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

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

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

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.

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.

Process Flow Diagram

Event

Asset Accounting - Overview

Asset Master
Data Needs to
Be Created

Asset Acquisition

Retirements

Asset Accountant

Intercompany Transfer

Asset Explorer

Post - Capitalization
Periodic Processing
Write-up

Transfer of Reserves

Unplanned Depreciation

Assets under Construction

Information System

Process Flow Diagram

Asset Accountant

Event

Asset Accounting Asset Acquisition

162
Overview

Asset Acquired

Acquisition with
Accounts
Payable

Yes

Acquisition Integrated
with Accounts
Payable Accounting

No

Acquisition with
Automatic Offsetting
Entry

Process Flow Diagram

Event

Asset Accounting Retirements

162
Overview

Asset to Be Retired

Retirement with
Revenue
Expected

No

Retirement Due to
Scrapping

Asset Accountant

Yes

Retire-ment
with
Customer

No

Retirement with
Revenue without
Customer

Yes

Retirement with
Revenue and
Customer

Process Flow Diagram

Accounts Payable Accountant

Asset Accountant

Event

Asset Accounting Asset under Construction

Asset needs to be
constructed without
Investment Order

Create AUC /
Asset for
final
settlement
(155.02)

Post Down Payment

Request

162
Overview

Down Payment
approved

Post Closing Invoice

Post Down Payment

Maintenance of
Settlement Rules

Clear Down Payment

Process Flow Diagram

Accounts Payable Accountant

Asset Accountant

Event

Asset Accounting Asset under Construction

Asset needs to be
constructed without
Investment Order

Create AUC /
Asset for
final
settlement
(155.02)

Post Down Payment

Request

162
Overview

Down Payment
approved

Post Closing Invoice

Post Down Payment

Maintenance of
Settlement Rules

Clear Down Payment

Process Flow Diagram

Event

Asset Accounting Periodic Processing

162
Overview

Periodic
End Closing

Asset Accountant

AUCSettlement
(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

Depreciation
Simulation and
Primary Cost
Planning

Year
End

Yes

Fiscal Year
Change for Asset

No

Account
Reconciliation

Year End
Closing for fixed
Assets