Asset Accounting

Asset Accounting
AA Overview
Asset Accounting as a Sub-ledger
Asset Class
Chart of Depreciation
Master Data
Create/Change Asset Master Record
Acquisitions
Settlement of an Asset Under Construction (AUC)
Retirement
Depreciation

Asset Accounting
SAP Asset Accounting covers the complete
lifecycle of an asset, which starts when the
purchase order is created for asset purchase
or the asset is capitalized, to its retirement at
the end of its useful life..
During this time, the system calculates the
appropriate depreciation values and presents
this information in many different reports

LIFE CYCLE OF FIXED ASSETS

ASSET ACCOUNTING
The Asset Accounting (FI-AA) component
is used for managing and supervising
fixed assets with the SAP.
In SAP Financial Accounting, it serves as a
subsidiary ledger to the FI General
Ledger, providing detailed information on
transactions involving fixed assets.

Overview: Asset Accounting as a Sub-
Ledger

Asset Accounting is a subsidiary ledger of Financial Accounting. The
appropriate General Ledger accounts are updated each time you post
the transaction related to assets.
Asset Master is created at the Sub-ledger level and it will be linked to
the Asset class.
Asset Master updates the transactions at the individual asset level i.e
the transactions are recorded at the asset master level.
Asset classes are the most important means needed for structuring the
fixed assets.





Overview: Asset Accounting as a Sub-
Ledger









7
ASSET CLASS
ASSET MASTER
Plant machinery 1
Plant machinery 2
Plant machinery 3

ACCOUNT
DETERMINATION
SCREEN LAYOUT
NO.RANGES FOR
ASSET MASTER
LINKED TO G/LS
FOR AUTOMATIC
POSTING
SPECIFIES THE
FIELD STATUS OF
ASSET MASTER
ASSIGNS NUMBERS
TO THE ASSET
MASTER
G/L ACCTS
ARE
UPDATED
REQUIRED
OPTIONAL
SUPPRESS
Structuring Fixed Assets

Asset Accounting

ACCOUNT DETERMINATION -
One of the important functions of asset class is to establish a
connection between the asset master and the corresponding G/L
accounts. This connection is created by the account determination
key in the asset class.
SCREEN LAYOUT
It specifies the field status of the asset master i.e the fields which are
required ,optional and suppressed for the asset master.
NO.RANGES
The assignment of numbers to the individual assets is controlled by
the asset class.




Asset Accounting- Chart of Depreciation

The chart of depreciation is a catalog of depreciation areas structured
according to various business aspects. You can specify the
characteristics and thereby the significance of the individual
depreciation areas in each chart of depreciation
You will generally need values for fixed assets for various business and
legal purposes (for example, for book depreciation, cost-accounting
depreciation and so on). In SAP it is possible to manage values in
parallel in as many depreciation areas as you want.
The country-specific charts of depreciation, which are supplied as
standard, are for reference purposes only.
You can only open a new chart of depreciation by using an existing
chart of depreciation as a reference.


Asset Accounting- Chart of Depreciation


Asset Accounting chart of depreciation




Asset Accounting chart of depreciation




SAP supports the following direct types of depreciation:

Ordinary Depreciation: planned reduction in asset value due to normal
wear and tear.

Special Depreciation: depreciation that is solely based on tax
regulations.

Unplanned Depreciation: depreciation resulting from unusual
circumstances, such as damage to the asset, that lead to a permanent
reduction in its value