Fixed Assets Accounting in SAP ERP Accounting.ppt

Editor's Notes

• #6: The asset class is used to: sub-classify the General ledger accounts and group master records by specific criteria.
• #8: The asset class contains default values and control elements which are passed on to the individual assets when you open a new asset master record. By entering useful default values, you reduce time and effort needed for creating new asset master records. You also ensure that the records in a given class are handled uniformly.
• #9: The asset class contains default values and control elements which are passed on to the individual assets when you open a new asset master record. By entering useful default values, you reduce time and effort needed for creating new asset master records. You also ensure that the records in a given class are handled uniformly.
• #10: Asset classes are made up of a master data section and a section for valuation data. You define the master data section of an asset class once on the client level. The valuation data section is dependent on the assigned chart of depreciation, which in turn is directly linked to the company code.
• #11: You can define any number of asset classes in Customizing. You use the asset classes to categorize assets according to the needs of your enterprise. The asset classes are valid across company 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 therefore different depreciation areas You can assign different charts of depreciation to an asset class, so that all assets in this class will be treated differently in each country.
• #13: Assets under construction require their own asset class. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support 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 type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
• #17: Assets under construction require their own asset class. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support 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 type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
• #18: Assets under construction require their own asset class. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet (in accordance with the legal requirements in most countries). However, special tax depreciation and investment support 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 type group 15. You can enter credit memos on the asset under construction after its complete capitalization, if you allow negative acquisition and production costs (APC). The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.
• #20: You will generally need values for fixed assets for various business and legal purposes (for example, for book depreciation, cost-accounting depreciation and so on). In the R/3 FI-AA system, it is therefore possible to manage values in parallel in as many depreciation areas as you want. The chart of depreciation is therefore best described as a catalog of depreciation areas structured according to various business aspects. You can specify the characteristics and thereby the significance of the individual depreciation areas in each chart of depreciation. The country-specific charts of depreciation, which are supplied as standard, are for reference purposes only. You can only open a new chart of depreciation by using an existing chart of depreciation as a reference.
• #22: 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.
• #24: 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. The asset 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 asset class.) 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 range that uses internal number assignment). This asset number is also the account number of the individual asset account.
• #25: Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost accounting assignments (for example, cost center, order, project). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, 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 an asset.
• #26: Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost accounting assignments (for example, cost center, order, project). Shift operation and asset shutdown, both of which can have a direct effect on depreciation, 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 an asset.
• #28: The acquisition posting can be created in the department that is primarily responsible for this business transaction. Acquisition of an asset from a business partner => External acquisition: In Asset Accounting (FI-AA) integrated with Accounts Payable (incoming invoice), but without reference to a purchase order. In FI-AA with automatic offsetting entry, but without link to a purchase order and without integration with Accounts Payable. This posting is normally used when the invoice has not yet been received, or when the invoice was posted by the Accounts Payable department beforehand in a separate step. The offsetting account also has to be cleared. In FI-AA with automatic clearing of the offsetting entry: The first posting usually is made in FI-AP. The clearing account is cleared at the same time as the asset posting is made. It is also possible, however, for both departments to make postings in the opposite order: An asset is entered with automatic offsetting entry, and the clearing account is cleared with the credit posting of the incoming invoice. In Materials Management (MM): The asset is posted in MM. Acquisition from in-house production is the capitalization of goods or services that are partially or completely produced in your own enterprise. The costs for these in-house produced goods or services (such as maintenance) have to be capitalized to assets. Generally, you capitalize production costs by creating an order or project in Investment Management (IM) and settling to an asset under construction and then to the final asset.
• #29: The example shows an asset acquisition with MM integration. It shows the following activities: purchase requisition, purchase order, goods receipt, invoice receipt, and creation of an asset. The steps are: creation of a purchase requisition, creation of an asset master record, creation of the purchase order: Using account assignment type A (A=asset) you can enter an asset master record when creating the purchase order. It is not possible yet to create an asset master record directly when you use purchase order transaction ME21N. However, it is still possible using the "old" purchase order transaction ME21. Goods receipt: When you enter the purchase order, you determine whether the asset is posted directly to Asset Accounting, and thereby capitalized, when the goods receipt is posted (valuated good receipt), or whether capitalization does not take place until the invoice receipt is posted (non-valuated goods receipt). The first option would be used when the goods receipt takes place before the invoice receipt. When the invoice is received later, there may be differences between the invoice amount and the amount posted at the time of the goods receipt. In this case, adjustment postings are made to the asset. No corrections are necessary for an non-valuated good receipt, since the asset was not yet capitalized. However, the system uses the date of the goods receipt as the capitalization date. Invoice receipt: If the goods receipt was non-valuated, the asset is capitalized, line items are created and the value fields are updated.
• #40: Asset Accounting distinguishes between different types of transfers, depending on the circumstances: - Transactions within a company code (intracompany transfer) or - Transactions between different company codes (intercompany transfer). Possible reasons for intracompany transfers: 1) A master record has been created and posted in the wrong asset class. 2) 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. 3) The asset needs to be split, or a portion of the asset rebuilt. Therefore, a portion of the original asset will be transferred to a new asset. 4) The standard system uses transfer variant 4 for intracompany transfers. The transaction types for transfer postings to source and target assets are determined by the transfer variant. When you create a new master record within the transfer transaction, you can use "copy rules" to define which entry fields should be copied from the source asset to the target asset.
• #42: The fiscal year change program opens new annual value fields for each asset. The earliest you can start this program is in the last posting period of the old year. You have to run the fiscal year change program for your whole company code. SAP provides you with a check report for year-end closing. It checks whether the fiscal year change was completed for all assets, whether depreciation was fully posted, whether errors exist for any assets. In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciation area.