FI - Financial AccountingFI - Financial Accounting

Asset Accounting Asset Accounting

AC305AC305

Asset AccountingAsset Accounting

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Chart of Accounts - Chart of Depreciation

ClientClient

Country A

:

Chart of deprec.Chart of deprec.

Book deprec.Book deprec.

Tax deprec.Tax deprec.

Cost-acc. dep.Cost-acc. dep.

Group deprec.Group deprec.

Chart of accounts

Company code Company code Company code Company code1000 2000 3000 - - - -

Chrt of acts. INT Chrt of acts. INT Chrt of acts. CAUS Chrt of acts. XXXChart of deprec. Chart of deprec. Chart of deprec. Chart of deprec.1DE 1GB 1US 1XX

You can create a number of charts of accounts for Financial Accounting and a number ofdepreciation areas for Asset Accounting in the system.

General ledger accounts are defined on the level of the chart of accounts.

You define the necessary depreciation areas in the chart of depreciation. You can define aseparate depreciation area for each type of valuation.

You will usually want to create one chart of depreciation for each country. It makes sense forall the company codes in a country or in a business/industrial sector to used the same chart ofdepreciation.

Each company code uses exactly one chart of accounts and one chart of depreciation.

Several (all) company codes can work with one chart of accounts and one chart of depreciation.

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Asset Accounting Company Code

Chart ofaccounts

Chart ofChart ofdepreciationdepreciation

Financial AccountingCompany Code

+

Data for Asset Accounting

Asset AccountingAsset AccountingCompany CodeCompany Code

==

You have to set up company codes in Financial Accounting first.

Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting.

You can use the company code for Asset Accounting only after making these modifications.

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Cost Accounting Assignment

Controllingarea1000

Company code1000

Company code1001

Cost center

Act. Plan

Asset - Forklift

Cost center

Order

VehiclesVehicles

Book deprec.

Tax deprec.

C-acc. deprec.

Order

VehiclesVehicles

Act. Plan

DepreciationDepreciation

InterestInterest

ClientClient

You can assign an asset to the following Controlling objects:

cost center

activity type

order

maintenance order

When you assign an asset to a cost center, the system automatically assigns it to a controllingarea.

A controlling area can include one or more company codes.

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Client - Asset Class

Astor House 1

Vehicle 4711

Computer 11

Printer 6C Fixtures and Fittings

VehiclesVehicles

BuildingsBuildings

Asset Classes

Book deprec.

Chart of deprec.Chart of deprec.1DE1DE

Tax deprec.

Cost-acc.dep.

Book deprec.

Chart of deprec.Chart of deprec.1US1US

Tax deprec.

Group

Book deprec.

Chart of deprec.Chart of deprec.1XX1XX

Asset Class Fixtures and fittings

Control dataDefault values

Assets

You create each asset in an asset class.

Asset classes consist of a master data section and a section for determining values.

The master data section must be assigned to at least one chart of depreciation. This assignmentenables you to complete the asset class with the data for determining values.

You can suppress individual depreciation areas in each asset class, for example investmentsupport areas which are only applicable to certain classes.

For each depreciation area, the depreciation terms for the assets can either be proposed by thesystem with the option of changing, or they can be mandatory.

Several charts of depreciation can also be assigned to an asset class. This ensures that the assetclass catalog is uniform despite using different depreciation areas.

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Functions of the Asset Class

Asset class

Account Account allocationallocation

ScreenScreenlayoutlayout

Number Number assignmentassignment

Special Special featuresfeatures

Default Default valuesvalues

SelectionSelectionfeaturesfeatures

Assets LiabilitiesAsset portfolio

Real estate

Machinery

Financ. assets

Fixtures+fit.. . .

. . .

. . .

Bal. sheet items Bal. sheet items Acct. determinationAcct. determinationAsset classAsset class

Assets

LatheLathe0220000002200000

CreateCreateassetasset

DrillDrillpresspress

0211500002115000

1

The asset class contains default values and control elements which are passed on to theindividual assets when you open a new asset master record.

By entering useful default values, you reduce time and effort needed for creating new assetmaster records. You also ensure that the records in a given class are handled uniformly.

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Number AssignmentCompany code - number assignment

Company code

1000

1000 1001

2000 3000

2000 3000

4711 4711 4711

4712 4712 4712

4713 4713 4713

4714 - - - - - -

4715

4716

- - - - - -

Assetnumbers

You enter the number range in the asset class. The number range controls the assignment ofasset numbers, and is defined either as internal or external.. Internal numbers are automaticallyassigned by the system, external numbers are assigned by the user.

You can assign a company code its own number ranges, or link it to those of other companycodes.

You enter the company code for number assignment in the Asset Accounting company code (fornumber assignment across company codes).

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1515

Transaction type groups

Special Asset Class: Assets under Construction

Class: Assets u. const.

ExtrasExtras

AuC status AuC status

Down paymentDown payment

1616 Down payment carried forward Down payment carried forward from previous yearsfrom previous years

nn AuC managed as totalAuC managed as totalnn line item settlementline item settlementnn capital investment measurecapital investment measure

depreciationdepreciationareasareas

deprec.deprec.keykey

Book dep.Book dep. 00000000Tax dep.Tax dep. 00000000Cost-acc.Cost-acc. LINALINA

negative values allowednegative values allowed

depreciation is not calculated indepreciation is not calculated indepreciation areas intended for thedepreciation areas intended for thebalance sheetbalance sheet

Assets under construction require their own asset class.

Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the assetunder construction in depreciation areas that are posted to the balance sheet (in accordance withthe legal requirements in most countries). However, special tax depreciation and investmentsupport are possible even on uncompleted assets.

Assets under construction have to be shown separately in the balance sheet.

It is possible to post down payments on assets under construction if you enter transaction typegroup 15.

You can enter credit memos on the asset under construction after its complete capitalization, ifyou allow negative acquisition and production costs (APC).

The component IM (Investment Management) is available for managing more extensive assetinvestments from a controlling-oriented perspective.

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Asset class - Depreciation area

Low value assets - Individual checkExactly 1 asset per master record

Low value assets - Quantity checkAny number of assets per master record

When posting: Check againstthe allowed maximum amount

or

Special Asset Class: Low Value Assets

You can choose whether to manage low value assets (LVAs) using individual management orcollective management.

For each type of management, you have to set up a separate asset class.

If you choose collective management of LVAs, you have to enter a base unit of quantity in theasset class.

You request the maximum amount check in the depreciation area in the asset class. You enterthe maximum allowed amount in the IMG under “Activities” at the level of the company code.

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Creating the Asset Master Record

using a referenceusing asset class

taking over the defaultvalues from the asset class

'copying' anexisting asset

CreateCreate asset asset

When you create the asset master record, you have two options:

You can use the asset class, to which the asset will belong, to provide default values. Theasset class then supplies the most important control parameters in the asset master record.

Or you can use an existing asset as a reference for creating the new asset master record.(Possibly the reference asset has default values that are more suitable than those in the assetclass.)

Enter additional information, such as an asset text.

When you save, you receive an asset number (if the asset class is assigned to a number rangethat uses internal number assignment).

This asset number is also the account number of the individual asset account.

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Time-dependent Data

ASSET MASTER RECORD

- Time-dependent data -

Enter period under considerationEnter period under consideration

Valid fromValid from MMDDYYYYMMDDYYYY

Valid to Valid to MMDDYYYYMMDDYYYY

Cost center A from 01/12/YY to 08/27/YYCost center B from 08/28/YY to 11/30/YYCost center C from 12/01/YY to 03/14/YY

. . . . .

. . . . .

. . . . .

New Interval

01

Some information in the asset master record can be managed as time-dependent data. This is ofparticular significance for cost accounting assignments (for example, cost center, order,project). Shift operation and asset shutdown, both of which can have a direct effect ondepreciation, should also be recorded on a monthly basis as part of this time-dependent data.

The history of time-dependent assignments is stored in the system over the entire life of anasset.

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Changing Assets

Document for this field changeDocument numberDate of changeName of user who made changeFields changedOld and new contents of field

Change asset

List of fields thatwere changed

Field 1Field 2Field 3

List of changes per field

Change 1Change 2Change 3

All for

document

2 x

on asseton asset on fieldon field

Change documents for assetChange documents for asset

Display asset

EnvironmentEnvironment

complete changedocument withall fields

Document for this changeDOCUMENT NO:DATE:CHANGED BY:OLD/NEW FIELD CONTENTS

Asset

Cost center X

2 x

Each time you change an asset master record, the system creates a change document, whichcontains all necessary information.

When a large number of assets are affected by a change, you can make a bulk change. Usingthis procedure, you can carry out freely-definable master data changes, mostly automatically.(An example is the change of assignment to a cost center when the cost center plan has beenchanged.)

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The Asset Sub-number

Asset number 4711

Production plant Synthetic material

Sub-number 2000

De-aeratorReactor

Sub-number1000

Extruder

Sub-number 3000

Pipe

Sub-number 9000

If an asset consists of several components, it might be advisable to manage the individualcomponents separately as sub-number master records. This might be useful for both technicaland accounting reasons. You might divide up assets by sub-number, if :

you want to manage the values for subsequent acquisitions in following years (for examplebuildings) separately,

you want to manage the values for individual parts of assets separately,

you want to divide the asset according to various technical aspects.

You can work directly with a specific sub-number, all sub-numbers belonging to an asset, or aselection from a list display of sub-numbers. You can also evaluate accumulated depreciationand the book values for previous fiscal years separately for the individual asset components.

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Asset Accounting as Subsidiary Ledger

AssetAsset

MaterialMaterial CustomerCustomer

Machine pressMachine press

10001000

VendorVendor

1000

G/L AccountsG/L Accounts

General Ledger

Fixed assetsVendor

Payables

1000 1000

Along with the integration of accounting and logistics functions, the integration of the subsidiaryledgers with the general ledger is also extremely important. Every transaction in customer andvendor accounts in Accounts Payable and Accounts Receivable, and in the asset accounts has adirect affect on the corresponding accounts of the general ledger. The subsidiary ledgers arereconciled with the general ledger in this way.

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Asset Acquisition - Integration

FIFI

MMMM

COCO

AssetAsset

Transactions

Acquisitions

Retirements

Goods receiptdocument

Settlement oforder/project

Depreciation areasPostingdocument

2000.-...

...2000

...1800

...2100

Book Tax C-acc . . .

line items

The acquisition posting can be created in the department that is primarily responsible for thetransaction.

“Acquisition from vendor” is when an asset is obtained from a business partner (as opposedto “Acquisition from in-house production). This acquisition of an asset from a third partycan be posted in different ways, and in different organizational units (R/3 components):

in Asset Accounting (FI-AA), without reference to a purchase order, but integrated withAccounts Payable

in Asset Accounting, without reference to a purchase order, and without integration withAccounts Payable (posting to a clearing account - with/without clearing)

in Materials Management (MM), with reference to a purchase order, at goods receipt orinvoice receipt

“Acquisition from in-house production”" is the capitalization of goods or services that arepartially or completely produced in your own enterprise. For these in-house produced goods(such as replacement parts) or services (such as maintenance measures), you have tocapitalize costs to assets that were also produced in your enterprise. Generally, you carry outthe capitalization of production costs or maintenance by settling an order to an asset. Formore information, see the documentation for the R/3 System CO-OPA (Order ProjectAccounting - R/3 library). If there is no order, you can also manually post production ormaintenance costs to an asset.

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Procedure for Integrated Asset AcquisitionIntegrated- posted to vendor

Doc. date Doc. type Company codePosting date

PK 70 Account Asset Trans. type 100

Amount Tax amountTax indicatorAsset value date

PK 31 Account Vendor

AmountTax indicator

Post

Vendor lineVendor line

Posting:Posting:

Asset lineAsset line

You can post to the asset and to the vendor in one document in Asset Accounting, using themenu path Postings Acquisition External acquisition with vendor in the AssetAccounting menu.

You can freely determine the sequence of the posting lines.

The posting “debit asset, credit vendor” is often made in Accounts Payable. This posting thenfills the requirements of both Financial Accounting and Asset Accounting at the same time.

When you are using both the FI-AA System and the MM (Material Management) System, youcan also post an asset acquisition within the framework of purchasing (see the SystemAdministration Guide ). Unlike most other accounting transactions, this involves workingthrough a series of steps to be performed at different times:

(1). creation of a purchase requisition

(2). creation of the purchase order

(3). There are a number of different possibilities for the next step:

The goods receipt takes place before the invoice receipt and the values are not yet posted toAsset Accounting. The line items are created and the values are updated instead at the timeof the invoice receipt. However, the system uses the date of the goods receipt as thecapitalization date.

The goods receipt takes place before the invoice receipt and the values are posted directly toAsset Accounting. The asset is capitalized, line items are created, and the value fields in theasset are updated. When the invoice is received later, there may be differences between theinvoice amount and the amount posted at the time of the goods receipt. In this case, thecorresponding adjustment postings are made to the asset.

The invoice receipt takes place before the goods receipt. The asset is capitalized, line itemsare created and the value fields are updated.

The account assignment type (A=asset) determines whether the goods receipt is posteddirectly to Asset Accounting or not. For business accounting purposes, it makes sense topost the goods receipt directly to Asset Accounting, since this date is usually date thatdetermines when the asset belongs to the enterprise.

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Asset Acquisition with MM

G/LRe-leaseAP PaymentG/L

Purchaseorderrequest

Purchase order

Goodsreceipt

LogisticsLogistics

FinancialFinancial Accounting Accounting

ControllingControlling

Invoice receipt(preliminary

entry)

AssetAssetAccountingAccounting

Asset master recordvaluated

or unvaluated

Capitalization of asset

ActualPreliminaryactual

POcommitmentCost centeror order

Purchase orderrequests Costcenter or order

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Asset Acquisition - Value FieldsDepreciation calculation

Depreciation Depreciationarea key

01 LINR : (str.-line, half yr. rule) :20 LINA

(str.-line, pro rata)

Value fieldsValue fields

Useful life = 10 yearsannual dep. = 1000

Depreciation area Dep. start Planned dep. 01 07/01/CY 20 09/01/CY

Asset value date:09/01/CY

DocumentDocument

Master RecordMaster Record

Dep. start

07/01/CY

09/01/CY

500 333

CY = Current year

The system uses the asset value date of the initial acquisition posting to determine thedepreciation start date of the asset. This determination takes place using the control of thedepreciation start in the depreciation key of the asset. The system enters this start date in theasset master record.

The system determines the planned annual depreciation and the planned interest.

When further transactions are posted to the master record, these values are corrected acordingly.

Caution: The posting date and the asset value date always have to be in the same fiscal year!

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Procedure for Asset Retirement

Example of partialExample of partialretirement :retirement :

Integration with FI

Posting:Posting:

Document date 07/01/YYYYPosting date 07/01/YYYY

PK 01 Account: Customer

Amount 3300Calc. tax Tax indicator

PK 50 Account:Revenue from asset retmt.

Amount * Tax indicator

Asset retirement

Customer lineCustomer line

Revenue lineRevenue line

- Acquis. date 01/01/YYYY- 2, APC 10000- Retmt. of 50% of APC on 07/01/YYYY- Revenue 3000 + 300 sales tax

Asset............... ASSET NO.

Sub-number...

Transaction type.. 210

Ast value date... 07/01/YYYY

Max. amount........

Quantity...............

Percentage rate...... 50

Select the field “asset retirement” in the revenue account. You reach a window, in which youcan enter

the number of the asset

the retirement transaction type

the asset value date

the portion of historical APC being retired, or the indicator for complete retirement.

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Accounts for Asset Retirement

A/R postingA/R posting

CustomerCustomer

33003300

RetirementRetirementrevenuerevenue

30003000

TaxTax

300300

Assets postingAssets posting

AssetAsset

100001000012501250

Clearing ofClearing ofretirementretirement

30003000

LossLoss

750750500050001

3

2

1

2

3

Example for partialExample for partialretirement:retirement: - Acquis. date 01/01/YYYY - 2, APC = 10000

- Retirement of 50% of APC on 07/01/YYYY- Revenue 3000 + 300 sales tax

APCamount retiredproportional valueadjustment

In Asset Accounting, you can post a retirement with the function Postings Retirement

Asset sale No customer for entering asset transactions. The accountant responsible foraccounts receivable must then carry out the revenue posting, if necessary.

Both these procedures can also be performed in one function, that is with one document. Thisinvolves three steps:

Create the invoice lines in the customer open line item account.

Post the invoice to the customer open line item account.

Post the APC being retired to the asset.

The system automatically posts the proportional accumulated depreciation of the asset and thegain or loss from the sale.

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Asset Transfer

Asset XXXX

Posting date MMDDYYYY

Transaction type Asset ZZZZ

Asset value date MMDDYYYY

Complete transfer

Posted amount ....

Percentage rate

transfer totransfer to

Business area 1000

Business area 2000

automatic determination automatic determination and posting of proportionaland posting of proportionalvalue adjustmentsvalue adjustments !

300

Asset Accounting distinguishes between the following types of transfer, depending on thecircumstances:

Stock material (current assets) is transferred to a fixed asset, for example, the installation of areplacement part (see online documentation for a detailed explanation of the procedure).

An asset under construction is settled and transferred to a completed asset.

You transfer an asset within a corporate group to a different company code. This procedureis described in the section for asset transfer (see online documentation for a detailedexplanation).

You want to split up an asset or install part of an asset in another asset (transfer from asset toasset). (See ‘change of location’ below for an explanation of the procedure.)

The asset has changed location. As a result, you have to change organizational allocations(such as, asset class, business area) in the master record that cannot otherwise be changed.

Enter a transfer transaction type. In the screen that follows, enter the asset to which youwant to make the transfer, and the amount of APC that is being transferred.

The system automatically determines the proportional value adjustments, as it does forretirements.

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Asset 3Asset 3

Asset 2Asset 2

Asset 1Asset 1

Gen. masterdata

Depreciationareas

Acquis. Retmt. Transfers

Asset underAsset underconstructionconstruction

AcquisitionsAcquisitions

Investment Investment support measuressupport measures

Down paymentsDown payments

SpecialSpecialdepreciationdepreciation

Depreciation areasDepreciation areas

Assets under Construction

Asset historysheet

Completed assets

A.u.C.Buildings

General master dataGeneral master data

Automatic handling of specialdepreciation and investment support!

Assets you produce yourself have two phases that are relevant to Asset Accounting:

the under construction phase

the useful life.

Generally, the assets have to be shown in two different balance sheet items during these twophases. Therefore, they have to be managed using a different object or asset master recordduring the under-construction phase than for the completed asset. The transfer from the under-construction phase to completed asset is referred to here as “capitalization of the asset underconstruction.” You can manage assets under construction in the FI-AA System in two ways(depending on the functions you need):

as a 'normal' asset master record

as an asset master record with line item management.

The capitalization of the asset under construction is basically the transfer to a completed asset.This transfer is handled differently in the two instances.

When you capitalize the asset under construction, the system automatically separates thetransactions from the previous year from the transactions from the current year:TTY 340 - Acquisitions from previous years transferred from asset under constructionTTY 341 - Acquisitions from previous years transferred to completed assetTTY 345 - Acquisitions from current year transferred from asset under constructionTTY 346 - Acquisitions from current year transferred to completed asset

If you have more extensive capital investment measures, we recommend using the R/3 IM(Investment Management) System. Using this system, you can represent capital investmentssimultaneously as assets under construction (for accounting purposes) and internal orders orprojects (for controlling purposes). For more information, see the documentation for the IM(Investment Management) System.

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Line Item Settlement of Asset under Construction

Asset u. Const.Asset u. Const.

Invoice Invoice Engineers, Inc.Engineers, Inc.

steel girderssteel girders

excavationexcavation

InvoiceInvoiceConstructo, Constructo, Inc.Inc.

beamsbeams

constructionconstruction

InvoiceInvoiceElectro, Ltd.Electro, Ltd.

copper cablecopper cable

Installation Installation

11

22

33

100%100%

70%70%

20%20%

10%10%

10%10%

80%80%

Office building Office building

Heating systemHeating system

Lighting Lighting

Cost CenterCost Center

SupplierWithdraw fromstockInternal activityOrder

ASSETS

EX-PENSE

When performing a line item settlement of an asset under construction to one or more completedassets, you should proceed as follows:

1. Select all line items which you want to settle in the same proportion to the same receiver.

2. Define the distribution rule for these line items.

3. Post the settlement of line items in the desired manner to the specified receivers.

Please note that this posting procedure settles all line items to which a posting rule is allocated.

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Areas

Depreciationkey

Proposeduseful life

Minimumuseful life

Maximumuseful life

Book dep.Book dep.

10/0010/00

__

__

DG30DG30

decl-bal.decl-bal.3 X3 X

Tax dep.Tax dep.

10/0010/00

__

__

SNFGSNFG

invest.invest. support support

GroupGroup

8/008/00

__

__

LINRLINR

str.-linestr.-line

Book dep. Book dep.

12/0012/00

__

LINBLINB

str.-line str.-line

Group Group

8/008/00

__

__

LINRLINR

str.-line str.-line

ACRSACRS

. . . .. . . .

__

__

. . . .. . . .

. . . .. . . .

. . . .. . . .

8/008/00

. . . . . .

Class

Chart of depreciation

MachinesMachines

USAUSAGermanyGermany

Asset Classes in the Chart of Depreciation

1

You can define any number of asset classes in Customizing. You use the asset classes tocategorize assets according to the needs of your enterprise. The asset classes are valid acrosscompany codes. The catalog of asset classes, therefore, applies uniformly to all company codes.This is true, even if the company codes use different charts of depreciation, and thereforedifferent depreciation areas.

You can assign different charts of depreciation to an asset class, so that all assets in this classwill be treated differently in each country.

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Depreciation Area XX in the Asset or Asset Class

Depreciation keyDepreciation key

Useful lifeUseful life

Ord. deprec. startOrd. deprec. start

Changeover yearChangeover year

IndexIndex

Variable dep. amountVariable dep. amount

Scrap valueScrap value

What kind of depreciation?What kind of depreciation?

For how long? For how long?

When does the useful life begin?When does the useful life begin?

When do you want to change from When do you want to change from declining balance to straight-line declining balance to straight-line depreciation?depreciation? Do you want to calculate annually Do you want to calculate annually increasing replacement values?increasing replacement values?

How much depreciation should be How much depreciation should be weighted by the shift factor when you weighted by the shift factor when you use shifts?use shifts?

Do want to end depreciation whenDo want to end depreciation whenthis scrap value is reached?this scrap value is reached?

01

Years

You have to enter depreciation keys in the different depreciation areas. The depreciation keycontains all the control amounts for the calculation of planned annual depreciation. You canenter a depreciation key in the asset master record in each depreciation area.

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Depreciation Key

Depreciation Depreciationarea key

01 LINR : (straight-line, 1st yr.conv.) :20 LINA

(straight-line, pro rata)

Master recordMaster record

Internal Calculation KeyInternal Calculation Key Ordinary depreciation Ordinary depreciation Special depreciation Special depreciation Interest Interest Cut-off value key Cut-off value key

controls controls

- depreciation type- depreciation type- class- class- method- method- base value- base value- declining balance deprec.- declining balance deprec.- changeover- changeover- period control- period control

You can manage different types of depreciation in parallel in one depreciation area.

You specify the automatic calculation of the different types of depreciation using depreciationkeys and the internal calculation key.

You define the required depreciation keys per chart of depreciation.

In the depreciation key , you can enter a separate calculation key for ordinary depreciation,special tax depreciation and for the calculation of interest.

In addition, you can enter a cut-off value key for the calculation of a scrap value, if this isneeded.

The internal calculation keys specify the actual method of calculation.

They control the

depreciation type

method

base value

percentage rate

period control

changeover

calculation after end of useful life

treatment of shutdowns

validity of calculation key

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Elements of Depreciation Calculation

l D Percentagerate from usefullife

l G Fullpercentage inconcessionperiod

l P Explicitpercentage rate

l M Mean valuefrom severalareas

l S Unit of prod./ Total numberof units

l . . .

l Acquisitionvalue

l Half ofacquisitionvalue

l Replacementvalue

l Net book value

l . . .

l Pro rata per startof period

l Pro rata to mid-period per start ofperiod

l Pro rata per mid-period

l First yearconvention of ahalf year

l Per start of fiscalyear

l Per mid-year

l Per year-end(= start in nextyear)

l Per mid-quarter

l Ordinarydepreciation

l Special taxdepreciation

l Interest

MethodsMethods BaseBasevaluevalue

PeriodPeriodcontrolcontrol

DepreciationDepreciation type type

Decl.-balanceDecl.-balancedepreciationdepreciation

l Multiplicationfactor

l Maximumpercentage rate

l Minimumpercentage rate

ChangeoverChangeover

l Changeovermethod

l Changeoverdepreciation key

l Net book valuefor initiatingdepreciationchangeover

l Straight-linedepreciation

l Decl.-balancedepreciation

l Otherdepreciation

l No assignment

ClassClass

Every transaction on an asset master record automatically results in a depreciation amount beingcalculated. This amount is calculated according to the depreciation key in the asset master, andis displayed in the value fields of the asset. The most important influences on the calculation ofdepreciation are:

the value date of the document: it controls, in conjunction with with the depreciation key, thedetermination of the period. It is used to set the depreciation start date in the asset.

the depreciation key

the transaction type

The depreciation calculation method is the most important feature of the internal calculationkey. It is used to carry out the different types of depreciation calculation in the system. Itdetermines which other settings of the calculation key are required entries and which are not.

The base value is closely related to the selection of the depreciation method. Since manydepreciation methods cannot be used with all base values, the depreciation method oftendetermines the base value.

The period control determines the start and end date for depreciation. You can specify a periodcontrol for each of the four transaction types (acquisitions, subsequent acquisitions/post-capitalization, transfers, retirements). In this way, you can set the start of depreciation at thebeginning of the year for all acquisitions in a year, and the end of depreciation for retirementseither at the first or last day of a period, for example. The system uses the value date of thetransaction (acquisition or retirement) as a basis, and then determines the start or end ofdepreciation by means of the period control.

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Cost center Order

ACTUAL PLAN

Posting asset values

Investmentsupport

Periodic Processing - OverviewPeriodic Processing - Overview

Index figuresYear Index fig.yyyy 100.000yyyy+1 105.125yyyy+2 109.857

COCO

Revaluation

Depreciationposting run

Primary costplanning

Depreciation area XY: ExampleDepreciation area XY: Exampleàà periodic posting of asset valuesperiodic posting of asset values

Asset balanceAsset balance Account Account

10000 10000

31Fiscal year change

31 Fiscal year change

Year-end closing

Fiscal Year change/Year-end closing

Settings

. . .

PeriodicPeriodicprocessingprocessing

Periodic processing comprises those tasks in Asset Accounting which must be performed atperiodic intervals. Also included are tasks to be performed as part of the special valuation offixed assets (for example, calculating replacement values).

Replacement values and insurable values are updated in the system with the help of indexseries. You need to define the characteristics of the index series in Asset AccountingCustomizing. The specification of current index figures is a regular Asset Accounting task.

Investment support is a subsidy which a company has received for certain asset investments.Assets which are eligible for such a subsidy are marked in the asset master records with aninvestment support key (for further information, see the System Administration Guide). Allspecifications for claiming the investment support are stored in the definition of this key. Youcan post the claim manually or in a mass procedure.

At present only the values of one depreciation area can be automatically posted online inFinancial Accounting: Therefore, the changes to asset values (transactions) from other areaswith automatic posting have to be posted periodically to the appropriate reconciliationaccounts. In the case of derived depreciation areas which do not record acquisition andproduction costs, the program posts proportional value adjustments due to retirements,transfers, post-capitalization and so on.

If you want to plan primary costs on a cost center basis, you can periodically determineplanned depreciation and interest and pass these on to primary cost planning in the CO systemvia a report.

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Depreciation Posting Program

Ordinarydepreciation

Specialdepreciation

Periodicrevaluation

Ind

ex

Ind

ex

manuallyplanneddeprecia-tion

Dep.Dep. - -PPOOSSTTIINNGG PPRROOGGRRAAMM Cost center Order

Cost element

COCO

Individual assets

Accounts

FIFI

Interest10 %. . . . .

FI-AAFI-AA

The calculation and planning of depreciation, interest and revaluation is controlled by keys inthe Asset Accounting system. They can also be entered manually using a special postingtransaction (for more information, see current-value depreciation). In both cases, these plannedvalues in Asset Accounting have to be periodically posted to the corresponding expense andasset balance sheet accounts in the general ledger. This periodic posting takes place using abatch input session. The posting session also posts the different depreciation types, interest andrevaluation, in addition to the writing-off and allocation of special reserves. The system doesnot create individual documents, only summarized posting documents (per general ledgeraccount).

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Year-end Closing

Depreciation postingDepreciation posting

Year-end closingYear-end closingprogramprogram

ArchivingArchiving

OK?OK?

Adjustment postingAdjustment posting

(Bulk) changes(Bulk) changes

Dep. simulationDep. simulation

No

OK?OK? No

OK?OK? No

Yes

Yes

Yes

Depreciation

Bal P&L

Asset history sheetDepreciation lists

Retmt.. . .

Acquis. . . .

Transfer. . .

Closingbalance

Assets

After the depreciation lists and asset history sheet have been checked, depreciation is posted.

Once depreciation has been posted, a balance sheet and profit and loss statement can be createdin FI.

If the final result is not satisfactory, you can carry out depreciation simulation or (bulk)changes, or make adjustment postings.

If you change any depreciation values, you must run depreciation posting again..

The logical year-end closing is completed with the final balance sheet.

The year-end closing program then makes all necessary system checks.

If no errors are found, the program blocks posting in Assets Accounting for the closed fiscalyear.

If a closed fiscal year is subsequently released for posting, it can only be blocked again once theyear-end closing program has been re-run.

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Depreciation ontransactions

Display of documents for the asset

Goodsreceiptdocument

all values

display dep.calculation

dep.recalculation

dep. terms

currentbook values

Asset Value Display

Display valuesDisplay values

one year, one area

one year, several areas

several years, one area

several years, several areas

with simulated change of with simulated change of depreciation termsdepreciation terms

with simulated transactionswith simulated transactions

Simulated fiscalSimulated fiscalyear changeyear change

Asset value display

.

.

.

Postingdocument

2000.-

The asset value display offers extensive possibilities for evaluating individual asset masterrecords.

By entering the sub-number “*”, you can request cumulative evaluations for a main number andthe sub-numbers belonging to it.

The function “display depreciation calculation” provides a detailed display of the calculation ofdepreciation in the system.

You can start reports from within the asset value display transaction via the menu optionEnvironment.

You specify the reports(with different selection versions) that can be started from the respectivemenu

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Course of depreciation forIndividual assets

Net

bo

ok v

alu

e

Time

Display assetDisplay assetvaluesvalues

Report for allReport for allassetsassets

Time

As

se

t v

alu

es

Development of asset valuesAsset class: Vehicles

Simulation versionSimulation version- depreciation areas- asset class- depreciation key- useful life- valid from / to

SimulatedSimulatedasset transactionsasset transactions- acquisitions- retirements- transfers . . .

Simulated Simulated depreciation termsdepreciation terms- depreciation key- useful life- index

P+L

Operating profitOperating profit

with spec. dep.

w/out spec. dep.

Asset Simulation

Simulation, in this context, refers to an experimental change to parameters affecting thevaluation of assets. This change can apply to a single asset, the entire asset portfolio (or partsof it), or to a test depreciation area. This change is carried out by means of a transaction or astandard report. When you simulate the development of asset values, you can change all of theimportant depreciation terms (depreciation key, useful life, index series). Two types ofsimulation should be distinguished:

simulation of depreciation for future fiscal years, using a special simulation report andsimulation version

simulation of accumulated depreciation in the past, using a new depreciation area

You can also include planned capital investments (in the form of orders or projects and capitalinvestment programs) in the simulation.

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Sort CriteriaSort Criteria

R e p o r t d e f i n i t i o n

Assets Values1000

900700600

Ranking list

Individual list

TotalsreportSort.... ValuesAssets Values

*

Report call-upReport call-up

Field Total

BUKRS Company code GSBER Business area ERGSO Bal. sheet item KTANSW Bal. sheet acct. ANLKL Class

Total/individualTotal/individualRanking listRanking listSort versionSort version 001

Sort version 001Balance sheet perspective,management perspective,and more...

All reports allow you to sort/total data in different ways using freely definable sort criteria.

A sort version consists of a maximum of 5 sort levels which are determined via Data Dictionaryfields. You can call up the technical field names of the required fields using F4. The sort levelsare found in the table ANLAV (asset master data). For lists which process exactly onedepreciation area (for example, the depreciation list), you can also use sort levels from tableANLB.

The report can output a total and a statistic for each sort level.

In the column ‘Total’ you can specify the levels on which you want totals to be output.

By selecting the indicator 'Statistics' it is also possible to further break down the total of alevel in some lists. You can get a breakdown by depreciation key (for depreciation lists) ortransaction type (for transaction lists).

Generally, you can use any sort version with any report.

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Transfer of Old Assets Data

Previous system

o r

FI-AAFI-AA

Automatic transfer

(Direct data import)

Dialog transfer(for small volume of data)

CreateCreateold assetold asset

Batch input procedure

Data transfer from a previous system is usually the first activity you need to perform in a newproductive system after configuration and asset classification. You can either transfer dataautomatically from an old system using a batch input procedure, or you can manually enter thedata using a transaction for old asset data. Please note that in both cases only the relevant assetmaster data and line items in Asset Accounting are updated and not the general ledger accountsin Financial Accounting. Balance reconciliation with the relevant general ledger accounts musttherefore take place separately.

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Transferring Old Data at Fiscal Year End

FI-AA

FI

Asset 1

200010000

Asset 2

400020000

Asset u. cons.100300

Non-curr. assets 30000

Value adjustments

6000

AuC G/L account 400

Asset 1200010000

Asset 2400020000

Asset u. cons. 100

300

SAP SystemSAP System

Previous systemPrevious system

The transfer date is the cut-off point in time for the transfer of data from your previous system.The date represents the status of posting (balances) effective for the transfer of old data. If thetransfer date is the end of the last closed fiscal year, you transfer only the master data, the APCand the accumulated depreciation as they stood at the end of the last closed fiscal year. You alsohave to transfer the balances of the corresponding general ledger accounts at this same level.

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Records with errorsRecords without errors

Automatic Transfer of Old Assets DataPrevious system

Interface program

Transfer program RAALTD01

DIALOG INTERFACE

ANLHANLAANLBANLC :

Old data in transfer formatBALTD + BALTB

BatchInput

Using an interface program, you convert the old data in your previous system to the format ofthe Dictionary tables BALTD (master data) and BALTB (transaction data) and place them in asequential file.

The old assets data transfer program RAALTD01 supplies the data, using backgroundprocessing, to an old assets data transfer transaction. The records without errors are transferredimmediately. Records with errors are stored in the form of a batch input session, and have to beprocessed later.

The documentation for the RAALTD01 program contains detailed instructions for

the structuring of the sequential transfer file by the interface program

test options

avoiding errors and interpreting errors that occur

the procedure in the event of program termination.