Asset Accounting in SAP FiCo

Asset Accounting

Copy Reference Chart of Depreciation
Define Tax Codes for Sales / Purchases
Define Depreciation Area
Specify Account Determination
Create Screen layout
Define Asset Class
Define Depreciation Methods
Maintain Depreciation Key
Creation of Asset Master
Depreciation Run

Chart of Depreciation

Definition:

The account group is a classifying feature within customer master records. The account group determines:

o in which number range the customer account number should be;
o whether the number is assigned by the user or by the system;
o which specifications are necessary or possible in the master record.


Copy Reference Chart of Depreciation

Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Copy reference Chart of Depreciation/Depreciation Area
T Code : EC08


Steps:
1. Click ‘Original Object’
2. Click ‘Copy org. object’
3. Enter ‘From Chart of Depreciation
4. Enter ‘To Chart of dep.’
- Press ‘Enter’
- SAVE the settings

Assign Chart of Depreciation to Company Code

Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Assign Chart of Depreciation to Company code
T Code : OAOB


Steps:
1. Click ‘Position’
2. Select ‘Co. Code’
3. Enter ‘Chart of Dep.’
4. SAVE the settings


Define Tax codes for Sales / Purchases

Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Tax on Sales / Purchases - Calculation – Define Tax Codes for Sales / Purchases
T Code : FTXP


Steps:
Enter Country Code
1. Enter ‘Tax Code’
- Press ‘Enter’
2. Enter ‘Description’
3. Enter ‘Tax type’
- Press ‘Enter’


Define Tax codes for Sales / Purchases

Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Tax on Sales / Purchases - Calculation – Define Tax Codes for Sales / Purchases
T Code : FTXP


Steps:
1. Enter ‘Tax %age’
2. SAVE the settings


Define Tax codes for Sales / Purchases

Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Tax on Sales / Purchases - Calculation – Define Tax Codes for Sales / Purchases
T Code : FTXP


Steps:
Enter Country Code
1. Enter ‘Tax Code’
- Press ‘Enter’
2. Enter ‘Description’
3. Enter ‘Tax type’
- Press ‘Enter’


Define Tax codes for Sales / Purchases

Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Tax on Sales / Purchases - Calculation – Define Tax Codes for Sales / Purchases
T Code : FTXP


Steps:
1. Enter ‘Tax %age’
2. SAVE the settings

Assign Tax codes for Non Taxable Transactions

Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Tax on Sales / Purchases - Posting – Assign Tax codes for Non Taxable transactions
T Code : OBCL


Steps:
1. Click ‘Position’
2. Enter ‘Co. Code’
3. Enter ‘Input Tax code’
4. Enter ‘Output tax code’
5. SAVE the settings

Depreciation Area

Definition:

An area showing the valuation of a fixed asset for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, or management accounting values).

Along with "real" depreciation areas, you can define derived depreciation areas. The values for these derived areas are calculated from those of two or more real areas.

Depreciation area, which is managed in the system as a real depreciation area (not a derived depreciation area).

Each depreciation area is set up to handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation, group depreciation, cost-accounting depreciation, etc.)

Define Depreciation Area

Menu Path: IMG – Financial Accounting – Asset Accounting – Valuation – Determine Chart of Depreciation
T Code : OADB

Steps:
Enter ‘Chart of Dep.’
- Select ‘All field except
’01’ Book Depreciation
- Click ‘Edit’ in Main
Menu – Click ‘Delete’
- Click ‘Save’
- Keep pressing ‘Enter’
- SAVE the settings
- Click ‘Back’ button

Account Determination

Definition:

The account determination determines the reconciliation accounts in the general ledger, as well as their offsetting accounts, that are to be posted when certain business transactions are carried out.

You must enter an account determination in the asset class. Several asset classes can use the same account determination, if they use the same chart of accounts and post to the same general ledger accounts.

Specify Account Determination

Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Asset Class – Specify Account Determination
T Code : SPRO


Steps:
Click ‘New Entries’
1. Enter ‘Account determination’
2. Enter ‘Name of A/c determination
3. SAVE the settings

Screen Layout Rule

Definition:

Screen layout for maintaining asset master data.

Using the screen layout rule, you can define:

o which fields are
- required
- optional
- suppressed
o the maintenance level in the asset hierarchy
o which fields are copied, when creating an asset using another asset master record as a reference.

You can define screen layout rules for general master data and for depreciation parameters within depreciation areas.

Create Screen Layout Rule
Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Asset Class – Create Screen layout Rule
T Code : SPRO

Steps:
- All Screen layouts are SAP pre defined, If we Want we can create New Screen Layout
Rules.

Number Range Interval

Definition:

Identifies a number range interval within an object or sub object.

The Number Range Interval contains Two digit ID, From Number, To Number and Check box for External Numbering or Internal Numbering.

Define Number Range Interval

Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Asset Class – Define Number Range Interval
T Code : AS08

Steps:
- Enter ‘Co. Code’
- Click ‘Change Interval’
1. Click ‘Insert Interval’
2. Enter ‘Number range’
3. Enter ‘From Number’
4. Enter ‘To Number’
5. SAVE the settings

Asset Class

Definition:

The main criterion for classifying fixed assets according to legal and management requirements.

For each asset class, control parameters and default values can be defined for depreciation calculation and other master data.

Each asset master record must be assigned to one asset class.

Special asset classes are, for example:

o Assets under construction
o Low-value assets
o Leased assets
o Financial assets
o Technical assets


Define Asset Class

Menu Path: IMG – Financial Accounting – Asset Accounting – Organizational Structure – Asset Class – Define Asset Class
T Code : OAOA

Steps:
- Click ‘New Entries’
1. Enter ‘Asset Class’
2. Enter ‘Text & short text’
3. Select ‘Acct. determ.’
4. Select ‘Scr. layout rule’
5. Enter ‘No. range’
6. SAVE the settings


Assign GL Accounts to Fixed Assets

Menu Path: IMG – Financial Accounting – Asset Accounting – Integration with General Ledger – Assign General Ledger Accounts
T Code : AO90


Steps:
- Enter ‘Chart of Dep.’
- Select ‘Chart of Dep.’
- Double Click ‘Account determination’
- Select ‘Account determ’
- Double Click ‘Balance Sheet Accounts’
1. Enter ‘Asset GL A/c’
2. Enter ‘Asset Acquisition GL A/c’
3. Enter ‘Relevant GL A/c
4. Double click ‘Depr.’



Assign GL Accounts to Fixed Assets

Menu Path: IMG – Financial Accounting – Asset Accounting – Integration with General Ledger – Assign General Ledger Accounts
T Code : AO90


Steps:
1. Enter ‘Acc. Dep. A/c’
2. Enter ‘Depreciation A/c’
3. SAVE the settings


Determination of Depreciation Area in Asset Class

Menu Path: IMG – Financial Accounting – Asset Accounting – Valuation – Determination of Depreciation Area In Asset Class
T Code : OAYZ

Steps:
- Select ‘Asset Class’
- Double click ‘Dep Areas
1. Deactivate check box
2. Enter ‘Layout’
3. SAVE the settings

Depreciation Posting Intervals

Definition:

Number of periods between two depreciation runs.

You specify the interval between two depreciation posting runs in this field. Define this interval by entering the number of posting periods that should be in the interval.

Example

Key to the entries when using a fiscal year version with 12 normal posting periods:

1 = monthly posting
3 = quarterly posting
6 = semi-annual posting
12 = annual posting

Note

Depreciation posting runs, which result from changes to valuation due to year-end closing and take place after the end of the fiscal year, can be posted as unplanned depreciation posting runs in the special periods of the given fiscal year version.

Depreciation Posting Rules

Definition:

Monthly : Depreciation of fixed assets is posted in each Financial Accounting posting period.

Bi-Monthly : Depreciation of fixed assets is posted in every second Financial Accounting posting period.

The field is not ready for input if the number of Financial Accounting posting periods is not
'12'.

Quarterly : Depreciation of fixed assets is posted each quarter, that is in every third Financial
Accounting posting period.

The field is not ready for input if the number of Financial Accounting posting periods is not '12'.

Semi-Annually : Depreciation of fixed asset is posted semi-annually, that is in every sixth
Financial Accounting posting period.

The field is not ready for entry if the number of Financial Accounting posting periods is not '12'.

Annual : Depreciation for fixed assets is posted once a year.



Specify Intervals and Posting Rules
Menu Path: IMG – Financial Accounting – Asset Accounting – Integration with General Ledger – Post Depreciation To General Ledger – Specify Intervals and Posting Rules
T Code : OAYR


Steps:
- Select ‘Co. Code’
- Double click ‘Posting Rules’
- Double click ’01-Book Depreciation’
1. Select ‘Period and Month’
2. SAVE the settings



Specify Rounding off Net Book value and/or Depreciation
Menu Path: IMG – Financial Accounting – Asset Accounting – Valuation – Amount specification – Specify rounding Off Net Book value and/or Depreciation
T Code : OAYO

Steps:
- Select ‘Co. Code’
- Double click ‘Rounding specifications’
- Double click ’01-Book Depreciation’
1. Select ‘Period and Month’
2. SAVE the settings


Define Screen Layout for Asset Master Data

Menu Path: IMG – Financial Accounting – Asset Accounting – Master Data – Screen layout – Define Screen Layout for Asset Master data
T Code : SPRO

Steps:
- Double click ‘Define Screen layout for Asset Master data’
- Select ‘Layout’
- Double click ‘Logical Field groups’
- Select ‘2-Posting Info’
- Double click ‘Field group rules’
1. Select ‘Required fields’
2. SAVE the settings



Define Screen Layout for Asset Depreciation Area

Menu Path: IMG – Financial Accounting – Asset Accounting – Master Data – Screen layout – Define Screen Layout for Asset Depreciation Area
T Code : AO21


Steps:
- Select ‘2000’
- Double click ‘Field group rules’
1. Select ‘Required fields’
2. SAVE the settings

Base Method

Definition:

Base method of the depreciation key for calculating depreciation or imputed interest.

Define Base Method

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Base Method
T Code : SPRO


Steps:
1. Check Base Method
‘0014’ is there or not
2. SAVE the settings

Declaiming balance Method

Definition:

Declining-balance method of the depreciation key for calculating depreciation or imputed interest.

The multiplication factor is used in determining the depreciation percentage rate for declining-balance depreciation. The system multiplies the depreciation percentage rate resulting from the total useful life by this factor.


Define Declaiming Balance Method

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Declaiming Balance Method
T Code : SPRO


Steps:
1. Check Decl bal Method
‘001’ is there or not
2. SAVE the settings

Multi level Method

Definition:

Multi-level method of the depreciation key for calculating depreciation or imputed interest.

Define Multi Level Method (Straight Line Method)

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Multi Level Method
T Code : AFAMS


Steps:
- Click ‘New Entries’
1. Enter ‘Multi lev. Methd’
2. Enter ‘Description’
3. Double Click ‘Levels’


Define Multi Level Method (Straight Line Method)
Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Multi Level Method
T Code : AFAMS


Steps:
- Click ‘New Entries’
1. Enter ‘Acq. year’
2. Enter ‘Year’
3. Enter ‘Period’
4. Enter ‘Base value’
5. Enter ‘Percentage’
6. SAVE the settings
- Click ‘Back’ button
‘3 times’


Define Multi Level Method (Written Down Value Method)

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Multi Level Method
T Code : AFAMS


Steps:
- Click ‘New Entries’
1. Enter ‘Multi lev. Methd’
2. Enter ‘Description’
3. Double Click ‘Levels’


Define Multi Level Method (Written Down Value Method)

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Define Multi Level Method
T Code : AFAMS


Steps:
- Click ‘New Entries’
1. Enter ‘Acq. year’
2. Enter ‘Year’
3. Enter ‘Period’
4. Enter ‘Base value’
5. Enter ‘Percentage’
6. SAVE the settings
- Click ‘Back’ button
‘3 times’

Period Control Method

Definition:

Period control method of the depreciation key for calculating depreciation or imputed interest.


Maintain Period Control Method

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Calculation Methods – Maintain Period Control Method
T Code : AFAMP

Steps:
- Enter ‘Chart of Dep.’
- Click ‘New Entries’
1. Enter ‘Prd Cntrl Methd’
2. Enter ‘Description’
3. Enter ‘Acquisition type’
4. Enter Addition type’
5. Enter ‘Retirement type’
6. Enter ‘Transfer type’
7. SAVE the settings

Depreciation Key

Definition:

The depreciation key (valuation key) controls the valuation of the asset in the particular depreciation areas.

The depreciation key consists of the following:

o Calculation method for the automatic calculation of interest, ordinary and special depreciation
o Possibly a cutoff value key
o Various control indicators


Maintain Depreciation Key

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA


Steps:
- Enter ‘Chart of Dep.’
- Click ‘New Entries’
1. Enter ‘Dep. Key’
2. Enter ‘Description’
3. Select ‘Period control according to fiscal yr’
4. Double click ‘Assignment of Calculation methods’


Maintain Depreciation Key

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA


Steps:
1. Select ‘Ord Dep.’
2. Select ‘From the start of depreciation’
3. Select ‘Base method’
4. Select ‘Decl. bal. metd’
5. Select ‘Prd cont’
6. Select Multilev method’
7. Select ‘Class’
8. Click ‘Back’ button



Maintain Depreciation Key

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA



Steps:
1. Select ‘Ord Dep.’
2. Click ‘Activate’
3. Click ‘Back’ button


Maintain Depreciation Key

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA



Steps:
- Enter ‘Chart of Dep.’
- Click ‘New Entries’
1. Enter ‘Dep. Key’
2. Enter ‘Description’
3. Select ‘Period control according to fiscal yr’
4. Double click ‘Assignment of Calculation methods’



Maintain Depreciation Key
Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA


Steps:
1. Select ‘Ord Dep.’
2. Select ‘From the start of depreciation’
3. Select ‘Base method’
4. Select ‘Decl. bal. metd’
5. Select ‘Prd cont’
6. Select ‘Multilev method’
7. Select ‘Class’
8. Click ‘Back’ button


Maintain Depreciation Key

Menu Path: IMG – Financial Accounting – Asset Accounting – Depreciation – Valuation methods – Depreciation Key – Maintain Depreciation Key
T Code : AFAMA


Steps:
1. Select ‘Ord Dep.’
2. Click ‘Activate’
3. Click ‘Back’ button

Asset Master

Definition:

The asset master record contains all information relating to an asset that remains unchanged over a long period of time:

Technical master data
Organizational allocations (usually time-dependent)
Depreciation terms

The system stores all the values and transaction data per each asset master record.

You can differentiate between different types of assets in the FI-AA component. The structure of the master record is identical for all asset main numbers, asset sub-numbers and group assets. Therefore, the basic procedure for creating any of these objects is essentially the
same.


Creation of Asset Master

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Asset – Create
T Code : AS01


Steps:
1. Select ‘Asset Class’
2. Select ‘Co. code’
3. Click ‘Master Data’


Creation of Asset Master

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Asset – Create
T Code : AS01


Steps:
1. Enter ‘Description’
2. Enter ‘Name’
3. Enter ‘Capitalization date’
4. Click ‘Depreciation areas’


Creation of Asset Master

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Asset – Create
T Code : AS01


Steps:
1. Enter ‘Dep Key’
2. Enter Useful life’
3. Enter ‘Percentage’
4. Enter Dep. Start date’
5. SAVE the settings


Creation of Sub-Asset Master

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Asset – Create – Sub Number – Create
T Code : AS11


Steps:
1. Enter ‘Asset’
2. Enter ‘Co. Code’
3. Click ‘Master Data’


Creation of Sub-Asset Master

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Asset – Create – Sub Number – Create
T Code : AS11


Steps:
1. Enter ‘Description’
2. Enter ‘Co. Code’
3. Click ‘Master Data’


GL Master Records to be created in AR


ASSETS

Fixed Asset (Recon) A/c
Accumulated DepreciationA/c.
Asset Acquisition

INCOME

Sales of Asset
Profit on Sale of Asset

LIABILITIES

EXPENSES

Loss on Sale of Asset
Loss due to Asset Scrap
Depreciation


Configurations testing – End user part

Post Asset Purchase Invoice
Depreciation Run

Asset Purchase Posting

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Postings – Acquisition – External Acquisition with Vendor
T Code : F-90


Steps:
1. Enter ‘Doc date, Post date, Doc type, Period, Co. Code, Currency
2. Enter ‘Post Key’
3. Enter ‘Vendor Code’
- Press ‘Enter’


Asset Purchase Posting

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Postings – Acquisition – External Acquisition with Vendor
T Code : F-90



Steps:
1. Enter ‘Amount’
2. Enter ‘Post Key’
3. Enter ‘Asset Code’
4. Enter Trans type’
- Press ‘Enter’



Asset Purchase Posting

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Postings – Acquisition – External Acquisition with Vendor
T Code : F-90


Steps:
1. Enter ‘Amount’
2. SAVE the document


Depreciation Run

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Periodic Processing – Depreciation Run - Execute
T Code : AFAB



Steps:
1. Enter ‘Co. Code’
2. Enter Fiscal Year’
3. Enter ‘Period’
4. Select ‘Planned posting run’
5. Select ‘Test Run’
6. Click ‘Execute’
- Press ‘Enter’


Depreciation Run

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Periodic Processing – Depreciation Run - Execute
T Code : AFAB


Steps:
- After Test run is done

The screen will appear With total depreciation Amount and the amount Of depreciation is to be Charged to particular Period’


Depreciation Run

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Periodic Processing – Depreciation Run - Execute
T Code : AFAB



Steps:
1. Enter ‘Co. Code’
2. Enter Fiscal Year’
3. Enter ‘Period’
4. Select ‘Planned posting run’
5. De Select ‘Test Run’
6. Click ‘Program’
7. Click ‘Execute in Back ground’
- Enter ‘Output Device’
- Click ‘Continue’
- Click ‘Immediate’
- SAVE the settings



Depreciation Run

Menu Path: Easy Access – Accounting – Financial Accounting - Fixed Assets – Periodic Processing – Depreciation Run - Execute
T Code : AFAB

Steps:
- Go to ‘System>Service >Jobs>Job overview
- Click ‘Execute’ button
- Select the ‘Job’
- Click ‘Spool’ button
- Select the Line Item
- Click ‘Display’ button
- Final Screen will appear for posting Depreciation