S4HANA Asset Accounnting Notes

SAP S/4HANA Simplified for Beginners Video©Mohammed Rashid
Parallel Accounting
Requirement:
Leading Ledger Non-Leading Ledger Extension Ledger
Reporting Period Jan To Dec Jan To Dec Same as Leading
Accounting
IFRS / IND AS GAAP IFRS / IND AS
Principle
Cocd.Curr-10 INR INR Same as leading
Group.Curr -30 Check SCC4 Tcode - Do -

Freely Definable
USD -
Currency
Ledger = A Set of Books of Accounts

Ledgers build the basis for reporting and financial statements in Accounting by storing related
transaction data and journal entries
Standard Ledger means A ledger that contains a full set of configuration settings and full
posting information is called a standard ledger.
Leading Ledger: 0L
 Whenever we create a company code system automatically creates one Main Standard
Ledger i.e 0L – Leading Ledger . it is delivered by SAP
 Leading Ledger is fully integrates with all modules the company Code and it forms the
basis for other ledgers. Which may be Non-leading or Extension Ledger.
 It is the main ledger standard ledger . It is the basis for other ledgers that might be
created in addition for other purpose like GAAP, IFRS, IAS etc.
Non-Leading Ledger:
Example:
A company established and operating in India also have global presence in US and UK.
It has to prepares financial statement as per the Indian Requirement, as per US GAAP and as
per IFRS.
 It is purely optional and used for Reporting only.

 Apart from the leading ledger , based on our reporting requirement we can have non-
leading ledgers for meeting reporting purpose . Since Accounting Principle differs from
country to country / region to region . To comply with the global requirement, we can
create Non-leading Ledger.
 It can’t be activated in the middle of the year. To activate in productive system, we need
to follow migration process give by SAP.
 A copy of the entry posted for “0L-Leading Ledger” is also stored for Non- Leading
Ledger in ACDOCA Table .
 Non-Leading Ledger Can have it own

 Fiscal Year Variant
 Posting Period
 Different additional Currencies apart from 1 & 2.
Extension Ledger:
Examples: Tax Purpose Reporting
 Extension ledgers are delivered based on an underlying ledger.

 Since it requires underlying ledger. The postings to the underlying ledger also apply for
the extension ledger, without a need for redundant data storage.
 Since it does not require migration, it can be activated at any time.
 Reports for an extension ledger also access the data of the underlying ledger plus
entries posted manually to Extension Ledger.
 Since it is on top of underlying ledger, they inherit the configuration setting of
underlying ledger. that is the reason It can’t have different Currency or Fiscal Year
Variant.
Restrictions for Posting Ledger Specific Documents

Non-Leading Extension Ledger
Customer Document Not Allowed Not Allowed
Vendor Document Not Allowed Not Allowed
Asset Document Not Allowed Not Allowed
GL – Adjustment Doc without
Allowed Allowed
Open Items
GL – With Open Item (Ordinary) Not Allowed Not Allowed
Only very few automatic processes work with extension ledger (GL allocations)
Ledger: Different Different Different Different Different

currency fiscal year posting accounting company code
settings variant period principle assignment
possible? (FYV) variant possible? possible?
possible? possible?
Non-leading Yes Yes Yes Yes Yes

ledger
(compared to
leading ledger)
Extension No No Yes Yes Yes

ledger
(compared to
leading ledger)
What is representative Ledger?

When we create a ledger group in sap , we need to assign one ledger as representative for that
ledger Group by selecting  Rep.Ledger check box.
1. Define Accounting Principles
Path IMG-->Financial Accounting-->Financial Accounting Global Settings--

>Ledgers-->Parallel Accounting-->Define Accounting Principles
Tcode S_PL0_86000069
Click on “New Entries”
Accounting Name
Principle
Click on 
Must delete Transaction Data from OBR1 TCODE

before Starting below Configuration
2. Define Settings for Ledgers and Currency Types

>Ledgers-->Ledger-->Define Settings for Ledgers and Currency Types
Tcode S_E91_86000160
‘------------------------------optional additional settings---------------------------
Click on “ Currency Types”
Currency / Valuation Type =

Description =
Short Description =
 Company Code Specific Conversion
Click on 
Double Click on “ Currency Conversion Settings for Company Codes”

Company Code =
Currency / Valuation Type =

Currency =
Source Currency Type =
Exch.Rate Type =
Trans. Date Type =
Real Time Conversion 
Click on 
‘------------------------------End of additional Currency Settings---------------------------
Double Click on “ Ledger “

Ledger =
Ledger Name =
Leading =  don’t select this.
Ledger Type =
Accounting Principle = 
Click on Back Button
Select Ledger “Non Leading Ledger ______________” and
Double click on “ Company Code Settings for the Ledger”

Company Code = 
******Observe all setting from Company Code have been copied**********
Fiscal Year Variant =

Posting Period Variant =
Click on “ Currency”
Currency Type =
Click on 
Click on “back arrow”

Double Click on “ Accounting Principles for Ledger and Company Code”

Double Click on “  Ledger “

Ledger =
Ledger Name =
Leading =  don’t select this.
Ledger Type =
ExtLedgerType =
Underlying Ledger =
Click on 
Click on Back Button
Select Ledger “Extension Ledger ______________” and
Double click on “ Company Code Settings for the Ledger”

Company Code = 
******Observe all setting from Company Code have been copied**********

Posting Period Variant = Using same PPV of Cocd
Click on 
Click on “back arrow”
Double Click on “ Accounting Principles for Ledger and Company Code”
Click on 
3. Define Number Ranges for Ledger

PATH IMG-->Financial Accounting-->Financial Accounting Global Settings-->Document--
>Document Number Ranges-->Define Document Number Ranges
TCODE FBN1
Company Code =
Click on “Change Interval”
Click on “ Insert”
No Range Year From To
80 2023 800000 899999
Click on 
4. Define Document Types in a Ledger

Path IMG-->Financial Accounting-->Financial Accounting Global Settings-->Document--
>Document Types-->Define Document Types in a Ledger
Tcode S_ELN_06000012
Ledger = 
Document Type =
Number Range = 
Click on 
Back to IMG
Ledger = ` 
Document Type =
Number Range = 
Click on 
End-User Activities:
Rent A/c Dr 10000

To Cash /Bank Cr 10000
1. Post Journal Voucher For Expense
Path SAP Easy Access-->Accounting--> Financial Accounting -->General Ledger --

> Document Entry --> F-02 - General Posting
Tcode FB01 / F-02
Document Date =
Document Type =
Company Code =
Posting Date =
Currency =
Line Item 1:
Posting Key =
GL Account =
Amount =
Cost Center = (Cost Object)

Text =
Line Item 2
Posting Key =
GL Account =
House Bank = Bank ID =
Amount =*
Text =+
Click On “Simulate”
Click on  To Post
2. Analyze Entry FB03
3. Check ACDOCA Table SE16N
Leading Ledger Non – Leading ledger Extension
Rent Dr 10000 Rent Dr 10000 No Entry
To Cash /bank Cr 10000 To Cash/bank Cr 10000
4. Check GL balance Report

Path SAP Easy Access-->Accounting--> Financial Accounting -->General Ledger -->
Account --> Display Balances
Tcode FAGLB03
5.
6. Choose Ledger = 
7. Account =
8. Company Code =
9. Fiscal Year =
10. Click on “Execute or F8”
Ledger Specific Postings:

FB01L / FB50L
FAGLL03 – GL Line item Report

FAGLB03 – GL Balance Report
FB05L – Post with Clearing Open items

FB1SL – Manual Clearing Open Items
1. Post Journal Entry For Expense

Path SAP Easy Access-->Accounting--> Financial Accounting -->General Ledger --
> Document Entry --> Enter General Posting for Ledger Group
Tcode FB01L
Document Date =
Document Type =
Company Code =
Posting Date =
Currency = Ledger Group =

Line Item 1:
Posting Key =
GL Account =
Amount =
Cost Center = (Cost Object)
Text =
Line Item 2
Posting Key =
GL Account =
House Bank = Bank ID =

Amount =*
Text =+
Click On “Simulate”
Click on  To Post
2. Check GL balance Report

Path SAP Easy Access-->Accounting--> Financial Accounting -->General Ledger -->
Account --> Display Balances
Tcode FAGLB03
Choose Ledger = 
Account =
Company Code =
Fiscal Year =
Click on “Execute or F8”
‘--------------------------------------------------------------------------------------------------------------------
Posting Vendor / Customer / Assset and Open Items to Ledger Groups
--------------------------------------------------------------------------------------------------------------------
Posting Ledger Specific Provision as Open Items
IND AS / IFRS GAAP

Legal Charges Dr 10000 Legal Charges Dr 15000
To Provision for Expenses Cr 10000 To Provision for Expenses Cr 15000
1. Create Required GL Accounts – FS00

2. Post GL Document - FB01L
3. Check GL Balance Report / Line Item Report
Post With Clearing Scenario Testing:
IND AS / IFRS GAAP

Provision for Expenses Dr 10000 Provision for Expenses Dr 15000
To Bank Cr 10000 To Bank Cr 15000
1. Create required GL Accounts

2. Post GL Document Ledger Specific
3. Post Outgoing Payment specific LEDGER
4. Check Open Items – Balance / Line Item Report
FI-AA New Asset Accounting

ORFA
Structuring of Assets:
Sub-Asset Sub-Asset Sub-Asset Sub-Asset

What is Real-time Valuation in New Asset Accounting?
Classical Asset Accounting Vs New Asset Accounting Valuation
Date IND AS GAAP Delta
01.01.20XX Asset Acquition-F-90
Asset Dr 10000 Asset Dr 10000
To Vendor Cr 10000 To Vendor Cr 10000
31.12.20XX Deprecation Run- AFAB
Depreciation Dr 2000 Depreciation Dr 4000
To Acc.Deprec Cr 2000 To Acc.Deprec Cr 4000
01.01.20XX Asset Sold
Bank Dr 7000 Bank Dr 7000
Acc.Deprec Dr 2000 Acc.Deprec Dr 2000
Loss on Sale Dr 1000 Loss on Sale Dr 1000
To Asset Cr 10000 To Asset Cr 10000
New Asset Accounting Entries (REAL-TIME VALUATION)
01.01.20XX Bank Dr 7000 Bank Dr 7000
Acc.Deprec Dr 2000 Acc.Deprec Dr 4000
Loss on Sale Dr 1000 To Profit on Sale Cr 1000
To Asset Cr 10000 To Asset Cr 10000

1. Activate Asset Accounting (New)
Path IMG-->Financial Accounting-->Asset Accounting-->Migration: Asset

Accounting (New)-->Migration from Classic to New Asset Accounting--
>Activate Asset Accounting (New)
Tcode S_EEI_69000023
Set “ New Asset Accounting” = Active 
Click on 
2. Assign Accounting Principle to Ledger Groups

>Ledgers-->Parallel Accounting-->Assign Accounting Principle to Ledger
Groups
Tcode S_PL0_86000070
Accounting Principle Target Ledger Group
Click on 
Note : Mandatory Setting for getting Accounting Principle in Depreciation Areas
3. Copy Reference Chart of Depreciation/Depreciation Areas
Path IMG-->Financial Accounting-->Asset Accounting-->Organizational

Structures-->Copy Reference Chart of Depreciation/Depreciation Areas
Tcode EC08
Double click on “Copy Reference Chart of Depreciation”

Click on “Copy Org.Object”
From Chart of Dep =

To Char of Dep =  
Do you really want to transport number ranges? Click on “Yes”
Check “Completed Activities”
Click on “Bank Arrow”
Double Click on “Specify Description of Chart of Depreciation”
Change the Description to = 

Click on 
Click on “Bank Arrow”
“-----------Delete Un-necessary Depreciation Areas-----------------------
Double Click on “Copy/Delete Depreciation Areas”

Chart of Dep = 
Except Depreciation Area “1” & “15” delete all Depreciation Areas
Create Depreciation Areas like below.
Dep Trgt
Description Real Acc.Princ G/L
Area Group
1 0L- Book Dep Curr-10  OL IND AS / IFRS Area Post in Real Time
2 0L-Book Dep Curr-30  OL IND AS / IFRS Area Does Not Post
10 X1- Book Dep Curr-10  X1 GAAP Area Post in Real Time
11 X1-Book Dep Curr-30  X1 GAAP Area Does Not Post
15 Tax Depreciation  OL IND AS / IFRS Area Does Not Post
Click on 
Ignore Warning Messages & 
Note : Refer Note 2363040 - AC671 Area YY: Currency type XX is not defined in Financial
Accounting
4. Specify Transfer of APC Values
Path IMG-->Financial Accounting-->Asset Accounting-->General Valuation--

>Depreciation Areas-->Specify Transfer of APC Values
Tcode OABC
Dep.Area Dep.Area Name ValAd Identical
1 0L- Book Dep Curr-10
2 0L-Book Dep Curr-30
10 X1- Book Dep Curr-10
11 X1-Book Dep Curr-30
15 Tax Depreciation
Click on 
5. Specify Transfer of Depreciation Terms

>Depreciation Areas-->Specify Transfer of Depreciation Terms
Tcode OABD
Dep.Area Dep.Area Name TTR Identical
1 0L- Book Dep Curr-10
10 X1- Book Dep Curr-10
15 Tax Depreciation
Click on 
Note :The terms can be transferred only from a depreciation area to which the same
accounting principle is assigned
6. Specify the Use of Parallel Currencies

>Currencies-->Specify the Use of Parallel Currencies
Currency
Dep.Area Dep.Area Name
/Valuation
15 Tax Depreciation
Click on 
7. Assign Chart of Depreciation to Company Code
Path IMG-->Financial Accounting-->Asset Accounting-->Organizational Structures-

-> Assign Chart of Depreciation to Company Code
Tcode OAOB
Click on “Position” Button

Company Code = 
Chart of Depreciation =
Click on 
Asset Classes Configuration
Account Determination
Create Screen Layout Rules Asset Class

Number Ranges for Asset
Number Ranges
Screen Layout
Asset class A/c Determination
Rules
To From
Land Y0001 Y001 100000 199999
Buildings Y0002 Y002 200000 299999
Vehicles Y0003 Y003 300000 399999
Low Value Assets Y0004 Y004 400000 499999
Asset Under Construction

Y0005 Y005 500000 599999
w/o IO
Asset Under Construction
Y0006 Y006 600000 699999
w/IO
8. Specify Account Determination

->Asset Classes-->Specify Account Determination
Tcode S_ALR_87009195
Acc.Determination Name of Account Determination

Click on 
9. Create Screen Layout Rules

->Asset Classes-->Create Screen Layout Rules
Select any _______ Layouts

Click on “Copy” Button
Change “Screen layout Rule “ and “Name”
Acc.Determination Name of Account Determination

Click on 
10. Define Number Range Interval

->Asset Classes-->Define Number Range Interval
Tcode AS08
Company Code =
No Range From To
01
02
03
04
05
06
Click on 
11. Define Asset Classes

->Asset Classes-->Define Asset Classes
Tcode OAOA
Asset Class =
Short Text =
Account Determination =
Screen Layout =
Number Range =
 Include Asset
 No AUC or Summary Management of AuC
Click on “Next Entry”
Asset Class =
Short Text =
Screen Layout =
Number Range =
 Include Asset
Asset Class =
Short Text =
Screen Layout =
Number Range =
 Include Asset
Asset Class =
Short Text =
Screen Layout =
Number Range =
 Include Asset
Click on “Next Entry”---------------Capital Work In Progress-------
Asset Class =
Short Text =
Screen Layout =
Number Range =
 Include Asset
 Line Item Settlement
Click on 
Capital Work In Progress – Investment Measure
Asset Class =
Short Text =
Screen Layout =
Number Range =
 Include Asset
 Investment Measure
Click on 
12. GLs To be Created:
Path IMG-->Financial Accounting-->General Ledger Accounting-->Master Data-->G/L

Accounts-->Preparations-->Define Account Group
Tcode OBD4
Chart of Accounts =
Acct Group =
Name =
From =106000
To =
Click on 
CE
Category Posting Field
GL Act Tax
GL A/C A/c Grp Description w/o Reco Act Sort Key Status
Type Category
Tax Grp
Fixed
210000 B/S
Assets
Land -  Assets 018 G007
Fixed
210010 B/S
Assets
Buildings -  Assets 018 G007
Fixed
210020 B/S
Assets
Vehicles -  Assets 018 G007
Fixed
210030 B/S
Assets
Low Value Assets -  Assets 018 G007
Fixed
210040 B/S
Assets
Capital WIP- W/O IO -  Assets 018 G007
Fixed
210050 B/S
Assets
Capital WIP- W/ IO -  Assets 018 G007
102010 B/S Acc.Dep Acc Dep on Buildings Assets 018 G007
102020 B/S Acc.Dep Acc Dep on Vehicles Assets 018 G007
102030 B/S Acc.Dep Acc Dep on LVA Assets 018 G007

Reserve & Asset Revaluation Off.Set
101010 B/S 018 G001
Surplus A/c
Revenue frm Post
300100 Non-Ope Income
Capitalization +  001 G001
300200 Non-Ope Income Sale of Asset Clg Act 001 G052
300300 Non-Ope Income Profit on Sale of FA 001 G029
400200 Non-Ope Expenses Loss on Asset Scrapping 001 G004
400201 Non-Ope Expenses Loss on Sales of FA 001 G004

1
400210 P/Cost Expenses Dep on Buildings 001 G004
1
400220 P/Cost Expenses Dep on Vehicles 001 G004
1
400230 P/Cost Expenses Dep on LVA 001 G004
1
400240 P/Cost Expenses Unplanned Dep Act 001 G004
106000 B/S Asset Clg Asset Acq Clg A/c -  001 G008
13. Classify G/L Accounts for Document Splitting
Path IMG-->Financial Accounting-->General Ledger Accounting-->Business

Transactions-->Document Splitting-->Classify G/L Accounts for Document
Splitting
Chart of Accounts = 
Acct From =
Acct To =
Category = 
Click on 
Note : Since we already did the configuration for other GL Accounts , no need to change
their classification.
14. Assign G/L Accounts
Path IMG-->Financial Accounting-->Asset Accounting-->Integration with General

Ledger Accounting-->Assign G/L Accounts
Tcode AO90
Click on Position
Chart of Accounts = 
Select “Chart of Accounts “ Line and
Double Click on “ Account Determination”
Select __LAND__ Acc.Determination Line and

Double click on “Balance Sheet Accounts“  on left side
Double click on “01” Book Depreciation
Acquisition Account Assignment
Balance Sheet Acct. APC
Contra Account : Acquisition Value
Revenue From Post Capitalization
Retirement Account Assignment
Clearing Acct. Revenue from Asset Sale
Gain from Asset Sale
Loss from Asset Sale

Revaluation Account Assignment
Revaluation APC
Offsetting Account : Revaluation APC

Do the configuration for “Non-Leading Ledger Depreciation Area”
Revaluation APC
Note: Since there is no depreciation for Land. No Depreciation GL Assignment
---------------------successfully complete for LAND Asset Class--------
Select __BUILDINGS__ Acc.Determination Line and


Revaluation APC

Revaluation APC
Double click on “Depreciation “ 
Double Click on “01” Book Depreciation Area
Ordinary Depreciation Account Assignment

Acc.dep. accnt.for ordinary
Expense account for ordinary

Unplanned Depreciation Account Assignment
Accumulated dep. account unplanned
Expense account for unplanned
Click on “Nex Entry”

Do the integration for “Non-Leading Ledger Depreciation Area”

Click on 
---------------------successfully complete for BUILDINGS Asset Class--------
Select __VEHICLES__ Acc.Determination Line and


Revaluation APC

Revaluation APC


Click on 
---------------------Successfully complete for VEHICLES Asset Class--------
Select __LVA__ Acc.Determination Line and


Revaluation APC

Revaluation APC




Click on 
---------------------Successfully complete for LVA Asset Class--------
Capital Work in Progress- W/O IO
Select __CWIP__ Acc.Determination Line and


Revaluation APC

Revaluation APC
Click on 
---------------------successfully complete for CWIP W/O IO Asset Class--------
Select __CWIP__ Acc.Determination Line and

Revaluation APC

Revaluation APC
Click on 
---------------------successfully complete for CWIP WITH IO Asset Class--------

15. Technical Clearing Account
Create GL Account- FS00
Click on “Create” Button

GL A/c = 210999
Company Code = 
GL Account Type = Balance Sheet
Account Group =
Short text/long text =
Click on “Control Data” Tab
Recon Account for A/c Type = Asset
Sort key = 018
Click on “Create/bank/interest” Tab
Field Status Group = G007 Click on 
16. Define Technical Clearing Account for Integrated Asset Acquisition

Ledger Accounting-->Technical Clearing Account for Integrated Asset
Acquisition--> Define Technical Clearing Account for Integrated Asset
Acquisition
Chart of Account =
Account = 
Click on 
17. Define Document Number Ranges for Accounting Documents

Ledger Accounting-->Post Depreciation to General Ledger Accounting--
>Specify Document Type for Posting of Depreciation
Tcode OAB7
Document Type Number Range

AA
AF
Go to FBN1 (Tcode) and Define Number Ranges
Company Code = 

Click on “Insert Lines” twice
Doc.Type Number Year From To
Range
AA Leading
AF
AA 80 Non Leading-
AF 81 X1
Click on 
18. Specify Document Type for Posting of Depreciation

>Specify Document Type for Posting of Depreciation
Tcode OAB3
Double Click on “Specify Document Type for Posting of Depreciation”
Doc. Type = 
Click on 
19. Defining Document Types in a Ledger- Non-Leading

>Document-->Document Types-->Define Document Types in a Ledger
Tcode S_ELN_06000012
Ledger = 
Document Type No Range
Click on 
20. Specify Alternative Document Type for Acctg-Principle-Specific Documents

Ledger Accounting-->Integrated Transactions: Alternative Doc. Type for Acctg-
Princpl-Spec. Docs-->Specify Alternative Document Type for Acctg-Principle-
Specific Documents
Operational Valuation Document

Document Type Type
Click on 
21. Specify Posting Key for Asset Posting

Ledger Accounting-->Specify Posting Key for Asset Posting
Tcode OBYD
Double Click on “ANL” Transaction key
Observe the Settings

Debit = 70
Credit = 75
22. Assign Input Tax Indicator for Non-Taxable Acquisitions

Ledger Accounting-->Assign Input Tax Indicator for Non-Taxable Acquisitions
Tcode OBCL
Click on “Position”
Company Code = 
Input Tax Code =

Output Tax Code = 
Click on 
23. Specify Intervals and Posting Rules

>Specify Intervals and Posting Rules
Tcode OAYR
Click on Position Button

Company Code = 
Select “Company Code Line “

Double Click on “ Posting Rules”
Double Click on Depreciation Area _____________ Book Depreciation
 Monthly Posting
 Post Revaluation
Click on 
Repeat the same step for “Non-Leading Ledger -Depreciation Area”
 Monthly Posting
 Post Revaluation
Click on 
24. Specify Max. Amount for Low-Value Assets + Asset Classes

>Amount Specifications (Company Code/Depreciation Area)-->Specify Max.
Amount for Low-Value Assets + Asset Classes
Tcode OAY2 / OAYK
25. Specify Rounding of Net Book Value and/or Depreciation

>Amount Specifications (Company Code/Depreciation Area)-->Specify
Rounding of Net Book Value and/or Depreciation
Tcode OAYO
Ignore Warning Message and Press Enter
Click on “Position Button “
Company Code = 
Select your Company Code line,
Double click “rounding specifications”
Double Click on “Book Depreciation Area-01”
 Automatically Calculated Depreciation

 Arithmetic Rounding

Repeat the same for all depreciation areas.
Click on 
Example: 3.49 is rounded to 3

3.50 is rounded to 4
26. Activate Segment Reporting

Ledger Accounting-->Segment Reporting-->Activate Segment Reporting
Tcode S_EB5_05000120
 Segment Reporting Active ( Read documentation before activating)
Click on 
Note:
Activation is required for getting Profit Center & Segment Fields in Asset Master Record
under Time Dependent Data Tab
Once you have activated segment reporting for Asset Accounting, you cannot deactivate it.
27. Activate Account Assignment Objects (Cost Center) for Asset Master Record

Ledger Accounting-->Additional Account Assignment Objects-->Activate
Account Assignment Objects
Tcode
Click on “Position” Button

AcctAssgnObject = KOSTL 
Select the Active  against KOSTL
Click on 
Note: by selecting Cost Center object here, system enables Cost Center Field under “Time
Dependent “ Tab in Asset Master Record.
Note: For Expenses GL Accounts ,we must use Field Status Group – G004 or if you are using
other group , make cost center field as optional.
28. Specify Account Assignment Types for Account Assignment Objects

Ledger Accounting-->Additional Account Assignment Objects-->Specify
Account Assignment Types for Account Assignment Objects
Tcode ACSET
Select Your Company Code and

Double Click on “ Depreciation Areas”
Select “ 01” Depreciation Area and
Double Click on “ Account Assignment Objects”
AcctAsgnObj Transaction Type Account Assignment Type AcctAsgnt
01-APC Values Posting 
02-Depreciation Run 
Click on 
29. Field Status Variant for GL & Posting Key
Path Asset Accounting - FAA_CONFIG_REDESIGN_1-->Integration with General

Ledger Accounting-->Change the Field Status Variant of the Asset G/L
Accounts
Double Click on “Define Field Status Variants”

Select Field Status Variant “_______________________” and

Double click on “ Field status groups”
Double click on Field Status Group “G007”

Double Click on “Additional account assignments”
Make “Cost Center “ Field as Optional Entry 
Make “Profit Center “ Field as Optional Entry 
Click on 
Click “Back Arrow” Twice
Double Click on “Change Field Status for Posting Keys”

Double click on Posting Key”70”
Double click on “Maintain Field Status “

Make Cost Center Field as Optional Entry 
Click on 
Click “back button” 3 times and Save
Double click on Posting Key”75”
Double click on “Maintain Field Status “

Make Cost Center Field as Optional Entry 
Click on 
‘-----------------------------------------------------------------------------------------------
Change other GL Account Field Status Group in line with AA Requirement
‘-------------------------------------------------------------------------------------------------
For Testing Sale with Customer Scenario:
Field Status Group of Revenue GL Should be enabled for below Fields:
1. Asset retirement
2. Asset number / sub number
Double Click on “Define Field Status Variants”

Select Field Status Variant “_______________________” and
Double click on “ Field status groups”

Double click on Field Status Group “G001” ( if your are using other, pls select that here)
Double Click on “Asset Accounting”
Make “Asset Retirement” Field as Optional 
Make “Asset number / sub number” Field as Optional 
Click on 
Making Profit Center Field as Optional For Vendor Reconciliation – Field Status
Group:
Click on Position Button

Field Status Group = G067 
Double click on “ G067” Field Group
Make “Profit Center “ Field as Optional 
Click on 
Depreciation Keys Configuration
Depreciation Methods:
There are So many Depreciation methods recognized by SAP. But in general, we use either
1. Straight Line Method ( SLM)
2. Written Down Value ( WDV)
3. Useful Life Method
4. Depreciation Keys: Depreciation Keys are nothing but Rate+ Method Example 5% SLM
or 5%WDV
Create Below Depreciation Keys

Depreciation Keys BASE Remarks

Y001 SLM 10%
Y002 SLM 20 %
Y003 WDV 10%
Y004 WDV 20%
Y005 Useful Life % will be take from useful life
Depreciation Key Configuration:
In Creation of Depreciation Keys, we have 5 steps.
Step 1. Define Base Methods

Step 2. Define Declining Balance Method All the 4 steps will be assigned in Step 5
Step 3. Define Multilevel Methods Maintain Depreciation Key
Step 4. Maintain Period Control Methods
5th Step will be assigned in Asset Master
1. Define Base Methods

Path IMG-->Financial Accounting-->Asset Accounting-->Depreciation-->Valuation
Methods-->Depreciation Key-->Calculation Methods-->Define Base Methods
Base method primarily specifies:

 The Type of depreciation (Ordinary/ Special Depreciation)
 Depreciation Method used (Straight Line/ Written Down value Method)

 Treatment of the depreciation at the end of Planned useful life of asset or when the Net
Book value of asset is zero
No Special Configuration is required. Check below Base Method

0011-Ordinary: percentage from useful life
0014 Ordinary: explicit Percentage (after end of life)
2. Define Declining Balance Method

Methods-->Depreciation Key-->Calculation Methods-->Define Declining-

Balance Methods
Tcode AFAMD
Chart of Depreciation = Press Enter
Note Down the Number '001 (in this Step Nothing to save).
We will mention this number in 5th Step
3. Define Multi-Level Methods

Methods-->Depreciation Key-->Calculation Methods-->Define Maximum
Amount Methods
Tcode AFAMS

Multilevel method = Y01
Method Description = SLM 10%
Validity start = From Ordinary Depreciation Start Date
Double click on “ Levels”

Acquisition year = 9999
Years = 999
No of periods = 12
Base value = 01 (acquisition value)
Percentage = 10%
Click on 
Click 3 times “Back Button”

Method Description = SLM 20%
Double click on “ Levels”,
Years = 999
No of periods = 12
Base value = 24 ( (net book value)

Percentage =
Click on 

Method Description = WDV 10%
Years = 999
No of periods = 12
Base value = 24 ( (net book value)

Percentage =
Click on 

Click on 
Acquisition year =9999
Years =999
No of periods =12
Base value =24 ( (net book value)
Percentage =
Click on 

Click on 
Acquisition year =9999

Years =999
No of periods =12
Base value =24 ( (net book value)
Percentage =
Click on 
------------------------------------------------------------------------------------------
Ordinary Depreciation Date: means the date form which system should calculate Depreciation.
Generally, It will be capitalization date.
Acquisition year : 9999
If We give 2023 year- This rate is applicable for the assets purchased in the year 2023 only –
Next year also we are purchasing an asset having 5% rate then we have to create acquisition
year once again in the next year.
To avoid that we will give 9999 (valid up to year 9999)
Years: 999 – maximum life of the asset is 999 years

------------------------------------------------------------------------------------------
4. Maintain Period Control Methods

Methods-->Depreciation Key-->Calculation Methods-->Maintain Period Control
Methods
Tcode AFAMP
Period control method =
Description =
Acquisition =
Additions =
Retirement =
Transfer =
Click on 
Period Period Control Key Short Explanation

Control Description
Key

Control Description
Key
01 Pro rata at period start date The depreciation start or end date is always on the first day of the period in
which the transaction, such as an acquisition or retirement, takes place.
02 Pro rata up to mid period at For transaction postings made up to the middle of a period, the first day of the
period start period is the date relevant for depreciation calculation.
For postings made after the middle of a period, the date relevant for depreciation
calculation is the first day of the next period.
This key is mainly used for retirement transactions.
03 Pro rata at mid period The date relevant for depreciation calculation is always in the middle of the
period in which the transaction takes place.
This is used for depreciation calculation based on half periods and a 24 period
half-month fiscal year variant.
Note
This key is based on US legislation and is therefore relevant mainly in the US,
however, it is still possible to use in other countries if required.
04 First year convention at half For transactions posted in first half of a year, the full year is included in
year start depreciation calculation and the date relevant for depreciation calculation is the
first day of the year.
For transactions posted after the middle of the year, only 6 months is included in
depreciation calculation and the date relevant for depreciation calculation is the
first day of the second half of the year.
05 Year start date/Mid For transactions posted on the first day of a fiscal year, the date relevant for
year/Year end depreciation calculation is the first day of the fiscal year.
For transactions posted up to the middle of the year, the date relevant for
depreciation calculation is the first day of the second half of the fiscal year.
For transactions posted after the middle of the year, the date relevant for
depreciation calculation is the first day of the next fiscal year.
Note
This key is based on Austrian legislation and is therefore relevant mainly in
Austria, however, it is still possible to use in other countries if required.
06 At the start of the year The date relevant for depreciation calculation is the first day of a fiscal year.
07 Pro rata at mid year The date relevant for depreciation calculation is always in the middle of the year.
Note
08 In the following fiscal year The date relevant for depreciation calculation is the first day of the following
fiscal year.
09 Pro rata at mid quarter The date relevant for depreciation calculation is always in the middle of the
quarter and is based on a 24 period half-month fiscal year variant.
Note

Control Description
Key
11 In the following period The date relevant for depreciation calculation is the first day of the following
period.
5. Maintain Depreciation Key

Methods-->Depreciation Key-->Maintain Depreciation Key
Tcode AFAMA

Depreciation key = Y001
Description = SLM 10%
 depreciation to the day
Double click “ Assignment Of Calculation Methods”
Depreciation type = ordinary depreciation
Phase = from the start of depreciation
Base method =
Multilevel method =
Class = straight line depreciation
Click on 
Click “back arrow” 4 times

Select “____________ “, (depreciation key)
Click on “activate” and
Click on 
‘-----------------------------------------------------------------------------
Note: When we select “Depreciation To The Day “ it will ignores Period Control

Description = SLM 20%
Double click “ Assignment Of Calculation Methods”

Click on “new entries”
Base method =
Multilevel method =
Class = declining balances method
Click on 
Click “Back Arrow” 4 times,

Select “ “, (depreciation key)
Click on “Activate” and
Click on 
‘-----------------------------------------------------------------------------
Description = WDV 10%
Double click “Assignment Of Calculation Methods”
Base method =
Multilevel method =

Click on 
Click on 
‘-----------------------------------------------------------------------------

Description = WDV 20%

Base method =
Multilevel method =
Click on 
Click on 
‘-----------------------------------------------------------------------------
Description = % From Useful Life

Base method =
Multilevel method =
Click on 
Click on 
‘-----------------------------------------------------------------------------
Activate ‘0000’ Depreciation Key

Click on Position
Depreciation Key = 0000
Select “0000” Depreciation key Line and
Click on Activate and Save
Activate ‘CWG’ Depreciation Key

Click on Position
Depreciation Key = CWG
Select “CWG” Depreciation key Line and
Click on Activate and Save
Note: ‘0000 Depreciation Key will be used for Land & Capital WIP Asset Masters.
CWG – will be used for Low-Value Asset. 100% depreciation
-------------------------END-OF-DEPRECITION KEYS-------------------------------------
30. Define Screen Layout for Asset Master Data
Path IMG-->Financial Accounting-->Asset Accounting-->Master Data-->Screen

Layout-->Define Screen Layout for Asset Depreciation Areas
Tcode AO21
No configuration , just observe
31. Determine Depreciation Areas in the Asset Class

>Determine Depreciation Areas in the Asset Class
Tcode OAYZ
Asset Class Leading Ledger Non Leading Screen Layout
Land 0000 0000 1000

Building Y001 Y002 1000
Vehicles Y003 Y005 2000
LVA CWG CWG 1000
AUC 0000 0000 1000
AUC -IO 0000 0000 1000
Select “_____________________” Asset Class

Double Click on “ Depreciation Areas”
Update Layout = for all Depreciation Areas

Deselect  for depreciation areas which you want to use in this asset class
Let us deselect for all
Enter Depreciation Key :
01-Depreciation Area =
Non-Leading Area = 
Click on 
Note : Repeat the same steps for all ASSET CLASSES.

32. Assign Form for Asset History Sheet
Path IMG-->Financial Accounting-->Asset Accounting-->Information System--

>Define or Assign Forms
Tcode OAAY
Double Click on “Assign asset class/history sheet”
Asset Class Form

FIAA_F001
FIAA_F001
FIAA_F001
FIAA_F001
FIAA_F001
Click on 
33. Define Transfer Date and Additional Parameters
Path IMG-->Financial Accounting-->Asset Accounting-->Asset Data Transfer--

>Parameters for Data Transfer-->Define Transfer Date and Additional
Parameters
Tcode FAA_CMP_LDT
Click on “Change “Button

Click on “0L” Leading Ledger
Highest Fiscal Year = ( Enter Current FY)
Double Click on “X1” Ledger

Highest Fiscal Year = ( Enter Current FY)
Double click on “Company Code”

Click on “General Settings” TAB
Check the Status of Company Code
Click on “Legacy Data Transfer” TAB

Click on “ Lagacy Segment “
Transfer Date = (set Previous FY last Date)
Document Type = 
Click on 
34. Balance Carry Forward (mandatory)
Path Easy Assess--> Accounting--> Financial Accounting --> Periodic Processing --

> Closing --> Carrying Forward -->Balance Carryforward
Tcode FAGLGVTR
Ledger = To =
Company Code =
Carry Forward to Fiscal Year =
 Test Run
Click on “Execute”
Check the log for errors , if you no errors click on back button and remove
 Test Run
Click on “Execute”
End-User Testing:
Create AS01
Change AS02
Display AS03
Change History AS04
Block AS05
Deleted AS06
Create Asset Master

Land 1
Building 1
Vehicle 1
1. Create Asset Master Record
Path Easy Assess--> Accounting--> Financial Accounting --> Fixed Assets --> Asset
--> Create --> Create
Tcode AS01
Asset Class =
Company Code =
Number of Similar Asset = 
Description =
Click on “Time-Dependent “ Tab

Coset Center = 
Click on “Depreciation Tab”

Useful Life =
Click on 
2. Change Asset Master , Change History, Create Similar Asset
AS02- CHANGE
AS03-DISPLAY
AS04-CHANGE HISTORY
AS01- SIMILAR ASSET
3. Delete Asset Master
Path Easy Assess--> Accounting--> Financial Accounting --> Fixed Assets --> Asset
--> Create -->
Tcode AS06
Asset Number =
Sub-Number =
Company Code = 
 Physically Delete Asset
Click on 
Do you want to Physically delete asset ?
Click on “Yes”
Note: We can delete only , no transaction asset masters . It transaction posted to Asset,
deletion not possible.

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SAP S/4HANA Simplified for Beginners Video©Mohammed Rashid

Leading Ledger Non-Leading Ledger Extension Ledger

Reporting Period Jan To Dec Jan To Dec Same as Leading

Cocd.Curr-10 INR INR Same as leading

Group.Curr -30 Check SCC4 Tcode - Do -

Ledger = A Set of Books of Accounts

 It is purely optional and used for Reporting only.

 Non-Leading Ledger Can have it own

 Extension ledgers are delivered based on an underlying ledger.

Restrictions for Posting Ledger Specific Documents

Ledger: Different Different Different Different Different

Non-leading Yes Yes Yes Yes Yes

Extension No No Yes Yes Yes

What is representative Ledger?

1. Define Accounting Principles

Path IMG-->Financial Accounting-->Financial Accounting Global Settings--

Click on “New Entries”

Must delete Transaction Data from OBR1 TCODE

2. Define Settings for Ledgers and Currency Types

Path IMG-->Financial Accounting-->Financial Accounting Global Settings--

‘------------------------------optional additional settings---------------------------

Click on “ Currency Types”

Currency / Valuation Type =

 Company Code Specific Conversion

Double Click on “ Currency Conversion Settings for Company Codes”

Click on “New Entries”

Currency / Valuation Type =

Real Time Conversion 

Double Click on “ Ledger “

Click on “New Entries”

Leading =  don’t select this.

Click on Back Button

Select Ledger “Non Leading Ledger ______________” and

Double click on “ Company Code Settings for the Ledger”

Fiscal Year Variant =

Click on “back arrow”

Double Click on “ Accounting Principles for Ledger and Company Code”

Double Click on “  Ledger “

Leading =  don’t select this.

Click on Back Button

Select Ledger “Extension Ledger ______________” and

Double click on “ Company Code Settings for the Ledger”

******Observe all setting from Company Code have been copied**********

Click on “back arrow”

Double Click on “ Accounting Principles for Ledger and Company Code”

Click on “New Entries”

3. Define Number Ranges for Ledger

No Range Year From To

80 2023 800000 899999

4. Define Document Types in a Ledger

Rent A/c Dr 10000

1. Post Journal Voucher For Expense

Path SAP Easy Access-->Accounting--> Financial Accounting -->General Ledger --

Tcode FB01 / F-02

Cost Center = (Cost Object)

2. Analyze Entry FB03

3. Check ACDOCA Table SE16N

Leading Ledger Non – Leading ledger Extension

Rent Dr 10000 Rent Dr 10000 No Entry

To Cash /bank Cr 10000 To Cash/bank Cr 10000

4. Check GL balance Report

Ledger Specific Postings:

FAGLL03 – GL Line item Report

Observe all setting from Company Code have been copied****