Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key...

13
Asset Accounting SAP Best Practices

Transcript of Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key...

Page 1: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

Asset Accounting

SAP Best Practices

Page 2: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In Financial

Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

Benefits Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through

its retirement. Calculate values for depreciation and interest Depreciation forecast

Key Process Steps Acquisition from purchase with vendor Acquisition with Automatic Offsetting Entry Retirement with revenue Asset Sale without customer Post-Capitalization Write-Ups Settlement Assets Under Construction Down Payment Request for Assets under Construction Depreciation Posting Run Posting Acquisition and Production Costs Values Depreciation Simulation/Primary Cost Planning Israel localization

Page 3: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 3

Required SAP Applications and Company Roles

Required SAP Applications SAP enhancement package 5 for SAP ERP 6.0

Company Roles Assets Accountant Accounts Payable Accountant Finance Manager

Page 4: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 4

Detailed Process Description

Acquisition from purchase with vendor An external asset acquisition is a business transaction resulting from the acquisition of an

asset from a business partner. The acquisition can post integrated with Accounts payable or without Accounts payable.

Acquisition with Automatic Offsetting Entry The asset can be posted automatically against the Clearing account fixed asset acquisition.

Retirement with revenue An asset is sold, resulting in revenue. The sale is posted with a customer. An asset is sold, resulting in revenue. The sale is posted against a clearing account. An asset had to be scrapped, with no revenue.

Asset Sale without customer Asset Sale with partial retirement without customer

Page 5: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 5

Detailed Process Description

Post-Capitalization Post-capitalization represents subsequent corrections to the acquisition and production

costs (APC) of a fixed asset.

Write-Ups A write-up is generally understood to be a subsequent change to the valuation of an asset.

Settlement Assets Under Construction Assets under construction (AuC) are a special form of tangible asset. Assets under construction can be managed for summary settlement or by line item.

Down Payment Request for Assets under Construction Down payments for assets under construction are fixed asset acquisitions that have to be

capitalized and reported as a separate item on the balance sheet.

Page 6: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 6

Detailed Process Description

Depreciation Posting Run The depreciation posting should be run periodically because the depreciation accounts are not

updated immediately. The system creates posting documents for each depreciation area and account group in

accordance with the posting cycles specified in Customizing

Posting Acquisition and Production Costs Values In addition to the posting of depreciation (using the depreciation posting run), the most

important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on.

Depreciation Simulation/Primary Cost Planning You can also post the planned depreciation as planned costs to the cost centers or internal

orders to which the individual fixed assets are assigned.

Israel Localization You can run adjustment (inflation effect) program to calculate TAX figures according to Israel

accounting regulation. Various reports available for you to show the results. These reports comply with Israel accounting regulation.

Page 7: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 7

Process Flow DiagramAsset Accounting - Overview

As

se

t A

cc

ou

nta

nt

Ev

en

t

Asset Explorer

Asset Master Data Needs

to Be Created

Fin

an

ce

M

an

ag

er

Asset Acquisition

Retirements

Intercompany Transfer

Post - Capitalization

Write-up

Transfer of Reserves

Unplanned Depreciation

Assets under Construction

Periodic Processing

Information System

Check Consistency

Page 8: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 8

Process Flow DiagramAsset Accounting – Asset Acquisition

As

se

t A

cc

ou

nta

nt

Ev

en

t

Acquisition with

Accounts Payables

Acquisition with Automatic

Offsetting Entry

Asset Acquired

Acquisition Integrated with

Accounts Payable Accounting

162 Overview

Yes

No

Page 9: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 9

Process Flow DiagramAsset Accounting – Retirements

As

se

t A

cc

ou

nta

nt

Ev

en

t

Retirement with

Revenue Expected

Retirement Due to Scrapping

Asset to Be Retired

Retirement with Revenue and

Customer

162 Overview

No

Retirement with

Customer

Retirement with Revenue without

CustomerNo

Yes

Yes

Page 10: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 10

Process Flow DiagramAsset Accounting – Asset under Construction

As

se

t A

cc

ou

nta

nt

Ev

en

t

Capitalize Asset under Construction

Captial Asset Needs to Be Constructed

without Investment Order

162 Overview

Ac

co

un

ts P

ay

ab

le

Post Down Payment Request

Post Down Payment

Down Payment Approved

Post Closing Invoice

Clear Down Payment

Page 11: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 11

Process Flow DiagramAsset Accounting – Periodic Processing

As

se

t A

cc

ou

nta

nt

Ev

en

t Periodic End

Closing

Recalculate Values

162 Overview

Open and Close

Financial Period Asset

Depreciation Posting Run

Post Acquisition and Production

Cost Value

List of Individual

Postings for Assets

Depreciation Simulation and Primary Cost

Planning

Year End

Fiscal Year Change for

Asset

Account Reconciliation

Year End Closing for

fixed Assets

Asset under

Construction

Settlement(164)

Yes

No

Depreciation Run

RevaluationRun

Adjustment Run

Period Save Run

Update Index Value

Page 12: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 12

Legend

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Budget Planning: Indicates a budget planning document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

Ext

erna

l to

SA

P

Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version /

Data

System Pass/Fail Decision

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.

Corresponds to a task step in the document

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

<F

unct

ion>

Page 13: Asset Accounting SAP Best Practices. ©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps Purpose  The Asset Accounting (FI-AA)

© 2011 SAP AG. All rights reserved. 13

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

© 2011 SAP AG. All rights reserved

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.