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Asset Accounting

Asset Accounting. SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose

johnavon-gavin
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Asset Accounting

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  1. Asset Accounting SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP system. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets. • Benefits • Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through its retirement. • Calculate values for depreciation and interest • Depreciation forecast • Key Process Steps • Acquisition from purchase with vendor • Acquisition with automatic offsetting entry • Retirement with revenue • Asset Sale without customer • Post-Capitalization • Write-Ups • Assets Under Construction • Depreciation Posting Run • Posting Acquisition and Production Costs Values • Depreciation Simulation/Primary Cost Planning

  3. Required SAP Applications and Company Roles • Required • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Asset Accountant • Accounts Payable Accountant • General Ledger Accountant

  4. Detailed Process Description • Acquisition from Purchase with Vendor • An external asset acquisition is a business transaction resulting from the acquisition of an asset from a business partner. The acquisition can be posted integrated with Accounts payable or without Accounts payable. • Acquisition with Automatic Offsetting Entry • The asset can be posted automatically against the clearing account fixed asset acquisition. • Retirement with Revenue • An asset is sold, resulting in revenue. The sale is posted with a customer. • An asset is sold, resulting in revenue. The sale is posted against a clearing account. • An asset had to be scrapped, with no revenue. • Asset Sale without Customer • Asset Sale with partial retirement without customer

  5. Detailed Process Description • Post-Capitalization • Post-capitalization represents subsequent corrections to the acquisition and production costs (APC) of a fixed asset. • Write-Ups • A write-up is generally understood to be a subsequent change to the valuation of an asset. • Assets Under Construction • Assets under construction (AuC) are a special form of tangible asset. • The AuC process includes a down payment, final invoice and the final settlement.

  6. Detailed Process Description • Depreciation Posting Run • The depreciation posting should be run periodically because the depreciation accounts are not updated immediately. • The system creates posting documents for each depreciation area and account group in accordance with the posting cycles specified in Customizing. • Posting Acquisition and Production Costs Values • In addition to the posting of depreciation (using the depreciation posting run), the most important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on. • Depreciation Simulation / Primary Cost Planning • You can also post the planned depreciation as planned costs to the cost centers or internal orders to which the individual fixed assets are assigned.

  7. Process Flow Diagram Asset Accounting - Overview Event Asset Master Data Needs to Be Created Asset Accountant Asset Acquisition Retirements Intercompany Transfer Asset Explorer Post - Capitalization Periodic Processing Write-up Transfer of Reserves Unplanned Depreciation Assets under Construction Information System

  8. 162 Overview No Yes Process Flow Diagram Asset Accounting – Asset Acquisition Event Asset Acquired Asset Accountant Acquisi-tion with Accounts Payable Acquisition with Automatic Offsetting Entry Acquisition Integrated with Accounts Payable Accounting

  9. 162 Overview No No Yes Yes Process Flow Diagram Asset Accounting – Retirements Event Asset to Be Retired Asset Accountant Retire-ment with Revenue Expected Retirement Due to Scrapping Retire-ment with Customer Retirement with Revenue without Customer Retirement with Revenue and Customer

  10. 162 Overview Process Flow Diagram Asset Accounting – Asset under Construction Event Asset needs to be constructed without Investment Order Down Payment approved Asset Accountant Create AUC / Asset for final settlement (155.02) Post Closing Invoice Maintenance of Settlement Rules Accounts Payable Accountant Post Down Payment Request Post Down Payment Clear Down Payment

  11. 162 Overview No Yes Process Flow Diagram Asset Accounting – Periodic Processing Event Periodic End Closing Asset Accountant AUCSettle-ment (164) AUCSettlement Depreciation Run Recalculate Values Depreciation Posting Run Post Acquisition and Production Cost Value List of Individual Postings for Assets Open and Close Financial Period Asset Year End Depreciation Simulation and Primary Cost Planning Account Reconciliation Year End Closing for fixed Assets Fiscal Year Change for Asset

  12. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

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