Fixed Assets
Asset Accounting
AA Overview
Asset Accounting as a Sub-ledger
Asset Class
Chart of Depreciation
Master Data
Create/Change Asset Master Record
Acquisitions
Settlement of an Asset Under Construction (AUC)
Retirement
Depreciation
Asset Accounting
Transfers
Period / Year End Closing
Reporting
Overview: Asset Accounting as a Sub-Ledger
Asset Accounting is a subsidiary ledger of Financial Accounting.
The appropriate General Ledger accounts are updated each time
you post.
General Ledger
Assets
1000
Asset account
1000
Liabilities
1000
Vendor
1000
Overview: Asset Classes
The asset class is used to:
sub-classify
the General ledger accounts and
group master records by specific criteria.
Asset Class
A
Balance
sheet
L
General
ledger
accounts
Buildings
Vehicles
Assets under
construction
Fixtures and
fittings
Asset
classes
Asset
master
records
Asset Classes
Asset Classes Configured
 910000
Land
 910001
Building
 910002
Plant and Machinery
 910003
Vehicles
 910004
Asset under construction
Functions of the Asset Class
Asset Class
Account
allocation
Screen
layout
Number
assignment
Default
values
Special
features
Selection
features
Acct. determination
Asset class
Bal. sheet items
Assets
Create
asset
Liabilities
Asset portfolio
02200000
Assets
Real estate
1
Machinery
...
Fixtures+fit.
...
Finance. assets
...
Lathe
02115000
Drill
press
Functions of the Asset Class
The asset class contains default values and control elements which are
passed on to the individual assets when you open a new asset master
record.
By entering useful default values, you reduce time and effort needed for
creating new asset master records. You also ensure that the records in a
given class are handled uniformly.
The asset class is the most important criteria for structuring fixed assets
from an accounting point of view. Every asset has to be assigned to
exactly one asset class. The asset class is used to assign the assets (and
their business transactions) to the correct general ledger accounts. The
most important tasks of the asset classes are:
The assignment of default values when creating assets (particularly
depreciation terms)
The grouping of assets for reporting purposes
Definition of the Asset Classes
Asset classes
Client level
Chart of depreciation
level
Master data
section
Section for
valuation data
Account allocation
Screen layout rule
Number range
Default values
Selection of
depreciation areas
Default values
Asset Classes in the Chart of Depreciation
1
Class
Machines
Chart of
depreciation
Areas
Germany
Group
Book dep.
SNFG
LINR
LINB
LINR
decl-bal.
3X
invest.
support
str.-line
str.-line
str.-line
....
....
....
Proposed
useful life
10/00
10/00
8/00
_
8/00
....
Minimum
useful life
_
_
_
8/00
_
_
Maximum
useful life
_
_
_
12/00
_
_
Depreciation
key
Book dep.
Tax dep.
DG30
USA
...
Group
...
ACRS
Points from the Asset Class / Dep’n Slide
The Chart of Depreciation is assigned to company code, therefore a class
may have multiple Charts of Depreciation relevant to it.
The asset classes are valid across company codes. The catalog of asset
classes, therefore, applies uniformly to all company codes. This is true,
even if the company codes use different charts of depreciation, and
therefore different depreciation areas
You can assign different charts of depreciation to an asset class, so that
all assets in this class will be treated differently in each country.
Special Asset Class: AuC
Class: Assets u. const.
Extras
AuC status
Transaction type groups
15
Down payment
16
Down payment carried forward
from previous years



depreciation
areas
Book dep.
Tax dep.
Cost-acc.
AuC managed as total
line item settlement
capital investment measure
deprec.
key
0000
0000
LINA
negative values allowed
depreciation is not calculated in
depreciation areas intended for the
balance sheet
AUC without line item settlement
Assets under construction in this asset class are managed without the
option of line-item final settlement to receiver assets or cost centers. As a
result:
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).
You can only transfer to one target asset per posting transaction. You
have to enter the amount of the transfer manually.
There is no connection to the original asset under construction in the
capitalized asset. Therefore, there is no exact proof of origin for the original
postings.
Assets under Construction with Line item settlement
Assets under construction in this asset class are managed with the option
for final line item settlement to receiving assets or cost centers. As a result:
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.
AUC’s can be settled to multiple final assets / asset classes
Assets under Construction from Investment measure
Assets under construction in this asset class to be created solely for
capital investment measures (internal orders or projects).
The assets in this class can not then be directly created and posted in
Asset Accounting. The assets can only be processed by means of an
order or WBS element, to which they are assigned.
AUC Asset Class: Points from previous slide
Assets under construction require their own asset class.
Choosing the depreciation key ‘0000’ ensures that depreciation is not
calculated for the asset under construction in depreciation areas that are
posted to the balance sheet.
Assets under construction have to be shown separately in the balance
sheet.
The component IM (Investment Management) is available for managing
more extensive asset investments from a controlling-oriented perspective.
There are three asset classes for Assets Under Construction configured.
These are:
Asset under Construction
Asset under Construction with Line item settlement
Asset under Construction from Investment measure
AUC Asset Class: Points from previous slide
Assets under construction require their own asset class.
Choosing the depreciation key ‘0000’ ensures that depreciation is not
calculated for the asset under construction in depreciation areas that are
posted to the balance sheet.
Assets under construction have to be shown separately in the balance
sheet.
The component IM (Investment Management) is available for managing
more extensive asset investments from a controlling-oriented perspective.
There are three asset classes for Assets Under Construction configured.
These are:
Asset under Construction
Asset under Construction with Line item settlement
Asset under Construction from Investment measure
Overview: Depreciation Areas
You will generally need values for fixed assets for various
business and legal purposes (for example, for book
depreciation, cost-accounting depreciation and so on). In the
R/3 FI-AA system, it is therefore possible to manage values
in parallel in as many depreciation areas as you want.
The Chart of Depreciation
Chart of
depreciation
Depreciation
area 01
Book
deprec.
Depreciation
area 02
Tax
deprec.
Depreciation
area 03
Special
reserves
Depreciation
area 20
Cost-acc.
deprec.
Depreciation
area 30
Group
deprec.
Depreciation Charts/Areas in A Ltd.
Depreciation Charts:
Z910:
Chart of Depreciation: A Ltd
Depreciation Areas:
01:
Local reporting Y1
02:
Parent reporting Y2
31
Consolidated balance sheet in group currency
32
Book depreciation group currency (profit center)
There is no set relationship defined in the system between the chart
of accounts and chart of depreciation.
Company codes in Financial Accounting are assigned to a chart of
depreciation – refer following slide.
Asset Accounting Company Code
Chart of accounts
Chart of
depreciation
Financial Accounting
Company Code
+
Data for Asset Accounting
=
Asset Accounting Company
Code
Master Data
Creating the Asset Master Record
Create
asset
using asset class
using a reference
taking over the default
values from the asset class
'copying' an
existing asset
Time-Dependent Data
ASSET MASTER RECORD
- Time-dependent data New Interval
Enter period under consideration
Valid from
01
Cost center A
Cost center B
Cost center C
.
.
.
MMDDYYYY
Valid to MMDDYYYY
from
from
from
.
.
.
01/12/YY
08/28/YY
12/01/YY
.
.
.
to
to
to
.
.
.
08/27/YY
11/30/YY
03/14/YY
.
.
.
Master Data Creation/Change: Key Points
When you create the asset master record, you have two options:
Use the asset class, to which the asset will belong, to provide
default values. The asset class then supplies the most important
control parameters in the asset master record.
Use an existing asset as a reference for creating the new asset
master record.
Some information in the asset master record can be managed as timedependent data. This is of particular significance for cost accounting
assignments (for example, cost center, order, project).
Acquisitions
Asset Acquisition - Integration
Assets
Fixed Asset
100
Assets
Fixed Asset
100
Assets
Fixed Asset
100
Accounts Payable
Vendor
100
General Ledger
Clg Acct
100
Acquisition
purchase
110
Acquisition inhouse
production
Aqcuisition with Vendor
 Asset transaction integrated
with Accounts Receivable or
Accounts Payable
(Only for direct Asset purchases)
No PO
Aqcuisition with Auto-offsetting Entry
100
Accounts Payable
Vendor
100
 Asset transaction posted
using clearing account (not
integrated)
(Only for direct Asset purchases)
Aqcuisition with MM-PO
 Asset transaction posted
MM
from Materials Management
(MM)
Asset Acquisition – MM Integration
Create Master Record
Purchase Requisition
With assignment to
WBS
Purchase Order
Building
required
Goods Receipt
Valuated
Non-Valuated
Goods Receipt
or
Assignment of
WBS
Internal Orders
To manage
Invoice Receipt
budget
expenditure
Retirement
Retirement
Assets can be retired:
With Revenue
Without Revenue (scrapped)
Asset Retirement: Types
Types of asset retirement
1. Retirement with revenue - selling
of an asset either at a
market price, net book value or
other settlement price
2. Retirement without revenue writing off an asset which is
no longer productive or has no
residual value
Asset Retirement w/ Customer : Accounts
210
Retirement
sale
Retirement: - Acquis . date 01/01/20xx - 1, APC = 6000
- Complete retirement of APC on 03/15/20xx
- Revenue 4000 + 400 sales tax
A/R posting
P+L or FinStmt Notes
Revenue
Asset Retirmt
Customer
4000
4400
4000
Assets posting
P+L
Clearing of
Asset Retirmt
Asset
1
3
6000
700
6000
2
1 APC
2 Amount retired
4
4000
Loss
1300
3 Proportional value adjustment
4 Clearing of retirement
200
Retirement
scrapping
Depreciation
Depreciation
SAP supports the following direct types of depreciation:
Ordinary Depreciation: planned reduction in asset value
due to normal wear and tear.
Special Depreciation: depreciation that is solely based on
tax regulations.
Unplanned Depreciation: depreciation resulting from
unusual circumstances, such as damage to the asset,
that lead to a permanent reduction in its value.
Depreciation Key
The depreciation areas are identified in the system by a two-character
numeric key. You make this specification in the asset classes, and
can define it directly in the given asset master record.
The system allows you to define an almost indefinite number of
depreciation areas. This feature enables you to handle a large
number of different types of valuation in parallel.
You define the required depreciation keys per chart of depreciation.
Elements of the Depreciation
Calculation
Depreciation is calculated according to the depreciation key in the
asset master. The most important influences on the calculation of
depreciation are:
The value date of the document. It is used to set the depreciation
start date in the asset.
The depreciation key.
The depreciation calculation method is the most important feature of
the internal calculation key. It is used to carry out the different types
of depreciation calculation.
Transfers
Transfers
Assets can be transferred within a company code or
across companies within the Group
Assets can be transferred in full or partially. Controlling
object assignment can be changed as can asset class.
Asset Transfers
2
1
Asset transfers can be one of the following scenarios:
Transfer within Company Code (ABUMN)
1. Transfer within same Company Code
Eg. From one asset class to another
Intercompnay Transfer (ABT1N)
2. Inter-company transfers between companies in SAP
Eg. From one company to another
Period End Closing
Fiscal Year Change/Year-End Closing
31
31
Year-end closing
Fiscal Year Change
Fiscal Year Change
Asset values
Transaction
APC
Ordinary dep.
Net book value
at fiscal year start
0
0
0
0
Year 1
10000
10000
3000 7000
Periodic processing
Fiscal year change
at fiscal year start
Transaction
10000
APC
10000
Ordinary dep.
3000 Net book value
7000
Year-end closing
1.
Year 2
0
10000
21004900
Depreciation posting run
2. Year-end closing program
- Check:
Can the year-end closing be carried out?
- Maintenance of the last closed fiscal year
company code
3.
Asset values
Fiscal Year Change
Closing reports
- Asset history sheet
- Asset list
-...
per
Points from Fiscal Year Change/Year-End Closing
 The fiscal year change program opens new annual value fields for each
asset.
 The earliest you can start this program is in the last posting period of the
old year.
 You have to run the fiscal year change program for your whole company
code.
 SAP provides you with a check report for year-end closing. It checks
whether the fiscal year change was completed for all assets, whether
depreciation was fully posted, whether errors exist for any assets.
 If the program finds no errors, it updates the last closed fiscal year for
each depreciation area.
Asset Reports …..
Summary of the main reports
Standard Fixed Asset Reports
Standard reports are available via the standard SAP menu: “Fixed
Assets / Information System / Reports on Asset Accounting” Key
reports:
S_ALR_87011963 - 70: Asset Balances
A series of query programs based on different selection criteria.
S_ALR_87011979 - 82: Physical Inventory Lists
A series of query programs based on different selection criteria.
S_ALR_87012936: Depreciation on Capitalized Assets (Depn Simulation)
Simulated depreciation on assets/asset classes and Projects (can be
restricted to specific WBS elements).
S_ALR_87012026: Depreciation Current Year
Depreciation analysis by asset.
S_ALR_87012075: Asset history
Complete detailed history of each asset.
Thank You