SAP Asset Accounting Overview

The Asset Accounting 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. Asset Accounting will be covered in this tutorial in below steps

Description	Topics covered
Organization Structure	Check Country Specific Settings
	Copy Reference Chart of Depreciation
	Create 0% tax codes for Sales and Purchases
	Assign Input Tax indicator for Non-Taxable Asset Acquisitions
	Assign Chart of Depreciation to Company codes
Structuring Fixed Assets	Create Asset Class
	Create Account Determination key
	Create Screen layout
	Define Number range interval
	Define Screen Layout for Asset Master
	Assign Screen layout Rule to the Asset Class
Depreciation Areas	Real Depreciation area
	Derived Depreciation area
	Define Depreciation areas
	Specify Depreciation area types
	Specify Transfer of APC values
	Activate depreciation areas that will be used in asset class
	Define Screen layout for Depreciation areas
	Assign Screen layout to Depreciation Areas
Integration	Create GL accounts
	Assign GL Accounts to Account Determination key
	Specify Posting key for asset posting
	Specify Document type to post depreciation
	Activate Account Assignment
	Specify Controlling Object (WBS, CC, IO) for APC and Dep
	Specify Memo Value
	Specify Memo Value not considered for an ASSET Class
Depreciation	Depreciation Overview
	Define Multilevel Depreciation method
	Define Period Control Depreciation Method
	Maintain Depreciation Key
End Users Transactions	Main Asset creation
	Sub asset creation
	Post Purchase to main assets
	Post Purchase to Sub assets
	Asset Explorer
	Reports to view assets
	Monthly Depreciation run
Asset Under Construction	Define Settlement Profile
	Assign Settlement profile to company code
	Create Number range for settlement document
	Create AuC Asset Master
	Post purchases to AuC
	Line Item settlement from AuC to Main Asset
Asset Retirement with Revenue	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Retire Asset with Revenue-Customer
Asset Scrap	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Asset Scrap
Intra Company Asset Transfer	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Intra company transfer asset- Change Asset Class
Asset Accounting Yr .End Closing	Execute Depreciation run
	Execute Periodic Asset posting
	Execute Fiscal Year Change
	Asset Accounting Year End close

For detailed, step-by-step instructions on SAP Asset Accounting business process, configuration and development follow along with my video tutorial below

SAP Finance Training

Organization Structure

Check Country Specific Settings

Transaction code: OA08

Asset accounting country specific settings

Max LVA: If you set a maximum amount for low value assets, this prevents postings of amount greater than specified here to Asset class LVA
Post Net Book Value: Set this indicator, if you do not want the system to create a gain/loss posting for an asset retirement by sale, or if you do not want a loss posting when the asset is scrapped. Instead, the system then generates a posting in the amount of the net book value of the given asset. This indicator applies only to depreciation area 01.

Copy Reference Chart of Depreciation

Chart of Depreciation

The chart of depreciation, therefore, is a directory of depreciation areas organized according to business management requirements. Asset Accounting component enables you to manage values for assets in parallel in up to 99 depreciation areas
Specify description of Chart of Deprecation
Delete unwanted Depreciation Areas
One or more company codes can be assigned to a Chart of Depreciation

Tcode: EC08

Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures– Copy Reference Chart of Depreciation

Reference COD	Copied COD	Company Codes
0US	MK14	MK14

Create 0% tax codes for Sales and Purchases

Transaction Code: FTXP

Create 0% input tax code: V0

Create 0% Output Tax Code: AO

Assign Input Tax indicator for Non-Taxable Asset Acquisitions

Tcode: OBCL

Assign tax indicator for Non taxable asset acquisition

Assign Chart of Depreciation to Company codes

Tcode: OAOB

Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures – Assign Chart of Depreciation to Company code

Assign chart of depreciation to a company code

Structuring Fixed Asset

Asset can be structured at below levels:

Balance Sheet Level: Assets here can be grouped as per B/S version, Balance sheet items, GL accounts
Classification Level: Assets are structured using asset classes
Asset-Related Level: Asset can be structured based on Group asset, Main Asset and sub asset

Asset Class Configuration in SAP

Asset class is a classification criterion for Assets. E.g. Plant, Building, machinery, Software Internally developed
The asset class provides default values to all asset master records in the class.
The screen layout, tab layout and the field characteristics (required/optional/suppressed) of the asset master record can be set for the asset class.
The assignment of asset numbers can also be controlled by the asset class.
To create Asset Class following must be first configured:
- Account Determination Keys
- Screen Layout Rule
- Number Range Interval

Transaction code to create asset class: OAOA

Create Below Asset classes in SAP

Asset Class	Description	Acct Determination	Screen Layout	No. Range	Inventory
LANDMK14	Land	61000	1000	01	X
BU_MK14	Building	62000	1100	02	X
PM_MK14	Plant and Machinery	63000	2000	03	X
FF_MK14	Furniture and Fixtures	64000	3000	04	X
VEH_MK14	Vehicles	65000	3100	05	X
AUC_MK14	AuC	66000	4000	06	Line Item settlement

AuC: Asset under Construction. Shown as separate Item in BS. When completed transferred to regular assets through line Item settlement (AIAB). Select Depreciation key which does not provide Depreciation for AuC. Select Negative APC in Depreciation areas to allow credit memo posting during capitalization

Create asset under construction asset class

Account Determination Key

Asset class establish the connection between the asset master records and the GL account in Financial Accounting through account determination key

Tcode to create account determination key: S_ALR_870009195

Path: SPRO-Financial Accounting- Asset Accounting- Organizational Structures- Asset Classes – Specify account Determination

Create Screen Layout Rule

Tcode: S_ALR_870009209

Whenever you create an asset the system checks first the table ANKP. If you have chart-of-depreciation-dependent account determination, then an entry in the table ANKP is made. If you than make a copy from such an asset class in the asset class there is another account determination than in the table ANKP and the system takes the account determination from the table ANKP and not from the asset class.

Normally you can’t define chart-of-depreciation-dependent assignments (with transaction ANK1) if there is only one chart of depreciation. If you’d like to change (or delete) this assignment you can use following workaround:

SM34 -> View ANKA_ALL -> Maintain

– select asset class ART (for example)

– Then click in the left column on “Chart of dep – dep data”

Define Number Range Interval

Tcode: AS08

Enter company code MK14. Now click Change interval button and enter the below details:

Define Screen Layout for Asset Master (AS01 Screen)

Tcode: S_ALR_87009044

Path: SPRO – Financial Accounting- Asset Accounting – Master Data – Screen Layout – Define Screen Layout for Asset Master Data

Select Screen layout 1000-Land and Select folder ‘Logical field group’

Define screen layout for asset master record

Select field group Posting information. Make ‘Capitalization date’ as required field

Assign Screen layout Rule to the Asset Class

Transaction code: OAOA

assign screen layout rule to asset class

Depreciation Areas

Depreciation areas are used to manage a fixed asset value for multiple purpose. For e.g. asset value as per Income Tax act, Companies act and for management purpose could be different. One of the reasons for this difference could be different depreciation rate under Income tax act and Companies act. Depreciation areas allow us to maintain parallel value of asset for different purposes.
You need at least 1 depreciation area -01
Maximum number of Depreciation areas allowed are 99
Chart of Depreciation is made up of a list of Depreciation areas

Real Depreciation Area

Denoted by 01
Also called Book Depreciation
Automatic Posting to FI Deprecation Accumulations, Asset Acquisition and Depreciation Account in company code currency
Legacy data is always transferred to this Depreciation Area

Derived Depreciation Area

This Depreciation area takes values from Real depreciation area. To these values it applies mathematical formula to arrive at Asset value as per derived depreciation area
Derived depreciation area is denoted by a key (say 32) which should have higher value than the depreciation area ( say 10) from which it derives value

Define Depreciation Areas in Chart of Depreciation

Tcode: OADB

To create new depreciation area, copy and rename an existing Depreciation Area

Specify Depreciation area Type

Transaction code: OADC

Specify Transfer of APC (Acquisition and Production cost) Values

Tcode: OABC

Specify how values are transferred from Real Depreciation Area to Derived Depreciation Area

Depreciation Area. Values transferred from Real Dep area 01 to Derived Depreciation areas

If selected system, ensure that all APC-relevant posting values to this depreciation area are transferred from the transferring depreciation area with no opportunity for changing the values

Activate Depreciation Areas which will be used in an Asset Class

Tcode: OAYZ

SPRO – Financial Accounting – Asset Accounting – Valuation – Determine Depreciation areas in the Asset Class

Select the Asset Class (LANDMK14)
Deselect Depreciation Areas Book Depreciation, Cost-accounting
Assign Layout 2000 to these depreciation and Save

activate depreciation areas that will be used

Activate Depreciation areas for asset class AUC_MK14 (AuC) and PM_MK14 (Plant and Machinery)

Specify Intervals and Posting Rules

Tcode: OAYR

Specify interval at which planned depreciation will be posted – Monthly, Bi-Monthly, Quarterly
Smoothing: If selected Remaining/ Balance depreciation is equally distributed for the remaining periods
Catch Up: If smoothing not selected system follows catch up method. It posts the short / excess depreciation amount along with the planned depreciation. E.g. Depreciation for 12 months period is 12000. Posted in 6 months 5000. So in 6^th month post 2000 ( 1000+1000 short)

Select company code MK14 and Select ‘Monthly Postings’. Save

specify depreciation intervals and posting rules

Specify rounding off Net book value and Depreciation

Transaction: OAYO

Define Screen layout for Depreciation areas

Tcode: AO21

Select Screen Layout 2000-Depreciation on Asset sub-no. level. Click field group rules. Select Depreciation key as required field

define screen layout for depreciation areas

Assign Screen layout to Depreciation Areas

Tcode: OAYZ

Integration

Create GL Accounts

Transaction Code: FS00

Assign GL Account to Account Determination Key

Tcode: AO90

SPRO – Financial Accounting – Asset Accounting – Integration with General Ledger – Assign GL Accounts

Assign which GL Accounts to which Acquisition, Depreciation, and other APC + Depreciation cost are posted for an Asset Class

Select the Chart of Depreciation

assign GL accounts to account determination key

Select the Account Determination key (Linked to Asset class in OAOA)

Enter the balance Sheet Accounts

Enter balance sheet GL accounts to account determination

Click Save and go back. Click depreciation and enter the below details:

assign gl account for accumulated depreciation to account determination

Specify Posting Key for Asset Posting

Tcode: OB41

Use Standard SAP key

70 – Debit Asset

75 – Credit Asset

Specify Document Type to Post Depreciation

Tcode: AO71

Activate Account Assignment

Tcode: SPRO-FA-AA-Integration with GL- Additional Account Assignment-

Activate Controlling objects (CC, IO, WBS) which are required for entry in Asset master record (AS02)

Cost objects can be assigned to assets in asset master records (AS02)

Real Order
Cost Center + Statistical Order
WBS Element
Cost center + Statistical WBS
To assign 2/ more cost center to assets master, assign internal order and allocate it’s cost to these cost centers periodically

activate account assignment for asset accounting

Specify Controlling Object (WBS, CC, IO) available for APC and Depreciation

System determine Account assignment – 1^st specific and then Generic

Transaction code: ACSET

Path: SPRO – Financial Accounting – Asset Accounting – Integration with GL – Additional Account Assignment Objects – Specify Account Assignment types for account assignment objects

Account Assignment for company Codes

Specify Default Account Assignment object

Transaction Code: OKB9

Specify Memo Value

Tcode: OAYI

Memo Value: Also called scrap value / junk value
Asset is not reduced below this value in the books at any point of time
Memo value is specified per Company code and Depreciation Area

Specify Doc Type for Periodic Posting of Asset Values

Path: IMG –> FINANCIAL ACCOUNTING –> ASSET ACCOUNTING –>INTEGRATION WITH THE GENERAL LEDGER –> POST APC VALUES PERIODICALLY TO THE GENERAL LEDGER –>SPECIFY DOC TYPE FOR PERIODIC POSTING OF ASSET VALUES.

Depreciation

Depreciation: Permanent reduction in value of the Asset
Planned Depreciation is the Ordinary depreciation
Unplanned Depreciation is sudden reduction in value of Asset due to fire, accident etc.
Depreciation Key: It contains control for valuing an asset in a Depreciation area including its APC (Acquisition and Production cost) and Depreciation. Also known as valuation key

Define Multilevel Depreciation method

Transaction: AFAMS

Path: SPRO- Financial Accounting – Asset Accounting- Depreciation – Valuation Methods – Depreciation Key- Calculation Methods – Define Multilevel Methods

Click on New entries

Multilevel Method: Straight line Method for company code MK14

Validity Start: From Ordinary start date

Save. Double click Levels

Save. Back arrow twice. Next entry as below:

Multilevel Method: WD (Written down value method for company code MK14)

Validity Start Date : From Ordinary Depreciation Start date

Acquisition Year: 9999

Years: 999

No. of Periods: 12

Base Value: 24 (Net Book value)

Percentage: 10

Define Period Control Depreciation Method

Transaction: AFAMP

Path: SPRO- Financial Accounting – Asset Accounting- Depreciation – Valuation Methods – Depreciation Key – Calculation Methods – Maintain Period Control Methods

Click new entries

define period control depreciation method

Acquisition: 01 (Pro rata at period start date)

Addition: 01 (Pro rata at period start date)

Retirement: 01 (Pro rata at period start date)

Transfer: 01 (Pro rata at period start date)

Maintain Depreciation Key

Transaction: AFAMA

Path: SPRO- Financial Accounting – Asset Accounting- Depreciation – Valuation Methods – Depreciation Key- Maintain Depreciation Key

Click New entries

Depreciation Key: SL14 (Straight line for company code MK14)

Period Control according to fiscal years: Select

Dep to the day: Select

Base Method: 0014 (Ordinary: explicit percentage)

Period Control: MK0 (Defined Earlier)

Multilevel Method: SL (Straight line defined earlier)

Class: Straight line depreciation

Save – Click back arrow – Activate – Save again

Similarly create Depreciation key WD14 for Written down value method

create depreciation key for written down depreciation method

maintain depreciation key for written down depreciation method

This complete our discussion on asset accounting configuration in SAP. In the next tutorial we will discuss asset accounting business process and test end user transactions for asset accounting configuration completed in this tutorial

SAP Asset Accounting Business Process and end user transactions Tutorial

SAP Asset Accounting Business Process

SAP Asset Accounting Overview

The Asset Management module is used to create and monitor fixed assets
Asset Management module calculates and posts monthly depreciation expense
Asset Management manages the life-cycle of fixed assets

Asset Life Cycle

Asset Master Record Creation : AS01

An asset master record is master record of tangible and intangible assets maintained by the company. It is a shell in which asset acquisitions and sale are booked. An asset master record can be Simple Asset master record or Complex Asset master record.

A simple Asset has only Main asset number. There are no Sub Asset

A Complex Asset has Main Asset and one or more Sub Asset Number

Transaction to create an asset master record: AS01

Enter Asset Class as BU_MK14. Account determination link the asset to GL accounts. It is automatically derived from Asset Class

Click the depreciation tab. Enter below details:

Depreciation key: SL14
Useful life of asset in years: 20
Period (No. of months) : 3. This implies useful life of asset is 20 years, 3 months
Depreciation Start date: 1.04.2019

Save

Create Asset sub number in SAP : AS11

Transaction Code: AS11

Enter the Depreciation key and other details:

enter depreciation key in asset master record

Post purchase to Main Asset : F-90

Transaction Code: F-90

Save. Asset purchase posted

Similarly post to sub asset

Asset Explorer SAP : AW01N

Transaction code: AW01N

Asset APC: 50000

SLM Rate: 10%

SLM / year: 5000

WDV Rate is 10%

WDV depreciation on Sub Asset

Report to view all Assets in SAP

Transaction Code: S_ALR_87011965

Monthly Depreciation Run in SAP

Transaction Code: AFAB

Planned Posting: This is monthly planned posting run. It is normal decline in value of fixed asset
Repeat: This select when a new asset has been added during month or changes in depreciation terms etc. Normally done at year end. the repeat run can be restricted to specific assets. In the repeat run, the system posts changes to depreciation, as compared to the depreciation amounts from the previous run.
Restart: Select on case of an erroneous earlier posting run. If the program is terminated during a posting run for various reasons, then the program has to be started again in the restart mode to clear the data base of possible inconsistencies. A restart run is performed
Unplanned Posting run: Used for customize depreciation run. It is decline in fixed asset value due to unanticipated circumstances

Check the depreciation posted in Asset Explorer: AW01N

Check depreciation posting in asset explorer — Asset Explorer

Asset Retirement with Revenue and customer in SAP: F-92

Transaction code: F-92

Asset Retirement without customer in SAP

s.no.	Steps	Tcode
1	Create Asset Master Record	AS01
2	Post External Acquisition to AMR	F-90
3	Verify in Asset Explorer	AW01N
4	Run Planned Depreciation	AFAB
5	Retire Asset with Revenue	ABAON

Intra Company Asset Transfer

s.no.	Steps	Tcode
1	Create Asset Master Record	AS01
2	Post External Acquisition to AMR	F-90
3	Verify in Asset Explorer	AW01N
4	Run Planned Depreciation	AFAB
5	Intra company transfer asset- Change Asset Class	ABUMN

Asset Scrap

s.no.	Steps	Tcode
1	Create Asset Master Record	AS01
2	Post External Acquisition to AMR	F-90
3	Verify in Asset Explorer	AW01N
4	Run Planned Depreciation	AFAB
5	Asset Scrap	ABAVN

Asset under Construction (AuC) in SAP

Assets under construction are a special form of tangible assets. They are displayed as a separate balance sheet item and therefore need a separate account determination in their asset classes. Ordinary depreciation is not allowed for assets under construction in most countries. Asset under construction depreciation key does not allow ordinary depreciation in the book depreciation area.