Asset Accounting

Organizational structure
COD
Each company code uses one chart of accounts and one chart of depreciation
The chart of depreciation is always country-specific.
Depreciation Area
Each depreciation area represents a specific type of valuation
The depreciation areas are defined with a two-digit numeric key
Depreciation area 01 is the leading depreciation area. Values and depreciation
are posted to the general ledger.
Company code is created in Financial Accounting. We assign the chart of
depreciation to the company code
Asset classes= for classifying assets
Fixed assets are classified into asset classes. Some examples of asset classes
could be vehicles, furniture, or machines.The asset class consists of a master
data section and a depreciation area section.Asset classes are created at
client level. They are then assigned to at least one chart of depreciation.
Asset class at client level
Three things get derived number range, screen lay out, account determination
Asset master
Number ranges drive your, to internally assign asset classes to the master data
Asset master: time dependent tab to link CO with assets, because here you
define your cost center
Depreciation key
Depreciation key
Defined at client level used at line item level. To indicate what kind of
depreciation youre dealing with.
Part 2: Asset accounting master data
To structure fixed assets according to the requirements of the company
A master data section with control data and default values for the
administrative data in the asset master record
A valuation section with control parameters and default values for
valuation and depreciation terms

Advantages: Establishes a link between the asset master records and the
accounts to which the related values and depreciation are posted in the general
ledger
Number range: The number range controls the assignment of the number of the
asset master
screen layout specifies which input fields are displayed in the asset master record
The screen layout rule defined here applies to the valuation fields in the
depreciation area
Account assignment must be activated before maintenance in asset class

Asset under construction

Assets under construction (AuC) require a separate asset class and
corresponding G/L account, because they have to be shown separately in
the balance sheet.
Downpayments posting is possible, credit memos are possible ,depreciations
arent

Asset master record

Certain information in the asset master record can be managed as timedependent data. This is of particular significance for cost accounting
assignments (for example, cost center, order, project) since depreciation is
run on a monthly basis.
Whenever an asset master record is changed, the system creates a
change document. The change document contains a list of fields that
were changed and the number of changes to a field. In addition, the name
of the user and the old and new contents of fields are stored.
For assigning equipment and functional locations to an asset ,the asset
number can be entered in the relevant master record

Asset transactions
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 a 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 AP 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.
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. Production costs are
capitalized by creating an investment measure (order/project) in Investment
Management (IM) and settling to an AuC and then to final asset.
The asset value date ( capitalization date) determines the
depreciation start date of the asset. This date is determined for each
depreciation area by the period control method of the depreciation key.

With document type AA you post gross, that is, without deducting a
discount.
With document type AN (KN, RN), the amount capitalized to the asset is
reduced by the discount (net document type).
Business Transaction types are used with every posting. They identify
acquisitions, retirements and transfers.

Reasons for not making integrated postings:

The invoice arrived before the asset
The asset has already been delivered but the invoice has not arrived

Asset retirement
1. With or without revenue (scrapping)
2. With or without customer (non-integrated)
3. As full or partial retirement
4. As mass retirement (with worklist)

5. As retirement of several assets (within the manually posted retirement

transaction)

Asset transaction
Asset Accounting distinguishes between different types of transfers, depending
on circumstances:
. Transfers within a company code (intracompany transfer)
. Transfers between different company codes ( intercompany transfer)

The transfer method controls how values are transferred from the source
company code to the target company code.
Gross transfer method - This method transfers the historical values of the
asset to the target company code.
Net method - The net book value is capitalized on the target asset.
New value method - The system capitalizes the amount of the
sales revenue on the target asset.

The 2 phases of an asset

The transfer from the under-construction phase to completed asset is referred to
here as capitalization of the asset under construction.
This phase can be managed in the following ways (depending on the
functions you need):
. As a normal asset master record (for summary settlement)
. As an asset master record with line item management
When you capitalize the AuC , you transfer the values to one or more completed
assets. This transfer is either done in a lump sum or with line item
settlement.

Unplanned depreciation
The depreciation could be current-value depreciation, for example, that is allowed
for book depreciation but not for tax depreciation

Periodic processing
Periodic processing comprises the tasks in Asset Accounting that must be
performed at periodic intervals
For planning primary costs on a cost center basis, you can periodically
determine planned depreciation and interest and pass these on to primary
cost planning in the CO system via a report.
Investment support is a subsidy that a company receives for certain
asset investments. Assets that are eligible for such a subsidy are marked in
the asset master records with an investment support key. All specifications
for claiming the investment support are stored in the definition of this key.
The claim can be posted manually or in a mass procedure.
Inflation management is required in countries with high rates of inflation
or deflation.

Maandelijks
Opening closing period-m
costing runs-y
balance CF-y -> cc plan-y,assesments-y,distributions-y
Fx revaluation-m
depreciation runs-m
Closing FY assets-y
Closing fiscal year-y
Periodic processing: depreciation
Ordinary depreciation: This is the planned reduction in asset value due
to normal wear and tear.
Special depreciation: This represents a purely tax-based type of
depreciation for wear and tear where the percentage may be staggered
within a tax concession period, without taking the actual wear and tear on
the asset into consideration.

 Unplanned depreciation: This is concerned with unusual circumstances,

such as damage to the asset, that leads to a permanent reduction in its
value.
Unit-of-production depreciation: This takes fluctuations in activity into
account for the depreciation calculation. It makes the amount of
depreciation dependent upon seasonal usage of the asset (for example,
number of miles traveled or units produced).

Period control method: assigned with a depreciation and controls how the
transaction gets affected
Depreciation key is assigned to depreciation type.

Time dependent terms

The following parameters can be changed on a time dependent basis :

Depreciation key

Useful life (year /period)

Variable depreciation amount

Absolute scrap value

Percentage scrap value

Periodic processing FY change and YE closing

A fiscal year change represents the creation of a new fiscal year for a
company code. At the fiscal year change, the asset values from the
previous fiscal year are carried forward cumulatively into the new fiscal
year.
Once the fiscal year change takes place, you can post to assets using
value dates in the new fiscal year. At the same time, you can, however,
continue to post in the previous fiscal year, provided this has not been
closed as a result of the year-end closing.
The earliest that you can carry out a fiscal year change is in the last month
of the old fiscal year.
Before you can change to fiscal year YYYY, you must have already closed
fiscal year YYYY-2. You can have a maximum of two fiscal years open for
posting at one time.
The fiscal year change has to be carried out as background processing for
performance reasons

Year end closing

Once the fiscal year is closed, you can no longer post or change values
within Asset Accounting (for example, by recalculating depreciation).
You can undo a year-end closing that has already been performed if you
establish that fixed assets do have to be corrected after all.
The fiscal year that is closed is always the year following the last closed
fiscal year. You cannot close the current fiscal year.
The year-end closing in Asset Accounting must be performed before the
year-end closing in General Ledger Accounting.
You have to carry out the year-end closing as background processing for
performance reasons.
ASSET REPORTING
Moving data from one system to another
Customer:->master,transactions
Vendor:->master, transactions (open APs/ AR) clean up adhv cut off (gross block,
accum dep, current dep)
Asset:GL:-> MOST IMPORTANT: x->xy/ y->yz/ develop upload program LSMW
Materials:

DINSDAG: TAXATION
The tax on sales and purchases is the balance of the output tax and the input tax.
The tax liability minus deductible input tax is the tax payable.

The output tax is levied on the net value of the goods and is billed to the
customer. It is a liability of the company to the tax authorities.

The Input tax is levied on the net invoice amount and is billed by the
vendor. The input tax is a receivable which the company claims from the
tax authority.

A tax calculation procedure is assigned to every country for carrying out tax
calculations. The mySAP ERP system is delivered with pre-configured tax
calculation procedures for most countries.
For the USA two tax calculation procedures are relevant:

. TAXUSJ: Standard tax procedure including handling of jurisdiction codes

. TAXUSX: Tax procedure used when employing an external tax package
TAX CALCULATION PROCEDURE
The tax calculation procedure contains:
1. The order of steps which have to be taken in the tax calculation procedure
(the from step indicates where the system calls the base value for the step)
2. Tax types (condition types) that apply for the country. The system is
delivered with the condition types necessary for each type of tax calculation.
The tax calculation procedure already covers the correct condition types.
3. Account key/transaction key that covers additional specifications and is
used for the automatic account determination for the taxes concerned. It is
recommended to use predefined accounts keys already included in the mySAP
ERP system.
Condition types are tax calculations that are valid for the country.
The base amount is an expense or revenue item.
TAX CODE
Tax code is entered when you post the document and this is the main
connection to the tax calculation. This connection is different depending on
whether the country uses a tax calculation procedure with tax jurisdiction codes
or not.
TAX POSTING
The taxes calculated by the system are usually posted via a separate line item to
a special tax account. This is the standard scenario. T code to make required
configuration for this is OBCN, where we can choose appropriate posting
indicator for separate line item, no posting required etc
AUTOMATIC TAX DETERMINATION
For automatic tax account determination ,assign the following to the transaction
keys that generate the tax items during posting:

Posting keys (40 and 50 are recommended)

Rules that determine which fields the account determination is based on
(the account determination can be based on the tax code or the account
key)
Tax accounts

OTHER GL ACCOUNTS

All other G/L accounts may have one of the following entries in the Tax
Category field:
For non tax-relevant postings (e.g. bank postings)
For postings that require an input tax code (for example, reconciliation
account for payables from goods and services)
For postings that require an output tax code (for example, reconciliation
account for receivables from goods and services)
For postings that require any tax code
For postings with the predefined tax code xx
If the Postings Without Tax Allowed field is selected, you can post to the G/L
account without specifying a tax code. This is especially necessary for tax
postings within a jurisdiction code tax calculation procedure to foreign customers
who do not have a jurisdiction code.
Tip : Accounts for cash discounts need an entry in the Tax Category field if the
system is supposed to post tax adjustments.

PERIOD END CLOSING

Year end closing
perform physical inventory count,update product cost estimate, balance
confirmation, lifo fifo valuation
Month end closing
Open new accounting period,post payroll expenses, maintain clearing
accounts,enter accruals deferrals

BALANCE CONFIRMATION
Reports SAPF130D and SAPF130K create correspondence to and from your
customers and vendors to enable you to check the balance of receivables and
payables.
FOREIGN CURRENCY VALUATION
You carry out the foreign currency valuation before you create the financial
statements. The valuation includes the following accounts and items:
Foreign currency balance sheet accounts, that is, G/L accounts that you
manage in a foreign currency (the balances of the G/L accounts in foreign
currency are valuated)

 Open items (customers, vendors, G/L accounts) posted in foreign currency

(the line items are valuated)
Transaction code FAGL_FC_VAL to valuates open items in foreign currency
as well as foreign currency balance sheet accounts.
VALUE ADJUSTMENT
You carry out the foreign currency valuation before you create the financial
statements. The valuation includes the following accounts and items:
Foreign currency balance sheet accounts, that is, G/L accounts that you
manage in a foreign currency (the balances of the G/L accounts in foreign
currency are valuated)
Open items (customers, vendors, G/L accounts) posted in foreign currency
(the line items are valuated)
Transaction code FAGL_FC_VAL to valuates open items in foreign currency
as well as foreign currency balance sheet accounts.
Doubtful receivables
Doubtful receivables are written off as an individual value adjustment (IVA)
during year-end closing.
The special general ledger method is suitable for this procedure since the
transaction is entered in the customer account and is also "posted to a
special G/L account, Individual Value Adjustments for Receivables.
After you have ascertained that the debt is irrecoverable or that the
receivable has been paid, the individual value adjustment is reversed. If
the debt is irrecoverable, the receivable is cleared from the customer
account and the amount is posted to the account for depreciation of
receivables.
Regrouping
Before you can create financial statements, you have to group your
receivables and payables according to remaining life so that they are
correctly displayed in the financial statements. To do this, you have to
make adjustment postings.
You can use repost SAPF101 to regroup and sort the receivables and payables; it
has the following functions:
It sorts receivables and payables according to remaining life and makes
the transfer postings required.
It makes the required adjustment postings (for example, for changed
reconciliation accounts).

 You can use report SAPF101 to determine where transfer postings are
required. When you define the sort method in Customizing, you can
select the cases where receivables and payables should be regrouped.
COCKPIT SCHEDULING
Provides Structured interface for executing transactions and programs of
complex closing process

It structural layout supports processes within an organizational structure

(E.g., a Co. Code) as well as processes cutting across multiple
organizational structures
It is particularly useful when:

Activities recur periodically

More than one responsible person is involved

The activities are performed within a process that has a fixed

chronological sequence of is determined by dependencies

The status of all periodic activities needs to be documented and

made transparent

The closing process is the recurring process that can occur daily, monthly
and yearly. The Closing Cockpit (Transaction Code CLOCO) can be use to
simplify the complex processes of financial closing by providing
transactions and programs.
It is the set of event-driven activities that optimizes the business
processes. It provides monitoring and analysis tools that covers entire
closing process.

 Configuration with Transaction code "CLOCOC"(Creating Organizational

Hierarchy, Template, various task list and also releasing the template for a
period)
Transaction code "CLOCO" used to execute various tasks created in
configuration