STRUMS v SAP Financial Accounting (FI) Boot...

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Day 1

SAP Financial Accounting (FI)

Boot camp

v STRUMS

Agenda – Day 4

2

• Asset Accounting – Key Concepts & Organisation

Structure

• Asset Accounting – Master Data

• Asset Accounting – Business Transactions

• Asset Accounting – Period End Closing & Reporting

• New GL Online Document Splitting

Agenda – Day 1

3


Structure





FI Asset Accounting

: FI-AA provides for the accounting of fixed assets

: As a sub module of the FI Financials module, FI-AA provides a subsidiary ledger containing detailed asset transactions to the general ledger

: FI-AA is integrated with other SAP modules: : From MM Purchasing, goods receipts and invoice verification

transactions post to assets

: From CO Overhead, orders collect costs and settle them to assets

: From PS Project System, WBS elements collect costs and settle them to assets

: FI-AA in turn posts back to FI general ledger and CO Controlling via depreciation postings, acquisitions, transfers, and retirements

4

FI Asset Accounting (cont.)

: Key Concepts

: Asset Accounting facilitates Parallel accounting

: This feature enables organisations to account and report

based on various accounting standards

: It also supports Segment Reporting, which is a key

requirement for various organisations.

5

Key Definition: Fixed Asset

: Fixed assets – Tangible property used in the operation of a business : Land, buildings, leased real property and improvements

: Equipment, including computers, plant, labs, office, and hardware

: Software purchases or development

: Construction in process (assets under construction)

: Contrast to other types of assets: : Cash and equivalents (including receivables)

: Investments (handled in Treasury/Investment Management)

: Prepaid expenses, allowances

: Leases

: Raw materials, supplies, or inventory

6

Key Definition: Transactions

: Financial transactions posted to assets (other than depreciation) fall into three general categories: : An asset acquisition (or capitalization) occurs when a company

buys or produces a fixed asset : Goods receipt through purchasing

: Invoice receipt through purchasing

: Invoice receipt through accounts payable

: Settlement of an order or project

: Transfer from another asset

: Results in an acquisition posting to the balance sheet

: Transfers move costs between assets. An example is completing an asset under construction and transferring the capitalized costs to a new, depreciating asset.

: Retirements remove costs from and deactivate assets, such as disposing or selling an asset

7

Key Definition: Depreciation

: Depreciation is a specific accounting treatment

: Assets are depreciated to expense to recognize their reducing

value from year to year

: Depreciation is calculated by FI-AA and is controlled by a

number of organisational and configuration elements

: Depreciation is posted as an expense and posted to a contra-

account offsetting the acquisition value of assets

: Accounting rules allow different methods of depreciation:

Straight-line, accelerated, tax, double-declining, etc., allowing

companies different “books” for tax and financial reporting

purposes

8

Asset Accounting – Organization

Structure

: Organization Structure

: Client

: Chart of Accounts

: Chart of Depreciation

: Company Code(s)

: Asset Class(es)

: Depreciation Area(s)

: Asset Masters

9

FI Asset Accounting Organizational Structures

Assets

Company Code

AERO

Asset Classes

(multiple)

Depreciation Areas

01 Book

Chart of Depreciation

AERO

Chart of Accounts

ACOA

Client 300

Organization Structure –


: Chart of Depreciation (COD) is the highest level of organisation in Asset Accounting.

: Chart of Depreciation is usually country specific; it satisfies the various business and legal requirements for valuation and depreciation of assets.

: Chart of Depreciation is a directory of depreciation areas, with each depreciation area meant to calculate values for assets for a specific need like book depreciation, tax depreciation, etc.

: One Chart of Deprecation can be assigned to more than one company code. One company code can, however, be assigned to only one chart of depreciation.

10

Organisation Structure – Chart of

Depreciation – Example

: SAP provides a standard Chart of

Depreciation per country. It can be copied

and customized, as necessary

: Standard Charts of Depreciation for various

countries that are provided by SAP include

Germany (0DE), USA (0US), Australia (0AU)

and New Zealand (0NZ) among others

11

Organisation Structure –

Depreciation Areas (1 of 7)

: Depreciation areas are set up to accommodate calculation of parallel values of depreciation for different purposes:

: Separate depreciation areas can be set up for the purpose of book depreciation, tax depreciation, cost accounting depreciation, etc.

: For every asset, depreciation terms and values can be managed at depreciation area level

: At least one depreciation area is required to record book values

: We can manage asset valuation in parallel in up to 99 depreciation areas 12



: Depreciation areas are set up to accommodate

calculation of parallel values of depreciation for

different purposes (cont.):

: Rules for posting to General Ledger is configured

per depreciation area. Some of the rules are:

• 0 – no values are posted to GL; e.g., internal costing

• 1 – post assets in GL real time; e.g., book

depreciation

• 2 – post assets periodically in GL; e.g., revaluation

• 3 – only depreciation posted in GL; e.g., tax

depreciation 13






: Rules for posting to General Ledger are configured

per depreciation area. List of rules are:

14





different purposes (cont.): : Depreciation areas can facilitate parallel valuation in asset

accounting, and they can be assigned to the ledger groups

to integrate parallel valuation in asset accounting with

parallel valuation in general ledger (Ledger approach)

: Leading depreciation area is assigned to ledger group

containing the leading ledger

15






– Assignment of depreciation areas to Parallel Ledgers

16

Assignment of

depreciation area to

the ledger group

facilitates parallel

accounting



: Each Depreciation area is set up as either a

“Real” depreciation area or as “Derived”

depreciation areas:

• Derived Depreciation Area – Depreciation is

calculated, using a formula on values from 2 or

more “Real” depreciation areas; values are

calculated dynamically and made available for

reporting.

• Real Depreciation Area – Values are updated in this

depreciation area when postings are made and are

available for evaluation. Depreciation terms are

defined for an asset class for “Real” depreciation

areas.

17



: Transfer rules for posting of APC values and depreciation

terms for each depreciation areas are specified.

: Transfer rules can ensure that certain depreciation areas

have identical values/basis.

18

• Most depreciation

areas will copy the

asset value (APC)

from Book

Depreciation


Depreciation Areas – Example

: Standard Chart of Depreciation for Australia

(0AU) has five depreciation areas:

19

01 Book deprec. Book depreciation (uses Straight Line method)

15 Tax B/S Tax balance sheet (uses declining then straight line)

30 Group AUD Consolidated bal sheet in local currency

31 Group USD Consolidated bal sheet in group currency

32 BkDep(g.cur) Book depreciation in group currency


Depreciation Key

: Determines how the depreciation is calculated through

calculation method configuration; e.g., straight line

method, 25% double declining method, etc.

: Assigned per depreciation area at asset master data

: Defaulted per asset class; i.e., classification of similar

asset

: There are four calculation methods: : Base method

: Declining balance method

: Period control method

: Multi-level method

20

Depreciation Key

Calculation Method



Calculation Method: Base Method

: Base method configuration includes

determination of depreciation calculation

method

: E.g., 1 % from useful life - Depreciation % rate is

derived from the useful life of the asset,

maintained in the asset master.

: E.g., 2 explicit % - Depreciation % rate has to be

explicitly specified in the depreciation

configuration. (Multi-Level Method)

: System does not allow addition of depreciation

calculation method; we need to choose one

from the available list

21


Calculation Method: Declining

Balance Method (1 of 3)

: Declining Balance Methods are an annual

calculation of depreciation amounts that are

reduced by a constant percentage

: The percentage is calculated from the useful

life and a multiplication factor and is subject to

maximum and minimum percentage limits.

This percentage is then multiplied with the

base value (i.e., net book value of the fixed

asset at the beginning of the year) to compute

the depreciation amount 22




: For each declining-balance method, specify:

: A multiplication factor for determining the

depreciation percentage rate

: An upper limit for the depreciation percentage

rate

: A lower limit for the depreciation percentage rate

: Depreciation = net book value * percentage

rate from expected useful life and factor

: SAP will calculate the yearly amount first and

then divide the figure with number of periods to

get constant value per period

23




24

Example: Useful life: 10 years

Net book value: 700 USD

Multiplication factor: 1.5

Depreciation = 700 * (1/ 10 * 1.5)

= 105 USD for the year

If there are 12 periods,

depreciation = 105 / 12 = 8.75 USD/period

Calculation Method – Multi-Level

Method

: Should be configured according to the Base Method selected

: E.g., if a depreciation key uses a Base Method with explicit %, then multi-level method for that depreciation key should contain explicit % rates

: Define depreciation Base Value

: E.g., if Base Value = 01 (Acquisition Value) is selected, then every time depreciation is calculated the acquisition value of the asset will be the base on which the depreciation percentage will be applied

: Example below is for explicit % with base value = acquisition value

25

Year Percentage Depreciation

1 2% year 1 – 9 2% x acquisition value

10 6% year 10 6% x acquisition value

11 5% year 11 5% x acquisition value

18 4% year 18 onwards 4% x acquisition value

Calculation Method – Period

Control

01 – Pro rata at period start date Depreciation is calculated at monthly basis

02 – Pro rata up to mid period at period

start date

if posting date < mid period, depreciation is

calculated for the period, else depreciation

is calculated for the next period

06 – At the start of the year Depreciation is calculated at yearly basis

08 – At the end of the year Any changes for the year will take effect in

the next year

26

: Determine when depreciation is calculated in the system

relative to the transaction posting date

: Examples of period control:

: Can be set up differently per transaction: : Period control for acquisition in the capitalization year

: Period control for acquisition in the following year

: Period control for retirement

: Period control for transfer

Depreciation Key – Period Control

(cont.)

: Depreciation to the day : Specifies that the system calculates depreciation to the

day

: Period control parameters are ignored with this switched ON

: This applies to all transactions (acquisitions, retirements, and transfers)

: With this setting the system always uses the asset value

date as the depreciation start date : Warning

: Once the asset has been capitalised, you cannot switch to or from a depreciation key with this setting

27

Depreciation Key – Change Over

Method

: Used to setup depreciation key by phases; i.e., system will

automatically change the combination of calculation methods

(depreciation terms) once the event specified in the

changeover method has occurred

28

• In this example,

depreciation is determined

by the calculation methods

in phase 1. This is

compared with the straight

line rate which is computed

based on the useful life.

Whenever the straight line

depreciation is higher,

change over to Phase 2

happens.

Organisation Structure – Asset

Class (1 of 4)

: Asset class facilitates classification of similar asset; e.g.,

Land & Building, Plant & Machinery, Office Equipments, etc.

: The catalogue of asset classes can be used by all the

company codes that use asset accounting component.

: The following configurations are set up at asset class level:

: Assignment of Asset number can be set up as internally

assigned or externally assigned. Number range is also defined

at the asset class level for each company code.

: Screen layout controls the asset master data screen and

specifies if a field is optional, required, suppressed for data

entry.

: Default depreciation key and useful life

: GL accounts through account determination assignment 29


Class (2 of 4)

30

• Acquisition & Prod cost

• Accumulated Depreciation

• Factory 1

• Factory 2

• Office 1

• Machine 1

• Machine 2

Asset Class Reconciliation Account

• Acquisition & Prod cost

• Accumulated Depreciation Building

Machinery

Asset


Class (3 of 4)

: Asset Class is linked to any (or) all the depreciation areas in

a chart of depreciation. This is achieved by “activating” the

appropriate depreciation areas

: Asset Class needs to be activated for the required

depreciation areas in a chart of depreciation. This activation

has to be performed for each asset class for all the charts of

depreciation, which are actively used

: Default depreciation key and useful life is specified for an

asset class for each depreciation area in a chart of

depreciation

31


Class (4 of 4)

: Determination of depreciation areas for asset

class

32

• Depreciation

area is

activated for

an asset

class

Organisation Structure – Account

Determination (1 of 3)

: Compilation of GL accounts used for asset

posting

: Posting to asset, i.e., via asset number, will

update these GL accounts that are determined

using “account determination”.

: One account determination can be used for more

than one asset class

: For example, Building and Structure can be defined as

separate asset classes; however, depending on the

chart of account structure, they could be assigned to

one account determination 33

Question: Can we directly post to asset acq. accounts? If we post to an asset, when can we see the values in GL?



: GL accounts are set up per depreciation area,

i.e., not all accounts need to be configured as

posting to GL varies per depreciation area : Key GL accounts:

: Acquisition & Production Cost (reconciliation account, B/S account)

: Clearing account revenue from asset sale

: Gain & Loss from asset sale

: Loss made on asset retirement without revenue; i.e., scrap/write off

: Accumulated depreciation (reconciliation account, B/S account)

: Depreciation expense 34 Question: Can we directly post to asset acq. accounts? If we post to an asset, when can we see the values in GL?



: Determination of GL accounts – Simple

illustration

35

Company code Asset Class

Account

Determination Asset Master

Chart of

depreciation

(COD)

01 – Book depren.

-----

Chart of Account

GL 11000 - Acquisition

-----

-----

Transaction posting to an asset sub-ledger will

update the General Ledger:

COD + COA + Account Determination + depreciation

Area + Transaction => GL account

Asset Organisational Hierarchy –

Example

36


(copied from country ABC)

Company Code 1 Company Code 2

01 Book Depreciation

02 Tax Depreciation

03 Cost Accounting Depreciation

Asset Class – 100 Building

100003 Acquisition – Office Equip.

130003 Accum. Depr. – Office Equip.

400003 Depr. Expense – Office Equip.

etc

100002 Acquisition - Machinery

130002 Accum. Depr. - Machinery

400002 Depr. Expense - Machinery

etc

100001 Acquisition - Building

130001 Accum. Depr. - Building

400001 Depr. Expense - Building

etc

Acct Determination 1000

(GL accounts)

Asset Class – 200 Machinery Asset Class – 300 Office Equip.


(GL accounts)


(GL accounts)

Depreciation Area

1000001 Building A

1000002 Building B

Company Code 3

2000001 Machine 123

2000002 Machine 234

3000001 Printer 222

3000002 Computer XYZ

Low Value Asset (LVA)

: Fully depreciated in the year of purchase or in

the period of acquisition

: Even though LVA value is not significant, it is

considered necessary to keep track of the asset

: Since individual value is little, can be managed

collectively in single asset master

: Separate asset class is created for LVA

37

Low Value Asset (cont.)

: Maximum allowable is specified in the

configuration

: Individual check (individual management)

: When the acquisition is posted, the entire acquisition

and production costs of the asset are compared with

the LVA maximum amount

: Quantity check (collective management)

: When the acquisition is posted, the entire acquisition

and production costs of the asset, divided by the total

quantity, are checked against the LVA maximum

amount 38

System Walkthrough 4.1 – Chart

of Depreciation

39

• Refer to System Walkthrough 4.1 – Chart of

Depreciation in your Faculty Guide.

– Chart of Depreciation

– Tax Indicator

– Assign Chart of Depreciation to Company code

(Ensure the prerequisites are met before the

assignment is made).

System Walkthrough 4.2 –

Depreciation Area

41

• Refer to System Walkthrough 4.2 – Depreciation Area

in your Faculty Guide.

– Depreciation Area

– Asset Class


Depreciation Key Configuration

43

• Refer to System Walkthrough 4.3 – Depreciation Key

Configuration in your Faculty Guide.

– Depreciation Key

– Determine depreciation areas

– GL account determination

Questions

45

Agenda – Day 4

46

• Review of Day 3


Structure





Asset Accounting

: Master Data

: Asset Number & Sub Number

: Asset Master

: Mass Changes to Master Data

: Asset Master Data Conversion

47

Master Data – Asset Number

: Asset will be assigned an asset number within the asset class number range in a company code

: Every uniquely identifiable asset, for which valuation/depreciation has to be recorded and maintained separately, is identified in the AA with a unique asset master record.

: Each asset master record is a sub-ledger, linked to the General Ledger through account determination.

: Excluding depreciation journal, every asset transaction should be posted to the asset number; i.e., asset account.

: General Ledger can be posted in real time or in batch mode, based on the configuration setup for the depreciation area in the chart of depreciation.

48

Master Data – Asset Sub-number

: Sub-number can be used for differentiating part of the main asset

: Four-digit suffix of the main asset number

: Main asset fields can be copied to sub number master data as set up in the screen layout configuration; e.g., cost centre is usually maintained at the main asset level

: Asset sub number is an independent asset : Effort for maintaining asset with 1 sub number will be doubled

: Retirement needs to be done for main asset and each sub number

: Depreciation can be calculated differently from the main asset. For example, Machine A with asset number 150056 has 3 major components that need individual maintenance and tracking: They are created as sub-asset numbers to the main asset 150056-0001 Power supply, 150056-0002 Conveyor belt, 150056-0003 Coolant.

49

Asset Master

: Store asset specification & detailed

information. Optional and mandatory fields

are set up by defining screen layout rules at

the asset class level

50

General Info

(Description)

Time-dependent

assignment

• Description 1

• Description 2

We can specify information validity using Time Interval

• Plant: physical plant of the asset as set up in Material

Management module

• Cost Centre: owner of the asset that will bear the

depreciation expense. Can be used as account

assignment object to derive segment for segment

reporting.

Asset Management

51

Allocation

Origin

• Evaluation group: Additional information for reporting purpose.

There are 5 evaluation groups available with user-defined values

in configuration. For example, evaluation group 1 for location of

the asset (e.g., area 1, area 2, etc); evaluation group 2 for

describing the production line (e.g., process 1, process 2, etc.)

• Vendor: supplier of the asset, it will be populated

automatically upon asset acquisition

Depreciation

Areas

• Depreciation key: how the depreciation is calculated; e.g.,

straight line method, double declining method

• Useful life: how long the depreciation will be calculated

• Ordinary Depreciation start date: when the depreciation is

started

– Depreciation key and useful life are defaulted per asset class based

on configuration

– Depreciation terms can also be set as time-dependent in later

version (ECC 6.0)

System Walkthrough 4.4 – Asset

Master

: Refer to System Walkthrough 4.4 – Asset

Master in your Faculty Guide.

: Display/Create Asset

52

Mass Changes to Master Data

: Asset Accounting provides capability to update fields in

several asset master records using mass changes.

Some instances for mass changes are given below

: When there is a change to the Cost Centre structure, you

have to change the Cost Centre assignment of all assets

affected

: Changes made at the asset class level. Changes at this

level affect only those assets that are created after the

change was made. This change should be applied to the

already existing assets

: User error for large number of assets 53

Mass Changes to Master Data

(cont.)

: Steps to execute mass changes: : Defining the change rules using Validation & Substitution

rule (transaction OA02) what the changes are

: Selecting the assets and entering them in a worklist

(transaction AR01) verification step that only the asset

listed are to be changed

: Checking and correcting the worklist, and releasing the

worklist (transaction AR31) execution of the mass

changes

54

Define the change rule Asset selection to worklist Release the worklist

e.g., change cost centre A

to B

e.g., if asset class =

machinery for company

code A, acquisition date

after 01.01.2005

Asset Master Data Conversion

(1 of 3)

: Use transaction AS91 Create Legacy Data to create converted asset (AS92 to Change legacy data already created)

: Take over values (i.e., asset values at the change over date/SAP go live date) by depreciation area need to be uploaded per asset master

: The take over values to be populated are depending on the Depreciation Area setup (how the depreciation area gets the value)

: Generally you should convert “gross” values (original acquisition cost and current accumulated depreciation) rather than “net” values (net value of assets at time of conversion)

: GL Balance is uploaded separately from the asset values in Asset Accounting

: AS91 posts only to FI-AA and does NOT update the GL account balance

: Reconciliation between the GL balance and total asset values needs to be done after to data upload – ensure they match!

55


(2 of 3)

: Take over values are maintained for each Asset master during

legacy data transfer

56


(3 of 3)

57

• Acquisition value

• Accumulated

depreciation - up to

the end of last fiscal

year

• Depreciation value

from the beginning of

the year until the last

period before the take

over date

System Walkthrough 4.5 – Legacy

Old Asset

: Refer to System Walkthrough 4.5 – Legacy

Old Asset in your Faculty Guide.

: Display Legacy Asset

: Mass Changes

58

Exercise 4.1 – Create Asset

: Refer to Exercise 4.1 - Create Asset in your

Participant Workbook.

: Your task is to create an asset master.

59

Exercise 4.2 – Create Asset Sub

Number

: Refer to Exercise 4.2 - Create Asset Sub

Number in your Participant Workbook.

: Your task is to create an asset sub number for the

asset created in Exercise 4.1.

60

Exercise 4.3 – Configuration: Add

Values to Evaluation Group

: Refer to Exercise 4.3 – Configuration: Add

Values to Evaluation Group in your Participant

Workbook.

: Your task is to add a new value to an evaluation

group.

61

Questions

62

Agenda – Day 4

63

• Review of Day 3


Structure





Asset Business Transactions

Overview

: Asset business transactions include Acquisitions, Transfers, Retirements.

: Key parameters that govern asset accounting transactions include document type, posting key, transaction type.

: FI Document types used for Asset business transactions: : AA Asset Posting

: AF Depreciation Posting

: Posting key used for postings Asset related transactions : 70 Debit Asset

: 75 Credit Asset

: Transaction type : Mandatory information for every asset posting to differentiate business

transactions (acquisitions, transfers, retirements, etc.)

: Each transaction type belongs a transaction type group (which reflects a category of business transactions)

: SAP Standard transaction types are commonly used.

64


Overview (cont.)

: Transaction type - Examples:

65

1xx Acquisition

2xx Retirement

3xx Transfer

e.g., 100 External acquisition, 110 In-house

acquisition

e.g., 200 Retirement without revenue, 260

Retirement for new acquisition with revenue

e.g., 320 Transfer (retiring) of new acquisition,

330 Receiving transfer of new acquisition

• Each asset transaction creates an Asset Accounting

document as well as an FI accounting document at the

minimum


Overview – Asset Document

66

• Transaction Type

100 is used here for

external acquisition

(i.e., acquisition from

vendor)


Overview – Asset Document (cont.)

67

Asset Acquisition – Direct FI

Process

: Manual asset acquisition posting in FI (Accounts

Payable) through vendor invoice; i.e., transaction F-

90

: Asset document and an FI accounting document are

created

68

Ps. Key Account D/C

70 Asset account Dr

31 Vendor account Cr

Asset Acquisition – Purchase

Process

: If MM module is implemented, asset posting can be automatically generated using account assigned purchase orders. Purchase Requisition/Purchase order should be specified with account assignment category A (= Asset)

69

Create

Asset Master

Create Purchase

Requisition (PR)

Create Purchase

Order (PO)

Goods

Receipt

Asset acquisition:

Dr. Asset

Cr. GR/IR clearing

Asset Master needs to

be created before PR

creation as the number

should be specified in

PR/PO

User should put asset number

in the PR/PO

FI - AA MM - Purchasing MM - Purchasing MM - Purchasing


Process – Example (1 of 3)

70



71

• Configuration of account assignment category “A”

– Consumption indicator is A (Assets)

– Field Status is set for field “Asset” as mandatory entry.



72

• Material document is created at the time of

goods receipt. Asset document and FI

accounting document are automatically

generated

Asset acquisition (Purchase Process)

Dr. Asset

Cr. GR/IR clearing

Asset Retirement

: There are three types of asset retirement: – Retirement with revenue to customer (F-92)

– Retirement with revenue without specifying the customer (ABAON)

– Retirement without revenue/scrapping (ABAVN)

73

Dr. Accumulated depreciation

Dr. Write-off expense/ Loss on property

Cr. Asset

Dr. Proceed from asset sale

Dr. Accumulated Depreciation

Dr/Cr. Gain/Loss on asset sale

Cr. Asset

Dr. Bank clearing

Cr. Proceed from asset sale

Cr. Vat out

Dr. Accum depreciation

Dr. Customer

Dr. Proceed on asset sale

Cr.Proceed on asset sale

Cr. Asset

Cr. VAT out

Dr/Cr. Gain/loss on property

Dr. Bank clearing

Cr. Customer

Note: Proceed on asset sale account need

to be defined in configuration

Asset Transfer

: Transfer from one cost centre to the other (AS02)

: This is done through asset master data change; i.e., cost

centre change

: No Accounting document is created

: Transfer location (AS02)

: This is also done through asset master data change, i.e.,

depending on the setup, can be plant change, evaluation

group change, or other field change

: No FI document is created

74

Asset Transfer (cont.)

: Transfer between company codes (ABT1N)

: This is done through FI document posting

: Can be done separately, i.e., asset retirement in one

company and asset acquisition in the other company, or if

intercompany transaction is setup through intercompany

journal

: Transfer between one asset to another asset (ABUMN)

: This is done through FI document posting

: Both acquisition and accumulated depreciation values are

transferred

75

Dr. Asset (target)

Cr. Accumulated depr (target)

Dr. Accumulated depr (source)

Cr. Asset (source)

Asset Business Transactions –

Segment Reporting (1 of 5)

76

• Asset Accounting component facilitates segment reporting.

• Use of Account Assignment Objects is necessary to achieve

“Segment Reporting” using the New GL.

• Example : Cost centre

(Object Name: KOSTL)

has been activated

• Note: Users cannot add

to the list of account

assignment objects.

Activation status can be

changed based on

business requirements



77

• Profit centre & segment can be “derived” from other cost (e.g.,

via cost centre)

• For segment reporting, assign the account assignment types

(APC Values and depreciation posting) to the Account.

Assignment Object, for the transactions, for each of the

company codes



78

• Segment:

EMEA is

thus derived

for asset

3000 0

1

2

3



79

• FI Invoice posting for asset acquisition -> Derivation of segment



80

• Document Splitting

– Vendor/tax line items are split into multiple line items

based on the segments derived in the offsetting line

items, in this case, the asset line items

– Document line items are split for the scenarios that

have been configured in FI-GL for segment reporting

System Walkthrough 4.6 – Asset – Business Transactions

: Refer to System Walkthrough 4.6 – Asset –

Business Transactions in your Faculty Guide.

: Asset Acquisition

: Asset Change Cost Centre

: Transfer Asset to Asset

: Retirement with Revenue

: Scrapping

81

Exercise 4.4 – Asset Acquisition

from FI

: Refer to Exercise 4.4 – Asset Acquisition

from FI in your Participant Workbook.

: Your task is to post an asset acquisition to the

asset master created in Exercise 4.1.

82

Exercise 4.5 – Asset Explorer

: Refer to Exercise 4.5 – Asset Explorer in

your Participant Workbook.

: Your task is to display the asset.

83

Exercise 4.6 – Asset Transfer –

Change Cost Centre

: Refer to Exercise 4.6 – Asset Transfer –

Change Cost Centre in your Participant

Workbook.

: Your task is to transfer an asset from one

department to another.

84

Exercise 4.7 – Asset Transfer –

Asset to Asset

: Refer to Exercise 4.7 – Asset Transfer –

Asset to Asset in your Participant Workbook.

: Your task is to reclassify an asset.

85

Exercise 4.8 – Asset Retirement

with Revenue to Customer

: Refer to Exercise 4.8 – Asset Retirement

with Revenue to Customer in your


: Your task is to record the sale of an asset with

revenue to a customer.

86

Exercise 4.9 – Display Asset

Document

: Refer to Exercise 4.9 – Display Asset

Document in your Participant Workbook.

: Your task is to display the asset documents.

87

Questions

88

Agenda – Day 4

89

• Review of Day 3


Structure





Period End Closing & Reporting

: Depreciation Run

: Asset Under Construction (AUC)

Settlement

: Year End Closing

: Open & Close Period for Asset

: Fiscal Year Change

: Reporting

90

Depreciation Run

: Depreciation must be run sequentially by

period; i.e., period 1 should be run successfully

before period 2 depreciation

: Depreciation run options:

: Planned Depreciation: run this every end of period

(month end)

: Repeat Run: if depreciation has already been run

and it is required to run the depreciation again.

SAP will only post depreciation that has not been

posted; i.e., there will not be double posting 91

Depreciation Run (cont.)

: Depreciation run options (cont.): : Restart Posting Run: if there are errors during

depreciation posting, after correcting the error (for

instance, GL account not found), execute “restart

posting run” (the old session should be deleted)

: Unplanned Posting Run: to run depreciation for several

periods, e.g., if period 1 and 2 have not been run and it

is desired to run period 3, choose unplanned posting

run for period 3

92

Depreciation Run – Process Flow

93

Run Actual

Depreciation

Test Run

Depreciation Rectify the

Error (if any)

Rectify the Error

(if any) & Repeat

Depreciation Run

Check

Depreciation

Run Log

Dr. Depreciation Expense

Cr. Accumulated Depreciation

Asset Under Construction (AUC)

Settlement (1 of 5)

: AUC represents asset that has not finished

being constructed, i.e., capital work in

progress, and therefore not being

depreciated. Once the work is completed,

AUC should be settled to fixed asset

: AUC will collect all the cost from external

(purchase), internal work, and material

consumption. It is defined as separate asset

class with separate account determination 94


Settlement (2 of 5)

95

Expense

e.g., Plant Maintenance Order

(for repair maintenance)

WBS – Project System (for

project)

Expense

Expense

Material

Material

Material

AUC

Month End

Settlement to AUC Settlement to fixed asset

Fixed Asset

Execute AuC

Settlement

Create AuC Asset

master in AuC

asset class

AuC Asset

receives

postings

Define Distribution

Rules for AuC asset

Create Final

asset master

AuC Settlement Process Flow in SAP system

Month End –

After the

repair/project

finish

Repairs


Settlement (3 of 5)

: There are two types of settlement:

: AUC Settlement without Line Item Management

: AUC Settlement with Line Item Management

96


Settlement (4 of 5)

: AUC Settlement without Line Item

Management

: Similar to transfer between two assets within the

same company code

97

Dr. Asset

Cr. AUC


Settlement (5 of 5)

: AUC Settlement with Line Item

Management : Distribution rule needs to be defined per AUC to set the

target settlement and % of distribution

: Line items in the current year that do not require

capitalization (i.e., expense) can be settled as adjustment

postings to Cost Centre

98

Dr. Asset

Cr. AUC

20 %

Year End Closing (1 of 3)

: Fiscal year change (AJRW): the opening of a

new fiscal year for a company code. Asset

values from the previous fiscal year are

carried forward cumulatively into the new

fiscal year

: No posting can be made to the new fiscal year

before fiscal year change

: Before changing to fiscal year YYYY, fiscal year

YYYY – 2 should be closed

: Carried out as background processing for

performance reasons 99


: Close fiscal year (AJAB): Once the fiscal year is

closed, no posting can be made to Asset

Accounting in that fiscal year

: Current fiscal year cannot be closed

: Fiscal year can be re-opened if necessary. This is

not a recommended practice, though

: Should be done sequentially; i.e., close fiscal year

the year following the last closed fiscal year

: Carried out as background processing for

performance reasons 100


: Fiscal year can only be closed if:

: All depreciation runs for the year are completed

without any error

: All assets acquired in the fiscal year have already

been capitalized. Exclusion can be made for

asset under construction

: All incomplete assets (master records) have

been rectified

101

Reporting (1 of 4)

: All standard reporting can be accessed from

Information System folder

: Asset History Sheet list of asset values with

detail of asset transactions

: Asset Balance by Asset number list of asset

values

: Posted Depreciation Related to Cost Centres

list of posted depreciation per cost centre per

period

: List of Origins of Asset Debit list of asset

acquisition by source of addition 102

Reporting (2 of 4)

: All standard reporting can be accessed from

Information System folder (cont.)

: Asset Transactions, Asset Acquisition, Asset

Retirement

: Directory of Unposted Asset list of asset

master without value

: Depreciation Forecast simulate

depreciation/asset values for current or future

fiscal year

103

Reporting (3 of 4)

: Sort Version: control data sorting and totaling in asset reports

: Maintained in configuration

: User-defined sort version starts with „Z‟

: For example:

0007 Company Code/Asset Class

sort records based on company code – asset class

Z001 Company Code/Asset Class/Cost Centre/Eval Group 1

sort records based on company code – asset class – cost centre – eval

group 1

104

Reporting (4 of 4)

: Depreciation Simulation: simulate asset

values/depreciation using different

depreciation key for future fiscal years

: Need to create/maintain Simulation Version

before running the report (OAV7)

: E.g., Z1 – Simulate values for all asset belonging

to asset class 2000 with depreciation key DG30 to

use new depreciation key LINK and increase the

useful life by 20%

: Run Depreciation Forecast report and specify the

simulation version 105


Depreciation

: Refer to System Walkthrough 4.7 –

Depreciation in your Faculty Guide.

: Depreciation and Log

: AUC Line Settlement

: Maintain Sort Version (OAVI)

: Simulation Version (OAV7)

106


Reporting

: Refer to System Walkthrough 4.8 – Reporting in

your Faculty Guide. : Asset History Sheet - S_ALR_87011990

: Asset Balance by Asset Number – S_ALR_87011963

: Posted Depreciation Related to Cost Centres -

S_ALR_87010175

: List of Origins of Asset Debit - S_ALR_87012058

: Asset Transactions, Asset Acquisition, Asset Retirement –

S_ALR_87012048, S_ALR_87012051, S_ALR_87012052

: Directory of Un posted Asset - S_ALR_87012056

: Depreciation Current Year- S_ALR_87012026 107

Exercise 4.10 – AUC Settlement

: Refer to Exercise 4.10 - AUC Settlement in

your Participant Workbook.

: Your task is to create receiver asset (fixed

asset), create a settlement rule from the AUC to

the fixed asset, and post the settlement.

109

Exercise 4.11 – Configuration:

Maintain Sort Version

: Refer to Exercise 4.11 – Configuration:

Maintain Sort Version in your Participant

Workbook.

: Your task is to create a new sort variant to be

used in Asset reporting.

110

Exercises 4.12 through 4.19 –

Reporting

: Refer to Exercises 4.12 to 4.19 in your


: Your task is to execute the asset accounting-

related reports

111

Optional Class Exercises

: Refer to the Optional Class Exercises in your


: Run planned depreciation and display log for the

period

: Each participant can do Repeat Run after the

planned depreciation for a particular asset

112

Agenda – Day 4

113

• Review of Day 3


Structure





Online Document Splitting –

New GL Functionality

114

• Example – Document Splitting

• Document Splitting & Zero Balancing

• Configuration

• Logic for Document Splitting Logic

• Customizing Steps

• Extended Document Splitting – Document Splitting

Rule

• Examples of Document Splitting & Zero Balancing

• Recommendations

Example – Document Splitting

115

Document Splitting & Zero

Balancing

: Activate Document Splitting for the client and at the

same time it can be deactivated for a specific company

code

: Recommendations: : Inheritance - activate the inheritance

: If no characteristics are specified, characteristics will be inherited

from the lines with characteristics

: Default assignment : Make sure that you specify a default assignment for cases where

the characteristics cannot be determined

: General Ledger Account Assignment to Item Categories : Revenue, Expense, Balance Sheet accounts have to be assigned

to the correct item categories (e.g., 30000, 20000, and 10000)

116

Document Splitting Configuration

(1 of 5)

117

• Document Splitting - Business Transaction – Business Transaction (BT): A business transaction is

an event that leads to a value update in accounting

118

• Document Splitting - Item Category – Item category: The item category characterised the

items of an accounting document


(2 of 5)


(3 of 5)

119

• Document Splitting - BTV – Business Transaction Variant (BTV): A BTV is a special version

of a business transaction in which you can further limit the item

categories that are specified in the business transaction • See the BTV 0001 for BT 0300

• Note: The vendor item is required for this BTV


(4 of 5)

120

• Document Splitting - Splitting Method – The splitting method defines how the split is performed

• The splitting method combined with the Business Transaction

and the Business Transaction Variant produce a rule

• Procedure 0000000012 is the standard (recommended to

customers)


(5 of 5)

121

• Document Splitting - Splitting Rule – Rule: Determines which item categories will be split, as well as

which base can be used for splitting • E.g., the Customer Invoices Business Transaction (0200) with BTV

(0001) will be split along with Taxes on Sales/Purchases items

based on item categories 01000, 01100, 07000, 20000 and 30000

Logic for Document Splitting

122

• Document Splitting - Splitting Rule Logic – Determines which item categories will be split as well as

which base can be used for splitting • E.g., the Customer Invoices Business Transaction (0200) with BTV

(0001) will be split along with Taxes on Sales/Purchases items

bases on item categories 01000, 01100, 07000, 2000, 30000

Key Customizing Steps

123

• Document Splitting - Key Customizing Steps – Classify GL Accounts for Document Splitting

– Classify Document Types for Document Splitting

– Define a Zero-Balance Clearing Account

– Define Document Splitting Characteristics for General

Ledger Accounting

– Define Document Splitting Characteristics for

Controlling

– Define Post-Capitalization of Cash Discount to Assets

– Edit Constants for Non-assigned Processes

– Activate Document Splitting

– Define You Own Splitting Rules (Optional)

Classify GL Accounts for

Document Splitting

124

• Classify the GL accounts that are linked to the item category for Document Splitting

Classify Document Types for

Document Splitting (1 of 3)

125

• Add your customer created document types



: Customizing menu path: Financial Accounting (New) > General Ledger Accounting > (New) > Business Transactions > Document Splitting > Classify Document Types for Document Splitting

: All documents that are posted must refer to a combination of business transaction and transaction variant. The transaction variant controls the processing in the document split

: Some transactions are automatically assigned within the program to a combination of business transaction and variant (Clearing case: FB1D, FB1K, FB1S, FBRA), because these always proceed in the same way (internal Customizing table V_T8G10/SM30). In these cases, certain processes are used for the split (business transactions: 1010 and 1020)

126



: Consultant: Derivation via the transaction assumes that the

processing of the respective transaction with respect to the

business transaction is always identical (Examples:

Transaction MIRO as an alternative to the hereby entry RE...,

transaction MR11… or negative example: FB50, FB01 etc…)

: For all further postings that are also actually carried out in the

system, all possible document types must be assigned

business transaction and variant! That is, assignments that

are not stored here cause an error message for the respective

posting.

: Attention: Through this control (processing in the document

split), the significance of the document type is increased

considerably in comparison to its use previously 127

Define a Zero Balance Clearing

Account

128

• For account assignment objects for which you want to have a zero balance

setting, the system checks whether the balance of account assignment object

is zero after document splitting.

• If this is not the case, the system generates additional clearing items for which

we create a clearing account for these additional clearing items

Define Document Splitting

Characteristics for GL Accounting

(1 of 3)

129

• Define the characteristics for which document splitting is required for GL accounting



(2 of 3)

: Customizing menu path: Financial Accounting (New) >

General Ledger Accounting (new) > Business Transactions >

Document Splitting > Define Document Splitting

Characteristics for General Ledgers

: This setting provides the characteristics that have been

created as a scenario by SAP and as customer fields

: “Zero balance” switch: If the indicator is set, the system

checks while posting whether the balance is zero for the

characteristic. If this is not the case, then the system creates

in the document additional clearing lines on clearing accounts

that produce the zero balance. This setting generally makes

sense if balance reporting is to be carried out on this

characteristic 130



(3 of 3)

: “Mandatory Field” switch: If the indicator is set, then all

postings for which no value is set after the document split for

the specified field are rejected by an error message.

(Emergency switch, if postings do not go through and should

definitely take place, despite this. Attention, in this case a

complete balance on the respective dimension is at risk)

131


Characteristics for Controlling

132

Define Post-Capitalization of Cash

Discount to Assets

133

Edit Constants for Non-Assigned

Processes

134

Activate Document Splitting

135

Define Your Own Splitting Rules

136

• Do not change SAP-delivered rules

• If you want to extend the splitting rules, copy them to your own

rules (Note: You need to define your own splitting method first)

• Tip: The split is not rule-based in case of clearing and if a zero

balance is generated. The split is always performed for these

processes

Extended Document Splitting –

Document Splitting Rule

137

• Extended Document Splitting

Example – Online Document

Splitting Results in Two Ways to

View a Document

: The entry view of a

document shows

the base journal

input

: The GL View

shows the

additional splits

generated by the

system. This is

sometimes called

Enhanced or

Enriched

139

Entry View

Example – Document Entry View of

Documents Show the Traditional

Journal Entry Lines

140

Example – GL Views of Documents

Show Online Splits

141

Example – Zero Balancing Splitting

142

• Document Splitting Simulation with Zero Balancing Example

• This is a great feature that is available with SAP ECC 6.0

Example – Zero Balancing Splitting

(cont.)

143

• Document Splitting Simulation with Zero Balancing Example

(cont.)

Recommendations

: Document Splitting and Zero Balancing

: Define your splitting characteristics : I.e., characteristics that will be used to produce your B/S and P&L

: Define profit centre and segment as splitting characteristics

: Zero balancing characteristics : Make sure that you select this option for your splitting

characteristics

: Doing so will make sure that zero balance is secured in each

document

: Mandatory characteristics : Make sure that you select this option for your splitting

characteristics

: Doing so will make sure that the selected characteristics are

populated in each document line

144

Recommendations (cont.)

145

• Use splitting and zero balancing functionalities to enable line

items to be divided for selected characteristics to produce

financial statements for the selected characteristics

– These functionalities are available for segment, profit centre

and business area

• Make sure that you select zero balancing and the mandatory

option for your splitting characteristics. By doing so, you will

make sure that a characteristic is populated for each line and

zero balance per characteristic is secured in each document

• The extended data structure of new GL is available for standard

reporting

Visibility of Online Document

Splitting – Important!

: Document splitting is only visible in the

General Ledger

: The sub-ledgers only contain the Entry View

of the document

146

Company Code Global Parameters

: Enter Company Code Global Parameters (OBY6)

147

IMG Path: Financial

Accounting>Financial Accounting

Global Settings>Company

Code>Enter Global Parameter

Country & Currency

Chart of Accounts

Fiscal year variant

Field status variant &

Posting period variant

Knowledge Check

1. What is the highest level of organisation in

Asset Accounting?

2. Why are multiple depreciation areas setup?

3. What are some of the instances for making

mass changes to asset master records?

4. What are the three types of asset retirement?

5. What does the document splitting rule logic

determine?

148

End of Day Q & A

149

Day 4 Lessons Learned (1 of 4)

: Organisation Structure

: Chart of depreciation

: Directory of depreciation areas

: Highest organisation unit in asset accounting

: Depreciation Area

: Facilitates valuation of assets

: One depreciation area for each method of accounting

: Facilitates parallel accounting

: Controls postings to GL (Real time, periodic, no

postings, etc.)

150


: Organisation Structure

: Asset Class

: Classification of assets

: Controls screen layout for asset masters

: Account determination

: Asset Master number ranges

: Activation of asset class for depreciation area

: Default values for assets (depreciation terms)

: Depreciation Key

: Calculation Methods

: Set as default in asset class 151


: Master Data

: Creation of asset masters

: Mass change of assets

: Legacy data transfer

: Business Transactions

: Transaction type

: Document Types

: Acquisitions, Retirements and Transfers

: Segment Reporting : Activation of Account Assignment Objects

: Segment Derivation and posting 152


: Period End/Year End transactions

: Depreciation Run

: AuC Settlement

: 2 types of settlements

: Use of line settlement and settlement profile

: Fiscal Year Change and Fiscal Year close –

Need and differences

: Reports

: New GL Online Document Splitting

153

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