Sap Fixed Assets 5cd1w

Fixed Assets

Asset ing AA Overview Asset ing as a Sub-ledger Asset Class Chart of Depreciation Master Data Create/Change Asset Master Record

Acquisitions Settlement of an Asset Under Construction (AUC)

Retirement Depreciation

Asset ing Transfers Period / Year End Closing Reporting

Overview: Asset ing as a Sub-Ledger Asset ing is a subsidiary ledger of Financial ing. The appropriate General Ledger s are updated each time you post. General Ledger Assets 1000

Asset 1000

Liabilities 1000

Vendor 1000

Overview: Asset Classes The asset class is used to: sub-classify

the General ledger s and group master records by specific criteria.

Asset Class

A

Balance sheet

L

General ledger s Buildings

Vehicles

Assets under construction

Fixtures and fittings

Asset classes

Asset master records

Asset Classes Asset Classes Configured  910000

Land

 910001

Building

 910002

Plant and Machinery

 910003

Vehicles

 910004

Asset under construction

Functions of the Asset Class Asset Class allocation

Screen layout

Number assignment

Default values

Special features

Selection features

Acct. determination

Asset class

Bal. sheet items

Assets Create asset

Liabilities

Asset portfolio

02200000

Assets

Real estate

1

Machinery ... Fixtures+fit. ... Finance. assets ...

Lathe 02115000 Drill press

Functions of the Asset Class The asset class contains default values and control elements which are ed on to the individual assets when you open a new asset master record.

By entering useful default values, you reduce time and effort needed for creating new asset master records. You also ensure that the records in a given class are handled uniformly.

The asset class is the most important criteria for structuring fixed assets from an ing point of view. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets (and their business transactions) to the correct general ledger s. The most important tasks of the asset classes are:

The assignment of default values when creating assets (particularly depreciation )

The grouping of assets for reporting purposes

Definition of the Asset Classes

Asset classes

Client level

Chart of depreciation level

Master data section

Section for valuation data

allocation Screen layout rule Number range Default values

Selection of depreciation areas Default values

Asset Classes in the Chart of Depreciation

1

Class

Machines

Chart of depreciation Areas



Group

Book dep.

SNFG

LINR

LINB

LINR

decl-bal. 3X

invest.

str.-line

str.-line

str.-line

.... .... ....

Proposed useful life

10/00

10/00

8/00

_

8/00

....

Minimum useful life

_

_

_

8/00

_

_

Maximum useful life

_

_

_

12/00

_

_

Depreciation key

Book dep.

Tax dep.

DG30

USA

...

Group ...

ACRS

Points from the Asset Class / Dep’n Slide The Chart of Depreciation is assigned to company code, therefore a class may have multiple Charts of Depreciation relevant to it.

The asset classes are valid across company codes. The catalog of asset classes, therefore, applies uniformly to all company codes. This is true, even if the company codes use different charts of depreciation, and therefore different depreciation areas

You can assign different charts of depreciation to an asset class, so that all assets in this class will be treated differently in each country.

Special Asset Class: AuC Class: Assets u. const. Extras

AuC status

Transaction type groups 15

Down payment

16

Down payment carried forward from previous years

  

depreciation areas Book dep. Tax dep. Cost-acc.

AuC managed as total line item settlement capital investment measure

deprec. key 0000 0000 LINA

negative values allowed

depreciation is not calculated in depreciation areas intended for the balance sheet

AUC without line item settlement Assets under construction in this asset class are managed without the option of line-item final settlement to receiver assets or cost centers. As a result:

Only complete transfers or simple partial transfers are possible (in other words, you can only transfer either prior-year acquisitions or current-year acquisitions in one given posting transaction).

You can only transfer to one target asset per posting transaction. You have to enter the amount of the transfer manually.

There is no connection to the original asset under construction in the capitalized asset. Therefore, there is no exact proof of origin for the original postings.

Assets under Construction with Line item settlement

Assets under construction in this asset class are managed with the option for final line item settlement to receiving assets or cost centers. As a result:

On the capitalized asset, you can then see the relationship between the capitalized asset and original postings to the asset under construction - you can accurately identify the origin of the postings.

AUC’s can be settled to multiple final assets / asset classes

Assets under Construction from Investment measure

Assets under construction in this asset class to be created solely for capital investment measures (internal orders or projects).

The assets in this class can not then be directly created and posted in Asset ing. The assets can only be processed by means of an order or WBS element, to which they are assigned.

AUC Asset Class: Points from previous slide Assets under construction require their own asset class. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet.

Assets under construction have to be shown separately in the balance sheet.

The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.

There are three asset classes for Assets Under Construction configured. These are:

Asset under Construction Asset under Construction with Line item settlement Asset under Construction from Investment measure

AUC Asset Class: Points from previous slide Assets under construction require their own asset class. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet.

Assets under construction have to be shown separately in the balance sheet.

The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.

There are three asset classes for Assets Under Construction configured. These are:

Asset under Construction Asset under Construction with Line item settlement Asset under Construction from Investment measure

Overview: Depreciation Areas You will generally need values for fixed assets for various business and legal purposes (for example, for book depreciation, cost-ing depreciation and so on). In the R/3 FI-AA system, it is therefore possible to manage values in parallel in as many depreciation areas as you want.

The Chart of Depreciation

Chart of depreciation Depreciation area 01

Book deprec.

Depreciation area 02

Tax deprec.

Depreciation area 03

Special reserves

Depreciation area 20

Cost-acc. deprec.

Depreciation area 30

Group deprec.

Depreciation Charts/Areas in A Ltd. Depreciation Charts: Z910:

Chart of Depreciation: A Ltd

Depreciation Areas: 01:

Local reporting Y1

02:

Parent reporting Y2

31

Consolidated balance sheet in group currency

32

Book depreciation group currency (profit center)

There is no set relationship defined in the system between the chart of s and chart of depreciation. Company codes in Financial ing are assigned to a chart of depreciation – refer following slide.

Asset ing Company Code Chart of s

Chart of depreciation

Financial ing Company Code

+ Data for Asset ing

=

Asset ing Company Code

Master Data

Creating the Asset Master Record

Create asset

using asset class

using a reference

taking over the default values from the asset class

'copying' an existing asset

Time-Dependent Data ASSET MASTER RECORD - Time-dependent data New Interval

Enter period under consideration Valid from

01 Cost center A Cost center B Cost center C . . .

MMDDYYYY

Valid to MMDDYYYY

from from from . . .

01/12/YY 08/28/YY 12/01/YY . . .

to to to . . .

08/27/YY 11/30/YY 03/14/YY . . .

Master Data Creation/Change: Key Points

When you create the asset master record, you have two options:

Use the asset class, to which the asset will belong, to provide default values. The asset class then supplies the most important control parameters in the asset master record.

Use an existing asset as a reference for creating the new asset master record.

Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost ing assignments (for example, cost center, order, project).

Acquisitions

Asset Acquisition - Integration Assets Fixed Asset 100

Assets Fixed Asset 100

Assets Fixed Asset 100

s Payable Vendor 100

General Ledger Clg Acct

100 Acquisition purchase

110 Acquisition inhouse production

Aqcuisition with Vendor  Asset transaction integrated with s Receivable or s Payable (Only for direct Asset purchases) No PO

Aqcuisition with Auto-offsetting Entry 100

s Payable Vendor 100

 Asset transaction posted using clearing (not integrated) (Only for direct Asset purchases) Aqcuisition with MM-PO  Asset transaction posted MM from Materials Management (MM)

Asset Acquisition – MM Integration Create Master Record

Purchase Requisition

With assignment to WBS

Purchase Order

Building required

Goods Receipt Valuated

Non-Valuated

Goods Receipt

or Assignment of

WBS

Internal Orders To manage

Invoice Receipt

budget expenditure

Retirement

Retirement Assets can be retired: With Revenue Without Revenue (scrapped)

Asset Retirement: Types Please retire me, I am no longer productive

Types of asset retirement 1. Retirement with revenue - selling of an asset either at a market price, net book value or other settlement price 2. Retirement without revenue writing off an asset which is no longer productive or has no residual value

Asset Retirement w/ Customer : s 210 Retirement sale

Retirement: - Acquis . date 01/01/20xx - 1, APC = 6000 - Complete retirement of APC on 03/15/20xx - Revenue 4000 + 400 sales tax

A/R posting

P+L or FinStmt Notes Revenue Asset Retirmt

Customer 4000 4400

4000

Assets posting

P+L Clearing of Asset Retirmt

Asset

1 3

6000 700

6000

2

1 APC 2 Amount retired

4

4000

Loss 1300

3 Proportional value adjustment 4 Clearing of retirement

200 Retirement scrapping

Depreciation

Depreciation SAP s the following direct types of depreciation:

Ordinary Depreciation: planned reduction in asset value due to normal wear and tear. Special Depreciation: depreciation that is solely based on tax regulations. Unplanned Depreciation: depreciation resulting from unusual circumstances, such as damage to the asset, that lead to a permanent reduction in its value.

Depreciation Key The depreciation areas are identified in the system by a two-character numeric key. You make this specification in the asset classes, and can define it directly in the given asset master record. The system allows you to define an almost indefinite number of depreciation areas. This feature enables you to handle a large number of different types of valuation in parallel. You define the required depreciation keys per chart of depreciation.

Elements of the Depreciation Calculation Depreciation is calculated according to the depreciation key in the asset master. The most important influences on the calculation of depreciation are: The value date of the document. It is used to set the depreciation start date in the asset. The depreciation key. The depreciation calculation method is the most important feature of the internal calculation key. It is used to carry out the different types of depreciation calculation.

Transfers

Transfers Assets can be transferred within a company code or across companies within the Group

Assets can be transferred in full or partially. Controlling object assignment can be changed as can asset class.

Asset Transfers 2

1

Asset transfers can be one of the following scenarios: Transfer within Company Code (ABUMN)

1. Transfer within same Company Code Eg. From one asset class to another

Intercompnay Transfer (ABT1N) 2. Inter-company transfers between companies in SAP Eg. From one company to another

Period End Closing

Fiscal Year Change/Year-End Closing

31

31 Year-end closing

Fiscal Year Change

Fiscal Year Change Asset values Transaction APC Ordinary dep. Net book value

at fiscal year start 0 0 0 0

Year 1 10000 10000 3000 7000

Periodic processing Fiscal year change

at fiscal year start Transaction 10000 APC 10000 Ordinary dep. 3000 Net book value 7000

Year-end closing 1.

Year 2 0 10000 2100 4900

Depreciation posting run

2. Year-end closing program

- Check: Can the year-end closing be carried out? - Maintenance of the last closed fiscal year company code

3.

Asset values

Fiscal Year Change

Closing reports - Asset history sheet - Asset list -...

per

Points from Fiscal Year Change/Year-End Closing

   



The fiscal year change program opens new annual value fields for each asset. The earliest you can start this program is in the last posting period of the old year. You have to run the fiscal year change program for your whole company code. SAP provides you with a check report for year-end closing. It checks whether the fiscal year change was completed for all assets, whether depreciation was fully posted, whether errors exist for any assets. If the program finds no errors, it updates the last closed fiscal year for each depreciation area.

Asset Reports ….. Summary of the main reports

Standard Fixed Asset Reports Standard reports are available via the standard SAP menu: “Fixed Assets / Information System / Reports on Asset ing” Key reports: S_ALR_87011963 - 70: Asset Balances A series of query programs based on different selection criteria. S_ALR_87011979 - 82: Physical Inventory Lists A series of query programs based on different selection criteria. S_ALR_87012936: Depreciation on Capitalized Assets (Depn Simulation) Simulated depreciation on assets/asset classes and Projects (can be restricted to specific WBS elements).

S_ALR_87012026: Depreciation Current Year Depreciation analysis by asset. S_ALR_87012075: Asset history Complete detailed history of each asset.