Asset Accounting: Accounting Entries:

1. Acquisition: With Vendor -F-90

Fixed Asset a/c Dr
(With acquisition cost)
Vendor Cr
2. Asset Disposal – Sales to a Customer: - F-92
Dr. Customer account (A/R)
Cr. Revenue for asset disposal
Cr. Fixed asset – acquisition cost
Dr. Accumulated depreciation
Dr. Clearing account for asset disposal
Cr. Gain/loss of fixed asset disposal
The posting date of the retirement posting will also be updated into the field
"deactivation date" in the asset master as the retirement date.
3. Asset Disposal – As a Scrap -ABAVN
An asset could be disposed as a scrap. In this case, no revenue is expected and a loss
will be realized in the P&L if the fixed asset being scrapped still carries a net book
value.
Cr. Fixed asset – acquisition cost
Dr. Accumulated depreciation
Cr. Gain/loss of fixed asset disposal
4. Asset Transfer within a Company – Reclassification
The NBV(Net Book Value) of an existing asset master record could be transferred to
another asset within the same company.
Cr. Asset – acquisition cost (old asset)
Dr. Accumulated depreciation (old asset)
Dr. Asset – acquisition cost (new asset)
Cr. Accumulated depreciation (new asset)
The old asset being transferred will become a retired asset and the transfer posting
date will be updated as the retirement date in the asset master record. For the new
receiving asset, the transfer will be the same as if it is being acquired. The transfer
posting date will be used as the capitalization date.
5. Asset under Construction (AUC)
(Internal Order as Investment Measure)
1. Define the AUC Asset Class (with investment measure) - OAOA
2. Define the Asset Class – for Main Asset - OAOA
3. Define Investment Profile - OITA
-Assign the AUC Asset Class (Step-1) in the investment profile
4. Assign Investment Profile to Model Order - OITA
5. Define Order Type (Investment) - KOT2
- Settlement Profile - OKO7
- Maintain Allocation Structures - OKO6
- Planning Profile - OKOS
- Budget Profile - OKOB
6. Create an Internal Order - KO01
- With the Investment Profile
- AUC automatically created by the system using Asset Class given in the Investment
Profile
1. Post the amounts to IO - FB01
Dr. Material supplied to Asset (Expenditure)
Cr. Cash account
2. Settle the amounts to AUC from IO (Pricing type: Automatic) - KO88
Dr. Asset under Construction account
Cr. Contra Capitalized
Create the Main Asset - AS01
3. Settle the amounts to Main Asset from AUC - KO88
Dr. Final Asset account
Cr. Asset under Construction account
4. Sale of Asset from One Company code to another Company code
A. If Selling and Buying Company is separate Entities:
In Selling Company:
A/R Posting
Dr Customer a/c (for the sale value)
Cr Revenue –Asset Retirement
Asset Posting
Dr Clearing of Asset Retirement
Dr P&L (Loss)
Dr Accumulated Depreciation
Cr Asset
In Buying Company:
Dr Asset
Cr Vendor
Note:
- Posting date of the document will be copied into the asset master as the
capitalization date.
- The depreciation start date of each depreciation area will also be determined and
updated in the depreciation area data tab page.
- Asset acquisition posting could also be done without PO from the MM module.
- Posting could be done in FI posting only.
B. If selling and buying Company is Inter Companies - ABT1N
An inter company transfer in the asset history sheet can be an asset acquisition in one
company code and an asset retirement in another company code. Fixed assets can only
be evaluated at client, and not company code level.
In Selling Company:
A/R Posting
Dr Inter Company Customer a/c
Cr Revenue –Asset Retirement
Asset Posting
Dr Clearing of Asset Retirement
Dr P&L (Loss) $1300
Dr Accumulated Depreciation
Cr Asset $6000
In Buying Company:
Dr Asset
Cr Inter Company Vendor
1. Note:
- Posting date of the document will be copied into the asset master as the
capitalization date.
- The depreciation start date of each depreciation area will also be determined and
updated in the depreciation area data tab page.
- Asset acquisition posting could also be done without PO from the MM module.
- Posting could be done in FI posting only.
2. Note:
The process for posting intercompany transactions is as follows:
- The initial entry is parked.
- Then an email is sent to the other branch to view the document.
- On approval of the transaction, the parked document is then posted to the g/l in both
companies. The company receiving the revenue will be the one responsible to book
into system using the US dollar as base currency.
5. Month End Processing – Depreciation Run-AFAB
Dr. Depreciation expense
Cr. Accumulated depreciation

Asset Accounting in SAP ECC 6.0

a. Fixed Assets can have multiple depreciation areas to handle multiple GAAP
requirements. e.g., Local GAAP vs. US GAAP.
Note: Specify the General Ledger that is posting to Asset Accounting (Define
valuation areas for parallel valuation, and Delta valuation area to post valuation
deference)
• Depreciation area 01 – Asset valuation area 01 (will always link to the Leading
Ledger)
• Depreciation 02 and depreciation area 12 – Other asset valuation areas that can be
tied to NLs as required.
b. The program used for transaction ASKB has changed to RAPERB2000 and for
AFAB, it is RAPOST2000
c. Functional area assignment is mandatory
d. Previously in 4.6C we use to give the batch ID in the variants in ASKB and AFAB.
Now it is mandatory to have direct postings done for depreciation and APC postings.
Therefore for document types which handle depreciation, the batch input session must
be unchecked.
e. Posting indicators in depreciation area (Old assignments)
1. Post depreciation at periodic intervals to the general ledger.
2. Post asset values & depreciation at periodic intervals
3. Automatically post values online (real time)
Additional Assignments as New GL
4. Post APC directly + depreciation
5. Post APC only on periodic basis
6. Post APC only