SAP FICO Asset Accounting

Asset accounting

This is also a subsidiary ledger

Chart of depreciation. All the setting are done here

Copy Germany chart of duplication (Client 800) (or)

Copy Germany(or) India(when client 000)

Depreciation areas:

            Book depreciation

            Tax depreciation

            Costing depreciation

            Group depreciation

Depreciation methods:

            Straight line depreciation (SLM)

            Written down value depreciation (WDV)

Depreciation key: Rate + Method

                               Ex:5% SLM (OR) 5% WDV

Posting:

            70 – Asset debit

            75 – Asset credit

Transaction type:

            100 external acquisitions

            110 In house production

            210 Retirement with revenue

Main asset will have sub No: 0 (zero)

            1 - (Main asset)

            1 – 1

            1 – 2

            1. All the times

Account asset rules:

 1. Sub asset master is  to created with reference to main asset master

2. Main asset master is to be created with reference to asset class

3. In asset class it is specified account determination

4. For account determination we assign G/L Accounts based on nature of transaction.

Example: Purchase of master:

Motor A/C (Subsidiary ledger) Dr

            To Bank A/c

Customization:

Copy reference chart of Depreciation/Depreciation Areas:

Path:SPRO àFinancial accounting à asset accounting à organizational structures àcopy reference chart of depreciation/depreciation areas

Double click on copy reference chart of depreciation

(Transaction code: FC08)

From the menu select organizational object àcopy

Organizational object

From chart of depreciation: select ODE (Maximum valuation: Germany

To chart of depreciation: AML

Enter

Enter once again

Select create request button

Give the short depreciation àasset customization for AML

Save

Press enter to save in your request

It gives the message that: chart of depreciation to AML

Enter

Select back arrow

Double click on specify description of chart of depreciation

Select position button

Give your chart of depreciation: AML

Enter

Change the description to chart of depreciation for AML

Save

Press enter to save in your request

Select back arrow

Double click on copy/delete depreciation areas

Give your chart of depreciation: AML

Enter

Select depreciation areas: 03, 10, 15, 20, 31, 32, 41, and 51.

From the menu select edit àdelete

Select save button (or) (ctrl + s)

Ignore all the warning messages and go on

Press enter till you get the message data was saved

Assign chart of depreciation to company code: (Transaction code: OAOB)

Same path:

Select position button

Give the company code: AML

Press enter

For company code: AML –Assign chart of depreciation AML

And save

Press enter to save in your request

Specify account determination:

Path:SPRO àFinancial accounting à asset accounting à organizational structures àAsset classes àspecify account determination.

Select new entries button

Account determination:

Account determination		Description
AML	10000	Land
AML	11000	Buildings
AML	20000	Plant & Machinery
AML	30000	Furniture & fixtures
AML	31000	Vehicles
AML	40000	Capital work in progress

Select save button (or) (ctrl + s)

Save in your request

Create screen lay out rules:

Path:Same path

Select screen lay out 1000, 1100, 2000, 3000, 3100, 4000

Select copy as button

Change the name to

Screen layout	Description
AML1	Land
AML2	Buildings
AML3	Plant & machinery
AML4	Furniture & fixtures
AML5	Vehicles
AML6	Capital work in progress (WIP)

Enter and save

Save in your request

Define number range interval:

Same path (Transaction code: AS08)

Give the company code: AML

Select change intervals button

Select interval button

Give the No. range: 01

From No:  to to No: 1 to 100000

Enter

Select interval button

No. range: 02

Interval:

	From no	To number
From No:	100001	To 200000
Select interval button 03	200001	To 300000 Enter
Select interval button 04	300001	To 400000 Enter
Select interval button 05	400001	To 500000 Enter
Select interval button 06	500001	To 600000 Enter

And save

Define asset classes:

Same path (Transaction code: OAOA)

Select new entries button

Asset class: AML 1000 (Free hold land)

Short text: free hold land

Account determinative select 10000 lands

Screen layout rules: Select AML1

No. Range: 01

Select include asset under inventory data check box

Purpose of include asset under inventory data:

For verification of assets this is usual

Select No. AVC (Asset under construction) or summary management of AVC Under status of AVC

Select save button (or) (ctrl + s)

Save in your request

Select next entry button

Asset class: AML 1100 (Factory building)

Short text: factory buildings

Account determination: AML 11000 (Buildings)

Screen lay out rule: AML2

No. range: 02

Select include asset under inventory data check box

Select No AVC (OR) Summary management of AVC

Save

Select next entry button

Asset class: AML 2000 (Department A)

Short text: department A

Account determination: AML 20000 (Plant & machinery)

Screen lay out rule: AML3 (Plant & machinery)

No. range: 03

Select: Include asset under inventory data check box

Select no AVC (Or) Summary management of AVC radio button

Save

Select next entry button

Asset class: AML 3000 (Furniture & Fixtures)

Short text: Furniture & Fixtures

Account determination: AML 30000 (Furniture & Fixtures)

Screen layout rule: AML4

No. range: 04

Select: Include asset under inventory data check box

Select no AVC (Or) Summary management of AVC radio button

Save

Select next entry button

Asset class: AML 3100 (vehicles - others)

Short text: vehicles - others

Account determination: AML 31000

Screen layout rule: AML5 (Vehicles)

No. range: 05

Select: Include asset under inventory data check box

Select no AVC (Or) Summary management of AVC radio button

Save

Select next entry button

Asset class: AML 4000 (capital work in progress - general)

Account determination: AML 40000

Screen layout rule: AML6

No. range: 06

De Select: Include asset under inventory

Select line item settlement radio button

Save

Determine depreciation areas in the asset class:

Path:SPRO àFinancial accounting à asset accounting à valuation àdetermine depreciation areas in the asset class (Transaction code: OAYZ)

Give the chart of depreciation: AML

Enter

Select position button

Give the asset class: AML 1000

Enter

Select asset class: AML 1000

Double click on depreciation areas folder

Deselect deactivation check box for 01 (Book depreciation)

Lay out: select 2000 (Depreciation on asset sub no level)

For 02 – 2000

For 30 also – 2000

Select save button (or) (ctrl + s)

Save in your request

Explanation:

            For 01

Land:& capital work in programs

Capitalization date – required

Depreciation rate – 0%

Lay out 2000               -            Depreciation on Asset sub no. level

                                                            Machine No                Sub No                                                  

2004 if asset installed   -  Machine No.    -          1                                 0

2005 Addition              -     Motor             -         1                                 1

2006 Additions            -      Motor            -          1                                2

Depreciation is calculation on sub no. only.

Select back arrow

The same procedure to be followed for asset class

            AML 1100

            AML 2000

            AML 3000

            AML 3100

            AML 4000

Creation of 15 G/L Accounts:

Fixed Assets Group:

1.      Land

2.      Building

3.      Plant & Machinery

4.      Furniture & Fixtures

5.      Vehicles

6.      Capital work in progress

(Account N0. Range, 200000 – 200099, Sort key – 018 (Asset no), field status group: G067, Reconciliation type: for A/C type: Asset

Depreciation:

7.      Accumulated depreciation – Building

8.      Accumulated depreciation – Plant & Machinery

9.      Accumulated depreciation – Furniture & Fixtures

10.  Accumulated depreciation – Vehicles

(Under accumulated depreciation group range: 100200 to 100299, sort key – 018 (Asset No field status group – GO67 reconciliation A/C for account type: Asset)

Sales:

11.  Asset Sale    - Field Status Group – G052

12.  Profit on Asset Sale – Field Status Group – G001

Under other Income: No. Range 300100 to 300199: Sort Key -018

                        13.Loss on sale

                        14. Loss due to scrapping

Under Administration: Range: 400300 to 400399: Sort Key: 018

Field Status group – G001

                        15. Depreciation -Under Depreciation – Range 400500 to 400599

Sort key:018; field status group – G001.

Creation of G/L Masters: (FS00)

Give the G/L account no: 200000

Company code: AML

Select with template button

Give the G/L Account No: 200110 (Sundry debtors) – used because it is a reconciliation Account

Company code: AML

Enter

Changed the accounts group: Fixed assets

Short text: Land

Select control data tab

Reconciliation A/C type for A/C type: Select Assts

Sort key: select 018 (Asset No)

Select create/bank/interest tab

Field status group: G067

Save

Give the G/L Account No: 200005

Company code: AML

Select with template button

Give the G/L Account No: 200000

Company code: AML

Enter

Select type/description tab

Change short text & long text (Buildings)

Save

Give the G/L Account No: 200010

Company code: AML

Select with template button

Give the G/L Account No: 200000

Enter

Short text and G/L Account long text: Plant & Machinery

Save

Give the G/L Account No: 200015

Company code: AML

Select with template button

Give the G/L Account No: 200000

Enter

Short text and G/L Account long text: Furniture & Fixtures

Save

Give the G/L Account No: 200020

Company code: AML

Select with template button

Give the G/L Account No: 200000

Enter

Change Short text and G/L Account long text: Vehicles

Save

Give the G/L Account No: 200025

Company code: AML

Select with template button

Give the G/L Account No: 200000

Enter

Change Short text and G/L Account long text: Capital work in progress

Save

Give the G/L Account No: 100200

Company code: AML

Select with template button

Give the G/L Account N0: 200000

Enter

Change the account group: Accumulated depreciation

Change short text & Long text: Accumulated depreciation – buildings

Save

Give the G/L Account No: 100205

Company code: AML

Select with template button

Give the G/L Account N0: 100200

Enter

Change short text & Long text: Accumulated depreciation – Plant & Machinery

Save

Give the G/L Account No: 100210

Select with template button

Give the G/L Account N0: 100200

Enter

Change short text & G/L Account Long text to: Accumulated depreciation – Furniture & Fixtures

Save

Give the G/L Account No: 100215

Company code: AML

Select with template button

Give the G/L Account N0: 100200

Enter

Change short text & G/L Account Long text to: Accumulated depreciation – Vehicles

Save

Give the G/L Account N0: 300102

Company code: AML

Select with template button

Give the G/L Account N0: 300100 (Exchange gains)

Enter

Change short text & G/L Account long text: Asset sale

Select control data tab

Give sort key: 018 (Asset number)

Select create/bank/interest tab

Field status group: select G052

Save

Give the G/L Account N0: 300103

Company code: AML

Select with template button

Give the G/L Account N0: 300100

Enter

Select type/description tab

Change short text & G/L Account long text to: Profit on Asset sale

Select control data tab

Give sort key: 018 (Asset number)

Save

Give the G/L Account N0: 400302

Company code: AML

Select with template button

Give the G/L Account N0: 300100

Enter

Select type/description tab

Change short text & G/L Account long text to: Loss on Asset sale

Select control data tab

Give sort key: 018

Save

Give the G/L Account N0: 400303

Company code: AML

Select with template button

Give the G/L Account N0: 400302

Enter

Change short text & long text to: Loss due to scrapping

Save

Give the G/L Account N0: 400500

Company code: AML

Select with template button

Give the G/L Account N0: 400302

Enter

Change the account group: Depreciation

Change short text & G/L Account long text to: Depreciation

Other fields are same

Save

Assignment of accounts for automatic postings:

Path:SPRO àFinancial accounting à asset accounting à integration with the general ledger àassigns G/L Accounts (Transaction code: A090)

Give your chart of depreciation: AML

Enter

Select chart of accounts: AML

Double click on account determination folder

Select account determination: AML 10000 (Land)

Double click on balance sheet accounts folder

Acquisition column

Acquisition and production cost: 200000(A/C No)

Loss made on asset retirement with out revenue: 400303 (A/C No)

Clearing account revenue from asset sale: 300102 (Asset sale A/C)

Gain from asset sale – 300103 (Profit on sale A/C)

Loss from Asset sale – 400302 (Loss on sale of asset)

Select and save

It gives the warning message, ignore the message

Press enter

Save in your request

Double click on A/C determination folder

Select: AML 11000(Buildings)

Double click on balance sheets A/Cs folder

Acquisition column: Acquision and production cost: 200005

Loss made on asset retirement with out revenue: 400300

Clearing account revenue from asset sale: 300102

Gain from asset sale: 300103

Loss from asset sale: 400302

Save, ignore the message

Enter

Double click on depreciation folder

Acc. Dep. Account for ordinary depreciation: 100200

Expense account for ordinary depreciation: 400500

 

Select save button (or) (ctrl + s)

Save in your request

Double click on Account determination folder:

Select: AML 20000 (Plant & Machinery)

Double click on balance sheet A/Cs folder

Acquisition column: acquisition and production cost: 200010

Loss made on asset retirement with out revenue: 400303

Clearing account revenue from asset sale: 300102

Gain from asset sale: 300103

Loss on asset sale: 400302

Save, ignore the message, and enter, save in your request

Double click on depreciation folder

Acc. Dep. Account for ordinary depreciation: 100205

Expense account for ordinary depreciation: 400500

Save, save in your request

Double click on account determination folder

Select AML: 30000(Furniture & Fixtures)

Double click on balance sheet folder

Acquisition: acquisition any production cost: 200015

Loss made on asset retirement with out revenue: 400303

Clearing account revenue from asset sale: 300102

Gain from asset sale: 300103

Loss from asset sale: 400302

Select save button (ctrl + s) = ignore the message

Press enter

Double click on depreciation folder

Accumulated depreciation A/C for ordinary dep: 100210

Expenses account for ordinary depreciation: 400500

Save (or) (ctrl + s)

Ignore the message, press enter

 Double click on account determination folder

Select AML 31000(Vehicles)

Double click on balance sheet A/C folder

Acquisition: Acquisition production cost: 200020

Loss made on asset retirement with out revenue: 400303

Clearing account revenue from asset sale: 300102

Gain from asset sale: 300103

Loss from asset sale: 400302

Select save button (or) (ctrl + s), ignore the message, and press enter

Double click on depreciation folders

Accumulate depreciative A/C for ordinary depreciation: 100215

Expenses account for ordinary depreciation: 400500

Save (or) (ctrl + s)

Ignore the message, press enter

Double click on account determination folder

Select AML 40000 (Capital work in progress)

Double click on balance sheet folder

Acquisition: acquisition production cost: 200025

Loss made on asset retirement with out revenue: 400303

Clearing account revenue from asset sale: 300102

Gain from asset sale: 300103

Loss from asset sale: 400302

Select save button (or) (ctrl + s), ignore the message

Press enter

Specify document type for posting of depreciation:

Path:SPRO àFinancial accounting à asset accounting à Integration with the general ledger àpost depreciation to the general ledger à specify document type for posting of depreciation.

Double click define document types

Select position button

Give the document type: AF (Depreciation posting)

Enter

Select AF depreciation postings

Select details button

Note down the No. range: 04

Select No. range information button

Give the company code: AML

Select change intervals button

Select interval button

No. range: 04

Year: 2006

From no: 700001 to 800000

Select external check box

Enter and save

Advantage of selection of external check box:

In every month it automatically calculates the depreciation.

Example: 1) Depreciation A/C    Dr

                          To Accumulated Depreciation - building

                2) Depreciation A/C     Dr

                        To Accumulated depreciation - plant & machinery

                3) Depreciation A/C     Dr

                        To Accumulated depreciation – Furniture & Fixtures

                4) Depreciation A/C     Dr

                        To Accumulated depreciation – Vehicles

(It automatically calculated depreciation at a time and give the no ranges automatically)

Specify intervals and posting rules:

Same path (Transaction code: OAYR)

Select company code: AML

Double click on posting rules folder

Select 01 (Book depreciation)

Select details button

Select monthly postings radio button

Save

Specify rounding of net book value and /or depreciation:

SPRO à Financial accounting àAsset accounting àValuation àamount specifications (Company code/depreciations area) à specify rounding of net book value and /or depreciation (Transaction code: OAYO)

Select company code: AML

Double click on rounding specification folder

Select 01 (Book depreciation)

Select details button

Select automatically calculated depreciation check box

Select round to nearest whole radio button

Save

Save in your request

Define screen lay out for asset master data:

Path:SPRO àFinancial accounting à asset accounting à Master data àscreen lay out àdefine screen lay out for asset master data

Double click on define screen lay out for asset master data

Select AML1 (Land)

Double click on logical field groups

Select 2 (Posting information)

Double click on field group rules

Capitalization date: Make it required entry field

Select main no. check box

Select sub no. check box  

Select copy check box

Select save button (or) (ctrl + s)

Select back arrow

Select: 3 (time dependent data)

Double click on fields group rules folder

Business area: Make it required entry field

Select main No. Check box

Select sub no. check box

Select copy: check box

Save

Select back arrow 2 times

The same procedure is to be followed lay out AML2, Layout AML3, Layout AML4, AML5, & AML6

Define screen lay out for asset depreciation areas:

Same path: (Transaction code: A021)

Select screen layout 2000 (dep. on asset sub no. lay out)

Double click on field rules folder

Depreciation keys: make it required entry field

Select main No: check box

Select sub No: check box: select copy check box

Select save button (or) (ctrl + s)

Depreciation keys:  Rate + Method

a.       Define base methods                      

b.      Define declining balance methods

c.       Define multi level methods

d.      Define period control methods

e.       Maintain depreciation key: assigned (Assigned to asset master)

Note: a,b,c,d assigned to main depreciation key

a. Define base methods:

Path:SPRO àFinancial Accounting à Asset accounting à Depreciation àValuation methods à Depreciation key à Calculation methods àDefine base methods.

Note down: Base method: 0014 (ordinary: explicit it percentage (after end of life))

b. Define declining balance methods:

Same path

Give your chart of depreciation: AML

Enter

Note down: 001 (0.00X/0.000%/0.000%

If the 002

Decimal factor 2%

Maximum: 20%

If the depreciation is 5%: value of the asset is 100000/-

1^st 4 years: 5 + 5 + 5 + 5 = 20%

Depreciation is = 100000 * 5/100 * 98/100

Define multi level methods:

Same path: (Transaction code: AFAMS)

Select new entries button

Multi level method: A1

Description: 5% SLM (Straight line method)

Validity start: Select from ordinary depreciation start date

Save

Save in your request

Double click on levels button

Select new entries button

Acquisition year: 9999

Years: 999

Periods: 12

Base value: select 01 (Acquision value)

Percentage: 5%

Save

Acquision year: 9999 (Any year acquision)

Year: 999 (Maximum No. of years)

Period: 12 (12 months)

Base value: acquision value + purchase cost

Percentage: Rate of depreciation

Reduction: Ex: Book value: 100000

                          Rate of depreciation – 5% 

                          Residual values – 5% of book value

                       

                          Book value = 100000

               5% Residual value =     5000

                   (Scrap value)        -----------

                                                   95000

                                                ------------

5% depreciation on 95000/- only

Select back arrow 2 times

Select next entry button

Give the multi level method: A2

Description: 5% WDV

Validity start: select from ordinary depreciation start data

Save

Double click on levels folder

Select new entries button

Acquision year: 9999

Years: 999

Periods: 12

Base value: select 24 (net book value)

Percentage: 5%

Save (or) (ctrl + s)