Fixed Assets:

Introduction
SAP Business One
Version 10.0

PUBLIC
Objectives

At the end of this topic, you will be able to:

 Explain the process of managing fixed asset items.

 Recognize key terms in the Fixed Assets solution.

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Business Scenario

OEC Computers utilizes a small fleet of delivery trucks.

Therefore, they own a few trucks.

Bryce, the accountant, wants to have

the option to manage and monitor
the trucks’ value.
You tell him about the Fixed Assets
solution in SAP Business One.
OEC Computers

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Enable the Fixed Assets Solution

 Administration  System Initialization  Company Details 

Basic Initialization
 Check the Enable Fixed Assets box:

New windows and fields will be available for the user:

– Administration  Setup  Financials  Fixed Assets.
– Financials  Fixed Assets.

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The Life Cycle of an Asset Mater Data in SAP Business One

Definition Activation Depreciation Adjustments Retirement

Define an Asset Issue an A/P Invoice/ Depreciation Run/ Fixed Asset Transfer/ A/R Invoice/
Master Data Capitalization Manual Depreciation Revaluation/ Retirement
document Appreciation document

OEC Computers
OEC Computers

Item Type: A/P Invoice Depreciation Run If A/R Invoice,

Fixed Assets automatically posts all planned check Sales Item
generates a depreciations
Capitalization doc

 Fixed Assets Sub Ledger

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The Life Cycle of an Asset Mater Data – Terminology Context

Definition Activation Depreciation Adjustments Retirement

Define an Asset Issue an A/P Invoice/ Depreciation Run/ Fixed Asset Transfer/ A/R Invoice/
Master Data Capitalization Manual Depreciation Revaluation/ Retirement
document Appreciation document

OEC Computers
OEC Computers

• Useful Life = • Capitalization • Depreciation = • Full Retirement

36 months • Acquisition and 2000 a year = 0 value
Production Costs • Net Book Value =
Asset = 6000 4000 after
• Value Date = 1st of 1 year
January

 Fixed Assets Sub Ledger

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Fixed Assets Definition
OEC Computers

Item Type:
Fixed Assets
Truck

Code: Asset
Heavy Vehicles
Class

Depreciation Account Depreciation

Area Determination Type

Main
Depreciation Method:
Area: GAAP Code:
Straight Line
Heavy Vehicles

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Asset Master Data
OEC Computers

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Fixed Assets Activation

A/P Invoice Capitalization

Debit Credit Debit Credit

Vendor 2000 Acquisition 2000

Clearing Account

Acquisition 2000 Asset Balance 2000

Clearing Account Sheet Account

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Fixed Assets Depreciation

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Depreciation Run

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Fixed Assets Retirement

A/R Invoice Retirement

Debit Credit Debit Credit

Customer 1000 Revenue 1000

Clearing Account

Revenue 1000 Asset Balance 1000

Clearing Account Sheet Account

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Asset History Sheet

The Asset History Sheet report:

 Can be issued for all fixed assets,
 Displays all posted asset transactions in a fiscal year,
 Presents the assets for each Balance Sheet account.

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 Summary (1/2)

Here are some key points to take away:

The main definition in the Asset Master • The Asset Class which includes the association
Data is: to the other definitions: Depreciation Area,
Account Determination and Depreciation Type.
The asset master data is activated when: • The user purchases a fixed asset using an A/P
Invoice.
• The A/P Invoice automatically generates the
Capitalization document.
• The user can generate the Capitalization
document directly.
Depreciation is: • Used to write off the cost of an asset over its
useful lifetime.
• Included within the company expenses.

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 Summary (2/2)

The Depreciation Run option: • Carries out all depreciation planned up to the a
specified date.
• Updates the asset master data value with the
actual depreciation.
A fixed asset is retired by: • An A/R invoice if you are selling the asset, or
• By a Retirement document if there is no
customer involved.
• The A/R Invoice automatically generates a
Retirement document which sets the net book
value of the asset to zero.
The Asset History Sheet displays: • All posted asset transactions in a fiscal year.
• The assets for each Balance Sheet account.

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