The document discusses asset accounting in SAP. It describes the purpose as managing fixed assets throughout their lifetime from acquisition to retirement. Key steps include acquisition, construction, depreciation calculation, and periodic processes like tax depreciation. Required applications are SAP ERP and roles include asset accountant, accounts payable accountant, and finance manager.

1. Asset Accounting
SAP Best Practices

2. © 2011 SAP AG. All rights reserved. 2
Purpose, Benefits, and Key Process Steps
Purpose
 The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In
Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on
transactions involving fixed assets.
Benefits
 Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under
construction) through its retirement.
 Calculate values for depreciation and interest
 Depreciation forecast
Key Process Steps
 Acquisition from purchase with vendor
 Acquisition with Automatic Offsetting Entry
 Retirement with revenue
 Asset Sale without customer
 Post-Capitalization
 Write-Ups
 Settlement Assets Under Construction
 Down Payment Request for Assets under Construction
 Depreciation Posting Run
 Depreciation Simulation/Primary Cost Planning
 Income Tax Depreciation for India

3. © 2011 SAP AG. All rights reserved. 3
Required SAP Applications and Company Roles
Required SAP Applications
 Enhancement package 5 for SAP ERP 6.0
Company Roles
 Assets Accountant
 Accounts Payable Accountant
 Finance Manager

4. © 2011 SAP AG. All rights reserved. 4
Detailed Process Description
Acquisition from purchase with vendor
 An external asset acquisition is a business transaction resulting from the acquisition of an
asset from a business partner. The acquisition can post integrated with Accounts payable
or without Accounts payable.
Acquisition with Automatic Offsetting Entry
 The asset can be posted automatically against the Clearing account fixed asset acquisition.
Retirement with revenue
 An asset is sold, resulting in revenue. The sale is posted with a customer.
 An asset is sold, resulting in revenue. The sale is posted against a clearing account.
 An asset had to be scrapped, with no revenue.
Asset Sale without customer
 Asset Sale with partial retirement without customer

5. © 2011 SAP AG. All rights reserved. 5
Detailed Process Description
Post-Capitalization
 Post-capitalization represents subsequent corrections to the acquisition and production
costs (APC) of a fixed asset.
Write-Ups
 A write-up is generally understood to be a subsequent change to the valuation of an asset.
Settlement Assets Under Construction
 Assets under construction (AuC) are a special form of tangible asset.
 Assets under construction can be managed for summary settlement or by line item.
Down Payment Request for Assets under Construction
 Down payments for assets under construction are fixed asset acquisitions that have to be
capitalized and reported as a separate item on the balance sheet.

6. © 2011 SAP AG. All rights reserved. 6
Detailed Process Description
Depreciation Posting Run
 The depreciation posting should be run periodically because the depreciation accounts are
not updated immediately.
 The system creates posting documents for each depreciation area and account group in
accordance with the posting cycles specified in Customizing
Depreciation Simulation/Primary Cost Planning
 You can also post the planned depreciation as planned costs to the cost centers or internal
orders to which the individual fixed assets are assigned.
Income Tax Depreciation for India
 In depreciation computation as per the Indian Income Tax Act 1961, the organizations need
to calculate the depreciation on a block of assets and not individual asset level.
Depreciation amounts is used for Tax Calculation. Closing WDV (Written Down Value) of a
block for a given year , becomes the Opening WDV for the following year which is required
to calculate the depreciation amount for the following year.

7. © 2011 SAP AG. All rights reserved. 7
Process Flow Diagram
Asset Accounting - Overview
AssetAccountantEvent
Asset Explorer
Asset Master
Data Needs to
Be Created
Finance
Manager
Asset Acquisition
Retirements
Intercompany Transfer
Post - Capitalization
Write-up
Unplanned Depreciation
Assets under Construction
Periodic Processing
Information System
Check Consistency
Maintain
Opening WDV
of Blocks

8. © 2011 SAP AG. All rights reserved. 8
Process Flow Diagram
Asset Accounting – Asset Acquisition
AssetAccountantEvent
Acquisiti
on with
Accounts
Payables
Acquisition with
Automatic
Offsetting Entry
Asset Acquired
Acquisition
Integrated with
Accounts Payable
Accounting
162
Overview
Yes
No

9. © 2011 SAP AG. All rights reserved. 9
Process Flow Diagram
Asset Accounting – Retirements
AssetAccountantEvent
Retireme
nt with
Revenue
Expected
Retirement Due to
Scrapping
Asset to Be
Retired
Retirement with
Revenue and
Customer
162
Overview
No
Retireme
nt with
Custome
r
Retirement with
Revenue without
Customer
No
Yes
Yes

10. © 2011 SAP AG. All rights reserved. 10
Process Flow Diagram
Asset Accounting – Asset under Construction
AssetAccountantEvent
Capitalize Asset
under Construction
Captial Asset Needs to
Be Constructed
without Investment
Order
162
Overview
AccountsPa
Post Down
Payment Request
Post Down
Payment
Down Payment
Approved
Post Closing
Invoice
Clear Down
Payment

11. © 2011 SAP AG. All rights reserved. 11
Process Flow Diagram
Asset Accounting – Periodic Processing
AssetAccountantEvent
Periodic
End
Closing
Recalculate
Values
162
Overview
Open and
Close
Financial
Period Asset
Depreciation
Posting Run
Post Acquisition
and Production
Cost Value
List of
Individual
Postings for
Assets
Depreciation
Simulation and
Primary Cost
Planning
Year
End
Fiscal Year
Change for
Asset
Account
Reconciliation
Year End
Closing for
fixed Assets
Asset
under
Constructio
n
Settlement
(164)
Yes
No
Depreciation
Run
Income Tax
Depreciation for
India

12. © 2011 SAP AG. All rights reserved. 12
Legend
Symbol Description Usage Comments
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
External
toSAP
Business
Activity / Event
Unit Process
Process
Reference
Sub-
Process
Reference
Process
Decision
Diagram
Connection
Hardcopy /
Document
Financial
Actuals
Budget
Planning
Manual
Process
Existing
Version /
Data
System
Pass/Fail
Decision
Symbol Description Usage Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
The other process flow symbols in this table go
into these rows. You have as many rows as
required to cover all of the roles in the scenario.
Role band contains
tasks common to that
role.
External Events: Contains events that start or end
the scenario, or influence the course of events in
the scenario.
Flow line (solid): Line indicates the normal
sequence of steps and direction of flow in the
scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a
scenario. Line can also lead to documents
involved in the process flow.
Connects two tasks in
a scenario process or
a non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an
outside Process that happens during the scenario
Does not correspond
to a task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to a task
step in the document
Process Reference: If the scenario references
another scenario in total, put the scenario number
and name here.
Corresponds to a task
step in the document
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario
here
Corresponds to a task
step in the document
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Does not usually
correspond to a task
step in the document;
Reflects a choice to
be made after step
execution
<Function>

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