Fi - Financial Accounting - Asset Management
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FI - Financial Accounting
Asset Accounting
AC305 Asset Accounting
Chart of Accounts - Chart of Depreciation
Chart of deprec.
Client
Chart of accounts
Country A Book deprec. Tax deprec. Cost-acc. dep. Group deprec.
:
Company code 1000 Chrt of acts. INT Chart of deprec. 1DE
Company code 2000 Chrt of acts. INT Chart of deprec. 1GB
Company code 3000 Chrt of acts. CAUS Chart of deprec. 1US
Company code ---Chrt of acts. XXX Chart of deprec. 1XX
SAP AG
You can create a number of charts of accounts for Financial Accounting and a number of depreciation areas for Asset Accounting in the system.
General ledger accounts are defined on the level of the chart of accounts.
You define the necessary depreciation areas in the chart of depreciation. You can define a separate depreciation area for each type of valuation.
You will usually want to create one chart of depreciation for each country. It makes sense for all the company codes in a country or in a business/industrial sector to used the same chart of depreciation.
Each company code uses exactly one chart of accounts and one chart of depreciation.
Several (all) company codes can work with one chart of accounts and one chart of depreciation.
Asset Accounting Company Code Chart of accounts
Chart of depreciation
Financial Accounting Company Code + Data for Asset Accounting = Asset Accounting Company Code
SAP AG
You have to set up company codes in Financial Accounting first.
Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting.
You can use the company code for Asset Accounting only after making these modifications.
Cost Accounting Assignment Client
Controlling area 1000 Company code 1000 Company code 1001
Asset - Forklift
Cost center
Vehicles
Cost center
Order Book deprec.
Vehicles Depreciation
Tax deprec. C-acc. deprec.
Act.
Plan
Order Interest
Act.
Plan
SAP AG
You can assign an asset to the following Controlling objects: cost center activity type order maintenance order
When you assign an asset to a cost center, the system automatically assigns it to a controlling area.
A controlling area can include one or more company codes.
Client - Asset Class Assets Astor House 1 Vehicle 4711
Asset Classes Buildings
Asset Class
Control data Default values
Vehicles
Computer 11 Printer 6C
Fixtures and fittings
Fixtures and Fittings
Chart of deprec. 1DE
Chart of deprec. 1US
Chart of deprec. 1XX
Book deprec.
Book deprec.
Book deprec.
Tax deprec.
Tax deprec.
Cost-acc.dep.
Group
SAP AG
You create each asset in an asset class.
Asset classes consist of a master data section and a section for determining values.
The master data section must be assigned to at least one chart of depreciation. This assignment enables you to complete the asset class with the data for determining values.
You can suppress individual depreciation areas in each asset class, for example investment support areas which are only applicable to certain classes.
For each depreciation area, the depreciation terms for the assets can either be proposed by the system with the option of changing, or they can be mandatory.
Several charts of depreciation can also be assigned to an asset class. This ensures that the asset class catalog is uniform despite using different depreciation areas.
Functions of the Asset Class Asset class Account allocation
Screen layout
Number assignment
Special features
Selection features
Default values
Acct. determination Bal. sheet items
Asset class
Assets
Create asset
Liabilities
Asset portfolio
02200000 Lathe
Real estate Machinery ... Fixtures+fit. ... Financ. assets
Assets 1
...
02115000 Drill press
SAP AG
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.
Number Assignment Company code number assignment
Company code
Asset numbers
1000
2000
3000
2000
3000
4711
4711
4711
4712
4712
4712
4713
4713
---
---
1000
1001
4713 4714 4715 4716 ---
---
SAP AG
You enter the number range in the asset class. The number range controls the assignment of asset numbers, and is defined either as internal or external.. Internal numbers are automatically assigned by the system, external numbers are assigned by the user.
You can assign a company code its own number ranges, or link it to those of other company codes.
You enter the company code for number assignment in the Asset Accounting company code (for number assignment across company codes).
Special Asset Class: Assets under Construction Class: Assets u. const. Extras
Transaction type groups 15 16
AuC status
depreciation areas Book dep. Tax dep. Cost-acc.
Down payment Down payment carried forward from previous years
AuC managed as total line item settlement capital investment measure
deprec. key 0000 0000 LINA
depreciation is not calculated in depreciation areas intended for the balance sheet
negative values allowed SAP AG
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 (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support are possible even on uncompleted assets.
Assets under construction have to be shown separately in the balance sheet.
It is possible to post down payments on assets under construction if you enter transaction type group 15.
You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC).
The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
Special Asset Class: Low Value Assets Asset class - Depreciation area Low value assets - Individual check Exactly 1 asset per master record or Low value assets - Quantity check Any number of assets per master record
When posting: Check against the allowed maximum amount
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You can choose whether to manage low value assets (LVAs) using individual management or collective management.
For each type of management, you have to set up a separate asset class.
If you choose collective management of LVAs, you have to enter a base unit of quantity in the asset class.
You request the maximum amount check in the depreciation area in the asset class. You enter the maximum allowed amount in the IMG under “Activities” at the level of the company code.
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
SAP AG
When you create the asset master record, you have two options: You can 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. Or you can use an existing asset as a reference for creating the new asset master record. (Possibly the reference asset has default values that are more suitable than those in the asset class.)
Enter additional information, such as an asset text.
When you save, you receive an asset number (if the asset class is assigned to a number range that uses internal number assignment).
This asset number is also the account number of the individual asset account.
Time-dependent Data ASSET MASTER RECORD - Time-dependent data New Interval
Calendar
Enter period under consideration
01 Month Cost center A Cost center B Cost center C . . .
from from from . . .
Valid from
MMDDYYYY
Valid to
MMDDYYYY
01/12/YY 08/28/YY 12/01/YY . . .
to to to . . .
08/27/YY 11/30/YY 03/14/YY . . .
SAP AG
Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost accounting assignments (for example, cost center, order, project). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, should also be recorded on a monthly basis as part of this time-dependent data.
The history of time-dependent assignments is stored in the system over the entire life of an asset.
Changing Assets Change asset
Display asset Environment
Asset Cost center
Change documents for asset
X
Document for this field change Document number Date of change Name of user who made change Fields changed Old and new contents of field
on asset
on field
List of fields that were changed
List of changes per field 2x
Field 1 Field 2 Field 3
Change 1 Change 2 Change 3 2x
complete change document with all fields
All for document
Document for this change DOCUMENT NO: DATE: CHANGED BY: OLD/ NEW FIELD CONTENTS
SAP AG
Each time you change an asset master record, the system creates a change document, which contains all necessary information.
When a large number of assets are affected by a change, you can make a bulk change. Using this procedure, you can carry out freely-definable master data changes, mostly automatically. (An example is the change of assignment to a cost center when the cost center plan has been changed.)
The Asset Sub-number Asset number 4711 Production plant Sub-number 1000 Reactor
Synthetic material Sub-number 2000 De-aerator
Sub-number 3000 Extruder
Sub-number 9000 Pipe
SAP AG
If an asset consists of several components, it might be advisable to manage the individual components separately as sub-number master records. This might be useful for both technical and accounting reasons. You might divide up assets by sub-number, if : you want to manage the values for subsequent acquisitions in following years (for example buildings) separately, you want to manage the values for individual parts of assets separately, you want to divide the asset according to various technical aspects.
You can work directly with a specific sub-number, all sub-numbers belonging to an asset, or a selection from a list display of sub-numbers. You can also evaluate accumulated depreciation and the book values for previous fiscal years separately for the individual asset components.
Asset Accounting as Subsidiary Ledger Material
Customer
G/L Accounts General Ledger Fixed assets
Asset
1000
Vendor Payables 1000
Vendor
Machine press 1000
1000
SAP AG
Along with the integration of accounting and logistics functions, the integration of the subsidiary ledgers with the general ledger is also extremely important. Every transaction in customer and vendor accounts in Accounts Payable and Accounts Receivable, and in the asset accounts has a direct affect on the corresponding accounts of the general ledger. The subsidiary ledgers are reconciled with the general ledger in this way.
Asset Acquisition - Integration MM Goods receipt document Asset
FI
Posting document
. . .
2000.-
Depreciation areas Book Tax C-acc ... ... ... 2000 1800 2100 line items
...
Transactions Acquisitions Retirements
Settlement of order/project
CO SAP AG
The acquisition posting can be created in the department that is primarily responsible for the
transaction.
“Acquisition from vendor” is when an asset is obtained from a business partner (as opposed to “Acquisition from in-house production). This acquisition of an asset from a third party can be posted in different ways, and in different organizational units (R/3 components): -
in Asset Accounting (FI-AA), without reference to a purchase order, but integrated with Accounts Payable
-
in Asset Accounting, without reference to a purchase order, and without integration with Accounts Payable (posting to a clearing account - with/without clearing)
-
in Materials Management (MM), with reference to a purchase order, at goods receipt or invoice receipt
“Acquisition from in-house production”" is the capitalization of goods or services that are partially or completely produced in your own enterprise. For these in-house produced goods (such as replacement parts) or services (such as maintenance measures), you have to capitalize costs to assets that were also produced in your enterprise. Generally, you carry out the capitalization of production costs or maintenance by settling an order to an asset. For more information, see the documentation for the R/3 System CO-OPA (Order Project Accounting - R/3 library). If there is no order, you can also manually post production or maintenance costs to an asset.
Procedure for Integrated Asset Acquisition Integrated- posted to vendor Posting: Doc. date Doc. type Posting date
Company code
PK 70 Account Asset
Trans. type 100
Asset line Amount Tax indicator Asset value date
Tax amount
PK 31 Account Vendor Vendor line Amount
Tax indicator
Post SAP AG
You can post to the asset and to the vendor in one document in Asset Accounting, using the menu path Postings → Acquisition → External acquisition → with vendor in the Asset Accounting menu.
You can freely determine the sequence of the posting lines.
The posting “debit asset, credit vendor” is often made in Accounts Payable. This posting then fills the requirements of both Financial Accounting and Asset Accounting at the same time.
Asset Acquisition with MM Controlling
Logistics
Asset Accounting
Purchaseorder requests Cost center or order
Purchase order request
PO com m itm ent Cost center or order
Prelim inary actual
Purchase order
Goods receipt
valuated or unvaluated
Asset m aster record
Financial Accounting G/L
AP
Actual
Invoicereceipt (prelim inary entry)
Capitalization of asset
Release
G/L
Paym ent
SAP AG
When you are using both the FI-AA System and the MM (Material Management) System, you can also post an asset acquisition within the framework of purchasing (see the System Administration Guide ). Unlike most other accounting transactions, this involves working through a series of steps to be performed at different times: (1). creation of a purchase requisition (2). creation of the purchase order (3). There are a number of different possibilities for the next step: - The goods receipt takes place before the invoice receipt and the values are not yet posted to Asset Accounting. The line items are created and the values are updated instead at the time of the invoice receipt. However, the system uses the date of the goods receipt as the capitalization date. - The goods receipt takes place before the invoice receipt and the values are posted directly to Asset Accounting. The asset is capitalized, line items are created, and the value fields in the asset are updated. When the invoice is received later, there may be differences between the invoice amount and the amount posted at the time of the goods receipt. In this case, the corresponding adjustment postings are made to the asset. - The invoice receipt takes place before the goods receipt. The asset is capitalized, line items are created and the value fields are updated. The account assignment type (A=asset) determines whether the goods receipt is posted directly to Asset Accounting or not. For business accounting purposes, it makes sense to post the goods receipt directly to Asset Accounting, since this date is usually date that determines when the asset belongs to the enterprise.
Asset Acquisition - Value Fields Depreciation calculation Document Asset value date: 09/01/CY Master Record Dep. start
Depreciation area
Depreciation key
01 : : 20
LINR 07/01/CY (str.-line, half yr. rule) LINA (str.-line, pro rata)
09/01/CY
Value fields Useful life Depreciation area 01 20
= 10 years annual dep. = 1000 Dep. start Planned dep. 07/01/CY 500 09/01/CY 333
CY = Current year SAP AG
The system uses the asset value date of the initial acquisition posting to determine the depreciation start date of the asset. This determination takes place using the control of the depreciation start in the depreciation key of the asset. The system enters this start date in the asset master record.
The system determines the planned annual depreciation and the planned interest.
When further transactions are posted to the master record, these values are corrected acordingly. Caution: The posting date and the asset value date always have to be in the same fiscal year!
Procedure for Asset Retirement Integration with FI Example of partial retirement : - Acquis. date 01/01/YYYY- 2, APC 10000 - Retmt. of 50% of APC on 07/01/YYYY - Revenue 3000 + 300 sales tax Posting: Document date Posting date PK 01
07/01/YYYY 07/01/YYYY
Account: Customer
Customer line Amount Calc. tax
3300 Tax indicator
PK 50
Account:Revenue from asset retmt.
Revenue line Amount
*
Asset............... ASSET NO. Sub-number... Transaction type.. 210 Ast value date... 07/01/YYYY Max. amount........ Quantity............... Percentage rate...... 50
Tax indicator Asset retirement
SAP AG
Select the field “asset retirement” in the revenue account. You reach a window, in which you can enter the number of the asset the retirement transaction type the asset value date the portion of historical APC being retired, or the indicator for complete retirement.
Accounts for Asset Retirement Example for partial retirement: - Acquis. date 01/01/YYYY - 2, APC = 10000 - Retirement of 50% of APC on 07/01/YYYY - Revenue 3000 + 300 sales tax A/R posting Retirement revenue
Customer 3300
Tax
3000
300
Assets posting Clearing of retirement
Asset 1 10000 5000 2 1250 3 1 2 3
3000
Loss 750
APC amount retired proportional value adjustment
SAP AG
In Asset Accounting, you can post a retirement with the function Postings → Retirement → Asset sale → No customer for entering asset transactions. The accountant responsible for accounts receivable must then carry out the revenue posting, if necessary.
Both these procedures can also be performed in one function, that is with one document. This involves three steps: Create the invoice lines in the customer open line item account. Post the invoice to the customer open line item account. Post the APC being retired to the asset.
The system automatically posts the proportional accumulated depreciation of the asset and the gain or loss from the sale.
Asset Transfer Business area 1000
Business area 2000
Asset
XXXX
Posting date
MMDDYYYY
Transaction type
300
!
automatic determination and posting of proportional value adjustments
transfer to Asset
ZZZZ
Asset value date
MMDDYYYY
Complete transfer Posted amount
....
Percentage rate
SAP AG
Asset Accounting distinguishes between the following types of transfer, depending on the circumstances: Stock material (current assets) is transferred to a fixed asset, for example, the installation of a replacement part (see online documentation for a detailed explanation of the procedure). An asset under construction is settled and transferred to a completed asset. You transfer an asset within a corporate group to a different company code. This procedure is described in the section for asset transfer (see online documentation for a detailed explanation). You want to split up an asset or install part of an asset in another asset (transfer from asset to asset). (See ‘change of location’ below for an explanation of the procedure.) The asset has changed location. As a result, you have to change organizational allocations (such as, asset class, business area) in the master record that cannot otherwise be changed. -
Enter a transfer transaction type. In the screen that follows, enter the asset to which you want to make the transfer, and the amount of APC that is being transferred.
-
The system automatically determines the proportional value adjustments, as it does for retirements.
Assets under Construction Down payments
Asset under construction
Acquisitions
Special depreciation
s General master datan io it rs is fe u s q n Completed assets c A ra T Asset 3
Investment support measures
Depreciation areas Automatic handling of special depreciation and investment support!
Asset history sheet
Asset 2 Asset 1 Gen. master data
Acquis. Depreciation areas
Retmt.
Transfers
A.u.C. Buildings
SAP AG
Assets you produce yourself have two phases that are relevant to Asset Accounting:
the under construction phase
the useful life.
Generally, the assets have to be shown in two different balance sheet items during these two phases. Therefore, they have to be managed using a different object or asset master record during the under-construction phase than for the completed asset. The transfer from the underconstruction phase to completed asset is referred to here as “capitalization of the asset under construction.” You can manage assets under construction in the FI-AA System in two ways (depending on the functions you need):
as a 'normal' asset master record
as an asset master record with line item management.
The capitalization of the asset under construction is basically the transfer to a completed asset. This transfer is handled differently in the two instances.
When you capitalize the asset under construction, the system automatically separates the transactions from the previous year from the transactions from the current year: TTY 340 - Acquisitions from previous years transferred from asset under construction TTY 341 - Acquisitions from previous years transferred to completed asset TTY 345 - Acquisitions from current year transferred from asset under construction TTY 346 - Acquisitions from current year transferred to completed asset
If you have more extensive capital investment measures, we recommend using the R/3 IM (Investment Management) System. Using this system, you can represent capital investments simultaneously as assets under construction (for accounting purposes) and internal orders or projects (for controlling purposes). For more information, see the documentation for the IM (Investment Management) System.
Line Item Settlement of Asset under Construction Supplier Withdraw from stock Internal activity Order
Asset u. Const. Invoice Engineers, Inc. steel girders excavation Invoice Constructo, Inc. beams construction Invoice Electro, Ltd. copper cable Installation
100%
Office building
1 70% 20%
2
10%
Heating system
A S S E T S
Lighting
80%
3
10%
Cost Center
EXPENSE
SAP AG
When performing a line item settlement of an asset under construction to one or more completed assets, you should proceed as follows: 1. Select all line items which you want to settle in the same proportion to the same receiver. 2. Define the distribution rule for these line items. 3. Post the settlement of line items in the desired manner to the specified receivers.
Please note that this posting procedure settles all line items to which a posting rule is allocated.
Asset Classes in the Chart of Depreciation 1
Class
Machines
Chart of depreciation Areas
Germany
USA
Book dep.
Tax dep.
DG30
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
...
Group
Book dep.
Group ...
ACRS
SAP AG
You can define any number of asset classes in Customizing. You use the asset classes to categorize assets according to the needs of your enterprise. 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.
Depreciation Area XX in the Asset or Asset Class Depreciation key Useful life
What kind of depreciation?
Years
For how long?
Calendar
Ord. deprec. start
Jan 01
When does the useful life begin?
Changeover year
When do you want to change from declining balance to straight-line depreciation?
Index
Do you want to calculate annually increasing replacement values?
Variable dep. amount
How much depreciation should be weighted by the shift factor when you use shifts?
Scrap value
Do want to end depreciation when this scrap value is reached?
SAP AG
You have to enter depreciation keys in the different depreciation areas. The depreciation key contains all the control amounts for the calculation of planned annual depreciation. You can enter a depreciation key in the asset master record in each depreciation area.
Depreciation Key Master record Depreciation area
Depreciation key
01 : : 20
LINR (straight-line, 1st yr.conv.) LINA (straight-line, pro rata)
Internal Calculation Key Ordinary depreciation Special depreciation Interest Cut-off value key
controls -
depreciation type class method base value declining balance deprec. changeover period control
SAP AG
You can manage different types of depreciation in parallel in one depreciation area.
You specify the automatic calculation of the different types of depreciation using depreciation keys and the internal calculation key.
You define the required depreciation keys per chart of depreciation.
In the depreciation key , you can enter a separate calculation key for ordinary depreciation, special tax depreciation and for the calculation of interest.
In addition, you can enter a cut-off value key for the calculation of a scrap value, if this is needed.
The internal calculation keys specify the actual method of calculation. They control the
depreciation type
method
base value
percentage rate
period control
changeover
calculation after end of useful life
treatment of shutdowns
validity of calculation key
Elements of Depreciation Calculation Depreciation type l Ordinary depreciation l Special tax depreciation l Interest
Class l Straight-line depreciation l Decl.-balance depreciation l Other depreciation
Base value
Methods lD Percentage rate from useful life lG Full percentage in concession period lP Explicit percentage rate lM Mean value from several areas lS Unit of prod. / Total number of units l . . .
l No assignment
Decl.-balance depreciation
Period control
l Acquisition value
l Multiplication factor
l Pro rata per start of period
l Half of acquisition value
l Maximum percentage rate
l Pro rata to midperiod per start of period
l Replacement value l Net book value l . . .
l Minimum percentage rate
l Pro rata per midperiod
Changeover
l First year convention of a half year
l Changeover method
l Per start of fiscal year
l Changeover depreciation key
l Per mid-year
l Net book value for initiating depreciation changeover
l Per year-end (= start in next year) l Per mid-quarter
SAP AG
Every transaction on an asset master record automatically results in a depreciation amount being calculated. This amount is calculated according to the depreciation key in the asset master, and is displayed in the value fields of the asset. The most important influences on the calculation of depreciation are:
the value date of the document: it controls, in conjunction with with the depreciation key, the determination of the period. It is used to set the depreciation start date in the asset.
the depreciation key
the transaction type
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 in the system. It determines which other settings of the calculation key are required entries and which are not.
The base value is closely related to the selection of the depreciation method. Since many depreciation methods cannot be used with all base values, the depreciation method often determines the base value.
The period control determines the start and end date for depreciation. You can specify a period control for each of the four transaction types (acquisitions, subsequent acquisitions/postcapitalization, transfers, retirements). In this way, you can set the start of depreciation at the beginning of the year for all acquisitions in a year, and the end of depreciation for retirements either at the first or last day of a period, for example. The system uses the value date of the transaction (acquisition or retirement) as a basis, and then determines the start or end of depreciation by means of the period control.
Periodic Processing - Overview Settings Index figures Year Index fig. yyyy 100.000 yyyy+1 105.125 yyyy+2 109.857
...
CO
Fiscal Year change/ Year-end closing
Periodic processing
Calendar
Dec 31
Cost center ACTUAL
Order PLAN
Fiscal year change
Investment support
Year-end closing
Calendar
Dec 31
Primary cost planning
Depreciation posting run
Fiscal year change
Posting asset values Depreciation area XY: XY: Example à periodic posting of asset values Asset balance Account 10000
Revaluation
10000
SAP AG
Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic intervals. Also included are tasks to be performed as part of the special valuation of fixed assets (for example, calculating replacement values). Replacement values and insurable values are updated in the system with the help of index series. You need to define the characteristics of the index series in Asset Accounting Customizing. The specification of current index figures is a regular Asset Accounting task. Investment support is a subsidy which a company has received for certain asset investments. Assets which are eligible for such a subsidy are marked in the asset master records with an investment support key (for further information, see the System Administration Guide). All specifications for claiming the investment support are stored in the definition of this key. You can post the claim manually or in a mass procedure. At present only the values of one depreciation area can be automatically posted online in Financial Accounting: Therefore, the changes to asset values (transactions) from other areas with automatic posting have to be posted periodically to the appropriate reconciliation accounts. In the case of derived depreciation areas which do not record acquisition and production costs, the program posts proportional value adjustments due to retirements, transfers, post-capitalization and so on. If you want to plan primary costs on a cost center basis, you can periodically determine planned depreciation and interest and pass these on to primary cost planning in the CO system via a report.
Depreciation Posting Program Dep. P O S T I N G
Ordinary depreciation
Special depreciation
manually planned depreciation
Index
Periodic revaluation
P R O G R A M
FI Accounts
FI-AA Individual assets
CO Cost center
Order
Cost element
Interest . . .%. . 10
SAP AG
The calculation and planning of depreciation, interest and revaluation is controlled by keys in the Asset Accounting system. They can also be entered manually using a special posting transaction (for more information, see current-value depreciation). In both cases, these planned values in Asset Accounting have to be periodically posted to the corresponding expense and asset balance sheet accounts in the general ledger. This periodic posting takes place using a batch input session. The posting session also posts the different depreciation types, interest and revaluation, in addition to the writing-off and allocation of special reserves. The system does not create individual documents, only summarized posting documents (per general ledger account).
Year-end Closing Asset history sheet
Depreciation lists Assets Depreciation
Acquis. ...
Retmt. ...
Transfer ...
Closing balance
Adjustment posting OK?
No Yes Depreciation posting Bal P&L
(Bulk) changes Dep. simulation
OK? No Yes Year-end closing program OK? No Yes Archiving SAP AG
After the depreciation lists and asset history sheet have been checked, depreciation is posted.
Once depreciation has been posted, a balance sheet and profit and loss statement can be created in FI.
If the final result is not satisfactory, you can carry out depreciation simulation or (bulk) changes, or make adjustment postings.
If you change any depreciation values, you must run depreciation posting again..
The logical year-end closing is completed with the final balance sheet.
The year-end closing program then makes all necessary system checks.
If no errors are found, the program blocks posting in Assets Accounting for the closed fiscal year.
If a closed fiscal year is subsequently released for posting, it can only be blocked again once the year-end closing program has been re-run.
Asset Value Display Asset value display Goods Posting receipt document document
Display values
. . .
one year, one area one year, several areas several years, one area several years, several areas with simulated change of depreciation terms with simulated transactions
Simulated fiscal year change current book values
2000.-
Display of documents for the asset Depreciation on transactions
dep. terms dep.recalculation display dep. calculation all values
SAP AG
The asset value display offers extensive possibilities for evaluating individual asset master records.
By entering the sub-number “*”, you can request cumulative evaluations for a main number and the sub-numbers belonging to it.
The function “display depreciation calculation” provides a detailed display of the calculation of depreciation in the system.
You can start reports from within the asset value display transaction via the menu option Environment.
You specify the reports(with different selection versions) that can be started from the respective menu
Asset Simulation Simulation version -
P+L
depreciation areas asset class depreciation key useful life valid from / to
Display asset values Report for all assets
. li f e5
yr.
e lif 4y r.
Course of depreciation for Individual assets
Net book value
- depreciation key - useful life - index
Use . se U
- acquisitions - retirements - transfers ...
Simulated depreciation terms
w/out spec. dep.
Asset values
Simulated asset transactions
Operating profit with spec. dep.
Time
Development of asset values Asset class: Vehicles
Time
SAP AG
Simulation, in this context, refers to an experimental change to parameters affecting the valuation of assets. This change can apply to a single asset, the entire asset portfolio (or parts of it), or to a test depreciation area. This change is carried out by means of a transaction or a standard report. When you simulate the development of asset values, you can change all of the important depreciation terms (depreciation key, useful life, index series). Two types of simulation should be distinguished: simulation of depreciation for future fiscal years, using a special simulation report and simulation version simulation of accumulated depreciation in the past, using a new depreciation area
You can also include planned capital investments (in the form of orders or projects and capital investment programs) in the simulation.
Sort Criteria Balance sheet perspective, management perspective, and more...
Report call-up Total/individual Ranking list Sort version 001
Sort version Field
001 Total
BUKRS GSBER ERGSO KTANSW ANLKL
Company code Business area Bal. sheet item Bal. sheet acct. Class
Report definition Ranking list Assets
Values 1000 900 700 600
Individual list
Assets
Totals report Values
Sort....
Values
*
SAP AG
All reports allow you to sort/total data in different ways using freely definable sort criteria.
A sort version consists of a maximum of 5 sort levels which are determined via Data Dictionary fields. You can call up the technical field names of the required fields using F4. The sort levels are found in the table ANLAV (asset master data). For lists which process exactly one depreciation area (for example, the depreciation list), you can also use sort levels from table ANLB.
The report can output a total and a statistic for each sort level. In the column ‘Total’ you can specify the levels on which you want totals to be output. By selecting the indicator 'Statistics' it is also possible to further break down the total of a level in some lists. You can get a breakdown by depreciation key (for depreciation lists) or transaction type (for transaction lists).
Generally, you can use any sort version with any report.
Transfer of Old Assets Data Previous system Automatic transfer Batch input procedure (Direct data import)
FI-AA or Dialog transfer (for small volume of data) Create old asset Ass ets
SAP AG
Data transfer from a previous system is usually the first activity you need to perform in a new productive system after configuration and asset classification. You can either transfer data automatically from an old system using a batch input procedure, or you can manually enter the data using a transaction for old asset data. Please note that in both cases only the relevant asset master data and line items in Asset Accounting are updated and not the general ledger accounts in Financial Accounting. Balance reconciliation with the relevant general ledger accounts must therefore take place separately.
Transferring Old Data at Fiscal Year End Previous system Asset 1 10000 2000
Asset 2 20000 4000
Asset u. cons. 100 300
Asset 2 20000 4000
Asset u. cons. 100 300
SAP System FI-AA
Asset 1 10000 2000 FI
Non-curr. assets 30000
AuC G/L account 400
Value adjustments 6000
SAP AG
The transfer date is the cut-off point in time for the transfer of data from your previous system. The date represents the status of posting (balances) effective for the transfer of old data. If the transfer date is the end of the last closed fiscal year, you transfer only the master data, the APC and the accumulated depreciation as they stood at the end of the last closed fiscal year. You also have to transfer the balances of the corresponding general ledger accounts at this same level.
Automatic Transfer of Old Assets Data Previous system Interface program Old data in transfer format BALTD + BALTB
Transfer program RAALTD01 Records without errors
Records with errors
Batch Input
DIALOG INTERFACE
SAP AG
ANLH ANLA ANLB ANLC :
Using an interface program, you convert the old data in your previous system to the format of the Dictionary tables BALTD (master data) and BALTB (transaction data) and place them in a sequential file.
The old assets data transfer program RAALTD01 supplies the data, using background processing, to an old assets data transfer transaction. The records without errors are transferred immediately. Records with errors are stored in the form of a batch input session, and have to be processed later.
The documentation for the RAALTD01 program contains detailed instructions for the structuring of the sequential transfer file by the interface program test options avoiding errors and interpreting errors that occur the procedure in the event of program termination.
Asset Accounting
AC305 Asset Accounting
Chart of Accounts - Chart of Depreciation
Chart of deprec.
Client
Chart of accounts
Country A Book deprec. Tax deprec. Cost-acc. dep. Group deprec.
:
Company code 1000 Chrt of acts. INT Chart of deprec. 1DE
Company code 2000 Chrt of acts. INT Chart of deprec. 1GB
Company code 3000 Chrt of acts. CAUS Chart of deprec. 1US
Company code ---Chrt of acts. XXX Chart of deprec. 1XX
SAP AG
You can create a number of charts of accounts for Financial Accounting and a number of depreciation areas for Asset Accounting in the system.
General ledger accounts are defined on the level of the chart of accounts.
You define the necessary depreciation areas in the chart of depreciation. You can define a separate depreciation area for each type of valuation.
You will usually want to create one chart of depreciation for each country. It makes sense for all the company codes in a country or in a business/industrial sector to used the same chart of depreciation.
Each company code uses exactly one chart of accounts and one chart of depreciation.
Several (all) company codes can work with one chart of accounts and one chart of depreciation.
Asset Accounting Company Code Chart of accounts
Chart of depreciation
Financial Accounting Company Code + Data for Asset Accounting = Asset Accounting Company Code
SAP AG
You have to set up company codes in Financial Accounting first.
Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting.
You can use the company code for Asset Accounting only after making these modifications.
Cost Accounting Assignment Client
Controlling area 1000 Company code 1000 Company code 1001
Asset - Forklift
Cost center
Vehicles
Cost center
Order Book deprec.
Vehicles Depreciation
Tax deprec. C-acc. deprec.
Act.
Plan
Order Interest
Act.
Plan
SAP AG
You can assign an asset to the following Controlling objects: cost center activity type order maintenance order
When you assign an asset to a cost center, the system automatically assigns it to a controlling area.
A controlling area can include one or more company codes.
Client - Asset Class Assets Astor House 1 Vehicle 4711
Asset Classes Buildings
Asset Class
Control data Default values
Vehicles
Computer 11 Printer 6C
Fixtures and fittings
Fixtures and Fittings
Chart of deprec. 1DE
Chart of deprec. 1US
Chart of deprec. 1XX
Book deprec.
Book deprec.
Book deprec.
Tax deprec.
Tax deprec.
Cost-acc.dep.
Group
SAP AG
You create each asset in an asset class.
Asset classes consist of a master data section and a section for determining values.
The master data section must be assigned to at least one chart of depreciation. This assignment enables you to complete the asset class with the data for determining values.
You can suppress individual depreciation areas in each asset class, for example investment support areas which are only applicable to certain classes.
For each depreciation area, the depreciation terms for the assets can either be proposed by the system with the option of changing, or they can be mandatory.
Several charts of depreciation can also be assigned to an asset class. This ensures that the asset class catalog is uniform despite using different depreciation areas.
Functions of the Asset Class Asset class Account allocation
Screen layout
Number assignment
Special features
Selection features
Default values
Acct. determination Bal. sheet items
Asset class
Assets
Create asset
Liabilities
Asset portfolio
02200000 Lathe
Real estate Machinery ... Fixtures+fit. ... Financ. assets
Assets 1
...
02115000 Drill press
SAP AG
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.
Number Assignment Company code number assignment
Company code
Asset numbers
1000
2000
3000
2000
3000
4711
4711
4711
4712
4712
4712
4713
4713
---
---
1000
1001
4713 4714 4715 4716 ---
---
SAP AG
You enter the number range in the asset class. The number range controls the assignment of asset numbers, and is defined either as internal or external.. Internal numbers are automatically assigned by the system, external numbers are assigned by the user.
You can assign a company code its own number ranges, or link it to those of other company codes.
You enter the company code for number assignment in the Asset Accounting company code (for number assignment across company codes).
Special Asset Class: Assets under Construction Class: Assets u. const. Extras
Transaction type groups 15 16
AuC status
depreciation areas Book dep. Tax dep. Cost-acc.
Down payment Down payment carried forward from previous years
AuC managed as total line item settlement capital investment measure
deprec. key 0000 0000 LINA
depreciation is not calculated in depreciation areas intended for the balance sheet
negative values allowed SAP AG
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 (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support are possible even on uncompleted assets.
Assets under construction have to be shown separately in the balance sheet.
It is possible to post down payments on assets under construction if you enter transaction type group 15.
You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC).
The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
Special Asset Class: Low Value Assets Asset class - Depreciation area Low value assets - Individual check Exactly 1 asset per master record or Low value assets - Quantity check Any number of assets per master record
When posting: Check against the allowed maximum amount
SAP AG
You can choose whether to manage low value assets (LVAs) using individual management or collective management.
For each type of management, you have to set up a separate asset class.
If you choose collective management of LVAs, you have to enter a base unit of quantity in the asset class.
You request the maximum amount check in the depreciation area in the asset class. You enter the maximum allowed amount in the IMG under “Activities” at the level of the company code.
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
SAP AG
When you create the asset master record, you have two options: You can 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. Or you can use an existing asset as a reference for creating the new asset master record. (Possibly the reference asset has default values that are more suitable than those in the asset class.)
Enter additional information, such as an asset text.
When you save, you receive an asset number (if the asset class is assigned to a number range that uses internal number assignment).
This asset number is also the account number of the individual asset account.
Time-dependent Data ASSET MASTER RECORD - Time-dependent data New Interval
Calendar
Enter period under consideration
01 Month Cost center A Cost center B Cost center C . . .
from from from . . .
Valid from
MMDDYYYY
Valid to
MMDDYYYY
01/12/YY 08/28/YY 12/01/YY . . .
to to to . . .
08/27/YY 11/30/YY 03/14/YY . . .
SAP AG
Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost accounting assignments (for example, cost center, order, project). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, should also be recorded on a monthly basis as part of this time-dependent data.
The history of time-dependent assignments is stored in the system over the entire life of an asset.
Changing Assets Change asset
Display asset Environment
Asset Cost center
Change documents for asset
X
Document for this field change Document number Date of change Name of user who made change Fields changed Old and new contents of field
on asset
on field
List of fields that were changed
List of changes per field 2x
Field 1 Field 2 Field 3
Change 1 Change 2 Change 3 2x
complete change document with all fields
All for document
Document for this change DOCUMENT NO: DATE: CHANGED BY: OLD/ NEW FIELD CONTENTS
SAP AG
Each time you change an asset master record, the system creates a change document, which contains all necessary information.
When a large number of assets are affected by a change, you can make a bulk change. Using this procedure, you can carry out freely-definable master data changes, mostly automatically. (An example is the change of assignment to a cost center when the cost center plan has been changed.)
The Asset Sub-number Asset number 4711 Production plant Sub-number 1000 Reactor
Synthetic material Sub-number 2000 De-aerator
Sub-number 3000 Extruder
Sub-number 9000 Pipe
SAP AG
If an asset consists of several components, it might be advisable to manage the individual components separately as sub-number master records. This might be useful for both technical and accounting reasons. You might divide up assets by sub-number, if : you want to manage the values for subsequent acquisitions in following years (for example buildings) separately, you want to manage the values for individual parts of assets separately, you want to divide the asset according to various technical aspects.
You can work directly with a specific sub-number, all sub-numbers belonging to an asset, or a selection from a list display of sub-numbers. You can also evaluate accumulated depreciation and the book values for previous fiscal years separately for the individual asset components.
Asset Accounting as Subsidiary Ledger Material
Customer
G/L Accounts General Ledger Fixed assets
Asset
1000
Vendor Payables 1000
Vendor
Machine press 1000
1000
SAP AG
Along with the integration of accounting and logistics functions, the integration of the subsidiary ledgers with the general ledger is also extremely important. Every transaction in customer and vendor accounts in Accounts Payable and Accounts Receivable, and in the asset accounts has a direct affect on the corresponding accounts of the general ledger. The subsidiary ledgers are reconciled with the general ledger in this way.
Asset Acquisition - Integration MM Goods receipt document Asset
FI
Posting document
. . .
2000.-
Depreciation areas Book Tax C-acc ... ... ... 2000 1800 2100 line items
...
Transactions Acquisitions Retirements
Settlement of order/project
CO SAP AG
The acquisition posting can be created in the department that is primarily responsible for the
transaction.
“Acquisition from vendor” is when an asset is obtained from a business partner (as opposed to “Acquisition from in-house production). This acquisition of an asset from a third party can be posted in different ways, and in different organizational units (R/3 components): -
in Asset Accounting (FI-AA), without reference to a purchase order, but integrated with Accounts Payable
-
in Asset Accounting, without reference to a purchase order, and without integration with Accounts Payable (posting to a clearing account - with/without clearing)
-
in Materials Management (MM), with reference to a purchase order, at goods receipt or invoice receipt
“Acquisition from in-house production”" is the capitalization of goods or services that are partially or completely produced in your own enterprise. For these in-house produced goods (such as replacement parts) or services (such as maintenance measures), you have to capitalize costs to assets that were also produced in your enterprise. Generally, you carry out the capitalization of production costs or maintenance by settling an order to an asset. For more information, see the documentation for the R/3 System CO-OPA (Order Project Accounting - R/3 library). If there is no order, you can also manually post production or maintenance costs to an asset.
Procedure for Integrated Asset Acquisition Integrated- posted to vendor Posting: Doc. date Doc. type Posting date
Company code
PK 70 Account Asset
Trans. type 100
Asset line Amount Tax indicator Asset value date
Tax amount
PK 31 Account Vendor Vendor line Amount
Tax indicator
Post SAP AG
You can post to the asset and to the vendor in one document in Asset Accounting, using the menu path Postings → Acquisition → External acquisition → with vendor in the Asset Accounting menu.
You can freely determine the sequence of the posting lines.
The posting “debit asset, credit vendor” is often made in Accounts Payable. This posting then fills the requirements of both Financial Accounting and Asset Accounting at the same time.
Asset Acquisition with MM Controlling
Logistics
Asset Accounting
Purchaseorder requests Cost center or order
Purchase order request
PO com m itm ent Cost center or order
Prelim inary actual
Purchase order
Goods receipt
valuated or unvaluated
Asset m aster record
Financial Accounting G/L
AP
Actual
Invoicereceipt (prelim inary entry)
Capitalization of asset
Release
G/L
Paym ent
SAP AG
When you are using both the FI-AA System and the MM (Material Management) System, you can also post an asset acquisition within the framework of purchasing (see the System Administration Guide ). Unlike most other accounting transactions, this involves working through a series of steps to be performed at different times: (1). creation of a purchase requisition (2). creation of the purchase order (3). There are a number of different possibilities for the next step: - The goods receipt takes place before the invoice receipt and the values are not yet posted to Asset Accounting. The line items are created and the values are updated instead at the time of the invoice receipt. However, the system uses the date of the goods receipt as the capitalization date. - The goods receipt takes place before the invoice receipt and the values are posted directly to Asset Accounting. The asset is capitalized, line items are created, and the value fields in the asset are updated. When the invoice is received later, there may be differences between the invoice amount and the amount posted at the time of the goods receipt. In this case, the corresponding adjustment postings are made to the asset. - The invoice receipt takes place before the goods receipt. The asset is capitalized, line items are created and the value fields are updated. The account assignment type (A=asset) determines whether the goods receipt is posted directly to Asset Accounting or not. For business accounting purposes, it makes sense to post the goods receipt directly to Asset Accounting, since this date is usually date that determines when the asset belongs to the enterprise.
Asset Acquisition - Value Fields Depreciation calculation Document Asset value date: 09/01/CY Master Record Dep. start
Depreciation area
Depreciation key
01 : : 20
LINR 07/01/CY (str.-line, half yr. rule) LINA (str.-line, pro rata)
09/01/CY
Value fields Useful life Depreciation area 01 20
= 10 years annual dep. = 1000 Dep. start Planned dep. 07/01/CY 500 09/01/CY 333
CY = Current year SAP AG
The system uses the asset value date of the initial acquisition posting to determine the depreciation start date of the asset. This determination takes place using the control of the depreciation start in the depreciation key of the asset. The system enters this start date in the asset master record.
The system determines the planned annual depreciation and the planned interest.
When further transactions are posted to the master record, these values are corrected acordingly. Caution: The posting date and the asset value date always have to be in the same fiscal year!
Procedure for Asset Retirement Integration with FI Example of partial retirement : - Acquis. date 01/01/YYYY- 2, APC 10000 - Retmt. of 50% of APC on 07/01/YYYY - Revenue 3000 + 300 sales tax Posting: Document date Posting date PK 01
07/01/YYYY 07/01/YYYY
Account: Customer
Customer line Amount Calc. tax
3300 Tax indicator
PK 50
Account:Revenue from asset retmt.
Revenue line Amount
*
Asset............... ASSET NO. Sub-number... Transaction type.. 210 Ast value date... 07/01/YYYY Max. amount........ Quantity............... Percentage rate...... 50
Tax indicator Asset retirement
SAP AG
Select the field “asset retirement” in the revenue account. You reach a window, in which you can enter the number of the asset the retirement transaction type the asset value date the portion of historical APC being retired, or the indicator for complete retirement.
Accounts for Asset Retirement Example for partial retirement: - Acquis. date 01/01/YYYY - 2, APC = 10000 - Retirement of 50% of APC on 07/01/YYYY - Revenue 3000 + 300 sales tax A/R posting Retirement revenue
Customer 3300
Tax
3000
300
Assets posting Clearing of retirement
Asset 1 10000 5000 2 1250 3 1 2 3
3000
Loss 750
APC amount retired proportional value adjustment
SAP AG
In Asset Accounting, you can post a retirement with the function Postings → Retirement → Asset sale → No customer for entering asset transactions. The accountant responsible for accounts receivable must then carry out the revenue posting, if necessary.
Both these procedures can also be performed in one function, that is with one document. This involves three steps: Create the invoice lines in the customer open line item account. Post the invoice to the customer open line item account. Post the APC being retired to the asset.
The system automatically posts the proportional accumulated depreciation of the asset and the gain or loss from the sale.
Asset Transfer Business area 1000
Business area 2000
Asset
XXXX
Posting date
MMDDYYYY
Transaction type
300
!
automatic determination and posting of proportional value adjustments
transfer to Asset
ZZZZ
Asset value date
MMDDYYYY
Complete transfer Posted amount
....
Percentage rate
SAP AG
Asset Accounting distinguishes between the following types of transfer, depending on the circumstances: Stock material (current assets) is transferred to a fixed asset, for example, the installation of a replacement part (see online documentation for a detailed explanation of the procedure). An asset under construction is settled and transferred to a completed asset. You transfer an asset within a corporate group to a different company code. This procedure is described in the section for asset transfer (see online documentation for a detailed explanation). You want to split up an asset or install part of an asset in another asset (transfer from asset to asset). (See ‘change of location’ below for an explanation of the procedure.) The asset has changed location. As a result, you have to change organizational allocations (such as, asset class, business area) in the master record that cannot otherwise be changed. -
Enter a transfer transaction type. In the screen that follows, enter the asset to which you want to make the transfer, and the amount of APC that is being transferred.
-
The system automatically determines the proportional value adjustments, as it does for retirements.
Assets under Construction Down payments
Asset under construction
Acquisitions
Special depreciation
s General master datan io it rs is fe u s q n Completed assets c A ra T Asset 3
Investment support measures
Depreciation areas Automatic handling of special depreciation and investment support!
Asset history sheet
Asset 2 Asset 1 Gen. master data
Acquis. Depreciation areas
Retmt.
Transfers
A.u.C. Buildings
SAP AG
Assets you produce yourself have two phases that are relevant to Asset Accounting:
the under construction phase
the useful life.
Generally, the assets have to be shown in two different balance sheet items during these two phases. Therefore, they have to be managed using a different object or asset master record during the under-construction phase than for the completed asset. The transfer from the underconstruction phase to completed asset is referred to here as “capitalization of the asset under construction.” You can manage assets under construction in the FI-AA System in two ways (depending on the functions you need):
as a 'normal' asset master record
as an asset master record with line item management.
The capitalization of the asset under construction is basically the transfer to a completed asset. This transfer is handled differently in the two instances.
When you capitalize the asset under construction, the system automatically separates the transactions from the previous year from the transactions from the current year: TTY 340 - Acquisitions from previous years transferred from asset under construction TTY 341 - Acquisitions from previous years transferred to completed asset TTY 345 - Acquisitions from current year transferred from asset under construction TTY 346 - Acquisitions from current year transferred to completed asset
If you have more extensive capital investment measures, we recommend using the R/3 IM (Investment Management) System. Using this system, you can represent capital investments simultaneously as assets under construction (for accounting purposes) and internal orders or projects (for controlling purposes). For more information, see the documentation for the IM (Investment Management) System.
Line Item Settlement of Asset under Construction Supplier Withdraw from stock Internal activity Order
Asset u. Const. Invoice Engineers, Inc. steel girders excavation Invoice Constructo, Inc. beams construction Invoice Electro, Ltd. copper cable Installation
100%
Office building
1 70% 20%
2
10%
Heating system
A S S E T S
Lighting
80%
3
10%
Cost Center
EXPENSE
SAP AG
When performing a line item settlement of an asset under construction to one or more completed assets, you should proceed as follows: 1. Select all line items which you want to settle in the same proportion to the same receiver. 2. Define the distribution rule for these line items. 3. Post the settlement of line items in the desired manner to the specified receivers.
Please note that this posting procedure settles all line items to which a posting rule is allocated.
Asset Classes in the Chart of Depreciation 1
Class
Machines
Chart of depreciation Areas
Germany
USA
Book dep.
Tax dep.
DG30
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
...
Group
Book dep.
Group ...
ACRS
SAP AG
You can define any number of asset classes in Customizing. You use the asset classes to categorize assets according to the needs of your enterprise. 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.
Depreciation Area XX in the Asset or Asset Class Depreciation key Useful life
What kind of depreciation?
Years
For how long?
Calendar
Ord. deprec. start
Jan 01
When does the useful life begin?
Changeover year
When do you want to change from declining balance to straight-line depreciation?
Index
Do you want to calculate annually increasing replacement values?
Variable dep. amount
How much depreciation should be weighted by the shift factor when you use shifts?
Scrap value
Do want to end depreciation when this scrap value is reached?
SAP AG
You have to enter depreciation keys in the different depreciation areas. The depreciation key contains all the control amounts for the calculation of planned annual depreciation. You can enter a depreciation key in the asset master record in each depreciation area.
Depreciation Key Master record Depreciation area
Depreciation key
01 : : 20
LINR (straight-line, 1st yr.conv.) LINA (straight-line, pro rata)
Internal Calculation Key Ordinary depreciation Special depreciation Interest Cut-off value key
controls -
depreciation type class method base value declining balance deprec. changeover period control
SAP AG
You can manage different types of depreciation in parallel in one depreciation area.
You specify the automatic calculation of the different types of depreciation using depreciation keys and the internal calculation key.
You define the required depreciation keys per chart of depreciation.
In the depreciation key , you can enter a separate calculation key for ordinary depreciation, special tax depreciation and for the calculation of interest.
In addition, you can enter a cut-off value key for the calculation of a scrap value, if this is needed.
The internal calculation keys specify the actual method of calculation. They control the
depreciation type
method
base value
percentage rate
period control
changeover
calculation after end of useful life
treatment of shutdowns
validity of calculation key
Elements of Depreciation Calculation Depreciation type l Ordinary depreciation l Special tax depreciation l Interest
Class l Straight-line depreciation l Decl.-balance depreciation l Other depreciation
Base value
Methods lD Percentage rate from useful life lG Full percentage in concession period lP Explicit percentage rate lM Mean value from several areas lS Unit of prod. / Total number of units l . . .
l No assignment
Decl.-balance depreciation
Period control
l Acquisition value
l Multiplication factor
l Pro rata per start of period
l Half of acquisition value
l Maximum percentage rate
l Pro rata to midperiod per start of period
l Replacement value l Net book value l . . .
l Minimum percentage rate
l Pro rata per midperiod
Changeover
l First year convention of a half year
l Changeover method
l Per start of fiscal year
l Changeover depreciation key
l Per mid-year
l Net book value for initiating depreciation changeover
l Per year-end (= start in next year) l Per mid-quarter
SAP AG
Every transaction on an asset master record automatically results in a depreciation amount being calculated. This amount is calculated according to the depreciation key in the asset master, and is displayed in the value fields of the asset. The most important influences on the calculation of depreciation are:
the value date of the document: it controls, in conjunction with with the depreciation key, the determination of the period. It is used to set the depreciation start date in the asset.
the depreciation key
the transaction type
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 in the system. It determines which other settings of the calculation key are required entries and which are not.
The base value is closely related to the selection of the depreciation method. Since many depreciation methods cannot be used with all base values, the depreciation method often determines the base value.
The period control determines the start and end date for depreciation. You can specify a period control for each of the four transaction types (acquisitions, subsequent acquisitions/postcapitalization, transfers, retirements). In this way, you can set the start of depreciation at the beginning of the year for all acquisitions in a year, and the end of depreciation for retirements either at the first or last day of a period, for example. The system uses the value date of the transaction (acquisition or retirement) as a basis, and then determines the start or end of depreciation by means of the period control.
Periodic Processing - Overview Settings Index figures Year Index fig. yyyy 100.000 yyyy+1 105.125 yyyy+2 109.857
...
CO
Fiscal Year change/ Year-end closing
Periodic processing
Calendar
Dec 31
Cost center ACTUAL
Order PLAN
Fiscal year change
Investment support
Year-end closing
Calendar
Dec 31
Primary cost planning
Depreciation posting run
Fiscal year change
Posting asset values Depreciation area XY: XY: Example à periodic posting of asset values Asset balance Account 10000
Revaluation
10000
SAP AG
Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic intervals. Also included are tasks to be performed as part of the special valuation of fixed assets (for example, calculating replacement values). Replacement values and insurable values are updated in the system with the help of index series. You need to define the characteristics of the index series in Asset Accounting Customizing. The specification of current index figures is a regular Asset Accounting task. Investment support is a subsidy which a company has received for certain asset investments. Assets which are eligible for such a subsidy are marked in the asset master records with an investment support key (for further information, see the System Administration Guide). All specifications for claiming the investment support are stored in the definition of this key. You can post the claim manually or in a mass procedure. At present only the values of one depreciation area can be automatically posted online in Financial Accounting: Therefore, the changes to asset values (transactions) from other areas with automatic posting have to be posted periodically to the appropriate reconciliation accounts. In the case of derived depreciation areas which do not record acquisition and production costs, the program posts proportional value adjustments due to retirements, transfers, post-capitalization and so on. If you want to plan primary costs on a cost center basis, you can periodically determine planned depreciation and interest and pass these on to primary cost planning in the CO system via a report.
Depreciation Posting Program Dep. P O S T I N G
Ordinary depreciation
Special depreciation
manually planned depreciation
Index
Periodic revaluation
P R O G R A M
FI Accounts
FI-AA Individual assets
CO Cost center
Order
Cost element
Interest . . .%. . 10
SAP AG
The calculation and planning of depreciation, interest and revaluation is controlled by keys in the Asset Accounting system. They can also be entered manually using a special posting transaction (for more information, see current-value depreciation). In both cases, these planned values in Asset Accounting have to be periodically posted to the corresponding expense and asset balance sheet accounts in the general ledger. This periodic posting takes place using a batch input session. The posting session also posts the different depreciation types, interest and revaluation, in addition to the writing-off and allocation of special reserves. The system does not create individual documents, only summarized posting documents (per general ledger account).
Year-end Closing Asset history sheet
Depreciation lists Assets Depreciation
Acquis. ...
Retmt. ...
Transfer ...
Closing balance
Adjustment posting OK?
No Yes Depreciation posting Bal P&L
(Bulk) changes Dep. simulation
OK? No Yes Year-end closing program OK? No Yes Archiving SAP AG
After the depreciation lists and asset history sheet have been checked, depreciation is posted.
Once depreciation has been posted, a balance sheet and profit and loss statement can be created in FI.
If the final result is not satisfactory, you can carry out depreciation simulation or (bulk) changes, or make adjustment postings.
If you change any depreciation values, you must run depreciation posting again..
The logical year-end closing is completed with the final balance sheet.
The year-end closing program then makes all necessary system checks.
If no errors are found, the program blocks posting in Assets Accounting for the closed fiscal year.
If a closed fiscal year is subsequently released for posting, it can only be blocked again once the year-end closing program has been re-run.
Asset Value Display Asset value display Goods Posting receipt document document
Display values
. . .
one year, one area one year, several areas several years, one area several years, several areas with simulated change of depreciation terms with simulated transactions
Simulated fiscal year change current book values
2000.-
Display of documents for the asset Depreciation on transactions
dep. terms dep.recalculation display dep. calculation all values
SAP AG
The asset value display offers extensive possibilities for evaluating individual asset master records.
By entering the sub-number “*”, you can request cumulative evaluations for a main number and the sub-numbers belonging to it.
The function “display depreciation calculation” provides a detailed display of the calculation of depreciation in the system.
You can start reports from within the asset value display transaction via the menu option Environment.
You specify the reports(with different selection versions) that can be started from the respective menu
Asset Simulation Simulation version -
P+L
depreciation areas asset class depreciation key useful life valid from / to
Display asset values Report for all assets
. li f e5
yr.
e lif 4y r.
Course of depreciation for Individual assets
Net book value
- depreciation key - useful life - index
Use . se U
- acquisitions - retirements - transfers ...
Simulated depreciation terms
w/out spec. dep.
Asset values
Simulated asset transactions
Operating profit with spec. dep.
Time
Development of asset values Asset class: Vehicles
Time
SAP AG
Simulation, in this context, refers to an experimental change to parameters affecting the valuation of assets. This change can apply to a single asset, the entire asset portfolio (or parts of it), or to a test depreciation area. This change is carried out by means of a transaction or a standard report. When you simulate the development of asset values, you can change all of the important depreciation terms (depreciation key, useful life, index series). Two types of simulation should be distinguished: simulation of depreciation for future fiscal years, using a special simulation report and simulation version simulation of accumulated depreciation in the past, using a new depreciation area
You can also include planned capital investments (in the form of orders or projects and capital investment programs) in the simulation.
Sort Criteria Balance sheet perspective, management perspective, and more...
Report call-up Total/individual Ranking list Sort version 001
Sort version Field
001 Total
BUKRS GSBER ERGSO KTANSW ANLKL
Company code Business area Bal. sheet item Bal. sheet acct. Class
Report definition Ranking list Assets
Values 1000 900 700 600
Individual list
Assets
Totals report Values
Sort....
Values
*
SAP AG
All reports allow you to sort/total data in different ways using freely definable sort criteria.
A sort version consists of a maximum of 5 sort levels which are determined via Data Dictionary fields. You can call up the technical field names of the required fields using F4. The sort levels are found in the table ANLAV (asset master data). For lists which process exactly one depreciation area (for example, the depreciation list), you can also use sort levels from table ANLB.
The report can output a total and a statistic for each sort level. In the column ‘Total’ you can specify the levels on which you want totals to be output. By selecting the indicator 'Statistics' it is also possible to further break down the total of a level in some lists. You can get a breakdown by depreciation key (for depreciation lists) or transaction type (for transaction lists).
Generally, you can use any sort version with any report.
Transfer of Old Assets Data Previous system Automatic transfer Batch input procedure (Direct data import)
FI-AA or Dialog transfer (for small volume of data) Create old asset Ass ets
SAP AG
Data transfer from a previous system is usually the first activity you need to perform in a new productive system after configuration and asset classification. You can either transfer data automatically from an old system using a batch input procedure, or you can manually enter the data using a transaction for old asset data. Please note that in both cases only the relevant asset master data and line items in Asset Accounting are updated and not the general ledger accounts in Financial Accounting. Balance reconciliation with the relevant general ledger accounts must therefore take place separately.
Transferring Old Data at Fiscal Year End Previous system Asset 1 10000 2000
Asset 2 20000 4000
Asset u. cons. 100 300
Asset 2 20000 4000
Asset u. cons. 100 300
SAP System FI-AA
Asset 1 10000 2000 FI
Non-curr. assets 30000
AuC G/L account 400
Value adjustments 6000
SAP AG
The transfer date is the cut-off point in time for the transfer of data from your previous system. The date represents the status of posting (balances) effective for the transfer of old data. If the transfer date is the end of the last closed fiscal year, you transfer only the master data, the APC and the accumulated depreciation as they stood at the end of the last closed fiscal year. You also have to transfer the balances of the corresponding general ledger accounts at this same level.
Automatic Transfer of Old Assets Data Previous system Interface program Old data in transfer format BALTD + BALTB
Transfer program RAALTD01 Records without errors
Records with errors
Batch Input
DIALOG INTERFACE
SAP AG
ANLH ANLA ANLB ANLC :
Using an interface program, you convert the old data in your previous system to the format of the Dictionary tables BALTD (master data) and BALTB (transaction data) and place them in a sequential file.
The old assets data transfer program RAALTD01 supplies the data, using background processing, to an old assets data transfer transaction. The records without errors are transferred immediately. Records with errors are stored in the form of a batch input session, and have to be processed later.
The documentation for the RAALTD01 program contains detailed instructions for the structuring of the sequential transfer file by the interface program test options avoiding errors and interpreting errors that occur the procedure in the event of program termination.
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