FICO configuration document
Click on reference IMG
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Click on Edit, Copy, Delete, Check copmany code
Double click on Copy, Delete, check company code.
It is easier to copy a company code from another one rather than creating
one from scratch.
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Click on the copy icon
You will see message which shows you the tables that SAP is reading.
Once that finishes, you will get a popup box where you have to enter the
from and the to company code.
Enter a company code from which you want to copy the settings. The
standard one 0001 can be used.
Enter the new company code that you want to create in the To Company
code
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You will get a popup box which will ask you whether you want to copy G/L
accounts from the company code.
You can click on no and create your own G/L accounts. Choose yes if the
company code that you are copying from has the right G/L accounts and
you already know how to create G/L accounts.
Click on the green check box when the information message pops up.
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You can also click on the question mark next to the check box to get
details of the message.
It is a good practice to double click on any error and warning message and
click on the question mark to get more details.
Once you click on the green check box, the system will start copying the
tables
You will notice the percentage going up
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and ocne all the data is coped you will get a message stating the at
comany code has been copied.
You will see two tabs, one for selected activities.
This shows the company code that you copied from
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The completed activites tab show you the new company code that was
created.
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Click on the green arrow back to go back to the previous screen.
Click on Edit copmany code data so you can change the name, company
code and any other details.
Doubel click on the company code. Notice that the description says SAP
A.G as that was the description of the copmany code you copied from
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Change the description of this newly created company code.
New description and address
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Click on the icon to change the address of the company code.
Enter the new address.
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Once you enter all the info, click on the green check box and click on the
save icon
You will see a message that the data was saved.
Chart of Accounts
Chart of accounts contains the G/L accounts that you will be using for this
company code.
A chart of accounts is the highest level in the financial structure.
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One chart of accounts can be assigned to many company codes.
Each company code can only be assigned to one chart of accounts.
Just like with creation of a company code, it is easier to copy a chart of
accounts
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Select a chart of accounts and click on the copy icon.
Once you copy the chart of accounts, you need to enter the new 4
character identifier for the chart of accounts.
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Enter the description and specify the length of the G/L account numbers.
G/L account numbers are buckets that contain different types of expenses
and revenues.
E.g.. you can have one G/L accounts for salaries, one for revenues
etc. The number here ( Lengthg of G/L account number )specifies how
long this GG/L account number will be
e.g. will it be 123456 or 1234567( number of characters)
Enter the new values and hit enter.
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Click on enter and you will see a message at the bottom of the screen
showing you the number of screens copied.
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Click on save to save your new chart of accounts.
Assign chart of accounts to company code
in SAP the usual sequence of creating anything is that first you create it
and then you assign it.
You created a company code and a chart of accounts, but how does SAP
know that they are linked to each other.
You need to link them together in this step.
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Enter the chart of accounts next to the company code
Click on save
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You will get a message that the data was saved.
Fiscal year variant
The fiscal year variant determines the accounting periods that a company
uses. e.g. is it calendar dependent i.e. January will be the first accounting
month for this company code and December will be last month.
If it is year dependent, then a company could have April as month 1 of its
accounting period.
Note- The steps that are being listed are not necessarily in chronoligcal
order i.e. there is no correct order in which you have to create these things.
It is possible for e.g. to create the posting period before the fiscal year
variant etc.
It is required to finish all the steps before you start posting.
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To make things simple, pick a fiscal year variant that is calendar
dependent You don't need to create a new one. You can just view
this and assign this to your company code in the next step.
Assign company code to fiscal year variant
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How does SAP know that our company code uses a calendar dependent
fiscal year?
Enter the Fiscal year variant K4 next to your company code
Posting period variant
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Each company code will only allow one or two months(during month end)
to be open at any give time.
This is controlled by a posting period variant.
E.g. if you are in January 2018, you don't want anyone to post in June
2018. The users should get an error message if they accidentally post to a
wrong month.
First, we need to define a variant for the company code.
Select an existing variant
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Click on copy
Enter the new description for the variant
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Click on Save
Posting period variant-OB52
The next step is to assign values to the posting period variant.
This is done in tcode OB52.
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Enter the variant that you created in the previous step.
Enter the from per1 and the from year and the to period and the to year.
This is the period that you can post to.
Under the column 'A' enter the type of account for which this to and from
period applies.
There are many different entries, D is for customers, K is for vendors, S is
for G/L etc.
You can have different periods open for each of these categories.
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After creating all the entries, click on save.
Assign posting period variant to company
code
You have to ask yourself, how does the system know which posting period
your company is using?
For this you have to assign the posting period variant to your company
code.
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Enter the posting period variant next to the company code.
Retained earnings account
A retained earnings account is assigned to each P/L account. This is used
to carry forward the balances from one Fiscal year to another.
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All the total of the P/L accounts gets sent to this account when the
carryforward program is run.
Create a retained earnings account using the tcode OB53 or by using the
path below.
Enter a two character identifier in the and P&L statemenet field e.g. enter
01 and then enter the G/L account that you want to use in the Account
field.
SAP will give a warning message that this account is not created. You can
ignore this message if you get this in your golden client where you do not
make any postings.
Create this account in the client where you will be making some postings.
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Click on the save icon after entering the information.
and you will get a message that the changes have been saved.
Document types
Document types are used to distinguish one posting from another. E.g. if
you see that a document type is KR, you will know that this is a vendor
invoice whereas KG is a vendor credit memo.
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Create a custom document type based on your requirement e.g. if there is
an interface with a third party system, create a document type do
distinguish these postings.
Use the menu path below or use the tcode OBA7
Double click on any of the standard document types to view more
details of it. If you want to create a new one, you can select a document
type and the click on the copy icon.
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once the document type is copied, enter the new document type e.g. ZZ
interface with Chase
1-Number range Enter the number range that this document type is linked
to.
Having unique number ranges makes it easy to identify any kind of posting.
E.g. number range one is linked to a manual journal entry and the number
range is between 100000-1999999.
Just by eyeballing a document number, you can tell that this was a manual
journal entry based on the number range.
2-Reverse document type-Each document type can be linked to a
reverse document type. e.g. when a SA document type is reversed, SAP
uses the document type AB for the reversal.
3- Account types allowed- A document type can be restricted for certain
postings.
E.g. if you are using a document type AA which is meant for asset
accounts, you can uncheck the box of customer if you do not want any
customer information on your asset postings.
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This serves as a control for you. Users will get an error message if they try
to post to an account type that is not enabled in here.
4- Batch input only- you can flag a document type as batch input only if
you do not
want anyone to be using this document type during their manual postings.
E.g. if you created a new document type that is meant to be for the
interfaces between a legacy system and SAP( batch postings), you can
restrict this document type to Batch input only, so that all the postings to
this document type come from the interface only. 5- Control data- you
can make further settings to a document type by using the control data.
E.g. if you check the box for enter trading partner, anytime you use this
account, it will require a trading partner and it will not allow you to post
without it.
6- Required during document entry- Make certain fields required by
checking fields in this section. E.g. for vendor invoice you may want to
make the reference number mandatory and the users have to enter the
vendor invoice number in this anytime them create a vendor invoice.
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Click on the Number range information field to view the number range
details.
The document type can be selected when you are posting a document.
E.g. for a vendor invoice, the default document type KR appears.
Number range
Create a number range using the menu path below or by using the tcode
FBN1
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Click on the change intervals icon
and then click on add intervals and enter a number range. e.g. 01 and
enter a from and to year.
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The year controls if the number range is year dependent.
E.g. if you enter the number range as 01 and then the from number as
10000 and the to number as 1999999 and the year as 2018, then you need
to create the same number range for 2019. You can have number 1000000
in 2018 as well as in 2019.
If you enter the year as 9999, then you don't need to create a number
range every year as this number range is year independent. You cannot
use the same number across years.
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You can also copy number ranges from another copmany code by entering
the company code you want to copy from and then click on the copy icon.
This is very handy when you created one company code with all the
number ranges and then a new company code is required which will need
the same number ranges.
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Define tolerance groups
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This is a mandatory step. Each company code has to be added to this
table for tolerance groups for G/L accounts.
Define tolerance groups for employees
This is another mandatory step. Define a tolerance group for employees by
adding your company code in this table
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Click on new entries and add the company code
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Double click on the company code and enter maximum amount per
document and other information.
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Posting keys
Posting keys determine the type of posting that will take place. It tells the
system whether to debit or credit an item and what kind of account can be
used with this posting key.
During posting you will enter a posting key. e.g. if you enter 40, the system
knows to debit this item and only allows a G/L account to be posted with
this posting key.
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The standard posting keys should be sufficient if you are just learning
FICO. You can create a new one by clicking on the create icon based on
your client's requirement.
Double click on a posting key to view its details. You can see whether it is
a debit posting key or a credit posting key, what kind of account is allowed
to post to it etc.
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Posting keys are using during postings.
Some transactions only have debit/credit option on the front end, but even
these transactions are tied to a posting key in configuration. These are
known as enjoy transactions. E.g. FB60 just has a debit and credit option,
but if you view document that is posted, you can see that it has a posting
key of 31 and 40
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Other transaction codes for e.g. Fb01 have the posting key that you can
select. These types of transactions allow any kind of posting based on
the posting key selected. E.g. you can make a vendor, g/l, asset and
other kinds of postings through this.
This is where the posting key comes into the picture.
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Field status variant
A field status variant contains a list a of field status groups.
The field status groups determine which fields are optional, required or
suppressed at the time of a posting.
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Select a field status variant and click on field status groups on the left.
A field status variant contains field status groups.
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SAP provides a lot of field status groups by default. You can create a new
field status by clicking on new entries at the top or by copying one of the
standarad field status and changing it to something new.
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This field status group controls the fields that are optional, supressed or
required while posting.
For e.g. for certain G/L accounts, if you want to make the assignment field
as a required field, you can change the field status group to make this field
required.
The users will not be able to make a posting without entering an
assignment field. A field status group is very important to keep your
data accurate. Users can forget to enter certain fields. There should be
system checks to ensure that the data is clean.
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Go inside a field status group by double clicking on it to see the settings of
the field status group.
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select a different radio button if you want to change the settings around
from suppress, required or optional.
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Assign Field status variant to company
code
After creating the field status variant, you need to assign it to a company
code. By now you should have gotten comfortable with creating something
and then assigning it to your company code.
This is how the system knows which field status groups are available for
your company code.
A field status variant is assigned to a company code and a field status
variant contains field status groups.
The Field status groups are then assigned to your G/L account.
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Enter the field status variant next to your company code.
Global parameters OBY6
OBY6 is a tcode that you will be using often. It contains a lot of the settings
that we did reviously in one step. You can check a lot of your settings over
here.
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You can also maintain them directly over here.
Settings like posting period variant, field status variant etc. are assigned
here.
Double click on your company code to view the details.
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You will see the Fiscal year variant, field status variant and other settings
over here.
G/L Account groups
G/L accounts groups are created so we can havea certain rules for a
certain range of accounts and distinugish easily between accounts.
You can have different type of account groups e.g.
1- Balance Sheet Accounts
2- Material Accounts
3- Asset Accounts 4 - Revenue Accounts and so on.
In the account groups, you define which range a certain account can be
created in.
E.g. if you define that Balance sheet accounts fall in the range of 1000020000, then if an end user tries to create a balance sheet account using
the account number 40000, he/she will get an error message.
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You can also define which fields appear on the G/L creation screen based
on the Account group that you are using. There is a field status group
setting at the G/L level as well.
Create an account group using the menu path above or by using tcode
OBD4 Click on new entries to create an account group or select existing
account groups and click on the copy icon
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Enter the new characters for your account groups along with your chart of
accounts and assign a from and to account.
Click on save after you create the entries and double click on the account
groups to view the field status settings of these account groups.
This field status controls the list of fields that show up on a G/L account
master (tcode
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FS00) and do not control the list of fields that show up when you are
making a posting.
Double click on any of the fields under Select group to view the settings of
this group
In the screen shot above you can see that reconcliation account is set to
suppress. If there was a separte account group for Reconciliation
accounts, then it shoul be set to required.
This ensures that your master data is setup correctly and not dependent
entirely on the users making the right decissions.
In the screen shot below, there is not short and long text for this G/L
account. If the users forgets to enter this information, then we will face
issues later on as we won't know the purpose of a G/L account.
This should be set to required.
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Accounts Payable
The accounts payable module deals with creation of vendors, creating
invoices and paying them on time.
First step- Let's create account groups in order to create vendors.
Account groups help you in grouping vendors together.
You can have different field status group settings based on the vendor
group i.e. make certain fields required, suppressed or optional based on
the vendor account group.
Create a vendor acccount group following the menu path below.
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First step- Let's create
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SAP provides many account groups by default.
Double click on a vendor group to view details.
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Click on the Field status section to view the settings for this vendor group.
This helps in keeping your data clean. If certain vendors require a po box
for e.g to be entered everytime, else you face errors later on, you can
make it as a required field so that your data is setup correctly.
Having clean data is ciritical for smooth functioning of the business.
If you do not control these fields through the system, you will end up
having bad data as the users might not always remember to enter certain
details.
Click on the group that you want to view on the left of the screen.
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You will see all the fields that are under this group.
Change it by clicking on the appropriate radio button.
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If you want to create a custom account group, select the account group by
clicking on the left and clik on the copy icon.
Enter the new account group and enter a description for the new account
group and click on save to create the new account group.
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Number ranges for Account groups
You have created an account group, the next step is to create a number
range for this account group.
This tells us SAP which number it should use when it creates a vendor
under a certain account group.
E.g. Foreign vendors could be between 3000-3999, domestic vendors
between 40004999. This makes it easier for you to identify the type of
vendor it is by just looking at the vendor number.
Create a number range for a vendor account group using XKN1 or the
menu path below.
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Click on the intervals tab to view/change the existing intervals
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Click on the plus icon to create new number range intervals.
Enter the new number range
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and click on save
Make sure that there is no overlap, else you will get a mesage.
Fix the overlap and hit enter
you will get a message about transporting number ranges.
It is best practice to create the number ranges manually in each client.
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Assign number ranges to Account groups
Once you create the number ranges and account groups, you need to link
them together so SAP knows which number range goes with which
account group.
Go through the menu path below.
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Assign a number range against each vendor account group.
Number range XX means the number rnage is external and needs to be
entered by the user and it is not determined by SAP.
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Define Tolerance for vendors
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In this step you define the maximum different in payments etc. It is a
mandatory step that you must complete before you can make outgoing
payments.
Click on Save
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FBZP configuration
The most important step in AP is setting up a payment program. All
inovices gets paid through this program.
In order to run the automatic program F110, you need to first setup
baseline configuration.
Use tcode FBZP to setup all the APP configuration.
Configure in the sequence below.
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First step is to setup the company code for the automatic payment
program.
Enter the new company code by clicking on new entries
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Select a company code by selecting the from the left
and click on the copy icon.
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Enter the new company code and click on save.
Double click on the company code to view details of it.
Since we haven't created a paying company code yet, we can't add it yet.
We will return to this step to define the relationship between sending
company code( the one on which the invoice is created) and the paying
company code which will be paying the invoices. Paying company
codes-In this step you define the copmanies that will be paying invoices.
Not all company codes have their own bank account and do not pay their
own invoices. Many company codes' invoices are paid by another
company code that has a bank account.
Click on the paying copmany codes.
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After selecting an existing entry, click on the copy icon.
Note-Copying an entry is easier than clicking on new entries and entering
details from scratch, especially if the company you are copying is already
in production and working fine.
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Enter the standard forms and click on save.
Once this step is done, go back to the first step
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Double click on your company code
and enter the company code as the paying company code.
If this company code was paying another company code's invoices, then
you would enter that company code as the sending copmany code and the
paying company code in the paying company code field.
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Click on Save and move on to the next step.
Payment methods in country- In this step you define the valid payments
for each country.
E.g. you will define that
C- Checks
W- Wires
A- ACH
are valid payment methods for the country 'US' if you use any
paying method apart from this, you will get an error message.
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Select a payment method and click on the options on the left
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Enter the currencies allowed for this payment method.
Leave it blank if all currencies can use this payment method.
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Click on Save and move on to the next step.
Payment methods in copmany code
In the previous step, we defined the valid payment methods by country. In
this step we need to define teh valid payment methods for each company
code.
If a payment method that is not listed here is used in the payment program,
you will get an error message.
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The easiest way to set this up is to copy the payment methods from an
existing company code and change the payment method if required.
Select the payment methods by selecting them from the left and click on
the copy icon.
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copy this payment method to your company code.
Enter a minimum and a maximum amount.
Click on save. You will need to do this for all the payment methods that you
copied.
After you have copied the payment methods that you need , move on to
the next step of setting up a House bank.
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A house bank contains all the bank data. The bank key(routing number)
and the bank account is contained in a house bank.
you need to setup a house bank and then create bank keys and account
numbers below this.
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Enter the company code for which you want to setup a House bank
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Click on New entries
Enter a house bank description e.g. Chase and enter the Bank key and
Country and click on Create
Enter the address details for the bank and click on the green arrow.
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Next- Click on Bank accounts on the left.
Click on new entries
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Enter the house bank that you created in the previous step and enter an
accoud ID. An accound ID further breaks down a House bank. E.g. You
can have one account ID for Check and another for Wire.
Enter the bank account number, the currency and the G/L account.
If SAP gives you an error that the G/L account doesn't exist, go to FS00
and create a G/L account.
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and go back and save.
Click on no when it asks you if the IBAN should be transported.
The final step is to setup the bank determination.
Note- You have to setup the House bank first and then come back to the
bank determination.
You will see the House bank is listed last, but the bank determination
needs to be your final step.
Click on bank determination to get started.
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Select your copmany code and click on the options available on the left.
Click on new entries
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Add the following
Payment method-Enter all your payment methods over here.
Currency- Enter the currency in which you will be making the payment
methods. Rank Order- Enter 1 if the same payment method doesn't
appear in more than one house bank.
When the payment program (F110) runs, the system tries to determine
which house bank it needs to make the payment from.
Eg.. if you are paying by check and the payment method C is listed in
House bank as well as House bank B, the system needs to know which
house bank it needs to use to make this payment.
If you define the ranking order as 1 for House bank B, the sytem will
always use House bank B to make the payments and only use House bank
A if there aren't enough funds available in House bank B.
House bank -Enter the house bank that this payment method belongs to.
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Bank Accounts- The next step is to click on Bank accounts ( on the left)
Click on new entries and add the following
House bank-The house bank that you added in the previous step.
Payment method- The payment method added in the previous step.
Currency- The currency you added in the previous step.
Account ID- Enter the account ID that you configured in the House bank
step. Each House bank could be further broken down by an account ID.
E.g. you have one called checks that is mapped to account 123456 and
another called wire that is mapped to
67890
Bank subaccount- This is the clearing account that the system will use
when you are paying using a payment method corresponding to it.
Available amounts- Enter the House bank, account ID , days and
currency.
Enter 99999999 as the avaialable for outgoing payments value.
Enter 999 in the days field
Click on save and you are done.
You should be able to run your payment program now.
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Terms of Payment
Terms of payment dictate how quickly we need to pay the vendor e.g.do
we need to pay within 30 days, 60 days or immediately
Do we get a discount for paying within a certain time frame.
Whatever the terms you have negotiated with the vendor, need to be
created in there. Follow the menu path below to create a new terms of
payment and to view the SAP defined terms of payment.
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Click on execute and view the standard payment methods.
before creating a custom method, check if there is a standard method that
is available.
Double click on any payment method to view the details of it.
The description of a payment method should reflect how it is setup.
E.g. 0002 shows us a few things
1Customer- If you check this box, it tells the system that this payment
term can be used for a customer.
2Vendor- If you check this box, it tells the system that this payment
term can be used for a vendor.
3Default for baseline date-The default for baseline date determines
how the system calculates the baseline date.
The baseline date determines the start date for calculating the discount
date.
E.g. if you create an invoice in the system with a document date of
1/1/2018 and a posting date of 1/5/2018 and if your payment terms provide
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you with a discount of 5% if you pay within 30 days, from what date should
the system calcualte the 30 days?
Should it be from the document date or invoice date etc.
We mostly use the document date to calcualte the baseline date.
4Payment terms - Here you specify the terms. E.g. if you pay within
14 days, you get a 2% discount and the entire invoice is due within 30
days.
You can copy a payment method and create a custom one if required.
The payment terms show up when you are creating a vendor invoice.
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Asset Accounting configuration
Asset Accounting is a very popular submoduel in FICO. It helps a company
manage its fixed assets.
Asset accounting involves creation of fixed assets, depreciating them,
trasnfering assets, retiring them etc.
The asset accounting module syncs with the G/L module.
the first step in configuring is to setup a chart of
depreciation. Create a chart of depreciation using the
menu path below
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Click on copy reference Chart of Depreciation
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Click on the copy icon
Enter thr chart of depreciation you are copying from. You can use a
standard SAP delivered chart of depreciation and enter the to company
code which is your new chart of depreciation.
You will see a message which shows the new chart of depreciation.
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Click on enter. You will see on the completed activites, chart of
depreciation copied to 1000.
next go back to the next step, specify description for chart of depreciation.
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Change the description of the chart of depreciation.
Depreciation Areas
A chart of depreciation is the highest level under asset acounting.
The depreciation areas are assigned to a chart of depreciation.
Create new depreciation areas by going back and selecting the next option
of copy/delete depreciation areas.
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You will see a list of depreciation areas that were copied when you copied
the chart of depreciation.
Area 1 is the one that posts to the G/L. The rest of the ones are for tax
reporting i.e. there is no actual posting to the G/L. The values are just
calculations.
Double click on a depreciation area to view its details.
For book area 01, you will notice that the posting in G/L is set to Area posts
in Realtime.
Do a drop down and explore the other optinos.
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Under value maintenance, you can specify what types of values are
allowed for this depreciation area.
Compare this with the tax depreciation areas.
Create your own depreciation areas based on your client's requirements.
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Assign chart of depreciation to company
code
You should be used to creating something and then assigning it in the next
step by now.
After creating the chart of depreciation, you have to assign it to your
company code.
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Enter your chart of depreciation next to the company code and click on
save.
Number range assignment
Next- assign the company code from where the number range will be
picked up for this company code.
Enter the same company code that you created.
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Asset classes
Asset classes are used to group assets together. E.g. you can have one
asset class for vehicles, one for buildings etc.
Each asset class can have different fields show up on the asset master(
simialr to the field status group setting of G/L) and the asset classes can
be linked to a different number range so you can easily differentiate
between them just by looking at the asset number.
Click on define asset classes using the menu path below.
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You will see the existing asset clases.
Select an asset class and click on the copy icon to create your own asset
class.
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Enter the new class value and description.
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Account determination- This determines the G/L mapping for this asset
class. The account determination is linked to G/L accounts in AO90. The
asset acquisition account, retirement account etc. are entered in here.
This field determines which account determination this asset class is
linked to. Generally each asset class will have its own account
determination. In some cases you can share one account determination
across many asset classes.
Screen Layout Rule- The screen layout rule is like the field status group
for G/L accounts. This controls which fields appear on the screen for this
asset class. You can make the fields optional required or suppressed.
Each asset class can have its own screen layout rule or if the requirement
is the same for all the asset classes, then you can use one screen layout
rule for all.
Click on Save and your new asset class is setup.
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Account determination
As explained in the previous step, the account determination ties an asset
class to the G/L accounts.
In AO90 you link the account determination to various accounts.
If you are creating a new asset class, you may need to create a new
account determination as well.
Create an account determination by following the menu path below.
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Copy an account determination by selecting it and click on the copy icon.
Enter the new value and description.
Have a good naming convention for this. This could be the same number as
the Asset class or you can have another number but make the number
consistent, so if you want to look up the G/L acount info for an asset class,
you can easily tell what the account determination for an asset class is by
looking at the asset class number.
E.g if the asset class is 12000, the account determination can also be
12000 or it can be z1200 so if you find another asset class as 11000, you
can easily tell that the account determination is 11000 or z1100.
Screen Layout rules
Screen layout rules are like the field status groups for an asset.
This controls which fields appear on the asset master.
Create a screen layout rule by going through the menu path below.
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Note- if you are creating a new asset class, you can either create the asset
class and assign dummy values in the screen layout rules and account
determination and then go back and update them after you create the
account determination and screen layout rules or create the screen layout
rules and account determination first and then create the asset class.
Copy an existing screen layout rule by clicking on the button the next and
click on the copy icon.
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Enter the new values for the screen layout rule along with a description
and clic on save to create the new screen layout rule.
Update the asset class
This step is required if you initially setup an asset class with dummy
values. Go back and update the asset class with the new screen
layout rule and account determination
Double click on your asset class
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and update the new values
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Ao90- How depreciation posts to the G/L
In this step, you link your Account determination to G/L accounts. Basically,
this step determines what is your G/L when depreciation posts for Asset
class trucks, which is the account that SAP should post to when you retire
an asset.
Note- There is no direct relationship between an asset class to a G/L
account. An Asset class is linked to an Account determination and the
account determination is linked to a G/L account.
Use the path below or use the tcode A090.
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Select the chart of depreciation from the right of the screen and click on
Account determination on the left.
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You will then see the list of Account determinations that you created for this
depreciation area.
Select the account determination for which you want to assign G/L
accounts and click on
Balance sheet accounts field to assign the acquisitions account etc. and
click on the Depreciation field to assign the depreciation account.
Once you click on Balance sheet accounts you will see this list which
shows you the accounts that you can enter.
Enter the Balancce sheet APC- This is the account that SAP posts to when
you post an acquisition.
Enter an account in the retirement section.
Save after entering this.
You can come back to the rest of the accounts if you are getting an error
message. The error message will tell you that the account is not found.
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Once you are done with entering the Balance sheet Accounts, click on the
depreciation tab and enter the depreciation values.
Enter the Acc. dep account for ordinary depreciation- This is the
account that the accumulated depreciation gets posted to .
Expense Account for ordinary depreciation- This is the expense
account that gets hit when you run depreciation.
These are the two important accounts that get hit when you run
depreciation. You can come back to the rest when you get an error
message. E.g. if you run unplanned depreciation, SAP will give you an error
message as there is no account that it can post to.
I prefer getting more errors while learning as that helps you relate an error
message to a place in configuration.
Assign tax indicator for non taxable
transactions.
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This is a mandatory step- Enter a tax indicator and hit save.
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Specify document types for depreciation
postings
When you post depreciation, the system will use a document type. This
document type has settings that we covered earlier. The tcode for maintain
a document type is OBA7.
Click on execute in the menu path below.
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Click on Define document types if you want to go back to OBA7 where you
define all document types.
Click on Specify Document type for posting of depreciationto assign a
document type for depreciation posting.
The standard document type AF is generally used for this purpose. Enter
the document type AF next to your company code and click on save.
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Creating a depreciation key
A depreciation key is the most important step in Asset accounting. This
determines how the asset depreciates.
Depreciation is the reduction in the value of an asset.
The depreciation key determines how the asset depreciaties.
There are various steps in the creation of a depreciation key. Let's go to
one of the steps
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Define Base methods
A base method is assigned to a depreciation key. It contains functions like
is this used for normal depreciation or special depreciation. What is the
dep method and so on. SAP has a lot of standard depreciation keys.
Please see if the standard ones meet your requirement before you create
a custom one.
Your business will give you the requirements of a depreciation key and you
can ask them questions based on what you see in the configuration
screens before proceeding with creating it.
After you click on execute, you will see a list of methods.
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Double click on any base method to see the settings it has. The text here
gives you a good idea of how this base method operations.
E.g. in base method 0012, you specify a percentage.
In base method 001, SAP calculates a percentage from useful life and so
on.
Base method 0011
Type of depreciaiton -Do a drop down to see the types of depreciation,
ordinary depreciation, special depreciation etc.
Dep method - Here you pick whether this is percentage from userful life,
explicit percentage etc.
Initially, when you are getting started, you don't have to know what each
and every box, drop down does. Start with a standard key and then create
a custom one and change one of the settings and see how it impacts the
depreciation that you post.
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Declining balance methods
Delclining balance methods controls how depreciaiton is calcualted. E.g. if
an asset is worth 10,000 and it depreciaties 10%, then the depreciation
would be $1000 after 10 months, but if the depreciation key has a double
declining method, then it will be $1000*2.
Many of the tax depreciation keys are set to double declining etc.
When you et a request from the business to setup a tax key, they will
specify if there is no declining balance, double decline etc.
Click on execute from the menu path below to access the Declining
balance methods
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Here you can see the decimal factor, this controls the value with which the
depreciation gets multiplied.
in our previous example, we discussed how an asset gets assigned a
double declining method. You would select the declining balance method
002 as it has a declining factor of 2. SAP will multiply the depreciation by 2.
If you don't want any declining balance method, then select the first
method. This is mainly used for book area 01( the one that posts to the
G/L)
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Declining balance methods
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A multi level method controls other factors of a depreciation key e.g. should
it start depreciation from the acquisition value or the netbook value etc.
You can assign many levels to this method. Here you specify how the
depreciation works in year 1, 2 etc.
You can have different percentages for every year.
Click on execute and you willl all the multilevel methods.
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Select the multilevel method and click on levels on the left.
Here is where you assign a different percentage by year.
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Always do a drop down on the values to see the available options.
Do a drop down on the base value to see what all the options are.
You mainly use the acquisition value or netbook value to calcualte
depreciation. Talk to your business if you have questions on which
value the depreciation should be calculated on.
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Maintain period control
Period control determines the period from when depreciation should start.
E.g. if you purchase an asset on 1/1/2018, when do you start depreciating
it?
This varies based on the tax laws. E.g you might be required to depreciate
from the start of the year regardless of when you purchased it or you might
start depreciating it only from the start of the month from when you
purchased it.
Click on execute in the menu path below.
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SAP provides a lof of period controls. You can identify their settings by the
description.
In this step you are creating the shell.
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After this, you can define the calendar settings for a period control.
Here you specify the dates that tell the system what dates it should be
using for each period control.
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Enter the Fiscal year variant and the period control and then enter the
month from which it should start calculating depreciation.
The period control controls your depreciation start date. Create an asset
using a depreciation key that uses a period control that uses start of the
year dereciation and assign another key that uses a period control that uses
mid year convention. Assign this key to another depreciation area.
You will notice that the depreciation start date on the asset master is
different for these depreciation areas.
This is what determines the depreciation start date, but note that you can
override the depreciation start date.
After creating all the components that link to a depreciation key, you can
put this altogether in a depreciation key.
Use the tcode AFAMA to the menu path below ot create a depreciation
key.
A depreciation key determines how an asset depreciates.
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After you click on execute, you are brought to the main configuration
screen of a depreciation key.
You can double click on the key to view some of its details and you can
also select it and click on the assignment of calculation on the left to see
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what is assigned to this key. A depreciation key is linked to a multilevel
method, period control and other components that we previously saw.
View all the calculation methods that this key is linked to.
If you make a change, it is better that you first copy the depreciation key to
a zkey and then make a change to one of the calculation methods.
Specify transfer of Apc values
In this step you assign if a depreciation area inherits Acquisition values
from another depreciation area and if one depreciation area is identical to
another area.
Some tax areas inherit APC values from another tax area and are identical.
E.g. if area 11 inherits values from area 10, then you can't add a separate
value to area 11. The field will be grayed out and area 11 will get the same
value as area 10.
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Here we see that all the tax depreciation areas inherit the values from book
area 01. E.g. if you enter an acquisition as $10,000 for book area 01, then
this $10,000 gets carried over to all the other depreciation areas.
You can still change these values on the other areas.
Identical checkbox- If the identical checkbox is checked, then that
depreciation area cannot have an acquisition value that is different from
the one it inherited from.
The field becomes grayed out so you can't make any changes when this
box is checked.
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Specify transfer of depreciation terms
This step is very similar to the previous step, but instead of specifying
which depreciation areas inherit APC values from the other, you specify
the depreciation terms that get transferred from one depreciation area to
another.
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For e.g. Area 12 is inherting from area 11. You can always change this as
the identical checkbox is not flagged.
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In this step you can define which depreciation areas are applicable for an
asset class.
The default depreciation key and useful and layout is also specified in this
step.
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Number ranges for Asset Classes
Create number ranges for an asset class in this step. Some of these steps
repeat in a few places.
Enter your company code for which you are creating the number range
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Create a number range and enter a from and to number range
Click on save.
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Transaction types for acquisitions
Transaction types determine what kind of posting it is. In this step we are
going over the transaction types for acquisitions. E.g. is it a transacsation
type for acquisition in the current year, is it a transaction type for an
acqusition on a prior year asset.
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After you click on execute you will see two options, click on the first option.
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view the existing transaction types.
Double click on the transaction type and this gives you the behind the
scenes of this transaction type.
Is it a debit transaction or a credit transaction, should it post net or should it
post gross etc.
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As usual, select an existing transaction type and copy it to make your own
transaction type.
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Enter the new transaction type and customize any of the settings.
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your new transaction type is created
Limit Transaction type to depreciation
area
A lot of times you create a new transaction type to limit it to one
depreciation area. This transaction type is usually a copy of a standard
transaction type, but the standard transaction type posts to all the
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depreciation areas and you may need this new transaction type to post
an adjustment to one of the depreciation areas only.
Double click on limit transaction type to a depreciation area from the screen
below. This is the same screen as creating a transaction type, but you are
limiting it to a depreciation area.
select the transaction type that you want to limit to a depreciation area and
click on depreciation area specifications on the left.
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Click on new entries to enter the depreciation area that you are restricting
this transaction type to.
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Enter the depreciation area.
Display for selection- Click on the display for selection if you have more
than one depreciation area and you want to give the user the ability to pick
the depreciation areas rather than post to all of them.
Always post-Click on always posts if this depreciation area should always
have postings for this transaction type.
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When you post to an asset using this transaction type, click on the simulate
or change line items
and see that it is only posting to depreciation area 01 that you restricted it
to.
Transaction types for retirements
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Just the same way you defined transaction types for acquistions, in this
step you can define transaction types for retirements.
The exact same principles apply to this transaction type. the standard
SAP retirement transaction types are generally sufficient, but there might
be cases where you need to create a custom one.
A custom transaction type might also be required or you can change a
standard one for reporting purposes. Each transaction type maps to a
certain place in the asset history sheet. You can change where it maps to
in this setting.
Click on Execute to view the standard transaction types.
Click on define transaction types for retirements to view the standard
transaction types.
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Double click on a transction type to view its details.
The settings here are the same as the transaction types for acquisitions.
At the bottom of the screen, you will see which section of the asset history
sheet this maps to.
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Limit retirement transaction type to a
depreciation area
Just the same way you limited the transaction type for acuqisitions, you
can also limit the transaction types for retirements to a certain depreciation
area.
Click on the Limit Transaction types to depreciation areas
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Select the transaction type from the right and click on depreciation area
specifications on the left.
Click on new entries to enter the transaction type that you are limiting.
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Enter the depreciation area and the other settings if required that we
discussed in the previous step.
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Asset transfer from a legacy system
There are a few settings to be maintained when we transfer assets from a
legacay system.
We need to specify a legacy transfer date. This is the date on which the
assets were valued in the legacy system. e.g. if you are going live with
fixed assets in SAP on 1/1/2018, then you need to enter 12/31/2017 or
1/1/2018 as your legacy transfer date as the value of the assets that you
are brining over is as of this date.
In some cases you might be in the middle of the year e.g. 3/1/2018 in a
legacy system, but you decide to bring the asset balances as of
12/31/2017 and then calculate depreciation for periods 1-3 in SAP.
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Enter your legacy transfer date here. You use trasnaction code AS91 to
bring over legacy assets. The capitalization date of this asset cannot be
after this legacy transfer date. If it is after this transfer date, then you will
use the standard tcode as01 to create teh asset shell.
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The error message that you will receive if an incorrect capitalization date is
used.
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Period in which depreciation was last
posted
Once you enter the legacy transfer date, enter the last period in which
depreciation was posted in the legacy system. This tells SAP when it
should start posting depreciation.
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Select your company code and click on period which depreciation was last
posted from the left
Enter the fiscal year and the period. The system will look to post from the
next period in SAP.
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After this you can start creating legacy assets and post depreciation to
these legacy assets.
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