Assets are classified into different classes (eg. by type such as buildings, vehicles, fixtures & fittings, etc.) For each asset class, you define the valid general ledger accounts to be updated when business transactions are posted to assets in that class These general ledger accounts will point to their respective positions in the balance sheet
Each asset class is also tied to a chart of depreciation The chart of depreciation is a list of depreciation areas which defines what kind of values are to be managed for that class of assets (eg. ordinary depreciation area, tax depreciation area, deferred tax area, etc.) Asset master records for an asset class will automatically adopt the depreciation terms defined for that class (with the option to amend depending on how the asset master depreciation screen layout is being set up)
Asset Management is a subsidiary ledger of the G/L The systemdetermines the valid G/L accounts to be updated via the account allocation code defined in the asset class The asset master automatically adopts the default account allocation code in the asset class it is created in (with the option to amend during asset master creation/maintenance depending on how the asset master screen layout is being set up)
There are 2 ways to create an asset master record: Using the asset class By specifying the asset class which you wish to create the asset master in, the system automatically adopts the default values which have been defined for that class Referencing an existing asset The system automatically copies in field values from the referenced asset master to the new asset master (if copying is defined as permitted in the asset master screen layout for that class of asset)
Managing assets without sub-numbers subsequent acquisitions are posted to the original asset number accumulated depreciation and book values cannot be separated for each acquisition all subsequent acquisitions must be depreciated uniformly over the remaining useful life of the original asset Managing assets with sub-numbers subsequent acquisitions can be posted to the original asset number with a different sub-number can display values for each sub-number as well as the parent number as a total each sub-number is depreciated separately (depreciation terms can be different)
Valid G/L accounts for fixed asset transaction postings are determined by the chart of depreciation, account allocation code, depreciation area and the type of transaction carried out
Examples of business transactions affecting asset values are: Acquisitions such as acquiring an asset from another company within the same group in-house production of your own asset purchasing your asset from an external source Retirements such as selling an asset scrapping an asset Transfers such as transferring an asset to another company within the same group transferring an asset from warehouse (ie. material issue) transferring ownership of an asset from one business area to another (if business area is not time-dependent) splitting an asset and transferring part of it settling an asset under construction and transferring it to a capitalised asset
If you do not wish to post in acquisitions via Purchasing, you can directly post acquisitions within asset management itself Asset acquisition integrated with vendor allows posting to the asset and vendor in a single document
You can retire your asset completely partially by amount partially by quantity partially by percentage
You can transfer your asset completely partially by amount partially by percentage partially by quantity
You can manage up to four different types of depreciation per depreciation key: Ordinary depreciation Special depreciation Interest Cut-off value For each type of depreciation, you assign a calculation key which will determine how that type of depreciation will be calculated
The batch input session created by the depreciation posting program must be processed to ensure consistency between Asset Management and Financial Accounting If you forget to process the batch input session, the system will issue an error message when you next run the depreciation posting program
The fiscal year change function prepares new value records for each asset for the new fiscal year This program cannot be run at any time. The earliest start date is the last period of the old year You run fiscal year change by company code(s) and fiscal year
