CONFIGURATION STEPS IN ASSET ACCOUNTING

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Fixed Assets
What are the organizational assignments in asset accounting? Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code. Under the Chart of depreciation all the depreciation calculations are stored. How do you go about configuring Asset accounting? The configuration steps in brief are as follows:a) Copy a reference chart of depreciation areas b) Assign Input Tax indicator for non taxable acquisitions c) Assign chart of depreciation area to company code d) Specify account determination e) Define number range interval f) Define asset classes g) Define depreciation areas posting to general ledger h) Define depreciation key Explain the importance of asset classes. Give examples? The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset class are Plant& Machinery, Furniture & Fixtures, Computers etc. The asset class also contains the Gl accounts which are debited when any asset is procured. It also contains the gl accounts for depreciation calculation, scrapping etc Whenever you create an asset master you need to mention the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the gl accounts attached to the asset class is automatically picked up and the entry passed. You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class. How are depreciation keys defined? The specifications and parameters that the system requires to calculate depreciation amounts are entered in Calculation methods. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class . Refer to the configuration for more details of how depreciation is calculated. A company has its books prepared based on Jan Dec calendar year for reporting to its parent company. It is also required to report accounts to tax authorities based on April- March. Can assets be managed in another depreciation area based on a different fiscal year variant? No. Assets accounting module cannot manage differing fiscal year variant which has a different start date (January for book depreciation and April

for tax depreciation) and different end date (December for book depreciation and March for tax depreciation). In this case you need to implement the special purpose ledger. What are the special steps and care to be taken in Fixed asset data migration into SAP system especially when Profit center accounting is active? Data migration is slightly different from a normal transaction which happens in Asset accounting module. Normally, in asset accounting the day to day transactions is posted with values through FI bookings and at the same time the asset reconciliation is updated online realtime. Whereas In data Migration the asset master is updated with values through a transaction code called as AS91. The values updated on the master are Opening Gross value and the accumulated depreciation. The reconciliation GL account is not automatically updated at this point of time. The reconciliation accounts (GL codes) are updated manually through another transaction code called as OASV. If profit center is active, then after uploading assets through AS91 you should transfer the asset balances to profit center accounting through a program. Thereafter you remove the Asset GL code (reconciliation accounts) from the 3KEH table for PCA and update the Asset reconciliation account (GL code) through OASV. After this step you again update the Asset reconciliation account in the 3KEH table. The reason you remove the Asset reconciliation code from 3KEH table is that double posting will happen to PCA when you update the Asset reconciliation manually. Is it possible to calculate multiple shift depreciation? Is any special configuration required? Yes it is possible to calculate multiple shift depreciation in SAP for all types of depreciation except unit of production. No special configuration is required. How do you maintain multiple shift depreciation in asset master? The following steps are needed to maintain multiple shift depreciation: 1. The variable depreciation portion as a percentage rate is to be maintained in the detail screen of the depreciation area. 2. The multiple shift factor is to be maintained in the time dependent data in the asset master record. This shift factor is multiplied by the variable portion of ordinary depreciation. Once you have done the above the SAP system calculates the total depreciation amount as follows:Depreciation amount = Fixed depreciation + (variable depreciation * shift factor) Lets say you have changed the depreciation rates in one of the depreciation keys due to changes in legal requirements. Does system automatically calculate the planned depreciation as per the new rate?

No. System does not automatically calculate the planned depreciation after the change is made. You need to run a program for recalculation of planned depreciation. What are evaluation groups? The evaluation groups are an option for classifying assets for reports or user defined match code (search code). You can configure 5 different evaluation groups. You can update these evaluation groups on to the asset master record. What are group assets? The tax requirements in some countries require calculation of depreciation at a higher group or level of assets. For this purpose you can group assets together into so-called group assets. What are the steps to be taken into account during a depreciation run to ensure that the integration with the general ledger works smoothly? For each depreciation area and company code, specify the following: 1 The frequency of posting depreciation(monthly,quarterly etc) 2 CO account assignment (cost center) 3 For each company code you must define a document type for automatic depreciation posting: This document type requires its own external number range. 4 You also need to specify the accounts for posting. (Account determination) Finally to ensure consistency between Asset Accounting and Financial Accounting, you must process the batch input session created by the posting report. If you fail to process the batch input session, an error message will appear at the next posting run. The depreciation calculation is a month end process which is run in batches and then once the batch input is run the system posts the accounting entries into Finance. How do you change fiscal year in Asset Accounting? Run The fiscal year change program which would open new annual value fields for each asset. i e next year The earliest you can start this program is in the last posting period of the current year. You have to run the fiscal year change program for your whole company code. You can only process a fiscal year change in a subsequent year if the previous year has already been closed for business. Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons. Is it possible to have depreciation calculated to the day? Yes it is possible. You need to switch on the indicator Dep to the day in the depreciation key configuration. Is it possible to ensure that no capitalization be posted in the

subsequent years? Yes it is possible. You need to set it in the depreciation key configuration. How are Capital Work in Progress and Assets accounted for in SAP? Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted onto an Asset Under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset Under Construction gets capitalized to an actual asset. The company has procured 10 cars. You want to create asset masters for each of this car. How do you create 10 asset masters at the same time? While creating asset master there is a field on the initial create screen called as number of similar assets. Update this field with 10. When you finally save this asset master you will get a pop up asking whether you want to maintain different texts for these assets. You can update different details for all the 10 cars

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AS03 - Display Asset Master

By: amit butola| 27 Jan 2012 12:58 pm | 2278 times viewed | 0 Comments AS03 - Display Asset Master Functionality You want to see the values in the asset master which is created. Scenario This transaction is used to display an asset master record. Requirements None.

Menu Path Transaction Code

Accounting Financial Accounting Fixed Assets Asset Display AS03 - Asset AS01

1. Double Click on AS03 - Asset Display Asset: Initial screen

2. Update the following fields:

Field Name Asset

Field Description

Values

This is the number which, Example: 800017 together with the asset subnumber, identifies a fixed asset in Asset Accounting.

3. Click Enter . Display Asset: Master data

Note: This page displays general data for the asset. The account determination is the key link between asset accounting and the general ledger. Each asset class has a separate G/L control account. 4. Click Time-dependent Display Asset: Master data .

Note: Time dependant data is used to manage costs associated with the asset from a responsibility point of view during the assets life cycle. For assets under construction, an internal order is used to manage budget / actual expenditure at SAI. 5. Click Deprec. areas . Display Asset: Master data

Note: Each depreciation area is set up to handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation, group depreciation, cost-accounting depreciation, etc.). Every depreciation area belongs to at least one chart of depreciation , and is managed independently from other depreciation areas. . 6. Click Asset Values Asset Explorer .

Note: This function shows all the values of a fixed asset, including APC values and depreciation, in various forms and summarization levels. Planned values are displayed, as well as values already posted. You use this function to display and analyze asset values. Double clicking on transactions will open the original financial document. 7. Click Posted values Asset Explorer .

Note: The Asset Explorer consists of the: Header, in which you enter the company code and asset number Overview tree, with which you can navigate between different depreciation areas Overview tree that displays objects related to the asset Tab, in which you analyze plan values and posted values using different parameters, and compare fiscal years and depreciation areas. 8. Click Back thrice to exit the transaction - See more at: http://www.saptechies.org/as03-display-asset-master/#sthash.OQ8coqzF.dpuf

Field Code Changed

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FI-AA-AA (AA) Asset Accounting: Basic Functions Master Data ANKA Asset Classes: General Data ANLKL ANKP Asset Classes: Fld Cont Dpndnt on Chart ANLKL / AFAPL of Depreciation ANKT Asset Classes: Description SPRAS / ANLKL ANKV Asset Classes: Insurance Types ANLKL / VRSLFD ANLA Asset Master Record Segment BUKRS / ANLN1 / ANLN2 ANLB Depreciation Terms BUKRS / ANLN1 / ANLN2 / AFABE

/ BDATU ANLT Asset Texts SPRAS / BUKRS / ANLN1 / ANLN2 ANLU Asset Master Record User Fields .INCLUDE / BUKRS / ANLN1 / ANLN2 ANLW Insurable Values (Year Dependent) BUKRS / ANLN1 / ANLN2 / VRSLFD / GJAHR ANLX Asset Master Record Segment BUKRS / ANLN1 / ANLN2 ANLZ Time Dependent Asset Allocations BUKRS / ANLN1 / ANLN2 / BDATU FI-AA-AA (AA2) Asset Accounting: Basic Functions Master Data 2.0 ANAR Asset Types ANLAR ANAT Asset Type Text SPRAS / ANLAR FI-AA-AA (AB) Asset Accounting: Basic Functions Asset Accounting ANEK Document Header Asset Posting BUKRS / ANLN1 / ANLN2 / GJAHR / LNRAN ANEP Asset Line Items BUKRS / ANLN1 / ANLN2 / GJAHR / LNRAN / AFABE ANEV Asset Downpymt Settlement BUKRS / ANLN1 / ANLN2 / GJAHR / LNRANS ANKB Asset Class: Depreciation Area ANLKL / AFAPL / AFABE / BDATU ANLC Asset value Fields BUKRS / ANLN1 / ANLN2 / GJAHR / AFABE ANLH Main Asset Number BUKRS / ANLN1 ANLP Asset Periodic Values BUKRS / GJAHR / PERAF / AFBNR / ANLN1 / ANLN2 / AFABER FI-SL-VSR (GVAL) Special Purpose Ledger: Validation, Substitution and Rules GB03 Validation / Substitution User VALUSER GB92 Substitutions SUBSTID GB93 Validation VALID - See more at: http://www.saptechies.org/important-tables-in-sap-aa/#sthash.VspzkFTv.dpuf

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SAP ASSET ACCOUNTING Depreciation Areas ....PRAKASH(www.gberp.com) Depreciation Areas

Use
You use depreciation areas to calculate different values in parallel for each fixed asset for different purposes. For example, you may require different types of values for the balance sheet than for cost accounting or tax purposes. You manage the depreciation terms and values necessary for this valuation in the depreciation areas of each asset. Since the system allows you to define up to 99 depreciation areas, you can manage many different types of valuation (Customizing: Valuation). Depreciation areas are grouped together, according to the requirements of a specific country or economic area, into a chart of depreciation (refer to Chart of Depreciation).

Features

The depreciation areas are identified by two-digit numeric keys. You specify the asset-specific depreciation terms for every depreciation area belonging to the chart of depreciation. You enter the depreciation terms in the asset class or directly in the asset master record of the particular asset(see Asset Master Record). This makes it possible, for example, for you to use straight-line depreciation for your internal accounting purposes and use declining-balance depreciation for the balance sheet.

Account Determination from Within the Depreciation Area

You can post both the asset balance sheet values and the depreciation values from the individual depreciation areas to separate balance sheet accounts or income statement accounts in the general ledger. You specify the accounts individually in the account determination key for each depreciation area. Define the account determination key in FI-AA Customizing and specify the key in the particular asset class. For more information on account determination see Account Determination. Account Determination from Within the Depreciation Area Usually you need to post more than one depreciation area in parallel to the general ledger if you are creating different financial statement versions. You can define any number of balance sheet versions per chart of accounts in FI (General Ledger) for this purpose. For each balance sheet account and income statement account, you specify in the financial statement version the balance sheet position or income statement position in which the account values should appear. You define the financial statement versions in FI Customizing ( Financial Accounting General Ledger Accounting Business Transactions Closing Document ).

Retained Earnings Account

The retained earnings account is an equity item in the balance sheet. This account shows the balance of all income statement accounts. If you are using different financial statement versions, then you also have to set up corresponding retained earnings accounts (FI Customizing: Financial Accounting General Ledger Accounting G/L Accounts Master Data G/L Account Creation). The income statement account type controls which income statement accounts balance to which retained earnings accounts. You enter the income statement account type in the master record of the income statement accounts. When you enter a retained earnings account, enter the income statement account type that the retained earning account should balance to. You can also define new income statement account types here.

Activities
You should determine the types of valuation for which you need different depreciation areas before you implement the FI-AA System. Then transfer these areas from the SAP reference chart of depreciation, or copy existing depreciation areas and redefine them. Delete the depreciation areas from the SAP reference chart of depreciation that you do not need. It is also possible to open depreciation areas after the production start of the system

Chart of Depreciation
Definition
Charts of depreciation are used in order to manage various legal requirements for the depreciation and valuation of assets. These charts of depreciation are usually country-specific and are defined independently of the other organizational units. A chart of depreciation, for example, can be used for all the company codes in a given country (refer to Company Code Assignment ).

Country-Specific Charts of Depreciation In the simplest scenario, all of your company codes are in the same country and are subject to the same legal requirements for asset valuation, meaning that you only need one chart of depreciation.

Structure
The chart of depreciation consists of the following parts: In general, you are required to calculate values for assets for different needs, both internal and external (such as book depreciation and cost depreciation). Therefore, the Asset Accounting component enables you to manage values for assets in parallel in up to 99 depreciation areas. The chart of depreciation, therefore, is a directory of depreciation areas organized according to business management requirements. You define the characteristics, and thereby the significance, of the individual depreciation areas in each chart of depreciation. A depreciation area is always assigned to only one chart of depreciation. You flexibly define the keys for the automatic depreciation of assets in each chart of depreciation. They are based on elements for calculation (calculation methods, period controls, and so on) that are available client-wide. You can change and add to the standard calculation keys that are delivered with the system (refer to Depreciation ) There are specific objects in the chart of depreciation for special calculations of asset values (for example, investment support keys for investment support - refer to Special Valuation ).

Use

SAP supplies typical reference charts of depreciation for each country. They have different depreciation areas and depreciation keys depending on that countrys specific re quirements. You cannot use these charts of depreciation directly. You must create your own chart of depreciation by copying the reference chart of depreciation. Delete any depreciation areas that are not needed. You can document the meaning of any chart of depreciation you set up in the system by writing a description for it.

The graphic below shows the standard chart of depreciation for the USA.

Integration Company Code/Chart of Depreciation

You have to assign each company code defined in Asset Accounting to exactly one chart of depreciation. In the interests of keeping asset values uniform in your company, you should restrict the number of charts of depreciation used to as few as possible. Company codes in countries with the same valuation rules or company codes of a certain industry sector generally use the same chart of depreciation.

Chart of Accounts/Chart of Depreciation

The assignment of a company code to a chart of accounts is independent from its assignment to a chart of depreciation. This means that several company codes can use the same chart of accounts, although they have different charts of depreciation (and vice versa). Refer to: Graphic: Organizational Structure 1 Graphic: Organizational Structure 2

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What is a special GL transaction?

What is open line item management? Where do you open and close periods? What are the segments of GL master record? What does document header control? What is asset master? What is the difference between the R/3 4.6version to R/3 4.7 version? What is enterprise structure? What data is required for automatic a/c determination What is Evaluate option in APP? What is the difference between profit center and business area? What are financial versions? What are all the settings you need to do before What is residual payment and part payment? What is account group? Explain FI Organizational structure. Why do we use group chart of account? What is tolerance group? What is GR/IR account? Which dates are taken into consideration while running a payment run? What are the documents require for Born in sale in relation to sales tax? What is born in sale? How is sub ledger linked to GL? How do you reverse cleared documents?

What is Country and operational chart of account? How due date of a document is calculated? What are the components of enterprise structure? What is sub ledger? What does definition of a chart of account contains? What is reversal posting? What is integration between FI and other modules? What is activity type? What is field status group? What does Field status group assigned to a GL master record controls? How do you identify a document? What is dunning? What is High value sale? What is the main control parameter for settlement? What is base line date? How do you control Document line item fields? What is posting key? What is automatic payment programmer? What is the purpose of version? What is dummy cost center? What are depreciation areas? What is accrual calculation? Define Statistical Key Figure? What are the disadvantages of Business Area?

Explain about Consolidation? What is asset class

special gl transactions are the transactions like down payment requests, bill of exchange , guarantees received and made etc. Special GL transactions are those transactions other than the regular transactions in AR and AP. For Ex: Down Payments ( Made r Received) These transactions will be identified through a special indicater. For Ex. For Down Payment request F Down Payment A Bills of Exchange W Mainly we use this Special Gl s for identifying easily and for clear information vail preparing B/S Becoz advances paid will be considered as Asset Currents in B/S .in the same manner advances Received Special GL Indicator is used to identify the advance payments while booking an invoice. Ex: we paid $100 advace to the vendor, one we pass the purchase invoice it gives the message $100 was paid as advance. This is the use of Special GL transaction, Please correct me if i am wrong
Open line itme :- That meanse BT is pending for clearing AP/AR etc. Example:- 1. You enter the Inovice in Vendors A/c. 2. Vendor payment due date is Next month. 3. Invoice show it is open line item. 4. It is still open line item untill You not clear the amount of against vendor invoice it show the open line item. Beucase you have to clear the invoice. - See more at: http://www.saptechies.org/what-is-open-lineitem-management/#sthash.uSimwAlq.dpuf
f you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared.The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction.You should use open item management for bank clearing

accounts, clearing accounts for goods receipt/invoice receipt, and salary clearing accounts.Bank accounts, however, do not use open item management.If you subsequently define open item management for a G/L account, this entry only applies to the items which are posted afterwards. At the date of the change, the account must display a zero balance.Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items before making the change in the master record. if you choose open item management. Line item display must be activated.

Open item management Specification that the items in an account must be cleared by other items in the account. The sum of items involved in the clearing procedure must be zero. The account balance is therefore always equal to the sum of the open items. This will be ticked for all clearing accounts or where the client wants clearing of line items