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Asset Accounting Notes
Asset Accounting Notes
Asset maintained on fixed asset are called asset accounting e.g. depreciation,
amortization, etc
Here we will maintain accounts related asset selling, asset purchasing, scraping,
transfer of asset, etc
Asset Class classifies the fixed asset according to legal & management
requirements. For each asset class control parameter and defaults values can be
defined.
Unit 1: Organizational structure
Client is the highest level in the SAP hierarchy. Specification anyone makes at this
level applies to all company codes
Each company code is independent accounting unit. The legally required balance
sheet and profit & loss statement are created at this level.
Each business area is regarded as financially separate unit for internal preparation
of P & L statement.
You can create complete balances of business area by activating document splitting.
Fix asset and new general ledgers accounting
In our training, new general ledgers accounting is activated
The fi sub ledgers fixed assets (FI-AA) is fully integrated with the new general
ledgers accounting.
Chart of Depreciation and Chart of Account
Chart of Accounts
The chart of accounts contains all accounts in the general ledger. In Financial
Accounting, exactly one chart of accounts is assigned to every company code. This
assignment is also binding for Asset Accounting. You can modify chart of account to
suit your needs, such as global, industry specific, or country specific requirements
Chart of Depreciation:
Chart of Depreciation defines the various depreciation areas and valuation methods
for assets. In SAP, they are defined for each country at client level and can be
modified to suit the requirements.
The various features of chart of depreciation are as under:
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. You define the account
determination key in Asset Accounting Customizing and specify the key in the
particular asset class.
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.
Creating Depreciation Areas
You should determine the types of valuation for which you need different
depreciation areas before you implement Asset Accounting. Then adopt these areas
from the SAP reference chart of depreciation, or copy existing depreciation areas
and redefine them. You can delete any depreciation areas of the standard chart of
depreciation that are not needed.
However, it is still possible to open new depreciation areas when the system is live.
Depreciation areas in chart of depreciation are defined by two digit numeric key,
depreciation area 01 is known as the leading depreciation area. This area reflects
the local accounting principles in each sample chart of account. Depreciation area
contain following valuation e.g. tax balance sheet valuation, costing based
valuation, for group valuation(foreign currency valuation), capital tax valuation,
difference between book value and tax based valuation, cost accounting
depreciation, parallel accounting, balance sheet for tax depreciation.
Accounts determination
Accounts determination determines the accounts for reconciliation between FI &
CO.
o Using the Asset Accounting (FI-AA) component, you can automatically update all
relevant transactions to the general ledger. These include all accounting
transactions that are posted to assets, and all changes to asset values that are
automatically calculated by the system (particularly depreciation). This update
takes place immediately online for the master depreciation area. For all other
depreciation areas, this update is either direct or takes place during periodic
processing
Account Determination Key
o
You enter the account determination key in the general master data for the asset
class. The account determination key defines the accounts in Financial Accounting
that should be posted during asset transactions, for each chart of accounts and
depreciation area in the chart of depreciation. The chart of depreciation itself is not
the key criterion for account determination. This fact is important for company
codes that have different charts of depreciation, but use the same chart of
accounts. It is not possible to specify reconciliation accounts that are chart-ofdepreciation-specific for these company codes.
You have to enter an account determination key in every asset class. Doing so
guarantees that the account assignment will be the same for all assets in the given
asset class. SAP provides account determination keys for the standard charts of
depreciation and standard charts of accounts.
Posting Depreciation Areas
When you define depreciation areas, you specify whether the values of the area
should be automatically entered in Financial Accounting. For every depreciation area
that is defined for automatic posting, you can specify its own accounts in an
account determination key. If changes to APC in a posting depreciation area were
not already posted using direct processing, then you can post these APC values
using the APC Values Posting report.
You can also specify that one depreciation area uses the accounts of another. We
recommend you use this approach for parallel accounting in new General
Ledger Accounting . The advantage this offers is that you can use the same
accounts for all accounting principles in each ledger . You thereby avoid having to
enter all of the accounts in the account determination several times for each
depreciation area.
It is not possible to make specifications for account assignment for depreciation
areas that do not have an automatic posting indicator in their area definition.
Transaction Type
The transaction type identifies the type of business transaction. Using the
transaction type, the system posts the transaction to the appropriate accounts of
the given account determination
You can use a customer enhancement to set up your own controls for account
determination. For example, you can exchange accounts that are not asset
reconciliation accounts