Assets Accounting

Document No.SNPFIIMG10012

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

Page 1 of 1

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting

1. Copying Reference Chart of Depreciation / Depreciation Areas IMG Menu Financial Accounting Asset accounting Organizational Structures Copy Reference Chart of Depreciation/ Depreciation Areas Copy Reference Chart of Depreciation Transaction Code EC08 SAP provides country-specific charts of depreciation with predefined depreciation areas (for example, 0IN for India). These charts of depreciation are only references for customer charts of depreciation and therefore cannot be used directly. When you create your own chart of depreciation, you must copy a reference chart of depreciation. When you create a chart of depreciation, the system copies all the depreciation areas from the standard chart of depreciation that you use as a reference. You must delete the depreciation areas, which you do not need from your chart of depreciation 2 .. S p e c ii ff y ii n g e s c r ii p t ii o n ff C h a r t ff D e p r e c ii a t ii o n 2 S p e c y n gD D e s c r p t o no o C h a r to o D e p r e c a t o n IMG Menu Financial Accounting Asset accounting Organizational Structures Copy Reference Chart of Depreciation/Depreciation Areas Specify Description of Chart of Depreciation Transaction Code EC08 The purpose of this activity is to change the name of the chart of depreciation. s a e r n o ii t a ii c e r p e D // n o ii t a ii c e r p e ff D t r a h g n ii n ii ff e .. D 3 s a e r A nA o t a c e r p e D n o t a c e r p e D o to r a h C gC n n e D 3 IMG Menu Financial Accounting Asset accounting Valuation Depreciation Areas Define Depreciation Areas Define Depreciation Areas Transaction OADB Code In this activity we will change the definition of the depreciation areas that were copied from the standard depreciation plan, and add additional depreciation areas if required. s n o ii t ii s ii u q c e ll b a x a T -n o r o r o t a c ii d n x a t u p n g n ii n g ii s s .. A 4 s n o t s u q c A eA b a x a T n o N rN o r ff o t a c d n x II a T tT u p n g II n n g s s A 4 IMG Menu Financial Accounting Asset Accounting Integration with the General Ledger Assign Input Tax Indicator for Non-Taxable Acquisitions Transaction Code OBCL

In this step, you specify an input tax indicator (code) for each company code. The system then uses this indicator when you post acquisitions that are not subject to tax, but which are posted to accounts that are tax-relevant. An example of this kind of transaction in Asset Accounting is the depreciation-posting run. 5. Assigning Chart of Depreciation to Company Code IMG Menu Financial Accounting Asset accounting Organizational Structures Assign Chart of Depreciation to Company Code Transaction Code OAOB In this step, you assign a chart of depreciation to each company code. Document No.SNPFIIMG10012 Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005 Page 2 of 2

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting

6. Specifying Account Determination IMG Menu Financial Accounting Asset Accounting Organizational Structures Asset Classes Specify Account Determination Transaction Code SPRO The most important function of an asset class is to link asset master records to their respective general ledger accounts in Financial Accounting. The account determination key creates this link in each asset class. You can assign several asset classes to the same account determination key. 7. Defining Screen Layout for Asset Master Data Financial Accounting Asset Accounting Master Data Screen Layout IMG Menu Define Screen Layout for Asset Master Data Create Screen Layout Rules for Asset Master Record Transaction Code SPRO The asset master record in the SAP FI-AA System contains a large number of fields because it is used for many different purposes. To make it easier to maintain master data, you can adapt the asset master record to suit your own needs. 8. Specifying Number Assignment across Company Codes IMG Menu Transaction Code Financial Accounting Asset Accounting Organizational Structures Specify Number Assignment Across Company Codes AO11

In the FI-AA System, the main asset number can be assigned on a cross-company code basis. This is why you can specify, for each company code, which (different) company code is to be used for number assignment. 9. Asset Number Ranges Financial Accounting Asset Accounting Organizational Structures IMG Menu Asset Classes Define Number Range Interval Transaction Code AS08 An asset number uniquely identifies an asset. It always consists of a main asset number and an asset sub-number. Numbers can be assigned in the system externally or internally. With external number assignment, the user is responsible for assigning the numbers. The system displays only the defined number range interval and issues an error message if a number has already been assigned. With internal number assignment, the system assigns numbers sequentially. 10. Defining Asset Classes Financial Accounting Asset Accounting Organizational Structures IMG Menu Asset Classes Define Asset Classes Transaction Code OAOA From an accounting point of view, the asset class is the most important element for structuring fixed assets. Each asset must be assigned to one asset class only. The asset class assigns the assets and their business transactions to the appropriate general ledger accounts. Several asset classes can be assigned to the same account. This makes it possible for fixed assets to be structured in more detail Document No.SNPFIIMG10012 Page 3 of 3 Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting at asset class level. Such detailed structuring is not necessary at general ledger account level. It is also possible to define the screen layout, tab layout, and asset number assignment for each class. 11. Defining Depreciation Areas IMG Menu Transaction Code Financial Accounting Asset Accounting Valuation Depreciation Areas Define Depreciation Areas Define Depreciation Areas OADB

You define your depreciation areas. You can change the definition of the depreciation areas taken over from the standard chart of depreciation. You can also add additional depreciation areas 1 2 .. D e ff ii n ii n g r e a y p e 1 2 D e n n gA A r e aT T y p e IMG Menu Transaction Code Financial Accounting Asset Accounting Valuation Depreciation Areas Define Depreciation Areas Specify Area Type OADC

Depreciation areas are assigned to a type, which describes the primary purpose of the depreciation area. When you create a chart of depreciation, the system copies this typing from the reference chart of depreciation. For example, area 01 is assigned to the Book Depreciation type. s e u ll a C P ff A r e ff s n a r g n ii y ff ii c e p .. S 3 1 s e u a V CV P A o ro e s n a r T gT n y c e p S 3 1 IMG Menu Transaction Code Financial Accounting Asset Accounting Valuation Depreciation Areas Specify Transfer of APC Values OABC

In this step, you define transfer rules for the acquisition values of depreciation areas. These transfer rules ensure that certain depreciation areas manage identical acquisition values. s m r e n o ii t a ii c e r p e ff D r e ff s n a r g n ii y ff ii c e p .. S 4 1 s m r e T nT o t a c e r p e D o ro e s n a r T gT n y c e p S 4 1 IMG Menu Transaction Code Financial Accounting Asset Accounting Valuation Depreciation Areas Specify Transfer of Depreciation Terms OABD

In this step, you define transfer rules for the depreciation terms. You cannot define any depreciation terms in the asset master record for the depreciation areas to which the depreciation terms are being transferred. This ensures that the value of the depreciation areas is reduced uniformly. 1 5 .. S p e c ii ff y ii n g a x .. A m o u n t o r o w -V a ll u e s s e t s 1 5 S p e c y n gM M a x A m o u n t ff o rL L o w V a u eA A s s e t s IMG Menu Financial Accounting Asset Accounting Valuation Amount Specifications (Company Code/Depreciation Area) Specify Max. Amount for Low-Value Assets + Asset Classes Specify Amount for Low Value Assets OAYK Page 4 of 4

Transaction Code Document No.SNPFIIMG10012

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting In this step, you can define the maximum amount for low-value assets (LVAs) for each company code and depreciation area. The system checks the maximum amount during each acquisition posting, provided that the corresponding LVA indicator is set in the relevant asset class. 1 6 .. S p e c ii ff y ii n g o w -V a ll u e s s e t ll a s s e s 1 6 S p e c y n gL L o w V a u eA A s s e tC C a s s e s Financial Accounting Asset Accounting Valuation Amount IMG Menu Specifications (Company Code/Depreciation Area) Specify Max. Amount for Low-Value Assets + Asset Classes Specify LVA Asset Classes Transaction Code OAY2 During every acquisition posting, the system checks the maximum low-value asset (LVA) amount, providing that the appropriate LVA indicator is set in the asset class concerned. p e c ii ff y ii n g o u n d ii n g ff N e t o o k a ll u e n d // o r e p r e c ii a t ii o n 1 7 ..S S p e c y n gR R o u n d n go o N e tB B o o kV V a u ea a n d o rD D e p r e c a t o n 1 7 IMG Menu Financial Accounting Asset Accounting Valuation Amount Specifications (Company Code/Depreciation Area) Specify Rounding of Net Book Value and/or Depreciation OAYO

Transaction Code

You can specify how net book values at year-end, depreciation, and replacement values are to be rounded. You make the specifications for each depreciation area and company code. s e ii c n e r r u n g ii e r o r o s a e r n o ii t a ii c e r p e g n ii n ii ff e 1 8 ..D s e c n e r r u C nC g e r o F rF o s ff a e r A nA o t a c e r p e D gD n n e D 1 8 IMG Menu Transaction Code Financial Accounting Asset Accounting Valuation Currencies Define Depreciation Areas for Foreign Currencies OAYH

In Asset Accounting, you can manage depreciation areas in any currency. You can use the values from these areas for consolidation and evaluation purposes. s t r o p e t e s s r o n o ii s r e t n e m e t a t ll S a ii c n a n ii g n ii y ff ii c e p 1 9 ..S s t r o p e R tR e s s A rA o n ff o s r e V tV n e m e t a t S a c n a n F gF n y c e p S 1 9 IMG Menu Transaction Code Financial Accounting Asset Accounting Integration with the General Ledger Specify Financial Statement Version for Asset Reports OAYN

In this step, you determine for each depreciation area which financial statement version the system is to use as a default. This default applies when the financial statement version is contained in the sort version used for a given report. p e c ii ff y ii n g c c o u n t s s ii g n m e n t y p e s o r c c o u n t s s ii g n m e n t b jj e c t s 2 0 ..S S p e c y n gA A c c o u n tA A s s g n m e n tT T y p e s ff o rA A c c o u n tA A s s g n m e n tO O b e c t s 2 0 IMG Menu Financial Accounting Asset Accounting Integration with the General Ledger Additional Account Assignment Objects Specify Account Assignment Types for Account Assignment Objects

Document No.SNPFIIMG10012

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

Page 5 of 5

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting

Transaction Code

ACSET

In this step, you assign account assignment types to the account assignment objects. 2 1 .. D e ff ii n ii n g r s s ii g n ii n g o r m s o r ii s t o r y 2 1 D e n n go o rA A s s g n n gF F o r m s ff o rH H s t o r y IMG Menu Transaction Code Financial Accounting Asset Accounting Information System Define or Assign Forms Assign Asset Class/History Sheet OAAY

When the historical management function is active (Manage Historically indicator), you can print an asset chart. The Manage Historically indicator has been set for all asset classes. For each asset class, you can define a separate form for the asset history. The standard SAP form FIAA_F001 has been assigned to the example asset classes. 2 .. Defining Screen Layout for Asset Master Data 2 2 2 IMG Menu Financial Accounting Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Master Data Define Screen Layout for Asset Master Data SPRO

Transaction Code

In order to meet the needs of its many functions, the asset master record contains a large number of fields. To make master data maintenance nonetheless as simple and efficient as possible, the system enables you to design the asset master record to best suit your needs. s a e r n o ii t a ii c e r p e t e s s r o t u o y a n e e r c g n ii n ii ff e 2 3 ..D s a e r A nA o t a c e r p e D tD e s s A rA o t ff u o y a L nL e e r c S gS n n e D 2 3 IMG Menu Transaction Code Financial Accounting Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Depreciation Areas AO21

In this step, you define the screen layout control for the depreciation terms (depreciation key, useful life, and so on) in the asset master record. d r e c o e r t a s s e t s r o t u a y o a b n g ii ii ff y c p e 2 4 ..S r d o R e c t e rR s M a tM s s e A o rA u t ff o L a y T a bL n gT y c e S p 2 4 IMG Menu Financial Accounting Asset Accounting Master Data Screen Layout Specify Tab Layout for Asset Master Record Define Tab Layout for Asset Master Data AOLA

Transaction Code

Because of the large number of fields that it can contain, the asset master record is divided into several tab pages. In this step, you define the layout of these tab pages. You can specify which tab pages are displayed for each asset class (or if needed, by chart of depreciation within the asset class). For each tab page, you can specify which field groups appear in which positions on the tab page. Document No.SNPFIIMG10012 Page 6 of 6

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting s s ii g n ii n g a b a y o u t o s s e t ll a s s 2 5 ..A A s s g n n gT T a bL L a y o u tt t oA A s s e tC C a s s 2 5 IMG Menu Financial Accounting Asset Accounting Master Data Screen Layout Specify Tab Layout for Asset Master Record Assign Tab Layouts to Asset Classes AOLK

Transaction Code

The Tab layout is assigned to Asset class according to user group. 2 6 .. A u t h o r ii z a t ii o n o r s s e t ii e w 2 6 A u t h o r z a t o n ff o rA A s s e tV V e w IMG Menu Transaction Code Financial Accounting Asset Accounting Preparing for Production Startup Authorization Management Process Asset Views SPRO

In addition to the standard R/3 authorization functions, the Asset Accounting component provides the asset view, which offers additional authorization protection. The asset view authorization object(A_A_VIEW) controls master data maintenance to a certain extent. You can use this object to assign users limited views of asset data and asset values. To create asset master records you need at least one asset view. You have to use standard view 1 (asset accounting) in order to be able to create complete asset master records. All depreciation areas can be maintained with asset view 1 (asset accounting). s t n u o c c L // g n ii n g ii s s A 2 7 . s t n u o c c A LA G gG n n g s s 27. A IMG Menu Transaction Code Financial Accounting Asset Accounting Integration with the General Ledger Assign G/L Accounts AO90

You need to specify general ledger accounts such as balance sheet accounts and depreciation accounts to be able to post your asset figures to general ledger accounts. s e s s a ll t e s s n s e p y n o ii t c a s n a r t n e m y a n w o g n ii w lllo 2 8 ..A s e s s a C tC e s s A nA s ii e p y T nT o t c a s n a r T tT n e m y a P nP w o D gD n w o A 2 8 IMG Menu Transaction Code Financial Accounting Asset Accounting Transactions Acquisitions Allow Down Payment Transaction Types in Asset Classes OAYB

In this step, you determine the asset classes for which postings are to be allowed with the transaction type groups for down payments.

Important Points
1 .. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets 1 (and their business transactions) to the correct general ledger accounts. Several asset classes can use the same account assignment Document No.SNPFIIMG10012 Page 7 of 7

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

PDF created with pdfFactory trial version www.pdffactory.com

Assets Accounting

3 .. Base methods are valid in all charts of depreciation; all other methods are chart of account dependent. 3 Depreciation methods will be assigned to depreciation keys.

2. The most important tasks of the asset classes are [1] the assignment of default values when creating assets (particularly depreciation terms) [2] the grouping of assets for reporting purposes. You define the asset classes in the system in a series of steps. The asset class is structured in three parts: [1] Control parameters, [2] default values for general master data. [3] Default values for depreciation terms in the chart of depreciation

Document No.SNPFIIMG10012

Copy right S.N.Padhi 2005 http://www.surya-padhi.net/ Dated: Friday, October 07, 2005

Page 8 of 8

PDF created with pdfFactory trial version www.pdffactory.com