Asset Accounting |

[email protected]

https://www.linkedin.com/in/snehal-dhumal-711788230

1
 Asset Accounting |

ASSET ACCOUNTING
NO. STEPS FOR CONFIGURATION PG.NO
1 Assign tax code for non-taxable transaction (OBC1) 4
2 Copy reference chart of Depreciation/ Depreciation area 6
(EC08)
3 Specify the use of parallel currency (ORFA) 17
4 Assign chart of depreciation to company code (OAOB) 19
5 Specify account determination 21
6 Create screen layout rule 23
7 Define number range intervals 25
8 Define asset classes 27
9 Create G/L account 29
10 Assignment of account for automatic postings 42
11 Define technical clearing account for integrated asset 46
acquisition
12 Define screen layout for asset master data 47
13 Depreciation keys creation (Rate + Methods) 50
14 Maintain depreciation key 55
15 Determine depreciation area in asset class 58
16 Balance carry forward (FAGLGVTR) 60
17 Year-end closing – Execute / Undo (FAA_CMP) 62
18 Create main asset master (AS01) 63
19 Sub asset creation (AS11) 67
20 Main asset purchase posting / asset acquisition (F-90) 69
21 Report to view, sub asset wise &Year wise values (AW01N) 73
22 Asset transfer within company code (ABUMN) 75
23 Asset retirement with customer (F-92) 77
24 Asset scraping (ABAVN) 81

2
 Asset Accounting |

25 Depreciation run (AFAB) 83

Asset Accounting:
Asset Accounting in SAP (Systems, Applications, and Products in Data
Processing) is a module within SAP that enables organizations to manage and
monitor fixed assets throughout their lifecycle. It facilitates the tracking of assets
from acquisition through depreciation or revaluation to retirement or disposal.

Benefits:

 Improved Asset Tracking: Centralized repository for asset information enables efficient
tracking and management.
 Accurate Financial Reporting: Real-time visibility into asset values, depreciation, and
related financial impacts.

 Cost Control: Better control over asset-related costs and expenses throughout
the asset lifecycle.
The Asset Accounting component consists of the following parts:

 Basic functions:

 Master data (asset maintenance)

 Basic valuation functions

 Depreciation

 Transactions, such as asset acquisitions and retirements

 Closing operations

 And more

 Special valuations: for example, for investment support

 Preparations for consolidation for group financial statements

 Information system

3
 Asset Accounting |

1 Assign tax code for non-taxable transaction (OBC1)

In SAP Asset Accounting, assigning a tax code for a non-taxable transaction typically
involves configuring the system to handle transactions where no tax is applicable.

T-Code: (OBC1)
PATH:

EXECUTE: Click on position

Search of company code: TA24
Click OK

4
 Asset Accounting |

Put Input tax code and Output tax code

Enter And Save in customizing request.

5
 Asset Accounting |

2 Copy reference chart of Depreciation/ Depreciation area

(EC08)
In SAP Asset Accounting, the Chart of Depreciation and Depreciation
Areas are fundamental components that determine how assets are
managed, depreciated, and reported within the system.

The Chart of Depreciation and Depreciation Areas play a crucial role

in determining how assets are valued and depreciated. They provide
flexibility to meet diverse reporting requirements and ensure compliance
with accounting standards and regulations.
By configuring these elements effectively, organizations can
accurately manage asset depreciation and financial reporting processes
within the SAP system.

T-Code: EC08
PATH:

6
 Asset Accounting |

EXECUTE:

7
 Asset Accounting |

Then click here

Click Yes

8
 Asset Accounting |

Again click YES.

Now the ODE chart of Depr. Are copied to TA24.

9
 Asset Accounting |

Click here and save it

This window opens.

Double Click Here.

10
 Asset Accounting |

Click on Position and Search Company Code and Enter.

And Change description As chart of depreciation TA24.

And Save. Then Come back once.

11
 Asset Accounting |

Double click here.

12
 Asset Accounting |

Delete all Area except 1.

Create 1 Depreciation area for leading ledger OL for real time posting

13
 Asset Accounting |

Fill the details, then save it

Again Create 11 Depreciation area for leading ledger 0L for parallel accounting
reporting purpose.

Fill the details, then save it.

14
 Asset Accounting |

Create 21 Depreciation area for non-leading ledger TP for real time posting

Fill the details and Save it.

15
 Asset Accounting |

Create 22 Depreciation area for non-leading ledger TP for reporting purpose of

parallel accounting.

Fill the details and save it.

And check all the details at one place as given below then again save it.

16
 Asset Accounting |

3 Specify the use of parallel currency (ORFA)

In SAP Asset Accounting, parallel accounting is used to manage multiple sets of books simultaneously,
which allows organizations to meet different reporting requirements, such as legal reporting,
management reporting, or reporting for different countries.

PATH:

17
 Asset Accounting |

Fill the details.

Copy Area 1 to Area 21and Area 11 to Area 22.

Save it in customizing request.

18
 Asset Accounting |

3 Specify the use of parallel currency (ORFA)

T-Code- ORFA
PATH:

EXECUTE:

19
 Asset Accounting |

Enter and Save it in customizing request.

20
 Asset Accounting |

4 Assign chart of depreciation to company code (OAOB)

Key reasons and implications of this assignment:
 Depreciation Rules and Methods: The chart of depreciation defines the rules and methods for
calculating depreciation for assets within a company code.
 Legal and Regulatory Compliance: Each country or region may have its own set of rules and
regulations regarding asset depreciation for financial reporting and tax purposes. By assigning a
chart of depreciation to a company code, you align the asset accounting practices with the specific
legal requirements of that jurisdiction.
 Asset Reporting and Analysis: Assigning a chart of depreciation enables standardized
reporting and analysis of assets within a company code. This includes generating
depreciation reports, asset balances, and other financial statements that adhere to the
defined depreciation methods and rules.
 Asset Class Settings: The chart of depreciation also determines the asset classes available for use
within a company code. Asset classes define the category and behaviour of assets, such as useful
life, depreciation method, and other parameters.

T-Code: OAOB
PATH:

EXECUTE:

Then click on position and search company code

21
 Asset Accounting |

Click Here

Assign Chart of Depreciation which is created earlier

Then save it in customizing request.

22
 Asset Accounting |

5 Specify account determination

In SAP FI-AA (Asset Accounting), account determination is a crucial concept

that involves determining the general ledger (G/L) accounts to be used for recording
asset-related transactions. This determination is based on various criteria such as
asset class, transaction type, and other parameters

The process of assigning appropriate G/L accounts to asset transactions based

on predefined rules and settings, ensuring accurate financial reporting and
compliance. The configuration of account determination is typically done during the
implementation phase of SAP and may require ongoing adjustments to align with
changing business needs.

PATH:

23
 Asset Accounting |

EXECUTE:
Then click on New entries.

Create account determination here for the fixed assets.

Then Save it in customizing request.

24
 Asset Accounting |

6 Create screen layout rule

Screen layout rules define the arrangement and behaviour of fields on asset master data
screens. These rules determine which fields are displayed as mandatory, optional, or suppressed
based on specific conditions. Screen layout rules are configured to ensure consistent data entry
and to capture relevant information for asset management and accounting.

PATH:

EXECUTE:

25
 Asset Accounting |

Select 3100 Standard screen layout rule and COPY

Change 3100 to TAV1 (account determination for vehicle) AND save it in customizing
request.

26
 Asset Accounting |

7 Define number range intervals

Number range intervals are used to assign unique identification numbers to
different types of assets. These intervals help in organizing and managing asset
numbers efficiently.

PATH:

27
 Asset Accounting |

EXECUTE:

Click Here

28
 Asset Accounting |

Create Number Ranges and save it in customizing request.

8 Define asset classes

29
 Asset Accounting |

An asset class is a fundamental organizational element used to group similar

assets based on shared characteristics or attributes. It serves as a template or
category for defining and managing various types of assets within the system. Each
asset in SAP FI-AA is assigned to an asset class, which determines the default
settings, behaviour, and general ledger (G/L) accounts associated with that asset.
PATH:

EXECUTE:
Click on New entries.

30
 Asset Accounting |

Fill the details and save it in customizing request.

31
 Asset Accounting |

9 Create G/L account

G/L (General Ledger) accounts play a critical role in recording financial transactions related
to assets. Each asset transaction (e.g., acquisition, depreciation, retirement) impacts specific G/L
accounts, which are determined based on various criteria such as asset class, transaction type,
valuation area, and account determination settings.

G/L account name G/L account number

Vehicles 200003
Vehicles Depreciation 400503
Technical clearing 200004
Accumulated Depreciation 200005
Sales on Asset-Vehicle 300103
Profit on sale of asset-Vehicle 300153
Loss on sale of asset-Vehicle 400601
Loss due to scrapping-Vehicle 400602

PATH:

32
 Asset Accounting |

EXECUTE:
Click on Create

33
 Asset Accounting |

Fill the details and click on CONTROL DATA

Fill the details and click on CREATE/BANK/INTEREST

34
 Asset Accounting |

And save it.

Again click on CREATE

35
 Asset Accounting |

Fill the details and click on CONTROL DATA

Fill the details and click on CREATE/BANK/INTEREST

36
 Asset Accounting |

Fill the details and Save it.

Then Copy G/L Account 20003 , and do changes as shown in the next pictures

Control Data and Create/bank/Interest all these details remanin same . Fill the details and
save it.

37
 Asset Accounting |

Again select 200003 Account and copy change account number to 200005

Control Data and Create/bank/Interest all these details remanin same .

And save it.

Click on create. Take account number 300103

38
 Asset Accounting |

Click on Control Data

Click on Create/Bank/Interest

Save it.

39
 Asset Accounting |

Again click on create and take account number as 300153.

Click on Control Data.

40
 Asset Accounting |

Click on Create/Bank/Interst

Save it.

Again click on create and take account number as 400601.

41
 Asset Accounting |

Click on Control Data

42
 Asset Accounting |

Click on Create/Bank/Interest

Save it.

43
 Asset Accounting |

Again Copy 400601 And change account number 400602.

Click on Control Data.

44
 Asset Accounting |

Click on Create/Bank/Interest

45
 Asset Accounting |

Save it.

10 Assignment of account for automatic postings

Assigning accounts for automatic posting in asset accounting involves setting up default
General Ledger (G/L) accounts that are automatically used for specific transactions related to asset
management. These settings streamline the process of posting asset transactions and ensure
consistency in financial reporting.

46
 Asset Accounting |

PATH:

EXECUTE:

Select Chart of account and double click

here
Click on Position.

Click here

47
 Asset Accounting |

Select TAV1 and double click here

Double click here.

48
 Asset Accounting |

Assign the G/L account as shown on earlier picture,and Enter.

Again select Area 1

Double click here

49
 Asset Accounting |

Assign the G/L account as shown on earlier picture.

Save it in customizing request.

50
 Asset Accounting |

11 Define technical clearing account for integrated asset

acquisition
A technical clearing account for integrated asset acquisition in asset accounting refers to a
temporary G/L account used to manage the financial transactions during the acquisition process of
fixed assets

PATH:

EXECUTE:Click on New Enteries

And save it in customizing request

51
 Asset Accounting |

12 Define screen layout for asset master data

Screen layout configurations for asset master data define the arrangement, visibility, and
required input fields when creating or maintaining asset records. Screen layouts ensure
consistency in data entry and capture essential information for asset management and accounting.

PATH:

EXECUTE:

52
 Asset Accounting |

Double click here. Then click on Position

Fill the details & Click here

Select TAV1, Double click here

53
 Asset Accounting |

Select 2 (Posting info), Double click here

Save it. And Once come back.

Select 3, Double click here

54
 Asset Accounting |

Save it in customizing request.

13 Depreciation keys creation (Rate + Methods)

Depreciation keys are used to define the depreciation calculation method and parameters
for assets. When you create a depreciation key, you specify how depreciation is calculated over
time, including the method (e.g., straight-line, declining balance), useful life, and other factors.
Depreciation keys are then assigned to asset classes to determine the depreciation calculation
rules applied to assets within that class.

A) Define Multi level methods

T-Code: AFAMS
PATH:

55
 Asset Accounting |

EXECUTE:

Click Here

56
 Asset Accounting |

Fill the details then double click here

Save it. Once back and again click on New Entries

57
 Asset Accounting |

Fill the details then double click here

Then Save it.

58
 Asset Accounting |

B) Maintain Period Control Methods

PATH:

EXECUTE:

59
 Asset Accounting |

Click Here

Click on New Entries

Save it in customizing request.

60
 Asset Accounting |

14 Maintain depreciation key

Depreciation key in SAP FI-AA involves defining the depreciation method, useful life, and
other parameters for depreciation calculation. Proper configuration and assignment of
depreciation keys to asset classes are essential for accurate and efficient asset accounting within
the SAP system.

Benefits of Proper Depreciation Key Setup:

 Accurate Depreciation Calculation: Ensures depreciation is calculated correctly based on

predefined rules.

 Compliance: Helps comply with accounting standards and regulatory requirements.

 Consistency: Provides consistency in depreciation calculations across assets within the

same class.

 Efficiency: Optimizes asset accounting processes by automating depreciation calculations

based on configured rules.

PATH:

61
 Asset Accounting |

EXECUTE:

Click Here

Then click on New Entries.

62
 Asset Accounting |

Fill details and double click here

Then click on New Entries

63
 Asset Accounting |

Then click on Depreciation Key.

Then click Here

Now save it in customizing request.

64
 Asset Accounting |

15 Determine depreciation area in asset class

PATH:

EXECUTE:

65
 Asset Accounting |

Enter and click on Position

Double click here

Fill the details and save it in customizing request.

66
 Asset Accounting |

16 Balance carry forward (FAGLGVTR)

The concept of "balance carry forward" refers to the process of transferring the ending
balance of an asset account from one accounting period to the beginning balance of the same
account in the subsequent period. This is essential for maintaining accurate and continuous
tracking of asset values over time.

T-Code: FAGLGVTR
PATH:

67
 Asset Accounting |

EXECUTE:.

68
 Asset Accounting |

Click multiple selection and add TP (Non leading ledger)

Click on execute.
Following error popups.

Close the error and back.

Perform next step.

69
 Asset Accounting |

17 Year-end closing – Execute / Undo (FAA_CMP)

Year-end closing in asset accounting involves several important steps to ensure accurate
financial reporting and to prepare for the next fiscal year. Organizations can ensure that their asset
accounts accurately reflect the financial position of the business and comply with accounting standards and
regulations.

PATH:

EXECUTE:

70
 Asset Accounting |

Click Here

Fill the details, enter warning message and save it.

Again Execute 16th point
Remove Test run check box execute and save it in customizing request

71
 Asset Accounting |

18 Create main asset master (AS01)

Creating a main asset master in asset accounting involves establishing a comprehensive system to
manage and track assets within an organization.

Key Components of Asset Master Record:

 Asset Number/ID: Unique identifier for each asset.

 Description: Detailed description of the asset.
 Location: Physical location of the asset.
 Acquisition Details: Purchase date, cost, and vendor information.
 Depreciation Details: Depreciation method, useful life, depreciation start date.
 Responsible Department: Department accountable for the asset.

T-Code: AS01
PATH:

72
 Asset Accounting |

EXECUTE:

And Enter

73
 Asset Accounting |

Then click on Deprec.Areas.

Enter the useful life and save it in customizing request.

74
 Asset Accounting |

19 Sub asset creation (AS11)

Creating sub-assets within asset accounting involves breaking down larger assets into
manageable components for tracking, maintenance, and depreciation purposes. Sub-assets are
typically parts or components of a main asset that can be maintained and managed independently.

T-Coode: AS11
PATH:

75
 Asset Accounting |

EXECUTE:

Click enter.

76
 Asset Accounting |

Click on Deprec.Area and check useful life if any changes required do changes
and save it in customizing request.

77
 Asset Accounting |

20 Main asset purchase posting / asset acquisition (F-90)

T-Code: F-90
PATH:

EXECUTE:

78
 Asset Accounting |

Vendor account

Click Enter.

79
 Asset Accounting |

Main Asset account

Enter and fill the details.

Enter and (Enter all the warning messages) Save it in customizing request.

80
Asset Accounting |

81
 Asset Accounting |

21 Report to view, sub asset wise & Year wise values (AW01N)
These reports provide comprehensive details about the assets owned by your organization,
including their classification, values, and other relevant information.

T-Code: AW01N
PATH:

82
 Asset Accounting |

EXECUTE:

83
 Asset Accounting |

22 Asset transfer within company code (ABUMN)

Transferring assets within the same company code in asset accounting involves moving
fixed assets from one cost centre, location, or department to another within the organization's
accounting structure. This process ensures that the asset's ownership and accounting details are
updated accurately.

T-Code: ABUMN
PATH:

EXECUTE:
Type Company Code and click Enter. Next window popups.

84
 Asset Accounting |

Fill the details and click on Partial transfer.

85
 Asset Accounting |

23 Asset retirement with customer (F-92)

Asset retirement with customer in asset accounting refers to the process of disposing of a
fixed asset by transferring it to a customer in exchange for consideration (e.g., cash, other assets,
or services). This transaction is typically recorded to reflect the removal of the asset from the
company's books and any associated gains or losses on disposal.

T-code: F-929o
PATH:

86
 Asset Accounting |

EXECUTE:

87
 Asset Accounting |

Customer Account

Enter.

88
 Asset Accounting |

Asset sale account

Again enter.

89
 Asset Accounting |

Fill amount, text and Select Asset retirement check box,

ENTER.

90
 Asset Accounting |

Fill the details and click here Enter and POST it.

24 Asset scraping (ABAVN)

Asset scrapping in asset accounting refers to the process of removing a fixed asset from the
company's books due to it being disposed of, sold, or retired from active use. Asset scrapping is
important not only for maintaining the integrity of financial statements but also for effective management
of the asset lifecycle and resource allocation within the organization.
T-Code: ABAVN
PATH:

91
 Asset Accounting |

EXECUTE:

Fill the details and click ENTER.

92
 Asset Accounting |

Enter amount and select the check box curr.-Year Acquisition click ENTER and
save it.
25 Depreciation run (AFAB)

By running depreciation regularly, businesses can accurately reflect the decreasing value of
their assets over time, which is essential for financial reporting and tax purposes. This process also
helps in managing asset lifecycle costs and making informed decisions regarding asset
management and replacement.

T-Code-AFAB
PATH:

93
 Asset Accounting |

EXECUTE:

Fill the details and EXECUTE, and once back.

Remove Test Run check box.
Click on Program

Now click here

94
 Asset Accounting |

Take Output Device LP01

Click here

Click here

95
 Asset Accounting |

Click here and save it in customizing request.

Click here

96
 Asset Accounting |

To Check Depreciation program status.

Click on System

Click on Own Jobs.

Here we get to see the Depreciation program status.

97
Asset Accounting |

98