Asset Accounting

1. Asset Accounting (Lean Implementation)

a.
This segment of the Implementation Guide contains all the implementation steps needed
for a minimal configuration of the FI-AA Asset Accounting component. After you have
completed all the activities in this segment, the component is ready for production startup.
This reduced configuration is based on the basic functions generally required of asset
accounting.
b. The following topics have been omitted (among others):
i. Depreciation areas in foreign currencies
ii. Requirements for consolidation of a corporate group
iii. Group assets
iv. Definition of your own depreciation keys (in addition to those provided in the
standard system)
v. Definition of your own transaction types (in addition to those provided in the
standard system)
vi. Definition of your own reports in (addition to those provided in the standard
system)
2. Organizational Structures
a. Check Country-Specific Settings (OA08) –
i. To check whether Country IN exists in the list or not (if it not there then create
one)
ii. Capitalization AUC W/O Down payment – Here we need not worry about the
advance amount which we already paid for the vendor (if the asset under
construction is for more than 1 year then this setting will be at our rescue)
b. Copy Reference Chart of Depreciation/Depreciation Areas
i. Copy Reference Chart of Depreciation/Depreciation Areas (EC08) – It is
advised to copy the chart of depreciation from the existing configured COD
ii. Copy Reference Chart of Depreciation/Depreciation Areas () – Change the
Description of the target Chart of Depreciation
iii. Copy Reference Chart of Depreciation/Depreciation Areas () – either to copy
a new depreciation area or delete the unnecessary depreciation areas
1. Real – Stores Real Depreciation Area
2. Target Group – Target Ledger Group where the ledgers in the parallel
ledgers will be given
3. Postings in GL Account – Postings to GL based on the nature of
depreciation area whether to post the depreciation or not
c. Assign Chart of Depreciation to Company Code (OAOB) –
i. Linking the company code with chart of depreciation,
ii. however we can assign the chart of depreciation for more than one company
code
iii. So creation of a chart of depreciation will be at client level
d. Specify Number Assignment Across Company Codes (AO11) - Therefore, for every
company code, you can determine from which (other) company code number assignment
is to be carried out. In this step, you define a cross-company code assignment of the main
asset number. If you do not want a cross-company code number assignment, you do not
need to define any system settings here.
e. Asset Classes
 Asset Accounting
i. Generate Asset Classes from G/L Accounts (1 to 1) (ANKL) - This Wizard
helps you to create asset classes based on your G/L accounts.
1. It generates asset classes, account determinations, screen layout rules,
and number ranges for the assignment of the main asset number. These
objects are generated in a 1 to 1 relationship to your asset balance sheet
accounts. The system enters account determinations, screen layout rules
and number ranges in the asset class as control parameters. You define
additional account determinations, screen layout controls and number
ranges (if needed) in the Implementation Guide (IMG). Choose
Organizational Structures.
2. Precondition: You have to be able to enter all of your asset balance sheet
accounts.
3. The data gathered by the Wizard is not saved to the database until you
carry out the last step ("Complete"). You can check and change your
entries at any time up to that point by choosing the "Back" pushbutton
ii. Specify Account Determination - the account determination links an asset
master record to the general ledger accounts to be posted for an accounting
transaction using the asset class.
iii. Create Screen Layout Rules – The screen layout specifies the status of the
fields in the asset master record. You use the screen layout to determine if fields
are required entry or optional entry fields, or if they are suppressed completely
iv. Define Number Range Interval (AS08) – Giving Number ranges for the assets
masters
v. Define Asset Classes (OAOA) – Assign Account Determination, Screen Layout
Rules, Number range interval
1. Base Unit – How the unit of measure for calculation example EA, Piece
2. External Sub No – Sub asset no to be given if we want to give a external
sub numbers
3. Include Assets – This indicator is enabled only when we want to do the
physical inventory of assets
4. Status of AUC – to define whether it is a AUC asset or not and the way
AUC assets are to be settled
a. Investment Measure - We use it internal order for chec
5. Lock Status – If we want the asset class to be blocked from posting then
we can use this field
6. History Status - if we want to maintain the history for the purchase of
asset then we can use this field
vi. Specify Chart-of-Dep.-Dependent Screen Layout/Acct Assignment (ANK1)
1. Screen Layout and Account Assignment assigned to a asset class will be
at a client level, however if we want such criteria to be country specific
then we can use this field
3. Integration with General Ledger Accounting
a. Define How Depreciation Areas Post to General Ledger (
b. Assign G/L Accounts (AO90) – Need to Update based on the GL Account
c. Specify Posting Key for Asset Posting (OBYD) –
i. Specify Posting Key for Asset Posting (ANC) – When we have intercompany
postings then we will assign the GL account
ii. Specify Posting Key for Asset Posting (ANL) – 70 & 75
 Asset Accounting
iii. Specify Posting Key for Asset Posting (ANS) – 40 & 50
d. Change the Field Status Variant of the Asset G/L Accounts - (OBC4) (OB41) &
(OBC5)
e. Assign Input Tax Indicator for Non-Taxable Acquisitions (OBCL) – Here we assign
the Input code, output code and jurisdiction code for the company code
f. Specify Financial Statement Version for Asset Reports (OAYN) – Here we Assign the
Financial statement version to depreciation areas for assets reports
g. Post Depreciation to General Ledger Accounting
i. Specify Document Type for Posting of Depreciation
1. Define Document Types (OBA7)
2. Specify Document Type for Posting of Depreciation (AO71) - Here
we assign the document type for posting depreciation (AF)
ii. Document Type for Cross-Company Code Cost Accounting in External Co
Code – Giving the document type for cross company depreciation transaction
iii. Specify Intervals and Posting Rules (OAYR) – it defines the period and
method for calculation of depreciation(Whether Depreciation needs to be
calculated On monthly Basis or quarterly, needs to post Revaluation for
Impairment
h. Segment Reporting
i. Activate Segment Reporting – it enables the segmental reporting feature for
asset accounting however by click this we can activate profit center accounting as
well
ii. Fill Master Data for Segment Reporting (FAGL_R_AA_ASSET_UPDT) –
we need to update the master data for the fixed asset which has cost objects or
without cost objects
iii. Fill Consolidation Transaction Type for Segment Reports in GL Accounting
(FAGL_R_FILL_RMVCT) – here we need to update the amounts for parallel
ledger under new ledger concept
i. Additional Account Assignment Objects
i. Activate Account Assignment Objects – to assign the asset with internal or cost
center
ii. Specify Account Assignment Types for Account Assignment Objects –
Assignment of Cost centre or internal order for charging of Depreciation to Asset
or depreciation account.(For posting Depreciation to Cost centre)
iii. Process Error Table – Error Message for controlling objects
iv. Display of Active Account Assignment Objects (AACCOBJ) – it displays the
active controlling objects
j. Post APC Values Periodically to General Ledger Accounting
i. Maintain Posting Rules for Parallel Accounting Principles (OBSOLETE)
ii. Assign G/L Accounts (AO90)
iii. Reset Reconciliation Accounts (OAMK) – to reset all the reconciliation
accounts
iv. Specify Document Type for Periodic Posting of Asset Values - If you have
activated the function for direct posting for depreciation areas that post
periodically, then directly posted documents are posted using the document type
that is also used in the master depreciation area. Only those documents that are
posted later using the periodic posting program are posted using the document
type entered here. In order to be able to find all documents - both those directly
 Asset Accounting
posted and those generated by the periodic report - select using transaction
ASKBN when you make a document search.
4. Valuation
a. Set Chart of Depreciation (OAPL) – to enable the chart of accounts
b. Depreciation Areas
i. Define Depreciation Areas
1. Define Depreciation Areas
2. Specify Area Type (OADC) – Here we assign the area type (Cost, US
tax, etc) to depreciation area
ii. Specify Transfer of APC Values (OABC) – We define which depreciation area
is primary and what depreciation areas copy the APC values from depreciation
area
iii. Specify Transfer of Depreciation Terms (OABD) –
1. We do not have to/cannot maintain depreciation terms for the copying
depreciation areas in the asset master record. In this way, you can ensure
that certain depreciation areas are uniformly depreciated
2. Identical depreciation terms copied – which means when we are creating
a asset master and the depreciation key copies automatically from the key
which is identically valued

iv. Set Up Areas for Parallel Valuation (OADB_WZ) –

1. This wizard helps you to set up parallel valuation in Asset Accounting

when you use new General Ledger Accounting in conjunction with the
ledger approach in the new general ledger. If you use (or continue to use)
the account approach, you do not need this wizard.

2. To set up parallel valuation with the wizard, you need to know which
ledger groups to use and which of your existing depreciation areas
contain the values for parallel valuation. Using this wizard, you link the
depreciation areas with the ledger groups. To represent the differences in
APC values, you also need a derived depreciation area that updates the
APC valuation differences. If you do not yet have a depreciation area of
this type in the system, you can create one, or modify an existing
depreciation area, using this wizard.
v. Länderspezifische Einstellungen
1. CIS
2. Define Fiscal Period Length for Base Value Calculation
vi. Determine Depreciation Areas in the Asset Class (OAYZ) –
1. Deactivate – We can deactivate a depreciation area for a particular asset class
2. Depreciation Key – Assigning the depreciation key to the depreciation area
3. Use – useful life of the asset
4. Per – usefull life of the asset based on number of periods
5. Index
6. Screen Layout Rules – for main asset master or a sub asset master
vii. Deactivate Asset Class for Chart of Depreciation (AM05) – We deactivate the asset
class from postings
c. Amount Specifications (Company Code/Depreciation Area)
i. Specify Max. Amount for Low-Value Assets + Asset Classes –
1. Check maximum amount with quantity (OAY2) - We assign the following to
Depreciation area as below
a. 0 - No maximum amount check
b. 1 - Value based maximum amount check
 Asset Accounting
c. 2 - Check maximum amount with quantity
2. Specify amount for low value assets (OAYK) – Here we specify the maximum
amount for the low value assets example 5000 as per companies act
ii. Specify Rounding of Net Book Value and/or Depreciation (OAYO) – Rounding of the
depreciations amount
iii. Specify Changeover Amount (OAYJ) - the system changes over the calculation of
depreciation to the changeover key defined in the depreciation key, as soon as the net
book value is less than the amount entered here.
iv. Specify Memo Value
d. Fiscal Year
i. Fiscal Year Variants
1. Specify Other Variants on Company Code Level - we need to assign fiscal
year variant here only when the fiscal year for chart of depreciation is different
from the fiscal year of company code.
2. Specify Other Variants on Depreciation Area Level – here we can assign the
fiscal year variant for the depreciation area example 01 companies act V3, 15
Income tax K4 and 20 cost V6
ii. Shortened Fiscal Years
1. Define Reduction Rules for Shortened Fiscal Years - the system reduces
automatically calculated ordinary depreciation in the shortened fiscal year in
accordance with the length of that year. The below are the fields in Reduction
rules
a. Year – The year in which shortened fiscal year is applied
b. Area – It means depreciation area in SAP
c. ODep – Reduce Ordinary Depreciation in shortened fiscal year
d. SDep – Reduce Special Depreciation in shortened fiscal year
e. Int. - Reduce interest in shortened FY
f. Rev. - Reduce revaluation in shortened fiscal year
2. Maintain Depreciation Key (AFAMA) - In some circumstances, legal
requirements make it necessary to have unreduced depreciation at all times, even
during a shortened fiscal year, when using certain depreciation methods (for
example, fixed percentage rate per year). Therefore, you can use an indicator in
the depreciation key to specify that the depreciation with these keys remains
unreduced despite a reduction rule on company code level.
iii. Use of Half Months in the Company Code - This way, you can calculate depreciation in
these company codes on the basis of half months or half periods. Using this method, you
can work with 24 periods in Asset Accounting, although the fiscal year variant in
Financial Accounting has only 12 normal periods
iv. Define Weighting of Periods - define the weighting of the distribution of the planned
annual depreciation to the individual periods in the fiscal year. You can enter a relative
weight for each fiscal year version and each fiscal year. The posting period receives a
depreciation amount based on its relative weight in relation to the total of all the
weights. This makes it possible to distribute according to the number of days or weeks
per period. The weighted distribution affects the periodic posting of depreciation, as well
as the determination of proportional value adjustments for retirements and transfers.
e. Currencies
i. Define Depreciation Areas for Foreign Currencies (OAYH) – here we assign the
currency for the depreciation areas example for depreciation area 01 – INR and
20(costing) - USD
ii. Specify the Use of Parallel Currencies – it say about the parallel currencies to be used
for each business area
f. Group Assets
i. Specify Depreciation Areas for Group Assets (OAYM) – Activating the group asset
concept to the depreciation area we wanted
ii. Specify Asset Classes for Group Assets (OAAX) – Specifying the asset class for which
group asset pertains
5. Depreciation
a. Ordinary Depreciation
 Asset Accounting
i. Determine Depreciation Areas (OABN) – Activating Ordinary depreciation for
depreciation areas (as needed by the client)
ii. Assign Accounts (AO93) – Assigning the ordinary depreciation accounts and
revaluation accounts
iii. Define Unit-of-Production Depreciation (AO25) – here we define the number
of unit we can produce from an asset, what are the remaining number of assets
and what are the units of productions done in the current period
b. Special Depreciation
i. Determine Depreciation Areas (OABS) – Activating Special depreciation for
depreciation areas
ii. Calculate Ordinary Depreciation before Special Depreciation (AOBK) – if
we click on the check box then special depreciation will be calculated only after
ordinary depreciation
iii. Assign Accounts (AO94) – displaying the depreciation areas for special
depreciation and accounts related to it
c. Unplanned Depreciation
i. Determine Depreciation Areas (OABU) – Activating the unplanned
depreciation postings for depreciations areas
ii. Assign Accounts (AO95) – assigning the unplanned depreciation GL accounts
for automatic account assignment
iii. Define Transaction Types for Unplanned Depreciation (AO78) & (OAXE) –
here we’ll be defining the transaction type for unplanned depreciation and limit
the transaction types to depreciation area
d. Valuation Methods
i. Depreciation Key
1. Calculation Methods
a.
2. Default Values
3. Maintain Depreciation Key
ii. Period Control
iii. Further Settings
iv. Enhancements
6. Special Valuation
7. Master Data
8. Transactions
9. Information System
10. Asset Data Transfer
11. Preparing for Production Startup
12. Overview for Experts