SAP Financial Asset Allocation

SAP Financial Asset Allocation is having a discussion about the mixing of the subsidiary ledgers with the overall ledger is as vital as the mixing of accounting and logistics functions.Each transaction in customer and vendor accounts in Accounts Payable and Accounts Receivable and in the asset accounts has a direct impact on the corresponding accounts of the overall ledgers.Thus the subsidiary ledgers are at all times in balance with their G/L reconciliation accounts.The G/L reconciliation accounts should be arrange in advance along with the Mounted Belongings department.

Asset Acquiring

The acquisition posting could be created in the division that is primarily responsible for this enterprise transaction.Acquisition of an asset from a enterprise companion => Exterior acquisition:

1. In Asset Accounting (FI-AA) integrated with Accounts Payable (incoming invoice), but without reference to a buy order order.
2. In FI-AA with automatic offsetting entry, however with out link to a purchase order requisition and with out integration with Accounts Payable. This posting is generally used when the bill has not yet been received, or when the invoice was posted by the Accounts Payable division beforehand in a separate step. The offsetting account additionally has to be cleared.
3. In FI-AA with automated clearing of the offsetting entry: The first posting normally is made in FIAP.

The clearing account is cleared concurrently the asset posting is made. It is usually possible,nonetheless, for both departments to make postings in the opposite order: An asset is entered with automatic offsetting entry, and the clearing account is cleared with the credit score posting of the incoming invoice.In Materials Management (MM): The asset is posted in MM.

"Acquisition from in-house manufacturing" is the capitalization of products or services that are partially or completely produced in your individual enterprise. The costs for these in-home produced goods or services (comparable to upkeep) should be capitalized to assets. Generally, the capitalization of production costs can be achieved by creating an order/challenge in IM, after which settling this object first to an AUC and then to an asset.

Asset Explorer

The Asset Explorer consists of crucial functions of the outdated asset worth display transaction.The main variations are: a greater overview thanks to make use of of an summary tree and tab pages, a more transparent display of the system's calculation of depreciation, and new features for printing and exporting values.Till now, you navigated between depreciation areas using push buttons. Now depreciation areas are displayed in an outline tree, from which they can be selected. Two totally different symbols allow you to right away distinguish beteween actual depreciation areas and derived depreciation areas.The field above the tree structure provides data on the selected asset: its firm code, asset predominant quantity and sub-number. You may leap from this discipline to the asset master data.Until now, you also used push buttons to achieve the next screens: plan values, book values,transactions, and simulation of depreciation terms and transactions. The Asset Explorer shows planned depreciation values for the chosen depreciation areas and transactions in one screen. Book values and depreciation parameters are on separate tab pages.You'll have the option to display planned values, book values and transactions straight within the Asset Explorer in a print preview format, as nicely as print and export this information. On the planned values tab web page,you probably can name the features for displaying the depreciation calculation and for recalculation of depreciation.

Changes to Master Data

The following data is routinely set within the asset master report on the time of the primary acquisition posting:

1. Capitalization date of the asset (derived from asset worth date)
2. Date of preliminary acquisition on the asset master report (derived from asset value date)
3. Acquisition yr and acquisition interval (derived from posting date)

In Customizing for Asset Accounting, you may enter default values for the asset worth date for each sort of accounting transaction.The system determines the beginning date for strange depreciation utilizing the asset worth date of the acquisition posting and the interval control method (for extra info, see the section on the depreciation key), and writes this date to the depreciation areas within the asset master record.While you submit the acquisition integrated with Accounts Receivable (FI-AR), the system automatically enters the vendor in the origin knowledge area of the asset grasp record.

Value Fields

The asset value date (capitalization date) determines the depreciation start date of the asset. This date is determined for every depreciation space by the period control method of the depreciation key.The system determines the deliberate annual depreciation, and planned interest, based on the depreciation begin date and the depreciation terms.When additional transactions are posted within the current 12 months, these values are updated.The posting date and the asset worth date all the time have to be in the same fiscal year.
Document Type

You either use the document kind that's defaulted by the system otherwise you enter you own document type.You define the document kind in the FI implementation guide.It's a two character, alpha-numeric entry that systematizes how documents are stored.You assign exactly one number vary to every document type.You specify account varieties which may be allowed when making entries with a specific doc type.The document kind determines how the posting is processed:

1. With document kind "AA" you publish gross, that's, with out deducting a discount.
2. With doc kind "AN" (KN, RN), the amount capitalized to the asset is reduced by the discount net document kind).

Should you deduct the low cost at the time of the fee, you have to run the program SAPF181 to subsequently reverse the discount on the asset. n When you make a posting utilizing the web technique, however don't take up the whole low cost at the time of cost, the program SAPF181 corrects the asset, too.

Transaction Type

Transaction sorts are used with every posting. They determine acquisitions, retirements and transfers.The asset historical past sheet studies and other FI-AA studies use the transaction type to establish the totally different kinds of transactions and display them individually (for instance, the transaction sort specifies the place the value change is shown within the asset historical past sheet: as a retirement of a previous-12 months acquisition or of a present-year acquisition).The transaction type specifies which of the following are up to date:

1. Asset balance sheet accounts
2. Depreciation areas
3. Worth fields

You can also limit transaction types to particular depreciation areas (for instance, transaction sort 030: acquisition in the group depreciation space).You presumably can outline your own transaction types. They can be used to separate numerous types of accounting or enterprise transactions in reports. Nevertheless, in our expertise, SAP gives all vital transaction types in the standard system.

Each transaction kind belongs to a transaction sort group. The transaction type group defines the
traits of the transaction type. Within the transaction sort display, select "Goto" within the menu bar to display the transaction kind group.The transaction kind groups are mounted and can't be changed.You'll have the ability to restrict specific transaction sort groups to certain asset lessons (for instance, down payments allowed only in the asset class for belongings underneath construction). All transaction varieties assigned to this transaction sort group can solely be used for property belonging to the appropriate class.There are standard reviews that can assist you show an asset portfolio divided into separate transaction types.

Posting Clearing Accounts

If asset acquisition postings aren't integrated, you would normally use a clearing account. This needs to be a common ledger account with open merchandise administration to ensure which you can clear the account.Reasons for non-built-in acquisitions:

1. the invoice arrived earlier than the asset.
2. the asset has already been delivered however the bill has not.

One posting is made to the clearing account from Accounts Payable (clearing account, debit tax, credit score vendor), and one from AA (debit to asset, credit to clearing account). The sequence is determined by the transaction.Postings to vendor account may additionally be made out of AA.In a separate step, the clearing account is cleared within the common ledger. That is completed either manually or by operating the automated clearing program SAPF124.One other various for non-built-in acquisitions is to clear the clearing account when getting into the second a half of the above posting.As of Launch 4.6 you may create a model new master record throughout the framework of non-built-in acquisition (computerized offsetting entry).

It's now also possible to make non-integrated acquisition postings for several belongings at once.Asset Acquisition with MM Integration

The instance shows an asset acquisition with MM integration. It exhibits the following activities:purchase requisition, buy order, goods receipt, bill receipt, and creation of an asset.The steps are: creation of a purchase requisition, creation of an asset master report, creation of the purchase order:

Utilizing account assignment sort A (A=asset) you can enter an asset grasp file when creating the
buy order. It is not doable yet to create an asset master file straight once you use purchase order transaction ME21N. However, it's still attainable using the "old" buy order transaction ME21.

Goods receipt: Once you enter the purchase order, you determine whether the asset is posted on to Asset Accounting, and thereby capitalized, when the goods receipt is posted (valuated good receipt), or whether or not capitalization doesn't happen till the invoice receipt is posted (non-valuated items receipt). The first possibility could be used when the goods receipt takes place earlier than the bill receipt. When the bill is acquired later, there may be variations between the invoice amount and the amount posted at the time of the products receipt. On this case, adjustment postings are made to the asset. No corrections are necessary for an non-valuated good receipt, since the asset was not but capitalized. Nonetheless, the system makes use of the date of the goods receipt because the capitalization date.
Invoice receipt:If the products receipt was non-valuated, the asset is capitalized, line objects are created and the worth fields are updated.

Retirement and G/L Accounts

There are alternative ways of posting retirements:

1. With or without revenue (scrapping)
2. With or with out customer (not built-in)
3. As complete or partial retirement
4. As mass retirement (utilizing a worklist)
5. As retirement of a number of assets (throughout the manually posted retirement transaction)

On this example the asset is completely retired with revenue acquired from a customer. The system routinely calculates the gain/loss (within the example, lack of 1,300). As nicely as, the system determines the asset steadiness sheet worth and the proportional value changes (accrued depreciation).The values of the accounts for retirement revenue and clearing of retirement are proven in notes to the monetary statement.

The system determines the reference interval for the asset retirement primarily based on the asset value date (= asset retirement date) and the interval control method (period control key) of the depreciation key.The system robotically determines the proportional worth changes (depreciation) as much as this period that apply to the part of the asset being retired, and cancels this depreciation. At the similar time, the system posts the asset retirement.The achieve or loss results as the steadiness of the follow ing: the amount of the asset retirement, the quantity of worth adjustments, and the income (that is, the sale worth) that is acquired for the asset.

Mass Retirement

Mass retirement, with or without revenue, is outlined as a regular activity in the system.To carry out a mass retirement, comply with these steps:
1. Use an asset report to create a list of the belongings to be retired.
2. Create a work list.
3. Select a purpose for the work list:
- Retirement without revenue
- Retirement sale (with revenue)
4. Enter the revenue distribution.
5. Process the work list. Or edit the work list earlier than releasing it.

Asset Under Construction

Assets you produce yourself have two phases that are relevant to Asset Accounting:

• the below development phase and
• the helpful life.

Usually, the belongings should be proven in two totally different balance sheet objects during these two phases.Therefore, they have to be managed using a distinct object or asset master file through the under construction section than for the completed asset. The transfer from the beneath-construction part to completed asset is referred to right here as "capitalization of the asset below construction." You'll find a way to manage property underneath building in the FI-AA System in two ways (relying on the features you need):

• as a "normal" asset grasp record (for summary settlement)
• as an asset grasp report with line merchandise management.

With the capitalization of the asset underneath construction you transfer the values to a quantity of accomplished assets. This switch is either executed in a lump sum or with line merchandise settlement.When capitalizing the asset beneath construction, the system robotically separates the transactions from the previous years from the transactions from the current year. This is done through the use of totally different transaction types.If you have more intensive capital investment measures, you might possibly use the R/3 IM (Funding Administration) module. This lets you symbolize capital investments simultaneously as belongings below development (for accounting purposes) and inside orders or projects (for controlling functions).

Line Item Settlement

When performing a line item settlement of an asset under development to one or more accomplished belongings, it's greatest to proceed as follows:

1. Select all line objects which you need to settle in the identical proportion to the identical receiver.
2. Define the distribution rule for these line items.
3. Post the settlement of line gadgets to the desired receivers utilizing the distribution rule.
4. Observe that this posting procedure settles all line objects, to which a distribution rule is assigned.

If you need to settle using amounts (possible since Launch 4.zero), then it's a must to select and distribute one line merchandise after the other.If you settle, you wouldn't have to settle all line objects without delay, and also you do not need to distribute a hundred% of every line item.For an asset below building, you ought to use the distribution rule groups that you already created.
Current Value Depression

In addition to the automatic calculation of depreciation using depreciation keys, you too can plan handbook depreciation for individual belongings in the FI-AA component.When you enter the transaction kind, the system acknowledges that you need to perform book depreciation (for example present-value depreciation).You probably can choose the depreciation areas, for which you wish to enter depreciation, in a dialog box. The depreciation might be current-worth depreciation, for example, that is allowed for e book depreciation however not for tax depreciation.After you've got manually planned depreciation, the system doesn't but create an FI document. This doc will not be generated till the depreciation posting program is run.Equally, you may publish write-ups or post-capitalization by selecting the appropriate transaction type and the depreciation areas you need to post.

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