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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 Fol low SCN Si te Index Contact Us SAP Hel p Portal Privacy Terms of Use Legal Disclosure Copyright Tweet 0 Share Share 0 Like Like Li ke (0) asset accounting entries | SCN http://scn.sap.com/thread/1171674 3 of 3 4/28/2014 10:29 AM