Asset Accounting
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Asset Accounting Configurations
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S4 HANA
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S4 HANA 10.1
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S4 HANA 19
Asset Accounting - End User T
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ECC
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AA Documen 70
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KR Document
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MIGO 70
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MIRO 86
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Asset Accounting
Asset Accounting deals with Fixed Assets like :
Land & Building
Plant & Machinery
Furnitures
Vehicles
Software & Licenses
Purchase of Assets Without P.O
Purchase of Assets With P.O
Sale of Asset With Profit
Sale of Asset With Loss
Scrapping of Asset
Transfer of Asset
Depreciation of Asset
Asset History Report
Asset Accounting Configurations
Copy Reference Chart of Depreciation / Depreciation Areas
· Specify Description of Chart of Depreciation
· Copy/Delete Depreciation Areas
Maintain Tax Codes for Non Taxable Transactions in Company Code
Assign Chart of Depreciation to Company Code
Specify Account Determination
Create Screen Layout Rules
Define Number Range Intervals
Define Asset Classes
Create GL Accounts for Asset Postings (Refer Document) :
APC Asset (Vehicles) A/c
Accumulated Depreciation For Asset (Vehicle) A/c
Assets Sales Clearing
Assets Sales Revenue
Profit on Asset Sale
Loss on Asset Sale
Loss on Asset Scrapping
Depreciation AC
Technical Clearing AC
Create Cost Element for Depreciation AC
Assignment of GL Accounts for Asset Postings
Bal.sh.acct AP - ( APC Vehicles AC )
Loss made on asset retirement w/o revenue - ( Loss on
Asset Scrapping )
Clearing acct. revenue from asset sale - ( Assets
Sales Clearing )
Gain/Profit from asset sale
Loss from asset sale
Acc.dep. accnt.for ordinary depreciation -
( Accumulated Depreciation For Vehicle )
Expense account for ordinary depreciat. -
( Depreciation AC )
Define Technical Clearing A/C for Integrated Asset Acquisition
Specify Document Type for Posting of Depreciation
Specify Intervals & Posting Rules
Specify Rounding for Net Book Value and/or Depreciation
Define Screen Layout for Asset Master Data
Define Screen Layout for Asset Depreciation Areas
Depreciation Key
To Create the Depreciation Key, we have to maintain the Calculation
Methods :
1.Define Base Methods
2.Define Declining-Balance Methods
3.Define Multi-Level Methods
4.Maintain Period Control Methods
Now in Depreciation Key , we have to assign all these 4 methods &
also Class i.e., ( Straight Line Depreciation )
Now Click on 'Activate"
It should be in 'Activate Status' otherwise it will not work.
Suppose if we don’t want to calculate depreciation, so, select '0000 -
no depreciation & no interest' , it’s a standard option
Determine Depreciation Areas in the Asset Class
Maintain Account Type for Account Assignment Object
Define Settings for Company Code to Close Highest F.Y
Asset Accounting - End User Testing
Create Asset Master
Creat Sub Asset
Purchase of Vehicle on 01.09.2024 Without P.O
Posting Keys :
70 - Debit
75 - Credit
Purchase of Vehicle on 01.09.2024 With P.O
Create Asset
Create P.O
Goods Receipt
Display Asset Master
Display Asset Values / Asset Explorer
Depreciation RUN
Display Job Overview
How to Identify weather this Depreciation Amt is Posted or Not ?
Purchase of Asset
Asset AC Dr
To Vendor AC
Purchase of Asset Without PO :
Asset AC Dr
To Technical Clearing AC
Technical Clearing AC Dr
To Vendor AC
Purchase of Asset With PO :
Asset AC Dr
To Technical Clearing AC
Technical Clearing AC Dr
To GR/IR AC
GR/IR AC Dr
To Vendor AC
Journal Entry at the time of Posting Depreciation Amt.
Depreciation AC Dr
To Accumulated Dep. Vehicle AC
Now lastly, Check in the Asset Explorer , the Status is shown as
'Posted'
Sale of Asset with Profit
Customer AC Dr
To Asset Sales Revenue AC
Asset Sales Clearing AC Dr
To APC Asset (Vehicles) AC
Accumulated Dep. Asset (Vehicle) AC Dr
To Profit on Asset Sale AC
Sale of Asset with Loss
Customer AC Dr
To Asset Sales Revenue AC
Asset Sales Clearing AC Dr
Loss on Asset Sale AC Dr
Accumulated Depreciation Vehicle AC Dr
To APC Asset (Vehicles) AC
Scrapping of Asset
Firstly, Purchase an Asset
Now Check the Document in FB03
Loss on Asset Scrap AC Dr
Accumulated Depreciation AC Dr
To APC Asset AC
Intra-Transfer of Asset :
Transfer of Asset - Within Company Code
( From One Cost Center to Other Cost Center )
( 1010 to 1020 )
Asset A/c ( New Cost Center Asset ) Dr
Accumulated Depreciation A/c ( Old Cost Center Asset ) Dr
To Asset A/c ( Old Cost Center Asset )
To Accumulated Depreciation A/c ( New Cost Center Asset )
After completion of Transfer entry , Old Asset is Deactivated & New
Asset is Created automatically.
Check both Assets - 1004 & 1005 in AW01N
Inter-Transfer of Asset :
Transfer of Asset - Between 2 Company Codes
Transfer Method : Transfer Variant :
Gross Method Company Code Relationship Type
Net Method
New Value Method or
Revaluation Method Affiliated
Non-Affiliated
Sending Company Code (1000):
Intercompany Receivable A/c (CoCode 2000) Dr
Accumulated Depreciation A/c (Old Asset) Dr
To Asset A/c (Old Asset)
Receiving Company Code (2000):
Asset A/c ( New Asset ) Dr
To Accumulated Depreciation A/c (New Asset)
To Intercompany Payable A/c (CoCode 1000)
Display the Asset Reports :
All Asset Balances
Asset History Report
Depreciation Report
Use ALV Grid for Row & Column wise Report for all Reports
Asset Purchase with Vendor
Asset Purchase without Vendor
Asset Purchase with PO
Asset Sale with Customer
Asset Sale without Customer
( Asset Retirement with Revenue )
Asset Sale with SO
Asset Scrapping
( Asset Retirement without Revenue )
Intra-Transfer of Asset :
( Transfer of Asset - Within Company Code )
Inter-Transfer of Asset :
( Transfer of Asset - Between 2 Company Codes )
Un-Planned Depreciation
Un-Planned Depreciation - Reversal
Depreciation Write-Up
Asset Acquisition Date
Asset Capitalization Date / Asset Value Date
Depreciation Methods :
Define Base Methods
The Base Date on which the Depreciation is started to calculate "
Define Declining-Balance Methods
For Ex - The Asset Value is 100000 & Dep Rate is 10 %
Opening NBV
₹ 100,000
₹ 90,000
Define Multi-Level Methods
Different Depreciation Rates for Different Periods
Depreciation Rate
30%
20%
10%
Maintain Period Control Methods - Conditions
No Depreciation in that Period
Start Depreciation from Next Period
Full Depreciation for that Period
If there are two assets & two different depreciation rates :
Vehicles - 10 %
Laptops - 20 %
Firstly, we need to create 2 Depreciation Keys.
1st Dep key - give the 10% rate in '' Multilevel Method''
2nd Dep key - give the 20% rate in '' Multilevel Method''
Catchup & Smoothing Method :
Catchup Method :
Asset Value - 1,00,000
Useful Life - 5 Yrs
1,00,000 / 5 = 20,000 Depreciation Per Year
For Ex - Suppose if we are not running the Depreciation for
1st Month & we run for 2nd Month, so, the 1st Month
Depreciation Amt is added into the 2nd Month automatically
with the help of Catchup Method.
Smoothing Method :
Asset Value - 1,00,000
Useful Life - 5 Yrs
1,00,000 / 5 = 20,000 Depreciation Per Year
For Ex - Suppose if we are not running the Depreciation for
3rd & 4th Month, so, that Two Months Depreciation Amt is
added & that total amt is divided by the remaining months
period so, that particular amount is added into every month.
Specify Intervals & Posting Rules
In OAYR Tcode, we need to click on '' Smoothing '' Option
TICKETS
1. Post Unplanned depreciation and reverse it. (Asset reversal) :
Suppose, if we purchase a machinery worth Rs.1,00,000 , & its useful life is
next year, suppose if the machinery is damaged due to some reason, so, its
like Rs.40,000 ( 1,00,000 – 10,000 = 90,000 ) ( 90,000 – 50,000 = 40,000 )
Depreciation Posting in ABAA Tcode….
Go to T-Code ABAA for Posting Unplanned Depreciation.
T-Type – 651 ( Unplanned Book Depreciation on new acquisition.
Go to T-Code AB08 for Unplanned Depreciation Amt Reversal.
Note: Accounting entry for reversal
2. Fixed Asset Depreciation Write Up & Check in Table SE16N
Write Up - ABZU
It means, when you run the depreciation for 10 yrs and after some ti
already you posted the depreciation for some particular periods, so
Code.
a) Firstly change the Depreciation Useful Life Years to 5 yrs IN AS02 ( Cha
b) Writeup in ABZU.
Dep key – specl dep activated
After Posting & Run The Depreciation in AFAB.
Now Purchase same asset of Rs.500000 in ABZON ( Acqusition w/Automati
g
T.CODE Depreciation reduces the book value
-
The Chart of Depreciation is a list of d
Chart of Depreciation is the Highest L
Depreciation areas are used to calcul
principles.
OBCL
Account Determination is the process
accounts for a fixed asset when an as
Account Determination is the process
accounts for a fixed asset when an as
It is used to Control the Fields in Asse
AS08 01
OAOA It means Grouping of Assets & it is a C
Ranges"
FS00
200700-Assets-B/S
100700-Liabilities-B/S
300300-Income-P&L
When we are selling the asset, weath
Debit balance or a Credit balance & b
intermediate account that is called ' A
300400-Income-P&L
300060-Income-P&L
400060-Expense-P&L
400065-Expense-P&L
400050-Expense-P&L
100800-Liabilities-B/S
KA01
AO90
200700
400065
300300
300060
400060
100700
400050
Assign Technical Clearing AC with Cha
OBA7 AF-05 AA - Asset Posting , AF - Depreciation
OAYR Monthly Posting
OAYO Arithmetic Rounding
-
2000
AFAMA PI01
It determines that 'How the Asset can
asset classes and depreciation areas.
0011 - Useful Life Method The Base Date on which the Depreciati
001 - Fraction Method
P01
001 - Standard
OAYZ
Account Assignment Object
ACSET - Transaction Type - It is used to Activate Postings from As
Account Assignment Type -
Activate it
KOSTL-*-01 APC Value
Posting & 02 Dep. Run
F.Y 2024 ( IMG - Asset Accounting - Pr
ser Testing
AS01/AS02/AS03 Asset Master is a record that stores in
AS11/AS02/AS03
F-90
ME21N
AS01
ME21N
MIGO
AS03
AW01N The Asset Explorer shows the values
AFAB
SM37
FB03
Two Documents are generated - AA &
Valuation Level
Operational Level
F-92
F-92
ABAVN It means Asset Retirement
F-90
FB03
ABUMN Transfer can be done on percentage %
Transfer can be done Partially or Full
50000
20000
50000
20000
ABT1N
30000
20000
50000
50000
20000
30000
AR01
AR02
AR03
F-90
ABZON
ME21N
F-92
ABAON
VA01
ABAVN
ABUMN
ABT1N
ABAA
AB08
ABZU
When the Asset is Purchased - Invoice Date i.e., 15-Apr-25
When the Asset is Ready to Use - i.e., 01-May-25
0011 - Useful Life Method
Depreciation Closing NBV
₹ 10,000 ₹ 90,000
₹ 9,000 ₹ 81,000
Year Dep Amt Month ( 20,000 / 12 )
1 20,000 1 1600
2 20,000 2 1600
3 20,000 3 1600
4 20,000 4 1600
5 20,000 5 1600
6 1600
7 1600
8 1600
9 1600
10 1600
11 1600
12 1600
Year Dep Amt Month ( 20,000 / 12 )
1 20,000 1 1600
2 20,000 2 1600
3 20,000 3 1600
4 20,000 4 1600
5 20,000 5 1600
6 1600
7 1600
8 1600
9 1600
10 1600
11 1600
12 1600
OAYR Monthly Posting
TS
et reversal) :
0 , & its useful life is 5 Yrs & in the 1 st Year, the depreciation is deducted to amt of R
some reason, so, its Net Book Value is Reduced to Rs.50,000 , so, whatever the diff
0 – 50,000 = 40,000 )…… so it comes under the ‘’Unplanned Depreciation’’ so, we ne
quisition.
versal.
ble SE16N
s and after some time at the time of audit, when auditor says it should be r
ticular periods, so to adjust that difference depreciation amt, we need to W
o 5 yrs IN AS02 ( Change Asset )
qusition w/Automatic Offsetting Entry )
es the book value of a fixed asset.
ciation is a list of depreciation areas arranged according to business requirements.
on is the Highest Level in Asset Accounting & it is created at Client Level.
are used to calculate the value of fixed assets according to different accounting
tion is the process of automatically identifying the relevant general ledger
asset when an asset transaction occurs.
tion is the process of automatically identifying the relevant general ledger
asset when an asset transaction occurs.
the Fields in Asset Master.
of Assets & it is a Combination of "Account Determination-Screen Layout-Number
g the asset, weather it’s a profit or loss, so, to adjust the balances weather it’s a
Credit balance & before final postings into P&L Account, there will be one
nt that is called ' Asset Sales Clearing AC'
earing AC with Chart of Accounts
AF - Depreciation Posting
How the Asset can be Depreciated' & Depreciation keys are assigned to
epreciation areas.
hich the Depreciation is started to calculate "
e Postings from Asset Accounting to Controlling.
et Accounting - Preparation for Going Live - Production Startup)
cord that stores information about a fixed asset
shows the values of a fixed asset, including depreciation and APC values
e generated - AA & KR
e on percentage % basis also or Amount basis
e Partially or Full
Depreciation RUN
- No Run
3200 1st Month Period Dep is added into next month
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
Depreciation RUN
1600 Run
1600 Run
1600 No Run 3200 / 8 =
1600 No Run 400
1600 2000 This 400 is added into every month period
1600 2000
1600 2000
1600 2000
1600 2000
1600 2000
1600 2000
1600 2000
cted to amt of Rs.10,000/- & in the
hatever the difference amt is there
ation’’ so, we need to do Unplanned
s it should be run for 5 yrs, and
, we need to WriteUp in ABZU T
nth period
