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3 Repl ies Latest reply: Dec 18, 2008 9:30 AM by Venkata Dara
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asset accounting entries
This question is Assumed Answered.
Hi friends

What are the GL Entries that occur in Asset Accounting?
Sales of asset purchase of asset, scraping of asset, Deprecation posting, transfer of an asset.

What are the deprecation areas that are taken into consideration for Indian implementation and how
there are treated in asset accounting?

Thanks in advance.

Regards
Raj
rajendra mocherla Dec 18, 2008 7:50 AM
Helpful Answers by babu MK, babu MK, Venkata Dara
Re: asset accounting entri es
Please see the entries:

Accounting entry for sale of Asset to customers:
Customer Account Dr
Asset Sale Cr
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr
Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales
Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax
Payable)
Accounting entry for sale without a customer:
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Helpful Answer
babu MK Dec 18, 2008 8:05 AM (in response to rajendra mocherla)
asset accounting entries | SCN http://scn.sap.com/thread/1171674
1 of 3 4/28/2014 10:29 AM
Asset Sale account Dr
Asset account Cr
Profit on sale (if applicable) Cr
Accounting entry for scrap
Accumulated Depreciation Dr
Loss on Sale of Assets Dr
Asset account Cr
Li ke (0)
Re: asset accounting entri es
In the context of Indian accounting, you can define two depreciation areas : Book Depreciation & Tax
depreciation. Book depreciation is allowed to post directly and tax depreciation you can calculate
periodically for information/reporting purposes.
Li ke (0)
Helpful Answer
babu MK Dec 18, 2008 8:06 AM (in response to rajendra mocherla)
Re: asset accounting entri es
Hi

purchase of asset

Asset A/C (70) Dr
To vendor (31) Cr


Sales of asset

Customer A/C (01) Dr
Asset Sale A/C (50) Cr

Acc. Dep. on Asset (70) Dr
Asset A/C (75) Cr

Asset Sale A/C (40) Dr
Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr

Deprecation posting

Depreciation A/C Dr
To Acc. Dep A/C Cr

scrapi ng of asset

Asset A/C (75) Cr
Acc. Dep A/C (70) Dr
Loss due to Scrapping A/C (40) Dr

transfer of an asset

ABUMN----->Asset transfer within Company Code

70 Asset debited in NEW Business Area
75 Asset credited in OLD Business Area

70 Acc. Dep debited in OLD Business Area
75 Acc. Dep credited in NEW Business Area

ABT1N------>InterCompany Asset Transfer

OLD Company Code 75 OLD Business Area Asset A/C Credit
OLD Company Code 70 OLD Business Area Acc. Dep Debit
OLD Company Code 40 OLD Business Area Asset sale A/C Debit
NEW Company Code 70 NEW Business Area Asset A/C Debit
NEW Company Code 50 NEW Business Area InterCompanyClearing Credit


Regards
Venkat

Edited by: Venkat Dara on Dec 18, 2008 9:30 AM
Helpful Answer
Venkata Dara Dec 18, 2008 9:30 AM (in response to rajendra mocherla)
asset accounting entries | SCN http://scn.sap.com/thread/1171674
2 of 3 4/28/2014 10:29 AM
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asset accounting entries | SCN http://scn.sap.com/thread/1171674
3 of 3 4/28/2014 10:29 AM