Asset accounting-Fig 52 Voice transcription The system controls the valuation of transferred assets using transfer variants that

you define. You can enter one of the following transfer methods in the transfer variant:

Gross method (methods 1 and 4 - with/without transfer of values to dependent areas) When you use this method, the system transfers the historical APC and the accumulated depreciation from the sending asset. That is, the asset is capitalized with its historical APC and accumulated depreciation.

Net method (method 2) When you use this transfer method, the system transfers the net book value of the sending asset. That is, the net book value of the asset is capitalized in the receiving company code. You specify during the transfer transaction which depreciation area should be used for determining the net book value.

New value method (method 3) When you use this transfer method, you enter the transfer price manually in the transfer transaction. That is, the asset being transferred is capitalized in the receiving company code with a value you entered manually during the transfer. Another option is to enter a depreciation area that is used for determining the net book value. Fig 53 In the standard system, SAP assumes that transfers within the company organizational unit (relationship 02) are treated as intracompany transfers and the posting is gross. Therefore intracompany transfer transaction types are used. Gross transfer should always be posted without revenue. Company codes that belong to the same company are not legally independent entities and do not draw up their own external financial statements. The company (company ID) is the smallest organizational unit for which individual financial statements are required according to the relevant commercial law.

SAP does not supply any transfer variants that allow asset transfers within a company using the net method or the new value method. If your enterprise allows asset transfers to show gain or loss, then you have to define your own transfer variants. Fig54

V.T When you transfer assets between company codes, the two company codes might not use the same chart of depreciation. Nonetheless, there could be depreciation areas in the two charts of depreciation that actually have the same function, although they have different keys. Cross-system depreciation areas are used to control the transfer of values during such intercompany asset transfer. A cross-system depreciation area consists of a key and a description only. It has no control parameters of its own. Cross-system depreciation areas are needed only if assets are transferred between company codes that have different charts of depreciation. A cross-company depreciation area has the same function and significance in all charts of depreciation within a corporate group. Fig 55 M.T Generally, an asset has to be shown in different balance sheet items, depending on the phase that it is in. Therefore, it is necessary to manage the asset as a separate object or asset master record during the construction phase. The transition between these two phases is called "capitalization of the asset under construction". You can manage the asset under construction in the system in two different ways, depending on the types of functions that you need. The asset under construction can be either a normal asset record, or a master record with line item management. As a result, the transfer from the asset under construction to completed fixed assets can be handled in one of two ways:

Summary transfer from a normal asset master record to the receiver assets (transaction type 348/349) Line item settlement of an asset under construction that has line item management Fig 56 M.T

In the FI-AA component, you can accumulate costs under purely technical aspects in an asset under construction. You do not need to consider the later creation of fixed assets at this point. During the construction phase, you can accumulate all acquisitions for an investment in a single asset. These acquisitions include

External activity (acquisition from vendor)

Internal activity (internal order) Stock material (withdrawal from warehouse)

Line item settlement is carried out by using distribution rules. Distribution rules are assetspecific. Several distribution rules form a distribution rule group. You can assign these groups to one or more line items of an asset. Distribution rules consist of a distribution key and a receiver. The distribution key can be equivalence numbers or percentage rates. In this way, you can distribute any number of combinations of line items to any number of combinations of receivers. When using this 'collective management' of assets under construction, it is possible to manage the individual acquisitions as open items over the course of several fiscal years. At completion, the line items must be cleared and then distributed to the various receivers. The system activates open item management when an asset under construction is created, if you set the corresponding indicator in the asset class. In addition, you have to assign a settlement profile to the company codes involved, in Customizing for Asset Accounting, in order for the line item settlement to work. The main function of the settlement profile is to specify the allowed receivers (such as, assets or cost centers). Fig 57 M.T As a rule, the system automatically determines the planned depreciation for the current fiscal year by means of the depreciation keys entered in the master record. If you need to specifically set the amount of depreciation, the system offers a manual depreciation forecasting option. In order to forecast manual depreciation, you can use the standard posting transaction in Asset Accounting. The system provides special transaction types that enable you to forecast depreciation in relation to specific areas, or for all areas that use the corresponding depreciation type, in one stroke. The G/L accounts in Financial Accounting are not initially affected by this posting transaction. Asset line items are created, but no FI posting documents. The general ledger accounts are updated and the corresponding FI documents are created by the periodic depreciation posting run. The system then determines the depreciation to be posted up to a specific period, and creates the accompanying posting documents. Fig 59 Vt 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.