ASSET ACCOUNTINGASSET ACCOUNTING: Asset Accounting components are used for valuation of Assets & Planning and Calc of Depreciation ORGANISATION ASSETSVALUATION OF ASSETS BOOK VALUATION AS PER CO ACT INVESTMENT SUPPORT GROUP VALUATION INSURANCE BV FOR TAX PURPOSE PLANNING & CALICULATION OF DEPRECIATION

COST ACCOUNTING

BANK

DEPRECIATION AREA TYPEDEPRECIATION AREA TO BE MAINTAINED FOR EACH TYPE OF VALUATION OF ASSET

ADP VALUE Online

A) Real Time Depreciation B) Derived Depreciation Example of Depreciation Area : 01 01 02 02 03 03 20 20

Book Depreciation Special Purpose Depn Special Depreciation Reserve Cost Accounting Depreciation

01 01 01 01

ACQUISITION AND PRODUCTION COST (APC) A) B) C) D) DEPRECIATION RETIREMENT TRANSFER REVALUATION

To maintain Depreciation in SAP R/3 system we need to use any one of the methods of Depreciation Area. For every Depreciation Area we need to specify type of Depreciation Ex : 01 Book Depreciation Adopt to No of Values. Ex : Online (Adapt Value is the Base Amount) Acquisition & Product Cost : APC is maintained for each Depreciation Area Online Updation is done for each Depreciation area for APC Ex : 01 Book Depreciation online Depreciation Area APC We can also maintain separately for Tax purpose a separate Depreciation area i.e., 02 Special purpose Depreciation

1

Depreciation Area may be real Depreciation Area or derived Depreciation Area REAL DEPRECIATION AREA: The amount of Depreciation calculated (On this basis of Co Act or Tax Purpose etc.,) DERIVED DEPRECIATION AREA : It derives value from other Depreciation Area The derived Depreciation area uses mathematical formulas to determine values based on Values in real areas, Such as the difference between Depreciation in two Depreciation Areas For Ex : Difference of Depreciation amount calculated on Plant & Machinery in 01 Book Depreciation and 02. Special Tax Depreciation The System then manages these new values in the derived Depreciation Area We need to specify to system whether to post Depreciation to General Ledger Accounts in FI Ex : Specify for 01. Book Depreciation to post to General Ledger Online i.e. Real Time For other Depreciation area there is no need to post to General Ledger as it is maintained only for Statistical or Information purpose. However for cost Accounting we can maintain 20. Cost Accounting Depreciation to post Depreciation Periodically. For every Depreciation Area we need to specify posting Rule CHART OF DEPRECIATION : It is a Directory of Depreciation Areas. Depreciation areas we can maintain for Chart of Depreciation. R/3 System Provides a Standard Chart of Depreciation for each Country Specific 1. We need to copy the existing Standard Chart of Depreciation. In this we can create & Delete Depreciation Area 2.We need to maintain Tax Code for Non Taxation Trans. 3. We need to Assign the Chart of Depreciation to Company Code Asset Accounting Serves as a Subsidary Ledger to the FI General Ledger, Providing detailed information on Transactions involving Fixed Assets. In Asset Accounting we need to maintain Master Record of Assets Asset Master Records create Line Items while posting Group Assets make it possible to group together a number of Assets for calculation and posting of Depreciation GROUP ASSETS : Ex : 10% Depreciation Assets Main Assets Sub Assets Line Items, Line Items post to the main Assets or Subassets. Upto 99

2

ASSET ACCOUNTING ACCOUNTING ASSET MASTER RECORDD

GENERALLEDGER ASSET CLASS CHART OF ACCOUNTS

GROUP ASSET MAIN ASSET SUB ASSET LINE ITEMS Plant & Machinery Furniture & Fittings NUMBER ASSIGNMENT Leased Assets Low Value Assets Asset Under Construction Vehicles SCREEN LAYOUT

The following information is to be processed in Asset Master Record. Ex : Acquisition & Production Cost Retirement Sale of Assets Revaluation Depreciation Posting Periodically While updating Process Information in Master Record, the GL in FA has to be updated to we need to link them For that SAP maintains Account Determination Key We need to create Account Determination for each Transaction. The Account Determination key defines the reconciliation accounts in FA that should be posted during Asset Transactions. We need to define a Screen Layout for each master record and maintain number interval All relevant Master Records and maintain number interval All relevant master records can be put in a Group Asset like we have Account Groups in General Ledger Ex : Liabilities GROUP ASSET : Group Assets make it possible to group together a number of Assets for calculation and Posting Depreciation ASSET CLASS : It is maintained to structure the Fixed Assets of the Organisation to meet the demands of Accounting & to meet Legal Requirements. Every Master Record is assigned to a Asset Class.

3

Asset Class holds the Values of Account Determination Screen Layout and Number Interval for the Assets and transfer for the information to be updated in General Ledger When we are assigning Number to GL Plant and Mechinery Ex : 200000 maintain same number for Asset Class and account Determination (This is for Easy Identification) COPY REFERENCE CHART OF DEPRECIATION : Spro Ref Img FA AAOrganisational Structure Copy Reference Chart of Depreciation/Depreciation Area Select Copy reference Chart of Depreciation Select Copy Function Format of Depreciation 0DE (Maximum Valuation : Germany) To Chart of Depreciation 6023 Save Select Back Button Select Specify Description of Chart of Depreciation Select Position Button Chart of Depreciation 6023 Change the Description Chart of Depreciation Description 6023 Chart of Depreciation to 6023 Save Back to Menu Item ASSIGN TAX CODE TO NONTAXABLE TRANSACTIONS : Spro Ref Img FA FAGS Tax on Sales & Puchases Posting Assign Tax Codes for Non TaxableTransactions TC /NOBCL Select Position Button Company Code : Continue Co Cd 6023 Save 6023

Company Name

City

Input Tax Code IO (Input Tax Code)

ASSIGN CHART OF DEPRECIATION TO COMPANY CODE : Spro Ref Img FA AA- Organisaitonal Structure Assign Chart of Depreciation to Company Code Select Position Button Company Code : Continue Co Cd

6023

Company Name

Chart of Depreciation

Description

4

6023 Save

6023

ASSET CLASS : Spro Ref Img FA AA- Organisaitonal Structure Asset Classes Specify Account Determination New Entries Account Determination 200006 201006 202006 203006 204006 205006 Save Select Back Button

Name for Account Determination Plant & Machinery Furniture & Fittings Leased Assets Low Value Assets Asset Under Construction (Direct) Asset Under Construction Investment Profile

CREATE SCREEN LAYOUT RULES SCREEN NAME OF SCREEN LAYOUT 2000 General Mechines 3000 Low Value Assets 3300 Furniture & Fixtures 4000 Asset Under Construction 6000 Leased Assets Select copy as Function & Change the last Digit 2006, 3006, 3306, 4006, 6006 Save Back to Menu Item DEFINE NUMBER RANGE INTERVAL Company Code 6023 Select Change Interval Select Insert Interval No 01 02 03 Save From No To No 100000 199999 200000 299999 300000 399999 Select Back to Menu

DEFINE ASSET CLASSES

5

New Entries Asset Class 200006 Asset Type Account Determination Screen Layout Rule Number Assignment Number Range Plant & Machinery 200006 2006 Plant & Machinery General Machines

01

Status of AUC * No AU cor Summary Management of AUC Save Select Next Entry Asset Class 201006 Asset Type Account Determination Screen Layout Rule Number Assignment Number Range Save Select Next Entry Asset Class 202006 Asset Type Account Determination Screen Layout Rule Number Assignment Number Range Save Select Next Entry Asset Class 203006 Asset Type Account Determination Screen Layout Rule Number Assignment Number Range Save

Furniture & Fittings 201006 3006 Furniture & Fittings

02

Leased Assets 202006 6006 Leased Assets

03

Low Value Assets 203006 3306 Low Value Assets

03

6

Select Next Entry Asset Class 204006 Asset Type Account Determination Screen Layout Rule Number Assignment Number Range Save Select Next Entry Asset Class 205006 Asset Type Account Determination Profile Screen Layout Rule Number Assignment Number Range Status of AUC * Investment Measure Save

Asset Under Construction 204006 4006 Asset Under Construction

03

* Line Item Settlement

Asset Under Construction Investment Profile 205006 4006 Asset Under Construction Investment

03

* Line Item Settlement

CREATION OF GENERAL LEDGER ACCOUNTS : /NFS00 GL Account No 200000 Select Create Button Account Group 002 Assets *Balance Sheet Account DESCRIPTION : Short Text GL Account Long Text : : Plant & Machinery Plant & Machinery

SELECT CONTROL DATA Account Currency INR Reconciliation Account for Account Type

A Assets

ACCOUNT MANAGEMENT IN COMPANY CODE y Line Item Display y Sort Key 018 Asset Number SELECT CREATE/BANK/INTEREST Field Status Group G007

7

Save GL Account No 200100 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text Machinery GL Account Long Text : Save GL Account No 201100 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save :Accumulated Depreciation on Furniture & Fittings Accumulated Depreciation on Furniture & Fittings : Accumulated Depreciation on Plant &

Accumulated Depreciation on Plant & Machinery

GL Account No 201000 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 202000 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 202100 : Leased Assets Leased Assets : Furniture & Fittings Furniture & Fittings

8

Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 203000 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 204000 Select With Template GL Account No 200000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No : 350000 Select Create Button Account Group 004 Income *Profit & Loss Account DESCRIPTION : Short Text GL Account Long Text SELECT CONTROL DATA Account Currency : : Sales Revenue Asset Sale Sales Revenue Asset Sale : Asset Under Construction Asset Under Construction : Low Value Assets Low Value Assets : Accumulated Depreciation on Leased Assets Accumulated Depreciation on Leased Assets

: Leased Assets Leased Assets

INR

ACCOUNT MANAGEMENT IN COMPANY CODE y Line Item Display

9

y

Sort Key 018 Asset Number

SELECT CREATE/BANK/INTEREST Field Status Group G007 Save GL Account No 351000 Select With Template GL Account No 350000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 431100 Select With Template GL Account No 431000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 431200 Select With Template GL Account No 431000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save GL Account No 431300 Select With Template GL Account No 431000 Company Code 6023 Continue DESCRIPTION : Short Text GL Account Long Text : Save : Scrapping of Assets Scrapping of Assets : Loss on Sale of Assets Loss on Sale of Assets : Tax Depreciation Tax Depreciation : Profit on Sale of Assets Profit on Sale of Assets

10

GL Account No : 225000 Select Create Button Account Group 002 Assets * Balan Sheet DESCRIPTION : Short Text GL Account Long Text SELECT CONTROL DATA Account Currency : : Interest Clearing Account Interest Clearing Account

INR

ACCOUNT MANAGEMENT IN COMPANY CODE y Open Item Management y Line Item Display y Sort Key 018 Asset Number SELECT CREATE/BANK/INTEREST Field Status Group G001 Save GL Account No : 125000 Select Create Button Account Group 001 Liabilities * Balan Sheet DESCRIPTION : Short Text GL Account Long Text SELECT CONTROL DATA Account Currency : : Sales Reserve Account Sales Reserve Account

INR

ACCOUNT MANAGEMENT IN COMPANY CODE y Open Item Management y Line Item Display y Sort Key 001 SELECT CREATE/BANK/INTEREST Field Status Group G001 Save SPECIFY POSTING RULES OF DEPRECIATION : Spro Ref Img FA AA Integration with the General Ledger Post Depreciation to the General Ledger- Specify Document type for posting of Depreciation Define Document type R/3 as AF Document type for Depreciation Type Description

11

AF Depreciation Posting Select AF & Double Click Properties Number Range 04 Select Number Range Information Number Range Information Co Code 6023 Select Change Interval Select External Check Box of 04 If you want to process any Batch Input Session the No Interval must be External Save Back to Menu Item SPECIFY INTERVALS & POSTING RULES Select Position Method Company Code 6023 6023 Reliance Infocom Select Posting Rules Select 01 Depreciation (Book Depreciation) Double Click Save Back to Menu Item INTEGRATION WITH THE GENERAL LEDGER SPECIFY POSTING KEY FOR ASSET POSTING Procedures Description Asset Posting Double Click Posting Key Debit Credit

Transaction ANL

70 75

If we want to specify any other Dr or Cr we can do that Save ASSIGN GENERAL LEDGER ACCOUNTS : Spro Ref Img FA AA Integration with the General Ledger Assign GL Accounts Chart of Depreciation 6023 Continue Chart of Accounts Description 6023 Select Chart of Account 6023

12

Select Account Determination Account Determination Name for Account Determination Plant & Mechinery Select Accounts Determination Plant & Mechinery Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 200000 (Plant & Mechinery) Retirement Account Assignment Loss Made on Asset Ret W/O Revenue 431300 Scrapping Clearing Account Revenue From Asset Sale 350000 Sales Revenue from Asset Sale Gain From Assets Sale 351000 Profit on Sale of Asset Loss From Asset Sale 431200 Loss on Sale of Asset Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary DepMachinery

200100

Depreciaiton

on

Plant

&

Expences Account for Ordinary Dep 431000 Depreciation Select Special Reserves Account Assignment for Special Reserves Special Reserve Balance 125000 Special Reserves Expense : Allocation to Special Reserve 431100 Tax Depreciation Save Select Account Determination Account Determination Name for Account Determination Furniture & Fittings Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 201000 Retirement Account Assignment Loss Made on Asset Ret W/O Revenue 431300 Scrapping Clearing Account Revenue From Asset Sale 350000 Sales Revenue from Asset Sale Gain From Assets Sale 351000 Profit on Sale of Asset Loss From Asset Sale 431200 Loss on Sale of Asset Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary Dep Expences Account for Ordinary Dep

201100 431000

Depreciation 13

Select Special Reserves Account Assignment for Special Reserves Special Reserve Balance 125000 Special Reserves Expense : Allocation to Special Reserve 431100 Tax Depreciation Save

Select Account Determination Account Determination Name for Account Determination Leased Assets Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 202000 Retirement Account Assignment Loss Made on Asset Ret W/O Revenue 431300 Scrapping Clearing Account Revenue From Asset Sale 350000 Sales Revenue from Asset Sale Gain From Assets Sale 351000 Profit on Sale of Asset Loss From Asset Sale 431200 Loss on Sale of Asset Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary Dep Expences Account for Ordinary Dep Interest Account Assignment Expense Account for Interest Interest Clearing Posting Save

202100 431000

Depreciation

421000 225000

Interest Paid Interest Clearing

Select Account Determination Account Determination Name for Account Determination Low Value Assets Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 203000(Low Value Assets) (In the Same year complete Depreciation is written off) Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary Dep

203000

14

Expences Account for Ordinary Dep Save

431000

Depreciation

Select Account Determination Account Determination Name for Account Determination Asset Under Construction Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 204000 Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary Dep Expences Account for Ordinary Dep Save

204000 431000

Depreciation

Select Account Determination Account Determination Name for Account Determination Asset Under Construction INV Select Balance Sheet Accounts Acquisition Account Assignment Acquisition : Acquisition & Production Costs 204000 Select Depreciation Ordinary Depreciation Account Assignment Account Dep. Account for Ordinary Dep Expences Account for Ordinary Dep Save Back to Menu Item

204000 431000

Depreciation

SPECIFY FINANCIAL STATEMENT VERSION FOR ASSET REPORTS Co Code 6023 Company Name

Select Company Code Assign Financial Statement Version AR Name of Depreciation Area 01 Save

FS Vers FS Version Name INT (Commercial Balance Sheet)

15

Post Depreciation to the General Ledger Specify Document type for Posting of Depreciation Already Defined DEPRECIATION AREA Spro Ref Img FA AA Valuation Depreciation Area Define Depreciation Area Select Define Depreciation Area The Depreciation Area which are not required can be deleted 51, 32, 31, 10 We can Delete them We can create Depreciation Area by copying other Depreciation Area To check the properties double click on any depreciation area Depreciation Area 01 Book Depreciation

Management of Values Acquisition Value +Only Positive Values or Zero Allowed Net Book Value +Only Positive Values or Zero allowed Select Next Entry & Next Entry Depreciation Area 03 Special Reserves Because of Special Tax Depreciation Real Depreciation Area Posting in GL 2 Post Assets Periodically in GL Management of Values Acquisition Value +Only Positive Values or Zero Allo Net Book Value -Only negative Values or Zero Allo Save Back to Menu Item SPECIFY TRANSFER OF APC VALUES : AR Name of Depreciation Area 02 01 Deselect Identical Button AR Name of Depreciation Area 01 02 15 20 30 41 Select Back Button

Val Ad 01

Ident

Val Ad 00 01 01 01 01

SPECIFY TRANSFER OF DEPRECIATION TERMS AR TTR IDENTICAL 01 00

16

02 15 20 30 41 Select Back Button Select Specify Area Type From Define Depreciation Area

02 01 01

*

*

DETERMINE DEPRECIATION AREAS IN THE ASSET CLASSES Asset Class Plant & Machinery Select Depreciation Area AR Depretiation Area DeAct Use Layout 01 10 2000 02 10 2000 03 15 * 2000 20 * 2000 30 * 2000 41 * 2000 (Enter the Layout to get use Column Activated) Save Select Asset Class Asset Class Select Depreciation Area AR Depretiation Area 01 02 03 15 20 30 41 Save Asset Class Description Furniture & Fittings DeAct Use 5 5 Layout 2000 2000 2000 2000 2000 2000

* * * *

Select Asset Class Asset Class Select Depreciation Area AR Depretiation Area 01 02 Asset Class Description Leased Assets DeAct Use 10 Layout 2000 2000

17

03 15 20 30 41 Save Select Asset Class Asset Class Select Depreciation Area AR Depretiation Area 01 02 03 15 20 30 41 Save Select Asset Class Asset Class Select Depreciation Area AR Depretiation Area 01 02 03 15 20 30 41 Save Select Asset Class Asset Class Select Depreciation Area AR Depretiation Area 01 02 03 15 20 30

* * * *

2000 2000 2000 2000

Asset Class Description Low Value Assets DeAct * * * * * * Use 1 Layout 2000 2000 2000 2000 2000 2000

Asset Class Description Asset Under Construction DeAct * * * * * * Use 1 Layout 2000 2000 2000 2000 2000 2000

Asset Class Description Asset Under Construction Inv Profile DeAct * * * * * Use 1 Layout 2000 2000 2000 2000 2000

18

41 Save Back to Menu Item

*

2000

Amount Specifications (COC/DA) - Specify Maximum Amount for Low Value Asset Class Select Specify Lowvalue Asset Class Asset Low Value Asset Select Low Value Asset Class Select Low Value Asset Check AR LVA 01 1 (Value Based Maximum Amount Check) 02 03 15 20 30 41 Save Back to Menu Item 1 1 1 1 1 1

SPECIFY AMOUNT FOR LOW VALUE ASSETS CO CO NAME 6023 Select Amount for Low Value Assets AR LVA Amount Max LVA Pur 01 5000 5000 02 5000 5000 15 5000 5000 20 5000 5000 30 5000 5000 41 5000 5000 Save Back to Menu Item GROUP ASSETS SPECIFY DEPRECIATION AREA FOR GROUP ASSETS Co Code 6023 Select Group Assets AR 01 Name of Depreciation Area Group Asset

19

02 Save

* Back to Menu Item

SPECIFY ASSETCLASS FOR GROUP ASSETS Class Plant & Machinery Furniture & Fittings Save

* Deselect * Deselect

If we want to calculate Interest along with Depreciation. For Leased Assets Interest is also to be calculated SPECIAL VALUATION INTEREST DETERMINE DEPRECIATION AREAS AR NAME OF DEPRECIATION AREA 01 Book Depreciation Select Book Depreciation * -20 Cost Accounting Depreciation * Save DEPRECIATION : There are two type of Depreciation a) Planned Depreciation b) Unplanned Depreciation PLANNED DEPRECIATION : It can be Ordinary Depreciation or Special Depreciation. While Characterising these Depreciations We need to consider the following 1. 2. 3. 4. 5. 6. 7. Type of Depreciation Minimum & Maximum Percentage Check Maximum Amount Check Base Value for Calculation of Depreciation Rate of Depreciation Useful Line Period Control

The System manages the above by defining the Following Methods : 1. Base Method 2. Declining Balance Method 3. Maximum Amount Method 4. Multilevel Method 5. Period Control Method These methods are to be defined & referred in a key i.e a Depreciation Key DEFINITION OF DEPRECIATION CALCULATION METHOD

20

BASE METHOD : Spro Ref Img FA AA Depreciation Valuation Methods Depreciation Key Calculation Methods Define Base Method Base Method 14 Select 0014 Double Click Save Back Button For Calculation of Interest on Leased Assets -0028 Select 0028 Double Click Save Back to Menu Item DEFINE DECLINING BALANCE METHOD (Only this method depends on Chart of Depreciation) Chart of Depreciation 6023 Continue Multiapplication rate, minimum maximum procedure & Depreciation factors in considered in this Decl Balance Description 001 Use 001 Decline Balance Method Save Back to Menu Item DEFINE MAXIMUM AMOUNT METHOD : We can set the maximum amount to which the Depreciation is to be calculated & above it to be nil New Entries Maximum Amount Method Maximum Amount Description of the Method Z67 6023 Maximum Amount It can be checked manually or accumulated Depreciation. To check maximum amount manually select the Annual Check Box Select Z67 Select Maximum Amount New Entries Maximum Amounts Valid To Currency Maximum Amount 31.03.9999 INR 100000 If we do it manually by selecting check box the maximum amount has to be given annually Save Back to Menu Item Text Ordinary Explicit Percentage (After End of Life)

21

DEFINE MULTI LEVEL METHOD : New Entries Multilevel Method 601 0% Depreciation Validity Start 2 From Ordinary Depreciation Start Date Select Levels New Entries Acq Year Year Base Value Per Remlife 2000 10 01 9999 999 01(Acquisition Value) To apply Depreciation using remining usefull Life of the Asset Select the check box Acquisition Value/Remaining Life if not Acquisition Value / Total Life

Reduction can be used if we want to reduce the base value by percentage entered Save Next Entry Select Multilevel Method Multilevel Method 602 100% Depreciation Validity Start 2 From Ordinary Depreciation Start Date Select Levels New Entries Acq Year 9999 Save Year 999 Base Value Per 01 Per 100

Next Entry Select Multilevel Method Multilevel Method 603 5% Depreciation Validity Start 2 From Ordinary Depreciation Start Date Select Levels New Entries Acq Year 9999 Save Year 999 Base Value Per 01 Per 5

Next Entry Select Multilevel Method Multilevel Method 604 100% Written Down Value Validity Start 2 From Ordinary Depreciation Start Date Select Levels New Entries

22

Acq Year 9999 Save

Year 999

Base Value Per 24

Per 10

MAINTAIN PERIOD CONTROL METHOD : For purchase made in a method we can specify whether Depreciation has to be calculated same method or from 1st of next method New Entries Per Method Description 623 Period Control Save Back to Menu Item

Acq 01

Add 06

Ret 06

06

MAINTAIN DEPRECIATION KEYS : New Entries Depreciation Key 6000 0% Depreciation Period Control According to Fiscal Year * Depreciation to the day * Select Assignment of Calculation Mehod New Entries Depreciation Type N Ordinary Depreciation Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0014 Ordinary : Explicit percentage (After end of Life) Decl Bal Method 001 Prd Cont 623 Period Control Multilevel Method 601 0% Depreciation Class 1 Straight Line Depreciation Save Select Depreciation Key Select Next Entry Depreciation Key 6001 100% Depreciation Select Assignment of Calculation Methods Period Control According to Fiscal Year * Depreciation to the Day * New Entries Depreciation Type N Ordinary Depreciation Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0014 Ordinary : Explicit percentage (After end of Life) Decl Bal Method 001 Prd Cont 623 Period Control Multilevel Method 601 100% Depreciation

23

Class Save Select Depreciation Key Select Next Entry

1 Straight Line Depreciation

Depreciation Key 6005 5% Depreciation Period Control According to Fiscal Year * Depreciation to the Day * Select Assignment of Calculation Methods New Entries Depreciation Type N Ordinary Depreciation Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0014 Ordinary : Explicit percentage (After end of Life) Decl Bal Method 001 Prd Cont 623 Period Control Multilevel Method 603 5% Depreciation Class 1 Straight Line Depreciation Save Select Depreciation Key Select Next Entry Depreciation Key 6010 10% WDV Period Control According to Fiscal Year * Depreciation to the Day * Select Assignment of Calculation Methods New Entries Depreciation Type N Ordinary Depreciation Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0014 Ordinary : Explicit percentage (After end of Life) Decl Bal Method 001 Prd Cont 623 Period Control Multilevel Method 604 Class 2 Declining Balance Depreciation Save Select Depreciation Key Select Next Entry Depreciation Key 60la Leased Assets 6023 Period Control According to Fiscal Year * Depreciation to the Day * Select Assignment of Calculation Methods

24

New Entries Depreciation Type N Ordinary Depreciation Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0014 Ordinary : Explicit percentage (After end of Life) Decl Bal Method 001 Prd Cont 623 Period Control Multilevel Method 603 Class 1 Straight Line Depreciation Save Select Next Entry Depreciation Type Z Interest Phase 1 From the Start of Depreciation Assignment of Caliculation Methods Base Method 0028 Interest Leasing Decl Bal Method Prd Cont 623 Period Control Multilevel Method 601 0% Depreciation Class 0 No Assignment Save Back Button Select Back Button Depreciation Key 6000 6001 6005 6010 60LA Select Depreciation Key Select Activate Save Back Button ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------CREATE ASSET MASTER RECORDS : Accounting FA Fixed Assets Asset Create AS01 Asset (TC is AS11 Sub Assets) Asset Class : 2000006 (Plant & Mechinery) (If options are same for all machinery we can mention Number of Similar Assets) Company Code Number of Similar Assets Enter 6023 4

25

General Description Plant & Machinery Posting Information Capitalised on 01.04.2006 Select Time Dependent Intervel from 01.01.1900 to 31.12.99 Bussiness Area 0001 Cost Center 1200 Select Depreciation Area A 01 02 Save Select Create Asset Class Company Code Number of Similar Assets Enter General Data Description Capitalised on Select Time Dependent Interval from 01.01.1900 Bussiness Area 0001 2020006 6023 1 Leased Asset Depreciation Area Depreciation Key 6005 6010 US 10 10 O Depreciation Start 01.04.2006 01.04.2006

Leased Asset 01.04.2006 to 31.12.9999

Cost Center 1300 Select Depreciation Area A Depreciation Key Use Life O Dep Start 01 60LA 10 01.04.2006 Select Leasing Leasing Leasing Company 3840001 (Vendor for Loans) Agreement No 12345 Agreement Date 02.04.2006 Notice Date : 31.03.2007 Lease Start Date 02.04.2006 Lease Length : 2 / Type L1 Capitalise Lease For Capitalisation - We caliculated Depreciation Periodically Operational - We do not Caliculate the Depreciation Base Value as New Purchase Price 60000 15000

26

No of Lease Payment Payment Cycle Lease Payment Annual Interest Rate Enter Present Value Save Select Back Button

24 1 2000 9 43778

SELECT DISPLAY AS03 Asset Asset 300000 Leased Asset Sub Number 0 Company Code 6023 Enter Select Leasing Select Opening Posting Opening Posting DISPLAY DOCUMENT Document No Company Code Fiscal Year Enter /NFB03

100042 6023 2006

CREATE AS01 Asset Class Company Code Number of Similar Asset Enter General Data Description Posting Information Capitalised on Select Time Dependent Interval from 01.01.1900 Bussiness Area Cost Center Select Depreciation Areas

2030006 6023 1

Low Value

Low Value Asset 01.04.2006 to 0001 2100 31.12.9999

Dep Ky 6001 Save IN HOUSE PRODUCTION

Usl Life 1

0 Depreciaiton Start 01.04.2006

ASSET UNDER CONSTRUCTION

27

ACQUISITION OF ASSET FROM VENDORS : Only for Acquisition of Asset purpose system uses Transaction types It has to be refered while entering information Accounting FA Fixed Assets Posting Acquisition External Acquisition F-90 With Vendor Document Date Posting Date 05.04.2006 05.04.2006 Company Code Currency 6023 INR

First Line Item PK 31 Account Enter Item1/Invoice/31 Amount

3030001 Vendor Account

500000

Next Line Item PK 70 Account 100000 (Asset Transfer Type) Enter Item 2 Debit Asset Amount * Simulate 3030001 200000 Post

Transaction Type 100 (External Asset Acquisition)

Vendors for Goods for Supply 100000

500000 500000

SELECT POST WITH REFERENCE Flow Control * Do not Propose Amount First Line Item PK 31 Account 3030001 Enter Item1/Invoice 31 Amount 200000 Next Line Item PK 70 Account 100001 Enter Item2/Debit Asset Amount * Simulate 3030001 Vendor for Goods Supply 2000000 100001

Transaction Type

100

200000 200000

28

SELECT POST WITH REFERENCE Flow Control * Do not Propose Amount First Line Item PK 31 Account 3030001 Enter Item1/Invoice 31 Amount 250000 Next Line Item PK 70 Account Enter Item2/Debit Asset Amount * Simulate PK 31 303001 70 200000

100002

Transaction Type

100

Vendor for Goods Supply 100002

250000 250000

SELECT POST WITH REFERENCE Flow Control * Do not Propose Amount First Line Item PK 31 Account Enter Item1/Invoice31 Account 100000 Next Line Item PK 70 Enter

303001

Account

100000

Transaction Type

100

Item 2 / Debit Asset Amount * Simulate 31 3030001 Vendor for Goods Supply 70 200000 100003 Post Document Date Posting Date 10.04.2006 10.04.2006

100000-00 100000-00

Company Code Currency

6023 INR

First Line Item PK 70 Account

3000000-00

Transaction Type

100 29

Enter Item 1 / Invoice Debit Asset Amount 5000 Next Line Item PK 50 Account Enter Item2 / Credit Entry Amount * Value Date 10.04.2006 Enter Simulate PK 70 50 Post Account 200000 210000 Amount 5000-00 5000-00

210000

100000 Cash in Hang

SELECT DEPRECIATION CALCULATION : Accounting FA Fixed Assets Periodic Processing Depreciation Run AFAB Execute (Periodically) Parameter Company Code Fiscal Year Posting Period Parameter Select Test Run Select Execute Select Yes Account 2020006 Plan Amount 309154

6023 2006 1

ERROR1

Double Click on 2020006 Item GL Account 1 40 421000 2 40 431000 4908/3491 3 50 225000 4 75 200100 3309/4315 5 75 202100

Short Text Interest Paid Depreciation Interest Clearing Depreciation Plant & Mechinery Account Depreciation On Leased Asset

329

329

182

30

6 -

75

203000

Low Value Asset

411 --------0 ---------

--CHANGE COST ELEMENT /NKA02 Controlling Area 6023 Continue Cost Element 421000 Enter Basic/Default Account Assignment Cost Center 2100 Save Cost Element 431000 Enter Select Default Account Assignment Cost Center 6700 (Create Depreciation Cost Center & Assign) Save /NAFAB :ASSIGN SELECT EXECUTE Deselect Test Run Select Menu Item Program Execute in background Background Print Parameters Output Device LP01 Number of Copies 1 Continue Select Immediate Post /N FS10N (To Check Depreciation Posting) GL Account 431000 Company Code 6023 Fiscal Year 2006 Select Execute Period Debit Balance Car 1 4908.44 ACQUISITION OF ASSET THROUGH PURCHASE ORDER CREATE PURCHASE ORDER Vendor 3830001 Purchasing Organisation 6023 Purchasing Group 000 Company Code 6023

31

S

Item

A A (Asset)

Short Text PO Qty Mechinery 1 2

OUN Net PC 15200-00

Press Enter /NOBC4 CHANGE FIELD STATUS VARIANT G007 Asset Account (W/O Account Depreciation) Select G007 Double Click Additional Account Assignment Double Click Additional Account Assignment Optional Fund * Fund Center * Ear Marked Funds * Function Area * Special Region * Save Asset 100002 Enter Save GOODS RECEIPT : /N MIGO (Againest Purchase Order) A01 Goods Receipt R01 Ord 4500015980 Delivery Note 1500

Press Enter Quantity Quantity in Unit of Entry 2 Quantity in Delivery Note 2 Quantity Ordered 2 Select Item OK Button Select Check System Displays Document is OK Post CHANGE MATERIAL DOCUMENT Material Document Material Document Year Select Over View Button Select Accounting Document Object Type Text Accounting Document

/NMB02

50000103 2006

Document Number

32

Asset Transaction Select Accounting Document 200000 122000 100002 GR/IR Clearing 30400 30400 /NMIRO 6023

INVOICE VERIFICATION Company Code Continue Invoice Date 14.06.2006 Posting Date 14.06.2006 PO Reference PO 45000155980 Enter Amount 30400 Base Line Date 14.06.2006 Simulate K Vendor 30400 S GR/IR Clearing 30400 Post /NFS00 GL ACCOUNT NO Select Change Button Select Control Data Tax Category Save

200000 Plant & Machenery

Only Input tax allowed

SALE OF AN ASSET WITH REVENUE : Accounting FA Fixed Assets Posting Retirement Retirement with Revenue F -92 With Customer Document Date : 20.05.2006 Posting Date 20.05.2006 First Line item PK 01 Enter Itm 1 Amount Co Code Currency 6023 INR

Account

702000

Customer Account

205000

Next Line Item PK 50 Account Enter

350000

Transaction Type 210 (Retirement with Revenue)

33

Item2 Amount Enter

* Asset Retirement *

Asset 1000001 Sub Number 0 Posting Entries Transaction Type 210 Asset Value Date 20.05.2006 * Complete retirement Amount Posted Select Continue Simulate Customer A/c To Sale of Asset DR 205000 205000 DR 1342.47 1342.47 205000 205000 6342.47 6342.47 DR 200000 CR 1342.47 205000.00 6342.47 ----------------------------------------206342.00 206342.47 -----------------------------------------

Accumulated Depreciation A/C To Asset A/c Sale of Asset A/c To Asset A/c DR

Asset A/c DR To Profit on Sale A/c ASSET A/C To Purchase By Accumulation Depreciation By Sale To Profit on Sale A/c

CAPITALISATION OF ASSET UNDER CONSTRUCTION : DEFINE AND ASSIGN SETTLEMENT PROFILE : Spro Ref Img FA Asset Accounting Transactions Capitalisation of Asset Under Construction Define & Assign Settlement Profile Define Settlement Profile Settle Text

34

AI Select AI Double Click

Settlement Assets Under Construction

Valid Receiver Fixed Asset 2 Settlement Req Save Select Back Button

ASSIGN SETTLEMENT PROFILE TO COMPANY CODE Select Position Button Company Code 6023 Continue Co Code Company Name 6023 Save Select Back to Menu item S. Prof AI Text

MAINTAIN NUMBER RANGES FOR DOCUMENTS FOR LINE ITEM SETTLEMENT Select Maintain Number Ranges for Controlling Documents Controlling Area 6023 Select Group Button KOAO Actual Settlement Save

(Already Mentioned in Co

MAINTAIN ASSET CLASS FOR ASSET UNDER CONSTRUCTION IN WHICH MAINTAIN LINE ITEM SETTLEMENT CHECK BOX CREATE ASSET MASTER RECORD UNDER ASSET CLASS ASSET UNDER CONSTRUCTION /NAS01 Asset Class Company Code Number of Similar Assets Enter

2040006 6023 1

General Data Description Asset Under Construction Capitalised on 01.04.2006 Select Time Dependent Interval from 01-01-1900 to 31-12-9999 Bussiness Area 0001 Cost Center 1200 Select Depreciation Area

3333

35

D. Key 6000 Save POST ACQUISITION AMOUNTS Document Date Posting Date 14.06.2006 14.06.2006 /NF-90

Useful 1

Company Code Currency

6023 INR

First Line Item PK 31 Account Item 1/Invoice/31 Amount Next Line Item PK 70 Item 2 Debit Asset Amount * Simulate 31 3830001 70 Post

3830001

100000

Account

300002-00

Transaction Type

100

Vendor for Goods Supply 300002

100000-00 100000-00

POSET EXPENSES : /NF-02 Document Date 14.06.2006 Posting Date 14.06.2006 First Line Item PK 70 Account Enter Item1 Debit Asset Amount 10000

Company Code Currency

6023 INR

300002.0

Transaction Type

110

Next Line Item PK 50 Enter Item2/Credit Entry Amount Value Date Simulate

Account

210000

* 14.06.2006

36

PK 70 50 Post

300003 100000 Cash in Hand 100000

Capitalised Done at end of Month CAPITALISATION : Accounting FA Fixed Assets Posting Capitalise Asset Under Construction AIAB Distribute Company Code Asset Sub Number Enter Select Execute 6023 300002 0

Amount 100000-00 10000-00 Select Line Item Select Enter Distribution Rules Distribution Cat Sett Receiver FXA 100003-00 Enter Select Back Button Rec Short Text Plant & Machinery

Amount 10000-00 Select Next Line Item Select Enter Distribution Rules Distribution Cat Settlement Rec FXA 10 Enter Select Back Button Save Select Settlement Company Code Asset Sub Number Document Date Asset Value Date Posting Date Period

Rec Short Text Plant & Machinery

6023 300002 0 30.06.2006 01.07.2006 30.06.2006 3

37

Processing Options Deselect Test Select Execute BUDGET MONITORING AND STATISTICAL ORDER/WBS ELEMENT CREATE STATISTICAL COST ELEMENT : Spro Ref Img FA AA Transaction Budget Monitoring with Statistical Order Create Statistical Cost Element CREATE COST ELEMENT FOR PROJECT/ORDER ACCOUNT ASSIGNMENT Controlling Area 6023 Valid From 01.01.2000 Valid To 31.12.2400 Parameter of Run Deselect Test Run Select Execute Select Back Button CHANGE THE FIELD STATUS OF THE ASSET GL ACCOUNT : Define Field Status Variant 6023 Select FSV 6023 Select Field Status Group Field Status Group G007 Double Click Select Group Additional Account Assignments Double Click Additional Account Assignment CO/PP Order Save Optional *

/NK001 CREATE INTERNAL ORDER Order Type 63CO Enter Short Text Internal Order for Budget Accounting Assignment Company Code 6023 Bussiness Area 0001 Object Class O Cost Overhead Save

38

SET UP BUDGET Budget KO22 Chage

Accounting Co Internal Order Budgeting Original

Order 97005 Select Original Budget Annual Values Order Budget 97005IO 500000 Save Select Back Button POST TRANSACTIONS TO ASSET MASTER RECORD : /NF-90 OR /NF-02 Document Date Posting Date First Line Item PK 31 Enter 15.06.2006 15.06.2006 Company Code Currency 6023 INR

Account

3830001

Item1/Invoice Amount 250000 Next Line Item PK 70 Enter Item2 Debit Asset Amount * Order 97005 Simulate PK 31 Vendor for Goods Supply 70 100003-0 Post Back to Menu Item

Account

300002-0 Transaction Type 100

Amount 250000-00 250000-00

CHECK BUDGET AVAILABILITY : Accounting Co IO Information System Report for Internal Order More Reports List Budget/Actual/Commitments Selection Values Controlling Area Select Execute Orders

6023 Actual

39

Internal Order for Assed

250000

CAPITAL WORK IN PROGRESS INVESTMENT PROFILE : CREATE INTERNAL ORDER TYPE: Order Master Data Define Order Types New Entries Order Category Continue Order Type General Parameters Settlement Prof Planning Profile Budget Profile Object Class 01 CPIP Capital WIP Investment Profile Spro Ref Img Co Internal Orders

A1 Settlement Asset Under Construction 000001 General Budget/Plan Profile 00001 General Budget Profile INVST Investment Status Management * Release Immediately

Save Number Range Interval Not Assigned Select Change Interval Not Assigned CPIP Select the Internal Order * 6023 Internal Order Number Range Press F5 Save DEFINE INVESTMENT PROFILE : Spro Ref Img Investment Management Internal Order as Invesment Measures Master Data Define Investment Profile Define Investment Profile New Entries Investment Profile 6023 Investment Profile for 6023 Settlement * Line Item Settlement and List of Origins Investment Measure Asset Class 205006 Save Back to Menu Item SELECT SETTLEMENT MAINTAIN SETTLEMENT COST ELEMENTS Create Primary Settlement Cost Element Cost Element 204000 Valid From 01.01.2000 to 31.12.2400 Select Environment Create General Ledger Account Chart of Accounts

40

GL Account No 460000 Select Create Button Account Group 0004 Expences * Profit & Loss Account Description Short Text Asset Under Construction GL Long Text Asset Under Construction Save Select Back Button Again select Environment Create GL Account In Company Code GL Account No 460000 Select Change Create Button Account Management in Company Code y Line Item Display y Sort Key 001 Select Create/Bank/Interest Field Status Group G001 Save Select Back Button Cost Element 460000 Select Master Data Basic Data Cost Element Category 22 External Settlement Save MAINTAIN ALLOCATION STRUCTURE : Spro Ref Img Investment Management Internal Orders as Investment Measures Settlement Maintain Allocation Structure Allocation Atucture Text A1 CO Allocation Structure Select Assignments Assign Text 25 Settlement Select Source From Cost Element 460000 Select Settlement Cost Element

New Entry Receiver Category FXA Save

Settlement Cost Element 460000

CREATE INTERNAL ORDERS /NKO01

41

Order Type Enter Short Text

CPIP Capital WIP Investment Order

Assignments Company Code 6023 Bussiness Area 0001 Object Class INVST Investement Select Investments Investment Management Investment Profile 6023 Enter Select Yes Button Enter General Data Description Capital WIP : Investment Order Asset Under Construction : Investment Order Select Time Dependent Select Depreciation Area Dep Key O Dep Start 6000 01.04.2006 Save Select Back Button SELECT SETTLEMENT RULE Default Distribution Rule Category Settlement % FXA 100003-0 100 Select Back Button Save

POST INFORMATION TO INTERNAL ORDER Document Date 15.06.2006 Co Code Posting Date 15.06.2006 Currency First Line Item PK 40 Account Enter Item1/Debit Entry Amount 50000 Next Line Item PK 50 Item 2 / Credit Entry Amount *

/NF-02 6023 INR

460000

Order :

CPIP

Account

210000

42

Value Date Simulate

: 460000 210000

15.06.2066 Asset Under Construction Cash in Hand Cr 50000 50000 50000

Dr Post

50000

SETTLEMENT OF INTERNAL ORDER : Accounting CO Internal Orders Period End Closing Single Functions Settlement KOB5 Investment Order Line Items Order 97005 Select Execute Status Cost Element CO 460000 Select Line Item Select Final Settlement Distribution Rule Group 1 Category Select Receiver FXA 100003-0 Select Back Button Save Select Back Button

Rem Val Cnt Cur 50000

% 100

INDIVIDUAL PROCESSING KO88 Order 97006 Parameter Settlement Period 3 Fiscal Year 2006 Processing Type 1 Automatic Processing Options Deselect Test Run Select Execute Processing Category Settlement Executed 1 Error 0

DISPLAY ASSET EXPLORER AWOIN : Accounting FA Fixed Assets Asset AWOIN Asset Explorer Asset 100000 For Every Asset Class we can know Planned Values & Posted Values Enter

43

TRANSFER OF AN ASSET : Accounting FA Fixed Assets Posting Transfer ABUMN Transfer within Company Code Company Code 6023 Continue Asset 100003 Document Date 16.06.2006 Posting Date 16.06.2006 Asset Value Date 16.06.2006 Transfer To O Existing Asset 100002 0 Select Partial Transfer Amount Posted 100000 Releated to * From Current Year Acquisition We can check the Same Posting in the Line Item Save DISPLAY ASSET HISTORY SHEET : Accounting FA Fixed Assets Information System Reports on Asset Accounting Notes to Financial Statements International Asset History Sheet Company Code 6023 Setting Report Date 31.03.2007 Depreciation Area 01 Sort Version 0001 Select Execute For Indian Scenario /NJLILN Indian Localisation Method Asset Accounting J1IQ Year End Income Tax Depreciation Report Company Code 6023 Settings Report Date 31.03.2007 Depreciation Area 02 In Asset Master Record Depreciation Area Double Click & there we need to specify Group Asset for this Define the same in the Asset Master Record GROUP ASSETS : AS21 Create One Group Asset Class Create Group Asset Master Record Specify Asset Class for Group Assets & Also Depreciation Area Change Screen Layout of Depreciation Area i.e., 2000 Specify Group Asset field as optional

44

Refer Group Asset in the Depreciation Area of Asset Master Record PREPARATION OF FINANCIAL STATEMENT VERSION : Spro Ref Img FA GL Accounting Bussiness Transations Closing Documenting Define Financial Statement Versions New Entries Final Statement Version 6023 Name Financial Statements General Specifications Maiantain Language EN Chart of Accounts 6023 Save Select Financial Statement Items 6023 Financial Statements Assets Liabilities Net Result : Net Result : Profit + Loss Not Assigned To Enter the Text 6023 Financial Statements No Text Exists No Text Exists Double Click Item Assets Lly for all other Items Liabilities Profit for the Year Loss for the Year Profit & Loss Carried Notes to Accounts

Profit Loss Income & Expenditure Notes to Accounts

Asset

CRATION OF ITEMS UNDER A GROUP 6023 Financial Keep the cursor on the Group under which we want to Create item Select Create Items

45

Financial Statements Balance Sheet Income & Expences Statement Enter MOVING ITEMS BETWEEN GROUPS : Ex : From Profit for the Year to Balance Sheet Asset Select the item which we want to move Using F9 Balance Sheet Keep the Cursor on the Group to which we want to move Use shift +F6 to Reassign From Nodes To Nodes Assets Balance Sheet Reassign Node * Subordinate Continue 6023 FINANCIAL STATEMENT Balance Sheet Assets Liabilities Similarlly we can move Liabilities Keep the cursor on the Group under which we want to Create Item Select Create Item Balance Sheet Liabilities Share Capital Reserves & Surplus Loans Current Liabilities & Provision Contingent Liability Reserves & Surplus Keep the Cursor on the Group Under Which we want to Create Item Select Create Item Liabilities Reserves and Surplus General Reserve Special Reserve Previous (Provisions) Year Profits

46

Current Year Profits Move the items Profit for the year & Loss for the year to the Group Current Year Profit (Current Year) Profit for the Year Select the item which we want to move Using F9 Current Year Profit Keep the Cursor on the Group which we want to move Shift + F6 Similarlly for Loss for the Year Current Year Profit Loss for the Year Profit for the Year ASSIGNING ACCOUNT : (Only to Lower Level Items / Group) Current Liabilities and Provision Select Create Items Liabilities Current Liabilities & Provision Sundry Creditors Advances from Customer To Assign Accounts Keep the Cursors on the Group Share Capital Select Assign Accounts From Account 100000 Continue Previous Year Profit Select Assign Accounts From Account 101000 Continue Special Reserve Select Assign Account From Account 125000 Continue Sundry Creditors Select Assign Account From Account 122000 150000 Continue Dr * Cr *

Dr *

Cr *

Dr *

Cr *

To Account 122000 150000

Dr * *

Cr * *

47

Assets Select Create Items Balance Sheet Assets Fixed Assets Investements Current Assets Loans & Advances Fixed Assets Select Create Items Fixed Asset Net Block Net Block (Gross Block Account Depreciation) Select Create Items Net Block Gross Block Accumulate Depreciation Gross Block Select Assign Accounts From Account Dr 200000 * 201000 * 202000 * 203000 * 204000 * Accumulated Depreciation Select Assign Accounts From Account 200100 201100 202100 Continue Dr * * *

Cr * * * * *

Cr * * *

Create Assets Select Create Items Balance Sheet Assets Current Assets Cash and Bank Balances

48

Stocks Sundry Debtor Advance from Creditors Continue Dr Balance from Vendor Advance from Creditors Cr Balance from Customer Advance from Debtos Dr/Cr Shift to move the Dr Balance of Liabilities & Cr Balance of Assets Advance from Creditors Select the Group which you want to link & Select F9 Sundry Creditor Keep the cursor on the Group for which we want to (Link) transfer Value & Select Ctrl + F1 Debit Item Credit Item * Advance from Creditors Sundry Creditors 18 Sundrys 30 Advance from Creditor Continue Similarlly for Advance from Debtors Sundry Debtors Select Assign Accounts From Account To Account 250000 250000 Continue Advance from Customer Select the Group which you want to Link & Select F9 Sundry Debtor Keep the Cursor on the Group for which we want to transfer Value & Ctl F1 Debit Item *Advance from Customer 29 Sundry Debtors Continue Credit Item Sundry Debtor 19 Advance from Customers

INCOME & EXPENCES Select Create Item 6023 Financial Statement Income & Expense Statement Income Expenditure Continue Income Select Assign Accounts

49

From Account 300000 Continue Expenditure Select Assign Accounts

To Account 399999

Dr *

Cr *

From Account 400000

To Account 499999

Dr *

Cr *

Continue Move Profit and Loss C/d to the Income and Expenditure Profit & Loss C/d Select the Item which we want to move Using F9 Income and Expenditure Keep the Cursor on the Group to which we want to move Shift + F6 To check Unassigned Accounts Select Check Button From Company Code 6023 Continue Cash and Bank Balance Select Assign Accounts From Account To Account Dr Cr 210000 299999 * * Continue Stocks Select Assign Accounts From Account To Account Dr Cr 220000 229999 * * Note : The Tax Payable accounts Excise Payable VAT Payable are taken under Notes to Accounts which need be assigned Save EXECUTION OF FINANCIAL STATEMENT : Accounting FA GL Information System GL Reports Balance Sheet or Profit & Loss Account Statement General Actual/Actual Comparision - Actual/Actual Comparision for year GL Account Selection Company Code 6023 Report Selection FIS Annual Rep Structure 6023 Fiscal Year 2006 Select Execute We can also show this graphically Select Graphics NEW YEAR OPENING OPEN AND CLOSE POSTING PERIODS : /NOB52 Variant From P Year To Period 6023 12 2006 1 Save

Year 2007

50

Copy Number Interval /NOBH2 Spro Ref Img FA FAGS Document Document Number Ranges Copy to Fiscal Year Company 6023 Number Range 00 to zz Fiscal Year 2006 Target Fiscal Year To Fiscal Year 2007 Select Execute Select Yes CARRY FORWARDS BALANCES : General Ledger Account (Balances) : Accounting FA GL Periodic Processing Closing Carry Forward F.16 Balance Carry Forward Ledger 0 Company code 6023 Carry Forward to Fiscal Year 2007 Processing Options Deselect Test Run Select Execute System Display Balance Carry forward Successfully Completed To View Select CARRY FORWARDS AR & AP : Accounting FA AR Periodic Processing Closing Carry Forward F.7 Balance Carry Forward Company Code Year Customer Selection * Sundry Customers Vendor Selection * Select Vendors Processing Parameters Deselect Test Run Select Execute CARRY FORWARDS FIXED ASSETS BALANCES : Accounting FA Periodic Processing Year Ending Closing AJAB Execute 6023 2007

51

Note : Make Sure that Depreciation Postings for all the periods is Carried out Company Code 6023 Fiscal Year 2006 Options Select TEST RUN Select Execute ACCOUNT ASSIGNMENT : (Open of Balan Sheet when First time Accounts are posted in SAP) Accounting Financial Accounting General Ledger Document Entry Reference Document Account Assignment Model 6023 Select Create 6023 INR 6023 Opening Balances Carry Forward Select Line Items Button Co Code PK Amount 6023 40 210000 10000 6023 50 100000 10000 (Similarlly enter Balances of all Assets & Liabilities or Debits & Credits) Save POSTING OF ENTRY USING ACCOUNT ASSIGNMENT MODEL : /NF-02 Document Date 01.04.2006 Posting Date :01.04.2007 Select Account Assignment (F7) Account Assignment Model 6023 Continue Co CD Pst Key GL 6023 40 210000 6023 50 100000 Simulate Cash A/c Dr To Share Capital The Asset Transfer records becomes reconciliation Account then transfer non Reconciliation Account for posting SET RECONCILIATION ACCOUNTS : Spro Ref Img FA Asset Accounting Preparations for Production Start up Production Start Up Set Reconciliation Accounts Company Code : 6023 Currency : INR

52

Set Reconciliation Accounts Automatically Company Code (*=All) Select Execute It displays all Reconciliation Account Sales Revenue from Asset Sale Profit from Sale of Asset Back Button Reset Reconciliation Accounts : Use Reset Reconciliation Accounts to Reset TRANSFER BALANCES : Document Date Posting Date Period Company Code Document Type Specify the GL Account Balances GL BS AR 01.04.2007 01.04.2007 01.04.2007 6023 AA (Asset Accounting ) 6023

Local Current Amount

D

C

Line Item Next

Create One Asset Clearing Account Debit All Asset Account Credit the total Amount to Asset Clearing Account (When we are creating posting entry for balance sheet Debit to Clearing Account All Asset master record balances)

01. Invoice Credit Memo 02. Reverse Invoice / Credit Memo 03. Bank Charges 04. Other Receivables 05. 06. 07. Out going / Incoming Payment Payment Differences Other Clearing

40

50

70

75

02 13 04 05 06 07

12

22

32

14 15 16 17

24 25 26 27

34 35 36 37

53

08. 09.

Payment Clearing Special GL

08 09

18

28 19

38 29 39

Material Transaction 0 1 2. 3. 4. 5. 6. 9. Inventory / Taking Cost Inventory Difference Price Differences Consumption Change in Stock Goods Receipt/Invoice receipt Stock Inward Movement/ Outward Movement Dr 8 80 81 82 83 84 85 86 89 Cr 9 90 91 92 93 94 95 96 99

FIELD STATUS GROUP Master Data 1. General Ledger Account 2. Customer 3. Vendor 4. Asset Accounts 5. Bank Accounts Transaction Data Outgoing Service Incoming Service Outgoing Payment Incoming Payment Accounting Payment Adjustment Documents Depreciation Posting Asset Transaction Clearing Documents INFORMATION FOR INTERNAL MANAGEMENT Cost Center Cost Order / PP Order Profitability Segment Profit Center Cost Object Funds Funds Center Bussiness Line is nothing but a profitability segment Financial Area Administrative Expences

54

Assigning Bussiness Information while posting a document to various business objects in R/3 System is called account assignment object. To Design/Customise the Screen Layout for master Data under Transaction Data : R/3 System Provides a facility to change the standard screen layout provided in the system. To Change the screen layout R/3 System maintains a status of the field. The status of the field are A) Suppressed / Hidden B) Required Mandatory C) Optional Two types of field Status Group 1) Master Data 1. Field Status Varient : Create FSV 2. Assign FS Group to FSV 3. Assign FSV to Company Code

2) Transaction Data Field Status Group (Screen Layout) 80 Fields TC is OBCY TC is OBC5

MAINTAIN FIELD STATUS VARIANT : Spro / Ref Img FA FAGS Document Line Item Controls Maintain Field Status Variant Select 0001 FSV Select Copy as TC is OBC4 FSV 0001 Copy as Enter the FSV 6023 Enter Field Status Name Field Status for 6023 Field Status Name Field Status for 0001 Default

Select Copy All Enter Save Select the Field Status Variant Select Field Status Group Field Status Group 6001 6002 Text General

Select the group to check the fields in the field status group Select Edit Field Status Grey indicates all the fields are suppressed Blue indicates the field are required (May not be all) Select Group General Data Material Management

55

To view the fields in the group double click on Ex : General Data To See the Help of the Field Keep the cursor on the field Select field check General Data Assignment Number Invoice Reference No 1 Data Displayed LINE ITEM The Part of document containing information on a Single item Back to menu item Assign Company Code to Field Status Variant Position Button (TC is OBC5) Company Code 6023

Company Company Name City FSV 6023 Reliance Bangalore 6023 Save SAP has Standard Screen for Withholding Tax & not Screen Variant for Document Entry : TC is OB71 Position Button Enter Company Code Selection Screen Variant 2 Standard Version (or) Ex : 1. Austria and Switzer Land 1. France and Countries with Withholding Tax 2. Countries with Classic Withholding Tax Save TOLERENCE GROUPS : Tolerance group are used to give an authorization or permission to an employee of Organisation to do an Activity we need to specify the following in TG 1. 2. 3. 4. Upper Limit per Document Upper Limit to post Open Item & Account Item (Customer or Vendor Data) % Cash Discount Payment Differences (Invoice Amount Payment Received Ex : 500 Rs. 10000 9500) can be specified as amount and percentage

Payment differences can be specified in the form of absolute amount (or) Percentage (or) Both. If both is specified the system will consider the lowest of these two to accept the payment differences. It can also be setoff against any discounts or writeoff against expense or revenue account GL Ledger User Tolerance AR AP

56

Tolerance Upper Limit for Document Upper Limit for Open Item Upper Limit for Account Item Cash Discount % Payment Differences Globally Specified Applical to All Generals Ex 200 TC is OBA4

Tolerance

1.Payment Differences 2.Specified for Specific Generals Ex : 100 TC is OBA0

Payment Difference Specific Customers (or) Vendors Ex : 150 TC is OBA3

The Lower of these 2 take as a Upper Limit DEFINE (EMPLOYEE) TOLERANCE GROUP FOR GL ACCOUNT : Spro Ref Img FA GL Bussiness Transaction Open Item Clearing Clearing Differences Define Tolerance Group for GL Clearance (SAP maintaince default tolerance group i.e Blank Space) TC is OBAO New Entry Co Code 6023

Tol Group ---

Name of Tolerance Group DR Tolerance for GL 6023 50

CR 50

%DR

%CR

Back to menu Item DEFINE TOLERANCE GROUP FOR EMPLOYEES : (TC is OBA4) New Entry Company Code 6023 Amount per Document 100000 Account Open Item Account Item 500000 Cash Discount per Line Item 10% Expences 500 Revenue 500 Save DEFINE TOLERANCE GROUP FOR ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE : Spro / Ref Img - Financial Accounting Accounts Receivable Accounts Payable Bussiness Transactions Outgoing Payments Manual Outgoing Payments TC is OBA3 DEFINE TOLERANCE GROUP FOR AR & AP : New Entry Company Code : 6023 Tolerance Group AR /AP Tolerance for 6023

Grace Days Due Date : Arrears Base Date :

57

Gain 500 Loss 500 Save & Back to Menu Item Value date other than the posting data for arriving the New Date ENTERPRISE STRUCTURE (Document controls for processing Information to Maintain Data) Fiscal Year Open and Close Posting Period Field Status Group Posting Periods Document Types Number Ranges Tolerance Group Use have to set up the Master Data

MASTER DATA : First we need to setup Screen Layout for Master Data 1. General Ledger 2. Bussiness Partner Account : (In this account is called Reconciliation Account) Sundry Debtor : Customer Sundry Creditor : Vendor 3. Bank Account 4. Asset Account This Account is Reconciliation Account 1. Chart of Account 2. Assign Chart of Account to Company Code 3. Account Group 1. GENERAL LEDGER ACCOUNT : There is a Chart of Account. Assign Chart of Is a List of all GL Account For Each General Ledger Account that Chart of Account contains two types of Data 1. General Data / Chart of Account Data 2. Company Code Data 1. General Data : a) General Ledger Account No b) Description of the GL Account c) Account Group (Assets/Liabilities) d) Account Item P&L Account & B/L Sheet Length of General Ledger Minimum number is 10 PREREQUISITES FOR CREATION OF GENERAL LEDGER ACCOUNT Company Code Data : Account Currency Taxes Information 58

Bank Information Interest Information Retained Earnings Account Field Status Group Tolerance Group Transaction Data is nothing but a Screen Layout Retained Earnings Account Which is used for transferring to next year. CHART OF ACCOUNT : The Chart of Account has 3 Functions 1. Group Create Only General Data 2. Operation Create Only General Data & Company Code Data 3. Country Specific The Group Account No must be assigned to General Data Assignment of Group Chart of Account to Company Code is Optional Assignment of Operation Chart of Account to Co Code is mandatory 3.Country Specific is optional MAINTAIN CHART OF ACCOUNT : TC is OB13 : Spro Ref Img FA GL A/C GL Accounts Master Records While creating Account Groups we can contract the following : 1. Number Range 2. Field Status Group for Master Data Preparations Edit Chart of Account List New Entry Enter 4 Character Key for our Chart of Account Chart of Account 6023 Discription Chart of Account for 6023 Maintain Language EN English Length of GL Account No 6 Maximum 10 Digits R/3 System uses Cost Control CONTROL INTEGRATION : Manual Creation of Cost Element (Default) & Save ASSIGN COMPANY CODE TO CHART OF ACCOUNT : TC is OB62 Enter Position Enter Company Code 6023 DEFINE ACCOUNT GROUP : (Can also be Left Blank) CHART OF A/C 6023 6023 6023 NEW ENTRY (TC is OBD4)

A/C GROUP 0001 0002 0003

NAME Liability Asset Income

FROM A/C 100000 200000 300000

TO A/C 199999 299999 399999

59

6023 & Save

0004

Expences

400000

499999

60