Asset Accounting
SAP Best Practices
© 2011 SAP AG. All rights reserved. 2
Purpose, Benefits, and Key Process Steps
Purpose The Asset Accounting (FI-AA) 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.
Benefits Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through
its retirement. Calculate values for depreciation and interest Depreciation forecast
Key Process Steps Acquisition from purchase with vendor Acquisition with Automatic Offsetting Entry Retirement with revenue Asset Sale without customer Post-Capitalization Write-Ups Settlement Assets Under Construction Down Payment Request for Assets under Construction Depreciation Posting Run Posting Acquisition and Production Costs Values Depreciation Simulation/Primary Cost Planning Israel localization
© 2011 SAP AG. All rights reserved. 3
Required SAP Applications and Company Roles
Required SAP Applications SAP enhancement package 5 for SAP ERP 6.0
Company Roles Assets Accountant Accounts Payable Accountant Finance Manager
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Detailed Process Description
Acquisition from purchase with vendor An external asset acquisition is a business transaction resulting from the acquisition of an
asset from a business partner. The acquisition can post integrated with Accounts payable or without Accounts payable.
Acquisition with Automatic Offsetting Entry The asset can be posted automatically against the Clearing account fixed asset acquisition.
Retirement with revenue An asset is sold, resulting in revenue. The sale is posted with a customer. An asset is sold, resulting in revenue. The sale is posted against a clearing account. An asset had to be scrapped, with no revenue.
Asset Sale without customer Asset Sale with partial retirement without customer
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Detailed Process Description
Post-Capitalization Post-capitalization represents subsequent corrections to the acquisition and production
costs (APC) of a fixed asset.
Write-Ups A write-up is generally understood to be a subsequent change to the valuation of an asset.
Settlement Assets Under Construction Assets under construction (AuC) are a special form of tangible asset. Assets under construction can be managed for summary settlement or by line item.
Down Payment Request for Assets under Construction Down payments for assets under construction are fixed asset acquisitions that have to be
capitalized and reported as a separate item on the balance sheet.
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Detailed Process Description
Depreciation Posting Run The depreciation posting should be run periodically because the depreciation accounts are not
updated immediately. The system creates posting documents for each depreciation area and account group in
accordance with the posting cycles specified in Customizing
Posting Acquisition and Production Costs Values In addition to the posting of depreciation (using the depreciation posting run), the most
important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on.
Depreciation Simulation/Primary Cost Planning You can also post the planned depreciation as planned costs to the cost centers or internal
orders to which the individual fixed assets are assigned.
Israel Localization You can run adjustment (inflation effect) program to calculate TAX figures according to Israel
accounting regulation. Various reports available for you to show the results. These reports comply with Israel accounting regulation.
© 2011 SAP AG. All rights reserved. 7
Process Flow DiagramAsset Accounting - Overview
As
se
t A
cc
ou
nta
nt
Ev
en
t
Asset Explorer
Asset Master Data Needs
to Be Created
Fin
an
ce
M
an
ag
er
Asset Acquisition
Retirements
Intercompany Transfer
Post - Capitalization
Write-up
Transfer of Reserves
Unplanned Depreciation
Assets under Construction
Periodic Processing
Information System
Check Consistency
© 2011 SAP AG. All rights reserved. 8
Process Flow DiagramAsset Accounting – Asset Acquisition
As
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cc
ou
nta
nt
Ev
en
t
Acquisition with
Accounts Payables
Acquisition with Automatic
Offsetting Entry
Asset Acquired
Acquisition Integrated with
Accounts Payable Accounting
162 Overview
Yes
No
© 2011 SAP AG. All rights reserved. 9
Process Flow DiagramAsset Accounting – Retirements
As
se
t A
cc
ou
nta
nt
Ev
en
t
Retirement with
Revenue Expected
Retirement Due to Scrapping
Asset to Be Retired
Retirement with Revenue and
Customer
162 Overview
No
Retirement with
Customer
Retirement with Revenue without
CustomerNo
Yes
Yes
© 2011 SAP AG. All rights reserved. 10
Process Flow DiagramAsset Accounting – Asset under Construction
As
se
t A
cc
ou
nta
nt
Ev
en
t
Capitalize Asset under Construction
Captial Asset Needs to Be Constructed
without Investment Order
162 Overview
Ac
co
un
ts P
ay
ab
le
Post Down Payment Request
Post Down Payment
Down Payment Approved
Post Closing Invoice
Clear Down Payment
© 2011 SAP AG. All rights reserved. 11
Process Flow DiagramAsset Accounting – Periodic Processing
As
se
t A
cc
ou
nta
nt
Ev
en
t Periodic End
Closing
Recalculate Values
162 Overview
Open and Close
Financial Period Asset
Depreciation Posting Run
Post Acquisition and Production
Cost Value
List of Individual
Postings for Assets
Depreciation Simulation and Primary Cost
Planning
Year End
Fiscal Year Change for
Asset
Account Reconciliation
Year End Closing for
fixed Assets
Asset under
Construction
Settlement(164)
Yes
No
Depreciation Run
RevaluationRun
Adjustment Run
Period Save Run
Update Index Value
© 2011 SAP AG. All rights reserved. 12
Legend
Symbol Description Usage Comments
To next / From last Diagram: Leads to the next / previous page of the Diagram
Flow chart continues on the next / previous page
Hardcopy / Document: Identifies a printed document, report, or form
Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines
Financial Actuals: Indicates a financial posting document
Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines
Budget Planning: Indicates a budget planning document
Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines
Manual Process: Covers a task that is manually done
Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.
Existing Version / Data: This block covers data that feeds in from an external process
Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines
System Pass / Fail Decision: This block covers an automatic decision made by the software
Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.
Ext
erna
l to
SA
P
Business Activity / Event
Unit Process
Process Reference
Sub-Process
Reference
Process Decision
Diagram Connection
Hardcopy / Document
Financial Actuals
Budget Planning
Manual Process
Existing Version /
Data
System Pass/Fail Decision
Symbol Description Usage Comments
Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.
The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.
Role band contains tasks common to that role.
External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.
Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.
Connects two tasks in a scenario process or a non-step event
Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario
Does not correspond to a task step in the document
Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario
Corresponds to a task step in the document
Process Reference: If the scenario references another scenario in total, put the scenario number and name here.
Corresponds to a task step in the document
Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here
Corresponds to a task step in the document
Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.
Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution
<F
unct
ion>
© 2011 SAP AG. All rights reserved. 13
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