Asset Accounting Primer

7/25/2019 Asset Accounting Primer

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SAP 4.6c Asset Accounting

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ASSET ACCOUNTING BASIC SETTINGS

1. Copy reference chart of depreciation/depreciation areas

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Asset Accounting (Lean Implementation) / Organizational Structures / Copy referenceChart of Depreciation – Depreciation Areas.

Select ( Transaction code : EC08 )

For every company code, a Chart of Depreciation must be defined. Each Chart ofDepreciation enables Definition of depreciation areas, which represent the various methodsof asset valuation and Valuation of assets including providing depreciation

SAP allows creation of a new Chart of Depreciation (COD), by copying from a referenceCOD. Since it copies all depreciation areas in the reference chart of depreciation, the user isallowed to delete unwanted depreciation areas, and retain only those which are genuinelyrequired.

Press F6 / Click on Copy icon- Copy Organizational Object

Enter From COD = ODE (Maximum Valuation: Germany) and To COD = RIL

Click on this icon and then specifyFrom COD & To COD

Copy Reference Chart of Depreciation




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Press Back (F3)

Select

Since in the previous activity, a reference COD was used to create a new COD, thedescription of the new COD needs to be changed.

ChDep Description

RIL Chart of Depreciation RIL

Save ( Ctrl + S )

Select ( Transaction code : OADB )

After copying the reference COD to a new COD, unwanted depreciation areas can bedeleted. Further, new depreciation areas can be created, but only by copying from one of theexisting depreciation areas.

SAP Menu : Edit / Selections / Select All ( F7 )

Deselect 01 = Book Depreciation

Delete ( Shift + F12 )

Save ( Ctrl + S )

Specify Descript ion of Chart of Depreciation

Copy / Delete Depreciation Areas




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2. Creation of 0 % Tax codes for Purchases and Sales

Path: SPRO / SAP Reference IMG / Financial Accounting / Financial Accounting GlobalSettings / Tax on Sales – Purchases / Calculation / Define Tax codes for Salesand Purchases ( Transaction Code : FTXP )

Make two tax codes for 0 % Depreciation namely P1 and P2

Country : IN INEnter

Country Key : IN INTax Code : P1 P2Enter

Tax Code : P1 : 0 % Input Tax P2 : 0 % Output TaxTax Type V ( Input Tax ) A ( Output Tax )Enter

Input Tax : 0 % Deactivate LineOutput Tax : Deactivate Line 0 %

Save ( Ctrl + S )

3. Assigning Tax codes for non taxable transactions

Path: SPRO / SAP Reference IMG / Financial Accounting / Financial Accounting GlobalSettings / Tax on Sales – Purchases / Posting / Assign Tax Codes Define Taxcodes for Non-Taxable Transactions ( Transaction Code : OBCL )

CoCd Company Name City Input Tax Output Tax Jurisdic. Code

RIL Reliance Industries Ltd. Mumbai P1 P2

Save ( Ctrl + S )

4. Assign Chart of Depreciation to Company Code

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting /Organizational Structures / Assign Chart of Depreciation to Company Code(Transaction Code: OAOB )

CoCd Company Name Chrt dep Descrip tion

RIL Reliance Industries Ltd RIL Chart of Depreciation RIL

To REFRESH / CHANGE the Chart of Depreciation

SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Valuation /Specify Chart of Depreciation. (Transaction Code : OAPL)

Asset Classes

5. Specify Account Determination

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting /Organizational Structures / Asset Classes / Specify Account Determination




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Keys must be set up for account determination for asset classes. These keys are laterassigned to respective asset classes.

Acct . Determ. Name for account determination

31001 Land

31011 Buildings

31021 Plant and Machinery

31031 Furniture and Fixtures

31041 Office and Other Equipment

31051 Information Technology Equipment

31061 Vehicles

31071 CWIP Buildings

31081 CWIP Plant and Machinery

31091 CWIP Other costs

31100 Below Rs. 5000 Assets

Save ( Ctrl + S )

The account determination keys have been defined for RIL, to represent GL accounts to

which the acquisition costs will be posted.

Please note that these keys have no attributes, and are merely attached to asset classes. Ina subsequent step, account determination is done for each of these keys for postings foracquisition costs, depreciation, gain/loss, etc.

6. Create Screen Layout Rules

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting /Organizational Structures / Asset Classes / Create Screen Layout Rules

Keys need to be created for defining screen layouts for asset masters. These keys are laterattached to asset classes. In a subsequent step, the screen definition is done for each key.

Screen layout rule Name of screen layout rule

3001 Land

3011 Buildings

3021 Plant and Machinery

3031 Furniture and Fixtures

3041 Office and Other Equipment

3051 Information Technology Equipment

3061 Vehicles

3071 CWIP Buildings

3081 CWIP Plant and Machinery

3091 CWIP Other Costs

3100 Below Rs. 5000 Assets

Save ( Ctrl + S )

The screen layout keys have been defined for RIL, to represent the asset classes since eachasset class has specific attributes.




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7. Define number range interval

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting /Organizational Structures / Asset Classes / Define Number Range Interval(Transact ion Code: ASO8)

Number range intervals must be defined. In a subsequent step, these number ranges are

then assigned to the asset classes. The number ranges can be internal or external, and 2 ormore asset classes can be assigned to the same number range.

Number Range Object: Asset NumberCompany Code : RIL

No From number To number Ext

01 3100100000 3100199999

02 3101100000 3101199999

03 3102100000 3102199999

04 3103100000 3103199999

05 3104100000 3104199999

06 3105100000 3105199999

07 3106100000 310619999908 3107100000 3107199999

09 3108100000 3108199999

10 3109100000 3109199999

11 3110000000 3110199999

Save ( Ctrl + S )

While defining number ranges for RIL, the first 5 digits of the intervals represent the Accountcodes of the asset class to which these are assigned.

8. Define Asset Classes

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting /

Organizational Structures / Asset Classes / Define Asset Classes(Transaction Code: OAOA)

Asset classes must be defined for which asset masters will be created. The asset class hasthe following attributes:

AssetClass

Short text Acct.Determ.

Scr.Layout

rule

No.range

Includeasset

Statusof AuC

31001 Land 31001 3001 01 No AuC

31011 Buildings 31011 3011 02 No AuC

31021 Plant and Machinery 31021 3021 03 No AuC

31031 Furniture and Fixtures 31031 3031 04 No AuC

31041 Office and Other Equipment 31041 3041 05

No AuC

31051 Information Technology Equipment 31051 3051 06 No AuC

31061 Vehicles 31061 3061 07 No AuC

31071 CWIP Buildings 31071 3071 08 No AuC

31081 CWIP Plant and Machinery 31081 3081 09 No AuC

31091 CWIP Other costs 31091 3091 10 No AuC

31100 Below Rs. 5000 Assets 31100 3100 11 No AuC

Save ( Ctrl + S )




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9. Deactivate Tax Depreciation and Consol idate Depreciation in Asset Class.

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Valuation /Determine Depreciation Areas in Asset Classes (Transaction Code: OAYZ)

Select all the Asset Classes and double click Depreciation areas in Dialog structure.Deactivate 01 Book Depreciation by deselecting the tick in Deact column.

Enter 2000 ( Depreciation Sub - No Asset Level ) in Layout column.

Save ( Ctrl + S )

10. Creation of General Ledger Accounts in Chart of Accounts.

Path: SPRO / SAP Reference IMG / Financial Accounting / General Ledger Accounting / GL Accounts / Master Records / GL Account Creation and Processing / Edit GL Account(Individual Processing)/ Edit GL Account Centrally (Transact ion Code: FS00)

Acct Grp Short text Acct .

No

Field

StatusGroup

Recon.

Type

Sort

Key

Land 31000 G 067 Asset 018

Buildings 31010 G 067 Asset 018

Plant and Machinery 31020 G 067 Asset 018

Furniture and Fixtures 31030 G 067 Asset 018

Office and Other Equipment 31040 G 067 Asset 018

Information Technology Equipment 31050 G 067 Asset 018

Vehicles 31060 G 067 Asset 018

CWIP Buildings 31070 G 067 Asset 018

CWIP Plant and Machinery 31080 G 067 Asset 018

CWIP Other costs 31090 G 067 Asset 018

F i x e d A s s e t s

Below Rs. 5000 Assets 31100 G 067 Asset 018

Acc Dep. Buildings 49010 G 067 Asset 018

Acc Dep. Plant and Machinery 49020 G 067 Asset 018

Acc Dep. Furniture and Fixtures 49030 G 067 Asset 018

Acc Dep. Office and OtherEquipment

49040 G 067 Asset 018

Acc Dep. Information TechnologyEquipment

49050 G 067 Asset 018

Acc Dep. Vehicles 49060 G 067 Asset 018 A c c u m u l a t e d

D e p r e c i a t i o n

Acc Dep. Below Rs. 5000 Assets 49100 G 067 Asset 018

Depreciation 21000 G 001 018

Loss on Sale of Asset 21010 G 001 018Expenditure

Loss on Scrapping of Asset 21020 G 001 018

Sale of Asset 11000 G 052 018Revenue Profit on Sale of Asset. 11010 G 001 018

Cash 35000 G 001 001 Asset

Bank 35100 G 005 001 Asset Accounts Receivable 36000 G 067 Customers 031Liability Accounts Payable 46000 G 067 Vendors 012




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Integration wi th the General Ledger

11. Define How Depreciation Areas post to General Ledger

Specifications are made as to how values are to be posted from respective depreciationareas. By default depreciation area 01 (Book depreciation) is always set up for posting to

general ledger while the rest are made as not relevant for GL postings.

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Integrationwith the General Ledger / Define How Depreciation areas post to General Ledgers(Transact ion Code: OADX)

Ar . Depreciation area name Po Descript ion

1 Book depreciation 1 Post assets in General Ledger real-time

2 Special tax depreciation for APCin Financial Statements

0 No values are posted in General Ledger

30 Consolidated balance sheet inlocal currency

0 No values are posted in General Ledger

Save (Ctrl + S)

12. Assign G/L accounts

GL account determination must be done for each account determination key defined. TheGL account determination must be done for acquisition / retirement transactions anddepreciation postings, for a combination of Chart of Accounts, Account Determination key,and Depreciation Area

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Integrationwith the General Ledger / Assign GL Accounts (Transact ion Code: AO90)

Select RIL : Reliance Industries Limited and Double click on Define Acquis ition/Retirement

Accounts in Dialog Structure.

Double Click on 01 – Book Depreciation and enter the information.

AccountDeter.

Acquis . &Prod. Costs

Clearing Acc.Revn. fromasset sale

Gain fromasset sale

Loss fromasset sale

Loss onretirement

w/o revenue

31001 31000 11000 11010 21010 21020

31011 31010 11000 11010 21010 21020

31021 31020 11000 11010 21010 21020

31031 31030 11000 11010 21010 21020

31041 31040 11000 11010 21010 21020

31051 31050 11000 11010 21010 21020

31061 31060 11000 11010 21010 2102031071 31070 11000 11010 21010 21020

31081 31080 11000 11010 21010 21020

31091 31090 11000 11010 21010 21020

31100 31100 11000 11010 21010 21020

Select RIL : Reliance Industries Limited and Double click on Define Depreciation Accountsin Dialog Structure.




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AccountDeter.

Acc.Depr. Acct. forord. Depreciation

Exp. Acct. for ord.Depreciation

31001

31011 49010 21000

31021 49020 21000

31031 49030 21000

31041 49040 21000

31051 49050 21000

31061 49060 21000

31071 49070 21000

31081 49080 21000

31091 49090 21000

31100 49100 21000

Save ( Ctrl + S )

Posting depreciation to the general ledger

13. Specify document type for posting of depreciation

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Integrationwith the General Ledger /Post Depreciation to the General Ledger / SpecifyDocument Type for Depreciation posting

A Document type is assigned to the company code to enable depreciation postings to occur.While assigning the document type for each company code, there can be only one documenttype, document type must have indicator “Batch Input only” switched on and number rangeassigned to the document, must allow for external number assignment

Select (Transcn. code: AO71)

Co Code Company name Doc. Type Descrip tion

RIL Reliance Industries Ltd. AF Depreciation Postings RIL

Save ( Ctrl + S )

Back ( F3 )

Select ( Transaction code : OBA7 )

Select Document Type “ AF”. And click Details Button

Select Batch Input only in Special Usage menu.

Click Number Range Information Button

Number Range Object: Accounting DocumentCompany Code : RIL

No From number To number Ext

04 310310001 310919999

Save ( Ctrl + S )

Specify Document type for post ing of Depreciation

Define Document Types




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14. Specify intervals and post ing ru les

Rules must be defined as to how depreciation postings must occur. This is to be defined foreach Company Code and Depreciation Area.

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Integration

with the General Ledger /Post Depreciation to the General Ledger / SpecifyIntervals and Posting Rules ( Transaction code : OAYR )

Select RIL : Reliance Industries Ltd. and Double click on Posting Rules in Dialog Structure.


Company code Deprec. Area Period and method

RIL 01 Monthly posting

The settings done for depreciation area are depreciation must be posted on a monthly cyclebasis, depreciation postings may be assigned to cost centres, “smoothing” factor is notactivated; the effect of switching on this indicator is that if depreciation postings have notoccurred for past period/s for particular assets, the total depreciation planned for such assetsis averaged out over the balance useful life of the asset. If this indicator is not set, pastperiod depreciation is provided in toto in a later depreciation run

Valuation

15. Specify Rounding of Net Book Value and / or Depreciation

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Valuation / Amount Specifications ( Company Code / Depreciation Area ) / Specify Roundingof Net Book Value and / or Depreciation.( Transaction code : OAYO )

Select RIL : Reliance Industries Ltd. and Double click on Rounding Specifications inDialog Structure.


Select Automatically Calcu lated Depreciat ion and Round to nearest whole.

Save ( Ctrl + S )

16. Define Screen Layout for Asset Master Data

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Master Data /Screen Layout / Define Screen Layout for Asset Master Data.

Select

Select Screen Layouts of RIL and Double click on Logical Field Groups.

Select 02: Posting Information and Double Click on Field Group Rules.

In 10: Capitalization Date Select Required, select Main No., Sub No. and Copy.

Select 03: Time Dependent and Double Click on Field Group Rules.

In 15: Cost Centres Select Optional.

Save ( Ctrl + S )

Define Screen Layout for Asset Master Data




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17. Define Screen Layout for Asset Depreciation Areas

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Master Data /Screen Layout / Define Screen Layout for Asset Depreciation Areas. (TransactionCode : AO21 ).

Select 2000: Depreciation on asset Sub-No. Level and Double click Field Group Rules.

In 1: Depreciation Keys Select Required, Main No., Sub No. and Copy.

Save ( Ctrl + S )

Depreciation

1. Define Base Method

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Depreciation/Valuation Methods / Depreciation Key / Calculation Methods / Define BaseMethods.

Select 0014 : Ordinary Explicit Percentage (After end of Life) and Save (Ctrl + S).

2. Define Declining Balance Method

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Depreciation/Valuation Methods / Depreciation Key / Calculation Methods / Define Declining-Balance Methods. (Transaction Code : AFAMD)

Select 001 : 0.00x / 0.0000 % / 0.0000 % and Save (Ctrl + S).

3. Define Multi level Method

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Depreciation/Valuation Methods / Depreciation Key / Calculation Methods / Define Multilevel

Methods. (Transact ion Code : AFAMS)Make New Entries

AssetClass

Mul.lev.

Mthd

Descript ion Rates ofDepreciation

Period BaseValue

31011 11S SLM Buildings 01.63 % 12 01

31021 21S SLM Plant and Machinery 04.75 % 12 01

31031 31S SLM Furniture and Fixtures 06.33 % 12 01

31041 41S SLM Office and Other Equipment 04.75 % 12

01

31051 51S SLM Info. Technology Equipment 16.21 % 12

01

31061 61S SLM Vehicles 09.50 % 12 01

31011 11W WDV Buildings 05.00 % 12

2431021 21W WDV Plant and Machinery 13.91 % 12 24

31031 31W WDV Furniture and Fixtures 18.10 % 12 24

31041 41W WDV Office and Other Equipment 13.91 % 12 24

31051 51W WDV Info. Technology Equipment 40.00 % 12

24

31061 61W WDV Vehicles 25.89 % 12 24

31100 100 Below Rs. 5000 Assets 100.00 % 1 01

Save ( Ctrl + S )




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4. Maintain Period Contro l Method

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Depreciation/Valuation Methods / Depreciation Key / Calculation Methods / Maintain PeriodControl Methods. (Transact ion Code : AFAMP)

Double Click New Entries Button

Period Control Method Descript ion of Method Acq Add Ret Trn

006 01 / 06 / 06 / 06 01 06 06 06

Save ( Ctrl + S )

5. Maintain Depreciation Keys

Path: SPRO / SAP Reference IMG / Financial Accounting / Asset Accounting / Depreciation/Valuation Methods / Depreciation Key / Maintain Depreciation Key (TransactionCode : AFAMA)


Enter Dep Key and Description as given in Table below, Select Status as inactive. SelectPeriod Control according to Fiscal Years and Dep. To the day.

Double Click Assignment of Calcu lat ion Methods in Dialog Structure menu.


Select Dep Type as Ord. Depreciation.

Select Phase as From the start of Depreciation

Select Base Method as 0014 : Ordinary: Explicit Percentage (after end of life)

Select Decl.-bal Method as 001 : 0.00x / 0.0000 % / 0.0000 %

Select Prd Cont as 006 : 01 / 06 / 06 / 06

Select Multi lev. Meth. and Class as given in Table below

AssetClass

Mul.lev.

Mthd

Dep.Key

Description Class

31011 11S 11S SLM Buildings Straight Line Depreciation

31021 21S 21S SLM Plant and Machinery Straight Line Depreciation

31031 31S 31S SLM Furniture and Fixtures Straight Line Depreciation

31041 41S 41S SLM Office and Other Equipment Straight Line Depreciation

31051 51S 51S SLM Info. Technology Equipment Straight Line Depreciation

31061 61S 61S SLM Vehicles Straight Line Depreciation

31011 11W 11W WDV Buildings Declining Balance Depreciation

31021 21W 21W WDV Plant and Machinery Declining Balance Depreciation

31031 31W 31W WDV Furniture and Fixtures Declining Balance Depreciation

31041 41W 41W WDV Office and Other Equipment Declining Balance Depreciation

31051 51W 51W WDV Info. Technology Equipment Declining Balance Depreciation

31061 61W 61W WDV Vehicles Declining Balance Depreciation

31100 100 100 Below Rs. 5000 Assets Straight Line Depreciation

Press Back 3 times. You will reach the first Screen of Depreciation Key Select all yourCompany Keys and press Activate button.

Save ( Ctrl + S ), (If you get an error, just ignore)




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Asset Accounting

1. Creation of Main Asset Master.

Path: Accounting / Financial Accounting / Fixed Assets / Asset / Create / Asset(Transact ion Code : AS01)

Enter Asset Class as 31051 : Information Technology Equipment

Press Enter Key

In General Tab; Enter Description as Computer P4 3.0 Ghz with Moni tor and Speakers,Enter Main No. Text as Computer, Enter Quantity as 1 and unit as pc and EnterCapitalization Date.

In Time-Dependent Tab, Enter Business Area

In Origin Tab, Enter Vendor, and select Asset Purch. New.

In Net Worth Tax Tab; Enter Value.In Dep. Area Tab; Enter Dep Key, Useful Life, Period and Start Depreciation

Save (Ctrl + S) and note down the Main Asset No.

2. Creation of Sub Asset Master.

Path: Accounting / Financial Accounting / Fixed Assets / Asset / Create / Sub-Number /fffff Asset (Transact ion Code : AS11)

Goto Asset Menu and select Create

Enter Main Asset No.

Go to Main Menu / Asset / Create sub number

Press Enter Key

Enter Description and other particulars

Save ( Ctrl + S )

3. Posting of Main Asset.

Path: Accounting / Financial Accounting / Fixed Assets / Posting / Acquisition / External Acquisition / With Vendor (Transact ion Code : F-90)

Enter Document Date, Posting Key as 31, Vendor and press Enter key

Enter Amount, Bus. Area, Text, Posting Key as 70, Asset No. and Trans.Type as 100

Press Enter Key

Simulate and Post.

4. Posting of Sub-Number Asset.

Path: Accounting / Financial Accounting / Fixed Assets / Posting / Acquisition / External Acquisition / With Vendor (Transact ion Code : F-90)

Enter Document Date, Posting Key as 31, Vendor and press Enter key

Enter Amount, Bus. Area, Text, Posting Key as 70, Sub Asset No. and Trans.Type as 100

Press Enter Key

Simulate and Post.




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5. Sub-Asset wise, Year-wise Values

Path: Accounting / Financial Accounting / Fixed Assets / Asset / Asset Explorer(Transact ion Code : AW01N)

Enter Asset No.Select Comparison Tab

6. View all Assets for a particular period.

Path: Accounting / Financial Accounting / Fixed Assets / Information System / Reports on Asset Accounting / Asset Balances / Balance Lists / Asset Balances / By AssetNumber ( Transaction Code : S_ALR_87011963 )

7. Posting of Depreciation.

Path: Accounting / Financial Accounting / Fixed Assets / Periodic Processing / DepreciationRun / Execute ( Transaction Code : AFAB )

Enter Company Code, Fiscal Year and Period.

Select Planned Posting Run if depreciation to be run at end of the year or Select Unplannedposting run.

Select List Assets and Test run to check depreciation before actual posting.

Execute / F8

If above 1000 assets available then run Execute in Background / F9Give details of execution i.e., if you want to execute it at a later time or immediately.

To see if the job is executedPath : System / Services / Jobs / Jobs Overview ( Transacti on code : SMX )

Execute / F8

If the job is finished, To see the display.Path : System / Own Spool Requests ( Transact ion code : SP02 )

Select the Job and press F6

Asset Sale / Transfer / Retirement / Scrapping

1. Asset Sale

Path: Accounting / Financial Accounting / Fixed Assets / Posting / Retirement /RetirementW-Revenue / With Customer (Transact ion Code : F-92)

Customer A/c Dr. PKey 01Sale of Asset A/c Cr. PKey 50EnterTick Asset RetirementEnterEnter Asset Number and Sub asset No,Enter Transaction Type as 210 and Asset Value DateTick Complete RetirementEnter, Simulate and Post




2. Asset Transfer

Path: Accounting / Financial Accounting / Fixed Assets / Posting / Transfer / Transferwithin Company Code (Transaction Code : ABUMN)

Enter Document Date, Posting Date and Asst Value Date

Select New Asset and enter Asset Particulars in Master Data also

Press Back Key

Simulate and Save

3. Scrapping of Asset

Path: Accounting / Financial Accounting / Fixed Assets / Posting / Retirement / Assetretirement by Scrapping (Transaction Code : ABAVN)

Enter Document Date, Posting Date and Asst Value Date

Enter Asset No and Text

Simulate and Save

Asset Accounting Primer

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