different asset classes. There is also at least one special asset class each for assets under construction and low value assets.
  14. 14. Asset Accounting : Posting values from Dep. areas Fixed assets are valued for various business and legal purposes (for example, book depreciation, tax depreciation, cost-accounting depreciation, and so on). The chart of depreciation is a catalog of country-specific depreciation areas structured according to various business aspects. The attributes of each individual depreciation area can be specified. A new chart of depreciation can be created by copying one of the reference charts of depreciation. In your chart of depreciation, you can delete the depreciation areas you do not need.
  15. 15. Asset Accounting : Posting values from Dep. areas We can determine whether and how the values from the depreciation areas are posted in the general ledger. The options are: • Do not post any values • Post asset values online, depreciations periodically • Post asset values and depreciations periodically • Only post depreciations periodically The system dictates that depreciation area 01 posts APC values to the general ledger online in real time. Normally, depreciation area 01 is used to manage book depreciation
  16. 16. Asset Accounting : Posting values from Dep. areas Depreciation areas can also be defined for reporting purposes only, which do not post any values to the general ledger (for e.g.. a depreciation area for a tax balance sheet). Both the Asset B/S values and the depreciation values can be posted from the individual depreciation areas to separate balance sheet accounts or income statement accounts in the general ledger. The financial statement versions to be used for those depreciation areas for which financial statements are to be created will have to be entered while customizing for Asset Accounting.
  17. 17. Organization Structure : Exercise Time ? Create a chart of depreciation by copying the standard chart of depreciation ? Assign your chart of depreciation to a company code. ? Ensure that the asset values in depreciation areas 31 and 32 of our depreciation plan are displayed in U.S. dollars. ? Check how the depreciation areas of your chart of depreciation post to the general ledger. Which depreciation area posts all asset values to the general ledger in real time? Which depreciation area only posts depreciation? Which depreciation area is reserved for reporting purposes only?
  18. 18. Asset Accounting : Organization Structure Summary : You should now be able to : Define a chart of depreciation Assign a chart of accounts and a chart of depreciation to a company code Describe how Asset Accounting is integrated with Cost Accounting Name asset classes Assign asset classes to assets Define which depreciation areas post their values to the general ledger
  19. 19. Asset Accounting
  20. 20. Asset Accounting :Master data Objective: After completing this unit, you will be able to : Structure assets by creating asset classes Create and change master data in Asset Accounting  Process mass changes using a work list
  21. 21. Asset Accounting : Asset Classes Asset classes are important to structure fixed assets according to the requirements of the enterprise. It consists of two main sections:  A master data section with control data and default values for the administrative data in the asset master record A valuation section with control parameters and default values for valuation and depreciation terms The Asset class definitions apply to all company codes in a client.
  22. 22. Asset Accounting : Asset Classes When an asset master record is created ,the data is automatically adopted from the asset class specified. Reduces the time and effort needed to create new asset master record. Ensures that the records in a given class are handled uniformly. Establishes a link between the asset master records and the accounts to which the related values and depreciation are posted in the general ledger
  23. 23. Asset Classes: Account determination For several similar asset classes ,different account determination keys can be used, although their values are all updated to a single balance sheet account. Several asset classes can use the same account determination key if they use the same chart of accounts and post to the same G/L accounts. If different charts of accounts are used, only one account determination key is needed to post asset values of all asset classes to different accounts in the different charts of accounts. To define acquisition/retirement accounts, the necessary G/L accounts for acquisition, retirement, balance sheet revaluation, and cost amounts that are not capitalized (cost element and account for non operating expense or capitalization differences) will have to be entered.
  24. 24. Asset Classes: Account determination
  25. 25. Asset Classes: Number ranges The number range controls the assignment of the number of the asset master record. It can be defined as either internal or external. Internal :The system automatically assigns the next available number in the numerical sequence in the defined number range interval. External :The number is assigned by the user or by another system. Each company code can have its own number range, or company codes can share number ranges.
  26. 26. Asset Classes: Screen layout The screen layout specifies which input fields are displayed in the asset master record, and whether they are required entry or optional fields/suppress/display only The screen layout specifies the maintenance level of master data fields i.e. level at which each field can be maintained –Asset Class/Asset no./Sub number It also has the reference indicator controls which field contents of an asset area can be copied when that asset is used as a reference for creating a new asset master record.
  27. 27. Asset Classes: Screen layout for depreciation The screen layout rule defined here applies to the valuation fields in the depreciation area. SAP supplies screen layout rules 1000 and 2000 in the standard system. These screen layout rules also contain a maintenance level. The maintenance level guarantees that depreciation is controlled uniformly. Depreciation can be configured to be uniform at same at asset class level or Main Asset number or the Sub Asset.
  28. 28. Asset Classes: Account assignment objects Account assignment objects must be activated before they can be maintained in the master data. Path : Integration with the General Ledger → Additional Account Assignment Objects → Activate Account Assignment Objects. Depreciation (cost-accounting) can be posted to account assignment objects, or can be used for APC (acquisition and production costs) postings, such as direct capitalization as part of an investment measure or for (statistical) budget monitoring for asset purchase. It can be posted to the following objects: . Cost center . CO internal order . WBS element . Real estate object (building or property) . Various objects from the PSM (Public Sector Management) component
  29. 29. Asset Classes: Asset Under Construction Assets under construction (AuC) require a separate asset class and corresponding G/L account, because they have to be shown separately in the balance sheet. Normally depreciation key 0000 is used to ensure that depreciation is not calculated for AuC in depreciation areas for the balance sheet. However, special tax depreciation and investment support are possible even on AuC. It is also possible to post down payments on assets under construction. Even after an asset under construction has been fully capitalized, you can still post credit memos to it. However, you have to allow negative APC. To manage more extensive asset investments, Investment Management (IM) integrates internal orders and projects with the AuC and allows detailed monitoring.
  30. 30. Asset Classes: Low Value Assets Low value assets (LVAs) can be managed using individual management or collective management .For each type of management, a separate asset class has to be set up . In case of collective management of LVAs, a base unit of quantity in the asset class is to be entered. A check of the maximum amount in the depreciation areas of the asset class for LVAs should also be set.
  31. 31. Asset Classes : Exercise Time ? Create number range assignment for assets in the company code(can be cross company code also) ? Create an account assignment ? Create screen layout rules for master data and depreciation areas ? Create an Asset class by copying other class and assign the created number range, account assignment and screen layout rules to it .
  32. 32. Asset Accounting: Asset Master record Assets can be created in two ways: 1. Enter the company code and the asset class to which the new master record is to belong .The asset class provides the control parameters for the master record. 2. Use an existing asset master record as a reference Add any additional information and remove any unwanted copied data
  33. 33. Asset Accounting: Asset Master record Certain 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) since depreciation is run on a monthly basis. Whenever an asset master record is changed, the system creates a change document. The change document contains a list of fields that were changed and the number of changes to a field. In addition, the name of the user and the old and new contents of fields are stored. For assigning equipment and functional locations to an asset ,the asset number can be entered in the relevant master record. By synchronously creating and changing equipment and asset, enhanced integration between the Asset Accounting (FI-AA) and Plant Maintenance (PM) components can be achieved.
  34. 34. Asset Accounting: Asset sub number If a fixed asset is made up of many component assets, these component assets can be managed as separate sub numbers. External or internal number assignment can be specified for the asset sub number. You can work directly with a specific sub number, all sub numbers belonging to an asset, or a selection from a list of sub numbers. You can also report separately on accumulated depreciation and book values for previous fiscal years for individual asset sub numbers. By specifying maintenance level at the sub number level, the default value for depreciation terms can be changed on the sub number.
  35. 35. Asset Accounting: Mass changes For changing the cost centers of assets en masse with system support.
  36. 36. Asset Accounting: Mass changes Steps: 1. Create a substitution rule to specify which fields you want to change and how you want to change them. 2. Generate a list of assets to be changed (for example, by running a standard report with the appropriate selections). 3. Choose the Create work list function. 4. Enter a description and select a purpose for your work list. The purpose is a predefined standard task in the system (for example, change master data). 5. Choose the appropriate substitution rule for the mass change. 6. If you do not want to use the workflow, make sure that the work list created is not assigned to any user. 7. Check whether your mass change was successful by displaying the assets or running an appropriate report.
  37. 37. Asset master record :Exercise Time ? Use asset class - vehicles and your company code to create a master record named Forklift group ##.. Assign a cost center e.g.(Motorcycle Production) to the master record. ? Create the second master record using your first one as a reference ? Change the description of the Asset master record. ? Change the cost center Assignment for the first master record.
  38. 38. Asset Accounting :Master data Summary : You should now be able to : Structure assets by creating asset classes  Create and change master data in Asset Accounting  Process mass changes using a work list
  39. 39. Asset Accounting
  40. 40. Asset Accounting : Asset transactions Objective: After completing this unit, you will be able to : Post integrated and non-integrated asset acquisitions in the system Post integrated and non-integrated asset retirements in the system Represent intra company and intercompany asset transfers in the system Represent assets under construction in the system Represent unplanned depreciation in the system
  41. 41. Asset transactions :Acquisitions Different ways of 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 a 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 AP 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. 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. Production costs are capitalized by creating an investment measure (order/project) in Investment Management (IM) and settling to an AuC and then to final asset.
  42. 42. Asset transactions :Acquisitions The following information is automatically set in the asset master record at the time of the first acquisition posting: 1. Date of asset capitalization (derived from the asset value date) 2. Date of initial acquisition in the relevant master record (derived from the asset value date) 3. Acquisition year and acquisition period (derived from the posting date)  Default values can be entered for the asset value date for each type of accounting transaction The asset value date ( → capitalization date) determines the depreciation start date of the asset. This date is determined for each depreciation area by the period control method of the depreciation key. The system determines the planned annual depreciation and planned interest based on the depreciation start date and the depreciation terms.
  43. 43. Asset transactions :Acquisitions The document type is a two character, alphanumeric entry that determines how documents are stored. Separate number range for documents can be defined for each company code. If you do not want the numbers defined as year-dependent, then enter a future year under Year (such as 9999). Exactly one number range is assigned to each document type. Account types that are allowed when making entries with a particular document type are specified herein.
  44. 44. Asset transactions :Acquisitions The document type determines how the posting is processed: • With document type “AA” you post gross, that is, without deducting a discount. • With document type “AN” (KN, RN), the amount capitalized to the asset is reduced by the discount (net document type).
  45. 45. Asset transactions :Acquisitions Business Transaction types are used with every posting. They identify acquisitions, retirements and transfers. The asset history sheet reports and other FI-AA reports use the transaction type to identify the different kinds of transactions and display them separately (for example, the transaction type specifies where the value change is shown in the asset history sheet: as a retirement of a prior-year acquisition, or of a current-year acquisition). The transaction type specifies which of the following are updated: 1. Asset balance sheet accounts 2. Depreciation areas 3. Value fields Transaction types can be limited to specific depreciation areas (for example, transaction type 030 for acquisition in the group depreciation area.) You can also define your own transaction types. They can be used to separate various types of accounting or transactions in reports.
  46. 46. Asset transactions :Acquisitions Every transaction type belongs to a transaction type group. The transaction type group defines the characteristics of the transaction type. In the transaction type display, choose Goto from the menu bar to display the transaction type group. The transaction type groups are fixed and cannot be changed. Specific transaction type groups can be limited to certain asset classes (for example, down payments allowed only in the asset class for assets under construction). All transaction types assigned to this transaction type group can only be used for assets belonging to the appropriate class.
  47. 47. Asset transactions :Non integrated acquisitions If asset acquisition postings are not integrated , a clearing account is used. This should be a general ledger account with open item management to guarantee that you can clear the account. One posting is made to the clearing account from Accounts Payable (clearing account debit , credit vendor), and one from Asset Accounting (debit to asset, credit to clearing account). The sequence is determined by the transaction. The clearing account is cleared in the general ledger in a separate step,. This is done either manually or by running the automatic clearing program SAPF124. Alternatively , you can create a new master record within the framework of non-integrated acquisition (automatic offsetting entry). Reasons for not making integrated postings: The invoice arrived before the asset The asset has already been delivered but the invoice has not arrived
  48. 48. Asset transactions :Non integrated acquisitions
  49. 49. Asset transactions :Acquisition with MM integration THE STEPS ARE : 1. Creation of a purchase requisition 2. Creation of an asset master record, and creation of the purchase order. In the purchase order transaction ( →ME21N), if account assignment type A (A = asset) is used ,you can enter an asset master record number in the “Item Detail” screen area. An even greater degree of integration can be achieved if the asset master record is created in the purchase order transaction.
  50. 50. Asset transactions :Acquisition with MM integration 3. 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). However, in either case ,the system uses the date of the goods receipt as the capitalization date. 4. Invoice receipt - If the goods receipt was non-valuated, the asset is capitalized, line items are created, and the value fields are updated.
  51. 51. Asset acquisition :Exercise Time ? Post an acquisition for a forklift through a vendor on January7, CY). Choose a document type with automatic deduction of discount. ? Post another acquisition, with automatic offsetting for Machine 01, acquisition and production costs (APC) of 100,000. ? Post an acquisition in the current year to a (new) asset in class vehicles without first having created an asset master record. ? Check the following using Asset Explorer • Asset values • Balance sheet asset account that the system posted to • Start date for depreciation • Planned depreciation values in depreciation areas 01 (book depreciation) and 20 (cost-accounting depreciation) • Asset history sheet
  52. 52. Asset transactions :Asset Retirement There are different ways of posting retirements: 1. With or without revenue (scrapping) 2. With or without customer (non-integrated) 3. As full or partial retirement 4. As mass retirement (with worklist) 5. As retirement of several assets (within the manually posted retirement transaction)
  53. 53. Asset transactions :Asset Retirement The reference period for the asset retirement is determined based on the asset value date (asset retirement date) and the period control method (period control key) of the depreciation key. The system automatically determines the depreciation up to this period that apply to the part of the asset being retired, and cancels this depreciation. At the same time, the system posts the asset retirement. The gain or loss results as the balance of the following: the amount of the asset retirement; the amount of depreciation ; and the revenue (that is, the sale price) that is received for the asset.
  54. 54. Asset transactions :Mass Retirement Mass retirement, with or without revenue, is defined as a standard task in the system.
  55. 55. Asset transactions :Mass Retirement To carry out a mass retirement, these steps are to be followed: 1. Use an asset report to create a list of the assets to be retired. 2. Create a worklist. 3. Select a purpose for the worklist: . Retirement without revenue . Retirement sale (with revenue) 4. Enter the revenue distribution. 5. Process the worklist, or edit the worklist before releasing it.
  56. 56. Asset Retirement :Exercise Time ? Machine X (or any other asset ) is to be sold completely on July 01 of the current year. Post an integrated complete retirement for machine X (value date: July 1, CY) assuming net (sales) revenue of 10,000. ? Part (60 %) of another asset (machine Y) is to be sold. Post the (integrated) retirement in the current year, and enter revenue/sales price of Rs 5,000. ? Machine Z is to be scrapped .Post the asset retirement without revenue in the current year. ? In all the above cases, check the posting documents, the changes in the asset master record, and the changes in the Asset Explorer.
  57. 57. Asset transactions : Asset Transfer Asset Accounting distinguishes between different types of transfers, depending on circumstances: . Transfers within a company code (intracompany transfer) . Transfers between different company codes (intercompany transfer) Possible reasons for intra company code transfers: •A master record has been created and posted to in the wrong class. •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. •The asset needs to be split. Therefore, a portion of the original asset will be transferred to a new asset. •Stock material (goods created by your enterprise or bought in) needs to be transferred to an asset. The standard system uses transfer variant 4 for intracompany transfers. The transaction types for transfer postings to source and target assets are determined using the transfer variant.
  58. 58. Asset transactions : Asset Transfer Possible reasons for inter company code transfers: • The physical location of the asset has changed (due to a sale) • The organizational structures of the affected company codes have changed, and you have to assign the asset to a new company code In an inter company code transfer, there might be 2 scenarios: 1. Transfer within a legal, independent unit (within a company).In the case where both company codes belong to the same company, SAP refers to a transfer of relationship type 02. In this case, the two company codes are to be regarded as part of the same legal unit. 2. Transfer between legally independent organizational units (company codes), each belonging to a different company. In this case, the company codes are not linked with each other by means of the company, but still belong to a group of affiliated companies (corporate groups).This scenario is also defined using a relationship type, and is a transfer of relationship type 01.
  59. 59. Asset transactions : Asset Transfer The transfer method controls how values are transferred from the source company code to the target company code. Gross transfer method - This method transfers the historical values of the asset to the target company code. Net method - The net book value is capitalized on the target asset. New value method - The system capitalizes the amount of the sales revenue on the target asset.
  60. 60. Asset transactions : Asset Transfer If the company codes are assigned to different charts of depreciation, the charts of depreciation can contain different depreciation areas (different keys) with the same actual functions. When this is the case, you can define cross-company depreciation areas. Cross-company depreciation areas do not have their own control parameters. Instead they consist solely of a key that is uniform throughout the client, and a short description. You can assign depreciation areas from different charts of depreciation to the same cross-company depreciation area.
  61. 61. Asset Transfer: Exercise Time ? Perform an intra company transfer between asset class 3000 (office equipment) and 3100 (vehicles). Transfer 80,000 (or any other amount) to a new asset master record in the correct asset class (3100). ? Post an acquisition with a value of 50,000 to one of your company cars in company code AA## on January 01, PY. After practically two years of use in your company code AA##, the asset is to be transferred to company code BB## on December 31, CY. The net book value of the asset is entered in the new company code, where it will be depreciated for three years. Take the agreed sale price as Rs 35000.
  62. 62. Asset transactions :Asset Under Construction (AuC) Assets produced in the organization have two phases that are relevant to Asset Accounting: . The under construction phase . The useful life phase
  63. 63. Asset transactions :Asset Under Construction (AuC) The transfer from the under-construction phase to completed asset is referred to here as capitalization of the asset under construction. This phase can be managed in the following ways (depending on the functions you need): . As a normal asset master record (for summary settlement) . As an asset master record with line item management When you capitalize the AuC , you transfer the values to one or more completed assets. This transfer is either done in a lump sum or with line item settlement. When capitalizing the AuC, the system automatically separates the transactions from the previous years from the transactions from the current year. This is done by using different transaction types. By using Investment Management (IM) capital investments can be represented simultaneously as AuC (for accounting purposes) and internal orders or projects (for controlling purposes).
  64. 64. Asset transactions :Asset Under Construction (AuC) • Select all line items that you want to settle in the same proportion to the same receiver. • Define distribution rules for these line items. • Post the settlement of line items to the specified receivers using the distribution rule. If you want to settle using amounts then you have to select and distribute one line item after the other.
  65. 65. Asset Under construction : Exercise Time ? Create master record for the Asset Under construction ? Post three acquisitions (for the previous and current year) to your asset under construction. Jan. 1, PY: 10,000 Jan. 1, CY: 60,000 Feb 1, CY: 35,000 ? Distribute its values and capitalize it. Settle the acquisition of 60,000 completely to Forklift A . Settle the other two acquisitions to the AuC as follows: 70 percent to the asset Forklift B and 30 percent to the asset Forklift C. Tips : • You can enter the current date as the settlement date, • Assign a settlement profile to your company code. SAP provides settlement profile AI in the standard system.
  66. 66. Asset transactions : Unplanned depreciation When you enter the transaction type, the system recognizes that you want to perform manual depreciation (for example current-value depreciation). In a dialog box, you can select the depreciation areas for which you want to enter depreciation. The depreciation could be current-value depreciation, for example, that is allowed for book depreciation but not for tax depreciation After you have manually planned depreciation, the system does not create an FI document immediately. This document is not generated until the depreciation posting program is run.
  67. 67. Asset transactions : Unplanned depreciation Audit trail: You can use a special report to display manual depreciation: SAP Easy Access → Fixed Assets → Information System → Reports on Asset Accounting → Explanations for P&L → International → Manual Depreciation. Similarly, you can post write-ups or post-capitalization by choosing the appropriate transaction type and the depreciation areas you want to post.
  68. 68. Unplanned depreciation: Exercise Time One of the assets, which was delivered and capitalized last year has involved in an accident in the current year. (If there is no such asset , create one ) ? Enter this long-term, unplanned reduction of value in the system with today's date. The unplanned depreciation amount should be higher in the book depreciation area than in the cost-accounting depreciation area. ? Display the asset values. Can you understand why there is no FI document? ? What transaction type would you use to post unplanned depreciation on a new acquisition?
  69. 69. Asset Accounting : Asset transactions Summary: You should now be able to : Post integrated and non-integrated asset acquisitions in the system Post integrated and non-integrated asset retirements in the system Represent intracompany and intercompany asset transfers in the system Represent assets under construction in the system Represent unplanned depreciation in the system
  70. 70. Asset Accounting
  71. 71. Asset Accounting : Periodic Processing Objective: After completing this unit, you will be able to : Define depreciation areas Describe how a depreciation term is used in different depreciation areas Control the calculation of depreciation Analyze depreciation values Initiate the depreciation posting run Explain the tasks of the fiscal year change and year end closing
  72. 72. Asset Accounting : Periodic Processing Periodic processing comprises the tasks in Asset Accounting that must be performed at periodic intervals.
  73. 73. Asset Accounting : Periodic Processing For planning primary costs on a cost center basis, you can periodically determine planned depreciation and interest and pass these on to primary cost planning in the CO system via a report. Investment support is a subsidy that a company receives for certain asset investments. Assets that are eligible for such a subsidy are marked in the asset master records with an investment support key. All specifications for claiming the investment support are stored in the definition of this key. The claim can be posted manually or in a mass procedure. Inflation management is required in countries with high rates of inflation or deflation. The Schedule Manager in FI-AA can be used to define, schedule, process, and control periodically recurring processes
  74. 74. Periodic processing : Depreciation The system supports the following direct types of depreciation: Ordinary depreciation: This is the planned reduction in asset value due to normal wear and tear. Special depreciation: This represents a purely tax-based type of depreciation for wear and tear where the percentage may be staggered within a tax concession period, without taking the actual wear and tear on the asset into consideration. Unplanned depreciation: This is concerned with unusual circumstances, such as damage to the asset, that leads to a permanent reduction in its value. Unit-of-production depreciation: This takes fluctuations in activity into account for the depreciation calculation. It makes the amount of depreciation dependent upon seasonal usage of the asset (for example, number of miles traveled or units produced).
  75. 75. Periodic processing : Depreciation Specifications and parameters that the system requires to calculate depreciation amounts are entered in calculation Calculation methods can be assigned to a depreciation key.
  76. 76. Periodic processing : Depreciation process The asset master record contains the depreciation terms which calculate the annual depreciation using the depreciation key and the useful life. According to the purpose of the depreciation area, other terms, such as revaluation or imputed interest, are also calculated. The system determines the depreciation start date using the asset value date and the period control method. The Asset Explorer displays the values and the depreciation for every transaction and each area and also the calculation of depreciation values. Note :Changing the Customizing definition of the depreciation keys does not automatically lead to a correction of depreciation values that have already been calculated for individual assets. For that to happen, recalculation of depreciation has to be executed.
  77. 77. Depreciation: Depreciation engine Calculation on basis of period intervals In many cases the new calculation program calculates the same depreciation amount as the old logic. However, the new Depreciation Engine does, in principle, enables a more precise calculation.
  78. 78. Depreciation: Time dependent dep terms The following parameters can be changed on a time dependent basis : • Depreciation key • Useful life (year /period) • Variable depreciation amount • Absolute scrap value • Percentage scrap value With the use of time-dependent intervals (in conjunction with the new mySAP ERP Depreciation Engine) depreciation can be calculated more accurately than was previously possible. If time-dependent depreciation terms are not used, a change would have the effect that all open (and future) fiscal years are recalculated. See example …
  79. 79. Depreciation: Time dependent dep terms
  80. 80. Depreciation : Cost accounting Area It can be defined whether interest should be calculated for the cost- accounting depreciation area, and whether depreciation should continue below zero. These specifications can be made while defining the depreciation areas. Automatic calculation: • Depreciation after planned life end :Depreciation is continued after the end of the planned useful life. • Depreciation below book value: Depreciation is continued after the book value is zero. The depreciation area must allow negative net book value (a changeover key may be used). • Effective life after planned end (with curb): The actual, not the planned life determines the rate of depreciation. Example: The useful life is 10 years, so there is depreciation of 1/10 each year. This indicator reduces the depreciation rate of 1/10 of the APC to 1/11 in the 11th year, and so on, so that the depreciation amount decreases after the planned end.
  81. 81. Depreciation: Imputed Interest For cost accounting, calculation of imputed interest on the capital tied up in assets can be done. Specify the following settings: Allow the calculation of imputed interest for the depreciation area. Determine that interest should be posted for the company code and the corresponding depreciation area. Use a depreciation key to which calculation methods for the depreciation type Interest are assigned, or define such a key yourself. If the calculation of the interest is based on a replacement value, the system calculates indexed interest. The system posts interest simultaneously during the periodic depreciation posting run. It posts to the accounts that are entered in the relevant account determination for each depreciation area. Furthermore, an additional account assignment can be made to the cost center or the internal order entered in each asset master record (as is the case with depreciation).
  82. 82. Depreciation: Replacement values/Indexing If revaluation (indexing) is used in a depreciation area, the index series should be entered in the asset or in the asset class for calculating the replacement value The index series must be assigned to an index class. This class contains the essential control parameters for the index series. Only year-dependent index classes are used. Index figures for the index series have to be specified for each fiscal year. If they are missing, the system switches to the simulated annual rate of revaluation. An indexed revaluation can also be calculated for accumulated depreciation and imputed interest (if the interest calculation key is based on replacement value). Specify in the depreciation area if you want to post to the general ledger, indicating whether you want to post revaluation of APC only, or also include depreciation/interest
  83. 83. Depreciation: Depreciation Process The program RAPOST2000 directly posts to the G/L accounts and additional account assignment objects. Using a test run, you can check for any possible errors (such as locked cost centers). Any errors that occur are displayed in an error list. Only real CO account assignment objects can be posted. However, you can make additional, statistical postings to other objects. The following can be posted 1. Ordinary depreciation (book depreciation and cost-accounting) 2. Tax depreciation, or allocation and write-off of reserves due to special tax depreciation 3. Unplanned depreciation (or other manually planned depreciation) 4. Imputed interest 5. Revaluation of APC or of accumulated depreciation
  84. 84. Depreciation: Depreciation Process
  85. 85. Periodic Processing :FY change and YE closing Fiscal year change (T Code AJAB ) A fiscal year change represents the creation of a new fiscal year for a company code. At the fiscal year change, the asset values from the previous fiscal year are carried forward cumulatively into the new fiscal year. Once the fiscal year change takes place, you can post to assets using value dates in the new fiscal year. At the same time, you can, however, continue to post in the previous fiscal year, provided this has not been closed as a result of the year-end closing. The earliest that you can carry out a fiscal year change is in the last month of the old fiscal year. Before you can change to fiscal year YYYY, you must have already closed fiscal year YYYY-2. You can have a maximum of two fiscal years open for posting at one time. The fiscal year change has to be carried out as background processing for performance reasons
  86. 86. Periodic Processing :FY change and YE closing Year end closing (T Code AJRW ) The fiscal year change has to be carried out in Asset Accounting before the year-end closing (SAP FI-AA). The system only closes a fiscal year in a company code if 1. The system found no errors during the calculation of depreciation (such as incorrectly defined depreciation keys) 2. Planned depreciation from the depreciation areas to be posted has been completely posted to the general ledger 3. Balances from depreciation areas that are posted periodically have been completely posted to the general ledger 4. All assets acquired in the fiscal year have already been capitalized. Since this check does not make sense for assets under construction, you can prevent it from being performed for these assets by means of the asset class. 5. All incomplete assets (master records) have been completed.
  87. 87. Periodic Processing :FY change and YE closing Year end closing (T Code AJRW ) Once the fiscal year is closed, you can no longer post or change values within Asset Accounting (for example, by recalculating depreciation). You can undo a year-end closing that has already been performed if you establish that fixed assets do have to be corrected after all. The fiscal year that is closed is always the year following the last closed fiscal year. You cannot close the current fiscal year. The year-end closing in Asset Accounting must be performed before the year-end closing in General Ledger Accounting. You have to carry out the year-end closing as background processing for performance reasons.
  88. 88. Periodic Processing :FY change and YE closing
  89. 89. Periodic Processing :Periodic APC value postings Settings for using RAPERB2000: . Define new document type: Integration with the General Ledger → Post Depreciation to the General Ledger → Specify Document Type for Posting of Depreciation → Define Document Types . . Create number range interval: Choose the Number range information function from above to go directly to maintenance of the number range interval and create a new interval. . Create the new document type for your company codes Integration with the General Ledger → Post APC Values Periodically to the General Ledger → Specify Document Type for Periodic Posting of Asset Values.
  90. 90. Periodic Processing :Exercise Time ? Post 10,000 on January 01, CY to one of your master records of class - fixtures and fittings where data has not been posted to so far.(If there is none , create one ).Check the planned depreciation shown and the dep key ? Change the depreciation terms in depreciation areas 01 and 02 . Analyze the planned book depreciation again in the Asset Explorer. Has the planned depreciation amount changed ? ? Check whether all depreciation keys in your Chart of depreciation have the status “Active”. What is the name of the transaction for this? ? Do a test run of the year-end program for your company code for the previous year. Does that give error ? ? Complete all the activities which are not yet done including Fiscal year close and APC postings -RAPERB2000. Again do a test run for Year end closing .
  91. 91. Asset Accounting : Periodic Processing Summary: You should now be able to : Define depreciation areas Describe how a depreciation term is used in different depreciation areas Control the calculation of depreciation Analyze depreciation values Initiate the depreciation posting run Explain the tasks of the fiscal year change and year end closing
  92. 92. Asset Accounting
  93. 93. Asset Accounting : Information System Objective: After completing this unit, you will be able to : Choose and execute the various Asset accounting reports Set up variable sorting and totaling for Asset reporting Create the Asset history sheet and structure it to meet your needs Generate a depreciation forecast Simulate depreciation for Assets
  94. 94. Information System : AA Area Menu The area menu for reporting is called FIAA Information System Asset Accounting. This is embedded in the Asset Accounting area menu (ASMN).
  95. 95. Information System :ABAP list viewer All line items are evaluated by the ABAP List Viewer. Its user-friendly characteristics support the dynamic creation of layouts. The new graphical design makes it even simpler to process and display lists and reports using the List Viewer grid control. Important List Viewer functions: 1. Deleting and inserting columns 2. Arranging the values in columns in ascending or descending order 3. Calculating totals or subtotals across one or more columns within a list 4. Using layouts to save an individual report structure so that you can use it again later 5. Setting filters: It is possible to display only those line items that have some connection with a particular criterion All reports allow you to sort/total data in different ways using freely definable sort criteria
  96. 96. Information System :Asset history sheet The asset history sheet is the most comprehensive year-end report or intermediate report. You can create it using any sort versions, and with totals at any group level, just like any other report. You can create a compact totals list that does not contain information on the individual assets. By using report interfaces, you can display the history sheet for the individual assets that form the total. You can drill down to the asset value display. Different reports can be called up from other SAP R/3 components.SAP supplies country-specific versions of the asset history sheet. These meet the legal requirements in the given country. There are also additional history sheet versions (to display the development of special depreciation).
  97. 97. Information System :Asset Explorer Asset Explorer offers extensive possibilities for evaluating individual asset master records.
  98. 98. Information System : Asset Explorer Choose Display dep. calc. to see a detailed display of the calculation of depreciation in the system. The Posted Values tab page displays not only the planned data for a fiscal year, but also the amounts actually posted to date. Asset Explorer can also be used to create a preview of how the values for individual assets will develop by means of simulated transactions and/or simulated depreciation terms You can start reports from within the Asset Explorer. You can also create your own report variants for these reports by choosing Goto →Maintain Reports.
  99. 99. Information System : Depreciation simulation When you simulate the development of asset values, you can change all the important depreciation terms using a simulation version and simulate the depreciation for future fiscal years. Sort versions and the options for a totals report are also available. In the forecast depreciation for your planned capital investments can also be included . In order to take advantage of this option, you have to be managing the planned investment amounts as planned costs on an order or project in CO. By assigning depreciation terms and a planned start-up date to the order or project, you make it possible for the planned depreciation to be displayed. From the list, asset value display of each selected asset can be drilled down .The evaluation date is relevant for the value display.
  100. 100. Information System : Depreciation simulation Simulation versions allow you to simulate a change in depreciation method for asset value/depreciation reports. For each area, asset class, and depreciation key, specify which depreciation key and useful life should be chosen as alternatives for simulation. The validity interval excludes assets with a capitalization date that lies outside that range. A substitution rule can also be defined to include other depreciation parameters in the simulation.
  101. 101. Information System :Exercise Time ? Create a list of all (posted) assets of your company code, sorted and totaled according to cost center. Use SAP Mail to send this list to any other user. ? Change an asset list of your company code, so that the assets of the company code are listed by acquisition value in descending order . Save these settings in a (user-specific) display variant / a(user-specific) layout and then try to call the variant again. ? Request the asset sheet history (RAGITT_ALV01) and using sort version 13 and history sheet version 0001, display all assets of your company code, first individually, and then as a total. ? Post an acquisition to the company car master record(If there is none , create one).Post a value of 50,000 in the first half of the current year (1/1/CY) ? Think about reducing the useful life from five to four years , at least in areas 01 and 02. Simulate this change in the Asset Explorer.
  102. 102. Asset Accounting : Information System Summary : You should now be able to : Choose and execute the various Asset accounting reports Set up variable sorting and totaling for Asset reporting Create the Asset history sheet and structure it to meet your needs Generate a depreciation forecast Simulate depreciation for Assets
  103. 103. Asset Accounting Course summary You should now be able to :  Configure Asset Accounting  Use Asset Accounting