This document provides an overview of asset accounting in SAP ERP. It discusses key concepts like the general ledger, chart of accounts, asset classes, acquisitions, retirements, depreciation, and assets under construction. The purpose of asset accounting is to manage fixed assets over their entire lifetime, from purchase to retirement, while calculating depreciation. It integrates with other SAP modules like materials management and allows traditional asset accounting as well as processing leased assets and consolidated reporting. Standard reports are available to view asset balances, depreciation simulations, and asset histories.

1. Asset Accounting
IN SAP ERP SYSTEM
(BAO6714)
Computerised Accounting in
an ERP System

2. Introduction
• General Ledger Account
• Used to store & Sort Debit and Credit Balances of CO’s Resources
• Permanent & Real Account
• Example:
“Asset is not only to be purchased but also to be
maintained and used after acquisition”

3. Asset accounting Overview
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
• Depreciation forecast

4. Key terms
• Chart of Accounts (COA)
• Chart of Depreciation
• Asset Class
• Master Data – Create/Change Asset Master records
• Acquisitions
• Retirements- with Revenue/ without Revenue(scrapped)
• Depreciation
• Write-ups

6. Asset Under construction
• Assets under construction (AuC) are a special form of tangible asset.
• The AuC process includes a down payment, final invoice and the final settlement.
AUC without line item settlement
 Only complete transfers or simple partial
transfers are possible (in other words, you can
only transfer either prior-year acquisitions or
current-year acquisitions in one given posting
transaction).
Assets under Construction with Line item settlement
 On the capitalized asset, you can then see the relationship
between the capitalized asset and original postings to the
asset under construction - you can accurately identify the
origin of the postings.

7. Integration of Asset Accounting
Asset Accounting (FI-AA) transfers data directly to and from other SAP components. For example,
it is possible to post from the Materials Management (MM) component directly to FI-AA. When
an asset is purchased or produced in-house, you can directly post the invoice receipt or goods
receipt, or the withdrawal from the warehouse, to assets in the Asset Accounting component.
Features:
• Traditional asset accounting
• Processing leased assets
• Preparation for consolidation
• Information System

8. AA integration with Other
SAP Module’s

9. Standard Asset Reports
• S_ALR_87011963- 70: Asset Balances
• S_ALR_87011979 - 82: Physical Inventory Lists
• S_ALR_87012936: Depreciation on Capitalized Assets (Depn Simulation)
• S_ALR_87012026: Depreciation Current
• S_ALR_87012075: Asset history

10. Thank you
Chander Rajpurohit
TechTip24
https://techtip24.com/