SAP Financials Asset Accounting


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This DocumAsset accounting (FI-AA) component is a subsidiary ledger of FI and manages all your fixed assets (property, plant and equipment) irrespective of your industry or country. The asset component will manage the entire lifecycle of fixed assets (traditional fixed assets, assets under construction and leased assets) from purchasing to retirement or scrapping. The asset component can calculate depreciation of assets, both automatically and manually for different valuation purposes (insurance and interest). You can enable parallel valuation of assets in different currencies; FI-AA can also help with enterprise consolidation.

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SAP Financials Asset Accounting

  1. 1. SAP FINANCIALS ASSET ACCOUNTING CONFIGUARTION SAP KNOWLEDGE SHARING DOCUMENTS SAP IDES DEMO SOLUTION – ERP6 EHP5 Pramila Nagaraj SAP Certified Candidate @ Source One Management Services Pvt. Ltd Bangalore 2014 Copy Rights © SourceOne Management Services Pvt. Ltd Bangalore
  2. 2. Asset Accounting Asset accounting (FI-AA) component is a subsidiary ledger of FI and manages all your fixed assets (property, plant and equipment) irrespective of your industry or country. The asset component will manage the entire lifecycle of fixed assets (traditional fixed assets, assets under construction and leased assets) from purchasing to retirement or scrapping. The asset component can calculate depreciation of assets, both automatically and manually for different valuation purposes (insurance and interest). You can enable parallel valuation of assets in different currencies; FI-AA can also help with enterprise consolidation. Real-time integration with FI for simultaneous recording of asset transactions like initial and subsequent acquisition, retirement, transfer and scrapping in FI-G/L the component is also integrated with other applications such as Material Management, Plant Maintenance, Production Planning, Project Systems, Investment Management and Controlling, you can  Directly post the goods or invoice receipt from MM or PP to FI-AA  Post asset sales from FI-AA to a customer account using FI-A/R  Capitalize the asset maintenance expenses in FI-AA using asset settlements through the PM module  Pass on the depreciation or interest from FI-AA to CO Depending on the type of size of the company will depend on the type of implementation  lean implementation - small company with small numbers of assets  regular implementation - medium/large company with large numbers of assets You should use regular implementation if you need any of the following  want to depreciate in foreign currencies  have group assets  need to define you own depreciation keys, transaction types and reports  require group consolidation We will be covering a number of topics that are related to asset accounting, the diagram below shows the topics that i will be covering below is another diagram that shows the details of the general ledger account determination, it also shows various balance sheet general ledger accounts that you can maintain for a particular business process, such as acquisition, retirement, etc.
  3. 3. Organization Structures FI-AA makes uses of various organizational units you will define elements such as the chart of depreciation and asset class in FI-AA to make the necessary linkages. We will start with checking the country-specific settings as asset accounting is subject to country-specific laws and legislation's we need to maintain a few parameters such as the value of low-value assets (LVA) we will use transaction code OA08  country currency - self explaining  max LVA amount for posting - Maximum amount for checking posting to low value assets  post net book value - used to make gain or loss posting for asset retirements by sale or a loss posting when an asset is scrapped, this will make a posting to the net book value of the asset during asset sales and scrapping that is you are ensuring that the system does not make a gain or loss posting. The setting is valid only for depreciation area 01 also known as master depreciation area or book depreciation area  capitalize Auc w/o down payment - check only to capitalize the total amount of the closing invoice with taking into account the down payments if any. When not selected the system will capitalize assets into twp steps, the down payment from previous years will be transferred (using a transaction type for old asset transfers) then the closing invoice minus the down payments will be transferred (as a new acquisition) Chart of Depreciation A chart of depreciation is a list of depreciation areas arranged according to business and legal requirements of a country together with the country-specific rules for asset valuation. Several company codes can work with the same chart of depreciation but a company code can only be assigned to one chart of depreciation, you only need one chart of depreciation when all of the company codes have one of the following  Operate in the same country (or economic zone)  Operate in the different countries but in the same industry  Operate in different countries but with the same rules of asset valuation The assignment of chart of accounts and chart of depreciation to a company code is independent, for example the same chart of depreciation can be used by more than one company code, though each of them can have different charts of accounts or several company codes may use a single chart of accounts but assigned to different charts of depreciation,
  4. 4. they are linked through asset classes (in the chart of depreciation) that are assigned to the G/L accounts (in the charts of accounts) SAP comes with a number of country-specific standard charts of depreciation (for countries like US, Germany and UK), you should copy these and use your own chart of depreciation, now we will walk through copying a chart of depreciation/depreciation areas we will use IMG, select copy reference chart of depreciation/depreciation areas, you will be presented with the screen on the right, we first select copy reference chart of depreciation Then enter the details as per the left screenshot, once the chart of depreciation has been copied you will see the screenshot on the right, remember to also create one for Japan and one for GB Now we will specify description of chart of depreciation Now we will copy/delete depreciation areas which is the next on the list (right hand screenshot), you can delete or add any depreciation areas as you wish  G/L - determines how values from this area are to be posted, 1 means that values are posted in real-time, 2 means to post Acquisition and Production Costs (APC) and depreciation on a periodic basis, 0 means not to post to the G/L, this would be for parallel currency depreciation and for depreciation areas other than book depreciation.  trgt group - you can maintain the the target ledger group, leading or non-leading to a particular depreciation area should post  real - to change or denote a depreciation area as real or derived The next step is to assign the chart of depreciation to the company code, we will use transaction code OAOB or you can use the IMG as per the above IMG screenshot. however when i tried to assign the company code I was receiving inconsistencies error messages, this is because you cannot assign a newly created chart of depreciation to a company code with parallel accounting unless it has depreciated areas defined for all such foreign currencies, to configure the currency type and valuation type we must use transaction code S_ALR_87009167, as the US company codes only have a a local currency the crcy type/val.view field should reflect this so I have removed any hard or group currency field values (left hand screenshot), Both GB and Japan use group currency so as you can see in the right hand screenshot I have reflected this for the GB configuration.
  5. 5. Now we can assign the company code to the chart of depreciation without any inconsistencies errors Now we can specify the number assignment across company codes, can assign number ranges per company also, we will use transaction code AO11, we will not use cross company codes and thus assign the same company code with the No.CoCd, so each company code will have its own number range. Structuring Fixed Assets in FI-AA A fixed asset cannot be easy converted into cash (for example a property takes time to sell), a fixed asset can be simple or complex, a simple asset is represented by a main asset number and will not have any sub-assets, while a complex asset is denoted by a main asset number but contains one or more sub-assets represented by asset sub-numbers. The system normally carries out the depreciation at the lowest level, which is the sub-asset level, you can depreciate an asset either at the main number level or at the asset sub-number level. A group asset (used in US and Canada) is represented by a separate master record in the system, it comprises of several assets grouped together only for some special purposes of evaluation and reporting. You need to use transaction code OAYM in the respective depreciation areas if you want to manage these assets as group assets as well as at the individual asset level, you will also need to specify if an asset class (for classifying an asset on business or legal requirements) is meant strictly for group assets (transaction code OAAX). You can structure fixed assets at three levels Asset Level the structuring includes asset numbers and transactions, the group asset sits at the top with one or more main assets assigned to it. Each main asset can have any number of sub-assets, the transaction layer comes below the sub-asset or main asset level. Class Level each asset (group or main asset) is assigned to an asset class (machinery, building, etc). Balance Sheet Level each asset class is assigned to a G/L account (through the account determination in the asset class) which is then identified as a balance sheet item that forms part of a financial statement version Asset Classes Asset classes is a classification parameter used to categorize asset into such categories as buildings, plant, machinery, electrical equipment, vehicles, furniture and fittings, it can also structure assets based on business and legal
  6. 6. requirements or accounting purposes. Asset classes are connected to the G/L accounts through the account assignments and allow you to make a single account assignment for several asset classes. A asset class with have control parameters and default values for general master data and depreciation terms, each asset will be assigned to a asset class that has control parameters for the master data content and for calculation of depreciation, insurance, etc, you may also define special asset classes the take care of AuC (Asset under Construction) , financial assets, leased assets, etc. You can create asset classes in two ways 1. Automatically using the balance sheets accounts (in a one-to-one relationship) of a chart of accounts, together with the required account determination, number ranges and screen layouts. 2. Manually without the help of the G/L accounts, you can use copy and create additional asset classes when you have already created the asset classes automatically. We will first create the asset classes automatically using transaction S_ALR_87009177, the initial screen is the start screen detailing the next that we will be walking through, the specifications screen requests the chart of accounts, chart of depreciation and the accounts that you wish to include in the asset class creation Next a list of accounts is produced you can include of exclude the specific G/L accounts using the APC acct column (checkbox), the default accounts screen requests the account determination for exp.ord.deprec, rev.clear.acct, asset.ret.loss, gain.frm.ret The account determination screen lists the accounts with the APC account, here we enter a suffix (sap 10) to create the accumulated depreciation accounts with the same number of the APC account suffix, next the system will propose the number ranges for the APC accounts
  7. 7. The layout screen determines the screen layout rules, you can see that I have added both 02 (posting information) and 03 (time-dependent data), the asset class screen details the suggested asset class names, you can keep these or change them if you so wish, you can also identify the type of asset class per asset class (asset class for low value assets, asset class for AuC, etc) depreciation key to be used. The list of results is a summary screen of the proposed changes, the complete screen is the last chance to make any changes, once you select continue the asset class will be created Last you will receive a results screen detailing everything above
  8. 8. To manually configure asset classes you need to configure the following  Account determination keys  Screen layout rules  Number range intervals We will start by creating the account determination keys that you will link the asset classes to the G/L accounts, we should see the above that we have already configured using then wizard, we will use transaction codeS_ALR_87009195, other use the new entries to create any additional account determinations Next we will create the screen layout using transaction code S_ALR_87009209, we will create the identifiers first and later we will define the actual rules Then we define the number range using transaction code AS08, we have already covered number ranges so I wont go into detail here Now we are ready to define the asset classes we will use transaction code OAOA,  asset class - the asset class identifier  asset type block - here we enter the account determination and screen layout rule we created earlier  number assignment - here we enter the number range we just created above, you can also use external numbering  status of AuC - select the appropriate option, in our case is a non-AuC so we have selected it here  asset class is blocked - stop any further assets being created under this class  real estate indicator for asset class - you should select real estate - property or buildings for asset classes such as land or buildings
  9. 9. A special type of asset Auc (Asset under Construction) is normally shown as a separate item in a balance sheet, you can manage AuC collectively in a single master record or as individual items with separate master records, When complete you can transfers or distribute AuC to other assets master records through line item settlement or a simple transfer. The term Low Value Assets (LVA) are assets that are fully depreciated in the year of acquisition itself (for example light bulbs), the item is of such a minimal value that you would collectively manage then in a single master record. You will need to define a maximum amount limit, when individually managed the system compares the APC of the asset with this amount to decides if it is a LVA (amount check), when collectively managed the system sums up all the APC values of all the assets than or equal to the LVA maximum amount (quantity check), you will be using a separate depreciation key (CWG) to depreciate LVA with the useful life set to one month (period). Valuation Valuation determines the value of the current asset(s), with a historical view as well, it also helps with the valuation should you wish to scrap or retire the asset before its economic life has expired. Fixed asset valuation is perform through depreciation areas. A depreciation area is a two character key that contains the parameters to value an asset, you can use more than one depreciation area to represent different asset valuations for cost accounting or legal reporting. You need at least one depreciation area usually 01 (book or master depreciation area) you can have a maximum of 99 depreciation areas, there are two types of depreciation area Real depreciation area this is regarded as the master depreciation area that supplies values to your balance sheet, also know as the book depreciation area you normally designate this as 01, this area is characterized by automatic posting to FI with currency the same as that of the company code, you will not be able to adopt values/deprecation terms from other depreciation areas and you will not be able to delete this area. Derived depreciation area this determines new assets values from values that have already been determined in other depreciation areas by deriving values using a mathematical formula (addition or subtraction), you can setup the formula to derive the values from a maximum for four real deprecation areas, you can also post the values from a derived area to FI. Control parameters of the depreciation area are normally done at two levels, the chart of depreciation and the company code level. You create the depreciation areas from the reference chart of depreciation, you can also copy other depreciation areas. To define a new depreciation area we can use transaction OADB, to create a new depreciation area select the copy as button When you copy the depreciation you can then amend the screen for your requirement  deprec.area - enter a two digit identifier  real depreciation area - denotes that the depreciation area is a real and not a derived depreciation area, which means that this area will be updated each time a posting is made for an immediate evaluation  posting in G/L - indicates if and how valuation changes from this depreciation area are to be posted to the G/L, here we have selected to post in real-time
  10. 10.  target ledger group - self explaining  cross-syst.dep.area - used for cross-system depreciation areas  value maintain field - here you can select if the values are positive or zero or negative as the real acquisition value. You can also enter the type for each depreciation area using transaction code OADC, for example 06 - group valuation for areas like consolidated balance sheet in local/group currency, 01 valuation for trade balance sheet for book depreciation as seen in the below screenshot. We need to ensure posting values from the depreciation area 01 are copied to the rest of the areas, you can also define if the transfer is mandatory or optional, with optional allows you to enter the values during transaction posting, we will use transaction code OABC, enter the depreciation area for each depreciation area which you will adopt the values in the valad field, and select indent if you want to transfer all APC-relevant postings values with no option to change the transferred values Now we will define specify the transfer of depreciation terms from one area to another, this can ensure uniform depreciation in the target areas and also means that you do not have to maintain the terms in the asset master record. We will use transaction code OABD, the depreciation area will receive the values from the referenced area in the TTr field, if you select the identical checkbox this will ensure that you will not be able to change transferred values from the referenced depreciation area to the receiver area.
  11. 11. You can setup depreciation areas for parallel valuation using a wizard and then just complete the steps, you can use transaction code OADB_WZ, for example lets take DD13 (Japan) you need to assign the master depreciation area (01 reflecting local GAAP) and the real depreciation area for parallel valuation (30 for IAS) each to a ledger group. The system automatically creates a derived depreciation area (61) that will be used to account for the difference between area 30 and area 01 in a ledger group for parallel valuation (L6), the posting in G/L should have either area posts only APC directly or area posts APC only Next we will define the depreciation areas for foreign currencies using transaction code OAYH, you can see in company DD13 the depreciation area 33 has a different currency, when maintained in a different currency the system translates the values into foreign currency by taking the posting dates exchange rate (for asset retirement) in the foreign currency. You should setup depreciation areas in foreign currencies for the following reasons  you can depreciate assets differently at the group level than at the local level  you can manage historical asset valuation in group currency  you can enable legal consolidation In any case you will not be able to change the currency of the book master depreciation area 01, the currency of this area has to be the same as that of the local currency of the respective company codes. You can use transaction code OABT for the use of parallel currencies, we have already discussed this when we assigned the chart of depreciation to the company code.
  12. 12. Next we will determine the depreciation areas in the asset class, we will use transaction code OAYZ, we maintain depreciation key, minimum life, screen layout, you need to perform this on all the asset classes Next we will specify the maximum amount for low value assets (LVA) and asset classes, use transaction code OAY2 (left screenshot), in the LVA if you select 1 - value based maximum amount check, 2 - collective management and 0 - is not a LVA, to enter the amounts we use transaction code OAYK (right screenshot) , you can see the check limit amounts  LVA amount - Maximum amount for checking posting to low value assets  MaxLVA Pur - Maximum amount for checking purchase orders for assets Next we will specify the rounding of net book value and/or depreciation using transaction code OAYO, we just select the net book value at year end and arithmetic rounding You can specify a changeover amount, you can configure the system that the depreciation calculation is changed as soon as the net book value (of an asset) drops below a specified amount (changeover amount), you will need to use a special depreciation key defined with the changeover method 3, we will use transaction code OAYJ, just enter an amount in the chnge.NBV field
  13. 13. The memo value (also known as the scrap or junk value) is the book value of an asset that has already exceeded its useful life, the asset value will not depreciate any further that the memo value, when you indicate an asset is to be maintained with memo value, and specify the memo amount, then the system reduces the annual planned depreciation by the memo value in the year of acquisition, the asset net value must at least equal to the memo value at any point in time. We will use transaction code OAYI (left screenshot) to set the memo value for the company code, you can use transaction code OAAW (right screenshot) to specify if the memo value should be taken into account then select the checkbox do not take memo value into account Integrating into General Ledger (G/L) As you know FI-AA is tightly integrated into FI-G/L, for example when you post in material management the system will check to see if the asset already exists, this is similar to plant maintenance, the system will calculate the depreciation automatically, the values can be posted online for the book depreciation area 01 (to the G/L accounts in the account determination key) or on a periodic basis in other areas, the system also uses a transaction type to identify the correct business transaction. We need to configure several activities for the interaction between FI-AA and FI-G/L we will start with how the depreciation areas post to G/L. We will assign the G/L accounts using transaction code AO90, there are three folders where you can setup the G/L accounts for each section, I will leave you to fill this in but have given you some ideas in the screenshot's below, remember you need to do this for all account determinations Balance Sheet Depreciation Special Reserves Now we will specify the posting keys for the asset posting, SAP does supply standard keys and you should use these, Asset Posting The transaction will be ANL and the posting keys are  70 (debit)  75 (credit) G/L account postings from asset posting The transaction will be ANC and the posting keys are  40 (debit)  50 (credit) Next we will assign the input tax indicator for non-taxable acquisitions, actually we have already performed this step in the Tax section using transaction code OBCL and maintained I0 for all the US-based companies, V0 for DD13 and V1 for DD22
  14. 14. We need to change the field status variant of the asset G/L accounts using transaction code OBC4, I have already discuss field status variants in my Financial Global Settings and Company Code Parameters section and just detail what you need to change Next we will specify the financial statement version for asset reports for each depreciation area per company code, we can use transaction code OAYN, the financial statement version is already defined when we configured the company cods that were assigned to the depreciation areas of the charts of depreciation for the US, GB and Japan, the below screenshot details company code DD11 Next we specify the document type for posting depreciation to the G/L expense account, we will use transaction code AO71, the document type AF will be used by all company codes. For each of the company codes we define the posting rules that will determine the method and periodicity for the depreciation posting, we will use transaction code OAYR,  period and method - the period interval box will reflect the option that you have chosen for example by selecting monthly the interval is 001, you we have chosen annual then the interval would have been 012  smoothing - if you want the system to arrive at the periodic depreciation by equally distributing the remaining depreciation for the remaining periods also known as the smoothing method, for example suppose that the per- period depreciation is $1,000 but the system has only $5,000 in the first six periods, the system will arrive at per-period depreciation as $1,167 ($7,000 divided by 6) by distributing the remaining distribution of $7,000 for the remaining six periods. When not selected the system uses catch-up method in which it calculates the depreciation for each period, the shortfall or excess is arrived at subtracting the already posted depreciation from the amount that should have been posted, the system then will play catch up on the next period either by making up the shortfall or returning the excess in full.
  15. 15. Next we will active the account assignment objects for example cost center, functional area and internal orders, we will use the IMG You can select the objects like cost center (KOSTL), activity type (LSTAR), functional area (FKBER), etc, you can also select if the assignment object is relevant to the balance sheet, the agreement prevents changing of the account assignment object during posting, so that the account assignment object you enter during posting is the same as in the asset master record. The next step is to specify the account assignment types for account assignment objects, you can assign APC balance sheet posting to depreciation as the account assignment types for the additional account assignment objects activated in the previous step, we will use transaction code ACSET, in the initial screen we will select the company code * which represent all company codes, then you will see two depreciation areas 0 which is the generic area (valid for all areas other than 01) and generic area 01, The system determines the account type starting with the most specific entry to the most generic one, as per the screenshot below
  16. 16. We then select the new entries button and create the new account assignment objects as per the screenshot below, the system determines the account type starting with the most specific Depreciation Depreciation is the periodic and permanent decrease in the value of a fixed asset over its economic life period of its usage and associated wear and tear. There are two kinds of depreciation planned and unplanned, you calculate the planned depreciation (ordinary and special) automatically through depreciation keys that contain the value settings and calculation rules for arriving at the depreciation amount, you can manually undertake unplanned depreciation including reduction of APC and transfer of reserves. Depreciation keys (also known as valuation keys) contain the necessary control parameters for valuating an asset in a depreciation area, it will contain the calculation methods (for depreciation and interest calculation) and control parameters for controlling ordinary and special depreciation and scrap value and cut-off value. Scrap value is the value at which you will stop depreciating an asset, calculated based on the cut-off value key it will generally arrive at as a percentage of the APC for certain types of valuation such as net-worth tax Cut-off value is also known as the memo value, is the value that is not depreciated, you can define the scrap value either as a fixed value at which you stop the depreciation (cut-off value) or as a deduction from the depreciation base value before the start of depreciation calculation The calculation method is part of the depreciation key and there are several of them Base Methods This method is valid across charts of depreciation, SAP comes with based methods which you can use, you can create your own using transaction code AFAMR Declining- balance methods annual calculation if depreciation will be reduced by a constant percentage that is calculated from the useful life and a multiplication factor and then multiplied by the assets NBV, you can never make the NBV value equal to zero, again there are SAP supplied methods or you can define your own using transaction code AFAMD, the max.perc is the maximum percentage upper ceiling limit, which is used for very short useful life assets, for very long useful life assets you have the minimum percentage (min.perc). Maximum amount methods these define the maximum depreciation amount that cannot be exceeded before a calendar date, if it does exceed then it reduces the depreciation to the extent that the overall depreciation does not exceed the maximum allowed for that time, you can use transaction code AFAMH
  17. 17. Multi- level methods you can define a method by specifying varying periods of validity for a certain percentage rate, so that different percentage rates are applied at different periods, use transaction code AFAMS, you can see in the below example the first year will depreciate at 25%, the second year at 38% and the final year at 37%, again SAP have manu supplied methods Default values you can have default values at two levels, the company code or the depreciation combination level, for the company level use transaction codeAFAM_093B For the depreciation combination level use transaction code AFAM_093C Now we move onto the depreciation key, again SAP have a number of keys already define but you can create your own using transaction code AFAMA, the initial screen details all the depreciation keys available We will take a look at A003 (3 years property) control parameters  maximum value - we looked at this above  cutoff val key - we mentioned the cutoff value earlier in this section Next we will look at the calculation methods which we spoke about earlier, the class field can be used for information as a selection criterion in reporting, the changeover we also spoke about earlier. You can use multiple shifts which leads to a calculation of higher depreciation amounts, since value reduction increases with longer usage, you set a fixed amount to make the system multiply the variable portion by the suitable multiple-shift factor, you can also decide
  18. 18. on the scrap value which we have already spoken about, you can also stop depreciation when the asset is shutdown (as specified in the asset master record) Ordinary depreciation represents the planned depreciation to take care of wear and tear due to usage of an asset during its useful life, we need to configure a number of tasked relating to the ordinary depreciation, we will start with determining the depreciation area using transaction code OABN, select the depreciation areas for ordinary depreciation Next we assign the accounts using transaction AO93, here you can see the accounts for the land account determination and the book depreciation area You will use special depreciation (staggered within the taxation period) to depreciate an asset from the point of view of taxation without considering the actual wear and tear, we can use transaction code OABS,
  19. 19. To calculate the ordinary depreciation before the special depreciation you can use transaction code AOBK, select the checkbox to calculate the ordinary depreciation before the special depreciation If you had a fire or a flood you would use unplanned depreciation in special circumstances, you use a manual depreciation key (MANU) to complete the depreciation, you will need a suitable transaction type which can be define using transaction code AO78 Special Valuation Special valuation is used for investment support and special depreciation reserves as well as to calculation interest, cost-accounting replacement values, etc. The reserves for special depreciation is a liability item that represents the value adjustments to fixed assets, arising when the maximum permitted tax depreciation exceeds the permitted book depreciation, you will need to specify a procedure (gross or net) for allocation and write-off of special reserves and assign the required G/L accounts, we will use transaction code OAYQ, the net procedure posts allocation amounts and write-off amounts for the same asset offsetting against each other, instead of the gross method in which the system allocates special depreciation amount to the reserves and writes off the balance of ordinary depreciation of the two depreciation areas (01 and 05) Use transaction code AO99 to assign the accounts You can the special valuation in FI-AA to automatically calculate interest on the capital employed on fixed assets by the same way you calculate and post depreciation, configuring the G/L accounts for correct determination you can also
  20. 20. passing a cost center as an additional account assignment. First we will determine the depreciation areas using transaction code OABZ, we tick the cost-accounting depreciation You then need to assign the G/L accounts for automatic account determination, an expense account for interest, an account for clearing interest posting and another account for posting interest expenses when the net book value is below zero, you can use transaction AO98, You can revalue your fixed assets for management and accounting purposes or taxation requirements by using index replacement values to revalue the assets to reflect currency inflation using an index series and balance sheet revaluation to meet legal requirements, we will use the IMG we will go through each option We first determine the depreciation areas in which you want to manage the revaluation, you can manage both APC and depreciation, you can use also transaction code OABW, Next we define the revaluation measures which you can use transaction code AUFW, The last step is to define the transaction types for revaluation transaction code AO84 and associate the same with the depreciation areas transaction code OAXJ, so as to restrict the use of certain transaction types in certain depreciation areas, the SAP already supplies transaction types that should meet your requirements.
  21. 21. Screen Layout We will configure the settings relating to the screen layout that will help determine the characteristics of fields and tabs on the master data screen, the goal is to have only the required fields that will be required for the specific asset class, the screen layout also will determine the maintenance level of these fields. We will start by defining the screen layout rules using transaction code S_ALR_87009044, the screenshot on the left is the initial screen where you can change or create screen layouts, when you drilldown on the appropriate field group you will see the screenshot on the right, here you can alter the fields You also need to define the screen layout for for asset depreciation which is similar to above so i wont go into detail on this but you can use transaction code AO21 You can also use the default tab layouts or define you own using transaction AOLA (left screenshot) , you can then access these tab layouts using transaction code AOLK (right screenshot) , the tab layout for each asset classes will decide the number of tabs, tab pages, order of tab pages and also the position of the field groups within a tab. Transactions Transaction types are used to classify the business transaction by acquisition, transfer and others during posting, it controls the account assignment (debit or credit transaction, to capitalize or not capitalize an asset and document number for asset posting), posting type (gross or net, to post to affiliated company, etc). You can assign the business transaction to an asset history sheets column using transaction types, which are grouped into transaction type groups (one type belonging to one group), the groups are SAP supplied groups and are non-changeable, the group will determine if the acquisition date is the date of the first transaction, whether the transaction refers to the past or current fiscal or which G/L accounts to post with.
  22. 22. As I mentioned above SAP supplies several transactions types which can be seen using transaction code AO73, you can create new transaction types if you cannot use the SAP supplied ones, you can limit transaction to particular depreciation areas using the transaction code OAYA Next we will define the account assignment category for asset purchase orders (PO), you can post a PO or a purchase requisition (PR) with account assignment to an asset in MM, so as to capitalize the asset automatically when you post a GR (goods receipt) or IR (invoice receipt), you do this by making changing the settings for the account assignment category "A" (asset), we will use transaction code OME9, notice on the bottom part of the screen it is only page 1 of 5 pages, use the page up/down icons to see the other options  acct.assg.changeable - this allows changes for the account assignment following a GR/IR  consumption posting - we use A for assets posting  aa chgable at IR - used to allow changing the account assignment of a PO item at IR in invoice verification  goods receipt - the asset will then be capitalized at GR if the GR is valuated, if the GR is non-valuated then the asset will be capitalized during IR  invoice receipt - same as above  fields - select the fields that you need To assign the accounts we use transaction code AO85, for asset retirements use transaction code AO86, to allow down payments transaction types in asset classes we can use transaction code OAYB (see below screenshot), You can use open-item management and settle (using distribution rules) an AuC to various receivers, we define this using transaction code AO89,
  23. 23. To create settlement rules you need to define items such as the allowed settlement receivers (such as cost center or asset), default values (for the settlement structure or PA transfer structure), allocation bases and maximum number of distribution rules, we will use transaction code OKO7, SAP does supply a number of settlement rules, below is a screenshot (left screenshot) of the settlement assets under construction, you will need to assign this profile to each of the company codes using transaction code OAAZ (right screenshot) You can maintain the number range for documents for line item settlement of AuC to a CO object using transaction code KANK, number ranges you have seen below so I wont go in to detail on this. Asset Data Transfer This section details how to transfer your old asset data from your existing non-SAP system to SAP, the first step is to set company code status, an asset accounting company code can have one of four status designations at any point of time  0 - asset data transfer completed  1 - asset data transfer not yet completed  2 - test company code data transfer always allowed (you start with this and when you go live use 0)  3 - company code deactivated-later reporting allowed We will use transaction code S_ALR_87009070, Next we will specify the sequence of depreciation areas, you should make a sequence starting with non-dependent depreciation areas such as 01 and close with dependent ones (derived areas), use transaction code OAYE,
  24. 24. The next step is to setup the parameters for data transfer, we set the transfer date or the last depreciation posted period, it is important to specify a transfer date that will determine the status of posting, it tells the system that posting up to this date is to be included in the transfer, this will tell the system if the transfer is during the fiscal year or at the end of the fiscal year. We will use transaction code S_ALR_87009072 The next step is to specify the last period posted in the previous system, we will use transaction code OAYC, you need to do this for each company code and for each depreciation area. The system will then transfer the depreciation posted up to this period during the asset data transfer. You also can use the IMG to transfer other options You can perform the transfer either automatically or manually  Automatically - use transaction code SXDA, this is the data transfer workbench or use transaction code OA13 (legacy data transfer FI-AA)  Manually - transaction codes AS91 (create), AS92 (change) and AS93 (Display) and AS94 for non-legacy assets and AS81, AS82, AS83 and AS84 legacy group assets Production Startup In this section we cover some of the remaining technical settings before you go live, authorization maintenance, workflow task assignment, consistency check and steps for production set up. We start with maintain authorizations (such as asset view, asset classes, company code/asset class, transaction type and asset class and chart of accounts), once defined you can group authorizations into authorization profiles and assign them to the appropriate users, SAP do actually provide some standard profiles which can be viewed using transaction code PFCG, To know more about authorizations you have to contact SAP Basis Expert.
  25. 25. You can assign workflow tasks to make mass changes to the master data, post mass retirement and also complete assets that were not completely created, you link the task in a workflow to an organizational object with the appropriate users as owners, we can use transaction code OAWF, this way you can keep track of all the tasks and make sure that they get completed. You can also control data maintenance using the asset views, each asset view has a specification (as suppressed, displayed, only default values allowed, etc) for field groups, you can limit these views that a user can access, you can use transaction code ANSICHT The consistency check can be performed on asset classes, chart of depreciation and company code as well as the customizing settings of FI-AA, we will use the IMG, when you select the check consistency button you then have a choice of a number of act ivies that you can perform
  26. 26. I have selected the consistency check report FI-AA customizing, you can double-click on the errors (left hand screenshot) to get a detailed list of all the errors, you can then even double-click on the error (right hand screenshot) and SAP will display a performance assistance dialog detailing the error and some help on what to do The overview for experts is a one-stop resource to check all the configuration settings you have done, I think personally this is a very useful section as you can very quickly check each setting, use the IMG to get to these checks Once to have performed all the checks and you are happy that everything is setup/configured correctly the final step is to make the settings for production startup, we start with setting or resetting the reconciliation G/L accounts we will use transaction code OAMK,
  27. 27. Next we transfer balances, because the balances of the corresponding reconciliation accounts in FI are not affected during legacy asset data transfer you need to post the balances in the suspense accounts to the asset account reconciliation accounts, we can use transaction code OASV, We update the status to 0 (asset data transfer completed) which we started earlier, using transaction code S_ALR_87009070, Lastly I want to cover deleting fixed asset data when you have finished your testing phase and ready to go live, you can use transaction code OABL, you can just delete the transactional data by using the line items onlycheckbox (thus master data is preserved), if you have integrated general ledger transaction this will not be deleted and will exist in the system, if the system is in a productive state then you need to change this using transaction code OBR3. Information System The information system for asset accounting consists of several reports and tools, the reports are  Individual assets (transaction code AW01N)  Displaying asset balances  Cost accounting purposes  Depreciation forecasts  Covering preparations for closing
  28. 28.  Displaying day-to-day transactions  Tax Reporting  Providing asset history The tools are  ad hoc reports (transaction code ARQ0)  generate application log (transaction code ARAL)  define/change sort variants (transaction code OAVI)  simulation versions (transaction code OAV7)  currency translation methods (transaction code OAW3) I will leave you to have a play around with these reports and tools. Declaration: This is related to my Practice in Demo System ERP6 EHP5 since after my SAP Certification. I have taken guidance from SAP Expert of UK who had given me full instructions on how to go about with certain configurations in Financials. I have successfully completed one Configuration Cycle.