Fixed Assets
What are the organizational assignments in
asset accounting?
Chart of depreciation is the highest node in Asset Accounting and
this is
assigned to the company code.
Under the Chart of depreciation all the depreciation calculations
are
stored.
How do you go about configuring Asset
accounting?
The configuration steps in brief are as follows:-
a) Copy a reference chart of depreciation areas
b) Assign Input Tax indicator for non taxable acquisitions
c) Assign chart of depreciation area to company code
d) Specify account determination
e) Define number range interval
f) Define asset classes
g) Define depreciation areas posting to general ledger
h) Define depreciation key
Explain the importance of asset classes. Give
examples?
The asset class is the main criterion for classifying assets.
Every asset
must be assigned to only one asset class. Examples of asset class
are
Plant& Machinery, Furniture & Fixtures, Computers etc. The
asset class
also contains the Gl accounts which are debited when any asset is
procured. It also contains the gl accounts for depreciation
calculation,
scrapping etc
Whenever you create an asset master you need to mention the asset
class for which you are creating the required asset. In this
manner
whenever any asset transaction happens the gl accounts attached to
the
asset class is automatically picked up and the entry passed.
You can also specify certain control parameters and default values
for
depreciation calculation and other master data in each asset
class.
How are depreciation keys defined?
The specifications and parameters that the system requires to
calculate
depreciation amounts are entered in Calculation methods.
Calculation
methods replace the internal calculation key of the depreciation
key.
Depreciation keys are defaulted in Asset Master from the asset
class.
Refer to the configuration for more details of
how depreciation is
calculated.
A company has its books prepared based on Jan
–Dec calendar year
for reporting to its parent company. It is
also required to report
accounts to tax authorities based on April-
March. Can assets be
managed in another depreciation area based on
a different fiscal
year variant?
No. Assets accounting module cannot manage differing fiscal year
variant
which has a different start date (January for book
depreciation and April
for tax depreciation) and different end date (December for
book
depreciation and March for tax depreciation). In this case you
need to
implement the special purpose ledger.
What are the special steps and care to be
taken in Fixed asset data
migration into SAP system especially when
Profit center accounting
is active?
Data migration is slightly different from a normal transaction
which
happens in Asset accounting module.
Normally, in asset accounting the day to day transactions is
posted with
values through FI bookings and at the same time the asset
reconciliation
is updated online realtime. Whereas In data Migration the asset
master
is updated with values through a transaction code called as AS91.
The
values updated on the master are Opening Gross value and the
accumulated depreciation. The reconciliation GL account is not
automatically updated at this point of time.
The reconciliation accounts (GL codes) are updated manually
through
another transaction code called as OASV.
If profit center is active, then after uploading assets through
AS91 you
should transfer the asset balances to profit center accounting
through a
program.
Thereafter you remove the Asset GL code (reconciliation accounts)
from
the 3KEH table for PCA and update the Asset reconciliation account
(GL
code) through OASV.
After this step you again update the Asset reconciliation account
in the
3KEH table.
The reason you remove the Asset reconciliation code from 3KEH
table is
that double posting will happen to PCA when you update the Asset
reconciliation manually.
Is it possible to calculate multiple shift
depreciation? Is any special
configuration required?
Yes it is possible to calculate multiple shift depreciation in SAP
for all
types of depreciation except unit of production. No special configuration
is required.
How do you maintain multiple shift
depreciation in asset master?
The following steps are needed to maintain multiple shift
depreciation:
1. The variable depreciation portion as a percentage rate is to be
maintained in the detail screen of the depreciation area.
2. The multiple shift factor is to be maintained in the time
dependent
data in the asset master record. This shift factor is multiplied
by
the variable portion of ordinary depreciation.
Once you have done the above the SAP system calculates the total
depreciation amount as follows:-
Depreciation amount = Fixed depreciation + (variable depreciation
* shift
factor)
Let’s say you have changed the depreciation
rates in one of the
depreciation keys due to changes in legal
requirements. Does
system automatically calculate the planned
depreciation as per the
new rate?
No. System does not automatically calculate the planned
depreciation
after the change is made. You need to run a program for
recalculation of
planned depreciation.
What are evaluation groups?
The evaluation groups are an option for classifying assets for
reports or
user defined match code (search code). You can configure 5
different
evaluation groups. You can update these evaluation groups on to
the
asset master record.
What are group assets?
The tax requirements in some countries require calculation of
depreciation at a higher group or level of assets. For this
purpose you
can group assets together into so-called group assets.
What are the steps to be taken into account during
a depreciation
run to ensure that the integration with the
general ledger works
smoothly?
For each depreciation area and company code, specify the
following:
1 The frequency of posting depreciation(monthly,quarterly etc)
2 CO account assignment (cost center)
3 For each company code you must define a document type for
automatic depreciation posting: This document type requires its
own external number range.
4 You also need to specify the accounts for posting. (Account
determination)
Finally to ensure consistency between Asset Accounting and
Financial
Accounting, you must process the batch input session created by
the
posting report. If you fail to process the batch input session, an
error
message will appear at the next posting run.
The depreciation calculation is a month end process which is run
in
batches and then once the batch input is run the system posts the
accounting entries into Finance.
How do you change fiscal year in Asset
Accounting?
n Run The fiscal year change program which would
open new annual
value fields for each asset. i e next year
. The earliest you can start this program is in
the last posting period of
the current year.
. You have to run the fiscal year change program
for your whole
company code.
. You can only process a fiscal year change in a
subsequent year if the
previous year has already been closed for business.
Take care not to confuse the fiscal year change program with
year-end
closing for accounting purposes. This fiscal year change is needed
only in
Asset Accounting for various technical reasons.
Is it possible to have depreciation calculated
to the day?
Yes it is possible. You need to switch on the indicator “Dep to
the day” in
the depreciation key configuration.
Is it possible to ensure that no
capitalization be posted in the
subsequent years?
Yes it is possible. You need to set it in the depreciation key
configuration.
How are Capital Work in Progress and Assets
accounted for in SAP?
Capital WIP is referred to as Assets under Construction in SAP and
are
represented by a specific Asset class. Usually depreciation is not
charged
on Capital WIP.
All costs incurred on building a capital asset can be booked to an
Internal Order and through the settlement procedure can be posted
onto
an Asset Under Construction. Subsequently on the actual readiness
of
the asset for commercial production, the Asset Under Construction
gets
capitalized to an actual asset.
The company has procured 10 cars. You want to
create asset
masters for each of this car. How do you
create 10 asset masters at
the same time?
While creating asset master there is a field on the initial create
screen
called as number of similar assets. Update this field with
10. When you
finally save this asset master you will get a pop up asking
whether you
want to maintain different texts for these assets. You can update
different details for all the 10 cars
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