Asset accounting

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/