Asset accounting
Chart of depreciation. All the setting are done here
Copy Germany chart of duplication (Client 800) (or)
Copy Germany (or) India (when client 000)
Depreciation areas:
Book depreciation
Tax depreciation
Costing depreciation
Group depreciation
Depreciation methods:
Straight line depreciation (SLM)
Written down value depreciation (WDV)
Depreciation key: Rate + Method
Ex:5% SLM (OR) 5% WDV
Posting:
70 – Asset debit
75 – Asset credit
Transaction type:
100 external acquisitions
110 In house production
210 Retirement with revenue
Main asset will have sub No: 0 (zero)
1 - (Main asset)
1 – 1
1 – 2
1. All the times
Account asset rules:
1. Sub asset master is to created with reference to main asset master
2. Main asset master is to be created with reference to asset class
3. In asset class it is specified account determination
4. For account determination we assign G/L Accounts based on nature of transaction.
Example: Purchase of master:
Motor A/C (Subsidiary ledger) Dr
To Bank A/c
Customization:
Copy reference chart of Depreciation/Depreciation Areas:
Path:SPRO àFinancial accounting à asset accounting à organizational structures àcopy reference chart of depreciation/depreciation areas
Double click on copy reference chart of depreciation
(Transaction code: FC08)
From the menu select organizational object àcopy
Organizational object
From chart of depreciation: select ODE (Maximum valuation: Germany
To chart of depreciation: AML
Enter
Enter once again
Select create request button
Give the short depreciation àasset customization for AML
Save
Press enter to save in your request
It gives the message that: chart of depreciation to AML
Enter
Select back arrow
Double click on specify description of chart of depreciation
Select position button
Give your chart of depreciation: AML
Enter
Change the description to chart of depreciation for AML
Save
Press enter to save in your request
Select back arrow
Double click on copy/delete depreciation areas
Give your chart of depreciation: AML
Enter
Select depreciation areas: 03, 10, 15, 20, 31, 32, 41, and 51.
From the menu select edit àdelete
Select save button (or) (ctrl + s)
Ignore all the warning messages and go on
Press enter till you get the message data was saved
Assign chart of depreciation to company code: (Transaction code: OAOB)
Same path:
Select position button
Give the company code: AML
Press enter
For company code: AML –Assign chart of depreciation AML
And save
Press enter to save in your request
Specify account determination:
Path:SPRO àFinancial accounting à asset accounting à organizational structures àAsset classes àspecify account determination.
Select new entries button
Account determination:
Account determination | Description | |
AML | 10000 | Land |
AML | 11000 | Buildings |
AML | 20000 | Plant & Machinery |
AML | 30000 | Furniture & fixtures |
AML | 31000 | Vehicles |
AML | 40000 | Capital work in progress |
Select save button (or) (ctrl + s)
Save in your request
Create screen lay out rules:
Path:Same path
Select screen lay out 1000, 1100, 2000, 3000, 3100, 4000
Select copy as button
Change the name to
Screen layout | Description |
AML1 | Land |
AML2 | Buildings |
AML3 | Plant & machinery |
AML4 | Furniture & fixtures |
AML5 | Vehicles |
AML6 | Capital work in progress (WIP) |
Enter and save
Save in your request
Define number range interval:
Same path (Transaction code: AS08)
Give the company code: AML
Select change intervals button
Select interval button
Give the No. range: 01
From No: to to No: 1 to 100000
Enter
Select interval button
No. range: 02
Interval:
From no | To number | |
From No: | 100001 | To 200000 |
Select interval button 03 | 200001 | To 300000 Enter |
Select interval button 04 | 300001 | To 400000 Enter |
Select interval button 05 | 400001 | To 500000 Enter |
Select interval button 06 | 500001 | To 600000 Enter |
And save
Define asset classes:
Same path (Transaction code: OAOA)
Select new entries button
Asset class: AML 1000 (Free hold land)
Short text: free hold land
Account determinative select 10000 lands
Screen layout rules: Select AML1
No. Range: 01
Select include asset under inventory data check box
Purpose of include asset under inventory data:
For verification of assets this is usual
Select No. AVC (Asset under construction) or summary management of AVC Under status of AVC
Select save button (or) (ctrl + s)
Save in your request
Select next entry button
Asset class: AML 1100 (Factory building)
Short text: factory buildings
Account determination: AML 11000 (Buildings)
Screen lay out rule: AML2
No. range: 02
Select include asset under inventory data check box
Select No AVC (OR) Summary management of AVC
Save
Select next entry button
Asset class: AML 2000 (Department A)
Short text: department A
Account determination: AML 20000 (Plant & machinery)
Screen lay out rule: AML3 (Plant & machinery)
No. range: 03
Select: Include asset under inventory data check box
Select no AVC (Or) Summary management of AVC radio button
Save
Select next entry button
Asset class: AML 3000 (Furniture & Fixtures)
Short text: Furniture & Fixtures
Account determination: AML 30000 (Furniture & Fixtures)
Screen layout rule: AML4
No. range: 04
Select: Include asset under inventory data check box
Select no AVC (Or) Summary management of AVC radio button
Save
Select next entry button
Asset class: AML 3100 (vehicles - others)
Short text: vehicles - others
Account determination: AML 31000
Screen layout rule: AML5 (Vehicles)
No. range: 05
Select: Include asset under inventory data check box
Select no AVC (Or) Summary management of AVC radio button
Save
Select next entry button
Asset class: AML 4000 (capital work in progress - general)
Account determination: AML 40000
Screen layout rule: AML6
No. range: 06
De Select: Include asset under inventory
Select line item settlement radio button
Save
Determine depreciation areas in the asset class:
Path:SPRO àFinancial accounting à asset accounting à valuation àdetermine depreciation areas in the asset class (Transaction code: OAYZ)
Give the chart of depreciation: AML
Enter
Select position button
Give the asset class: AML 1000
Enter
Select asset class: AML 1000
Double click on depreciation areas folder
Deselect deactivation check box for 01 (Book depreciation)
Lay out: select 2000 (Depreciation on asset sub no level)
For 02 – 2000
For 30 also – 2000
Select save button (or) (ctrl + s)
Save in your request
Explanation:
For 01
Land:& capital work in programs
Capitalization date – required
Depreciation rate – 0%
Lay out 2000 - Depreciation on Asset sub no. level
Machine No Sub No
2004 if asset installed - Machine No. - 1 0
2005 Addition - Motor - 1 1
2006 Additions - Motor - 1 2
Depreciation is calculation on sub no. only.
Select back arrow
The same procedure to be followed for asset class
AML 1100
AML 2000
AML 3000
AML 3100
AML 4000
Creation of 15 G/L Accounts:
Fixed Assets Group:
1. Land
2. Building
3. Plant & Machinery
4. Furniture & Fixtures
5. Vehicles
6. Capital work in progress
(Account N0. Range, 200000 – 200099, Sort key – 018 (Asset no), field status group: G067, Reconciliation type: for A/C type: Asset
Depreciation:
7. Accumulated depreciation – Building
8. Accumulated depreciation – Plant & Machinery
9. Accumulated depreciation – Furniture & Fixtures
10. Accumulated depreciation – Vehicles
(Under accumulated depreciation group range: 100200 to 100299, sort key – 018 (Asset No field status group – GO67 reconciliation A/C for account type: Asset)
Sales:
11. Asset Sale - Field Status Group – G052
12. Profit on Asset Sale – Field Status Group – G001
Under other Income: No. Range 300100 to 300199: Sort Key -018
13.Loss on sale
14. Loss due to scrapping
Under Administration: Range: 400300 to 400399: Sort Key: 018
Field Status group – G001
15. Depreciation -Under Depreciation – Range 400500 to 400599
Sort key:018; field status group – G001.
Creation of G/L Masters: (FS00)
Give the G/L account no: 200000
Company code: AML
Select with template button
Give the G/L Account No: 200110 (Sundry debtors) – used because it is a reconciliation Account
Company code: AML
Enter
Changed the accounts group: Fixed assets
Short text: Land
Select control data tab
Reconciliation A/C type for A/C type: Select Assts
Sort key: select 018 (Asset No)
Select create/bank/interest tab
Field status group: G067
Save
Give the G/L Account No: 200005
Company code: AML
Select with template button
Give the G/L Account No: 200000
Company code: AML
Enter
Select type/description tab
Change short text & long text (Buildings)
Save
Give the G/L Account No: 200010
Company code: AML
Select with template button
Give the G/L Account No: 200000
Enter
Short text and G/L Account long text: Plant & Machinery
Save
Give the G/L Account No: 200015
Company code: AML
Select with template button
Give the G/L Account No: 200000
Enter
Short text and G/L Account long text: Furniture & Fixtures
Save
Give the G/L Account No: 200020
Company code: AML
Select with template button
Give the G/L Account No: 200000
Enter
Change Short text and G/L Account long text: Vehicles
Save
Give the G/L Account No: 200025
Company code: AML
Select with template button
Give the G/L Account No: 200000
Enter
Change Short text and G/L Account long text: Capital work in progress
Save
Give the G/L Account No: 100200
Company code: AML
Select with template button
Give the G/L Account N0: 200000
Enter
Change the account group: Accumulated depreciation
Change short text & Long text: Accumulated depreciation – buildings
Save
Give the G/L Account No: 100205
Company code: AML
Select with template button
Give the G/L Account N0: 100200
Enter
Change short text & Long text: Accumulated depreciation – Plant & Machinery
Save
Give the G/L Account No: 100210
Select with template button
Give the G/L Account N0: 100200
Enter
Change short text & G/L Account Long text to: Accumulated depreciation – Furniture & Fixtures
Save
Give the G/L Account No: 100215
Company code: AML
Select with template button
Give the G/L Account N0: 100200
Enter
Change short text & G/L Account Long text to: Accumulated depreciation – Vehicles
Save
Give the G/L Account N0: 300102
Company code: AML
Select with template button
Give the G/L Account N0: 300100 (Exchange gains)
Enter
Change short text & G/L Account long text: Asset sale
Select control data tab
Give sort key: 018 (Asset number)
Select create/bank/interest tab
Field status group: select G052
Save
Give the G/L Account N0: 300103
Company code: AML
Select with template button
Give the G/L Account N0: 300100
Enter
Select type/description tab
Change short text & G/L Account long text to: Profit on Asset sale
Select control data tab
Give sort key: 018 (Asset number)
Save
Give the G/L Account N0: 400302
Company code: AML
Select with template button
Give the G/L Account N0: 300100
Enter
Select type/description tab
Change short text & G/L Account long text to: Loss on Asset sale
Select control data tab
Give sort key: 018
Save
Give the G/L Account N0: 400303
Company code: AML
Select with template button
Give the G/L Account N0: 400302
Enter
Change short text & long text to: Loss due to scrapping
Save
Give the G/L Account N0: 400500
Company code: AML
Select with template button
Give the G/L Account N0: 400302
Enter
Change the account group: Depreciation
Change short text & G/L Account long text to: Depreciation
Other fields are same
Save
Assignment of accounts for automatic postings:
Path:SPRO àFinancial accounting à asset accounting à integration with the general ledger àassigns G/L Accounts (Transaction code: A090)
Give your chart of depreciation: AML
Enter
Select chart of accounts: AML
Double click on account determination folder
Select account determination: AML 10000 (Land)
Double click on balance sheet accounts folder
Acquisition column
Acquisition and production cost: 200000(A/C No)
Loss made on asset retirement with out revenue: 400303 (A/C No)
Clearing account revenue from asset sale: 300102 (Asset sale A/C)
Gain from asset sale – 300103 (Profit on sale A/C)
Loss from Asset sale – 400302 (Loss on sale of asset)
Select and save
It gives the warning message, ignore the message
Press enter
Save in your request
Double click on A/C determination folder
Select: AML 11000(Buildings)
Double click on balance sheets A/Cs folder
Acquisition column: Acquision and production cost: 200005
Loss made on asset retirement with out revenue: 400300
Clearing account revenue from asset sale: 300102
Gain from asset sale: 300103
Loss from asset sale: 400302
Save, ignore the message
Enter
Double click on depreciation folder
Acc. Dep. Account for ordinary depreciation: 100200
Expense account for ordinary depreciation: 400500
Select save button (or) (ctrl + s)
Save in your request
Double click on Account determination folder:
Select: AML 20000 (Plant & Machinery)
Double click on balance sheet A/Cs folder
Acquisition column: acquisition and production cost: 200010
Loss made on asset retirement with out revenue: 400303
Clearing account revenue from asset sale: 300102
Gain from asset sale: 300103
Loss on asset sale: 400302
Save, ignore the message, and enter, save in your request
Double click on depreciation folder
Acc. Dep. Account for ordinary depreciation: 100205
Expense account for ordinary depreciation: 400500
Save, save in your request
Double click on account determination folder
Select AML: 30000(Furniture & Fixtures)
Double click on balance sheet folder
Acquisition: acquisition any production cost: 200015
Loss made on asset retirement with out revenue: 400303
Clearing account revenue from asset sale: 300102
Gain from asset sale: 300103
Loss from asset sale: 400302
Select save button (ctrl + s) = ignore the message
Press enter
Double click on depreciation folder
Accumulated depreciation A/C for ordinary dep: 100210
Expenses account for ordinary depreciation: 400500
Save (or) (ctrl + s)
Ignore the message, press enter
Double click on account determination folder
Select AML 31000(Vehicles)
Double click on balance sheet A/C folder
Acquisition: Acquisition production cost: 200020
Loss made on asset retirement with out revenue: 400303
Clearing account revenue from asset sale: 300102
Gain from asset sale: 300103
Loss from asset sale: 400302
Select save button (or) (ctrl + s), ignore the message, and press enter
Double click on depreciation folders
Accumulate depreciative A/C for ordinary depreciation: 100215
Expenses account for ordinary depreciation: 400500
Save (or) (ctrl + s)
Ignore the message, press enter
Double click on account determination folder
Select AML 40000 (Capital work in progress)
Double click on balance sheet folder
Acquisition: acquisition production cost: 200025
Loss made on asset retirement with out revenue: 400303
Clearing account revenue from asset sale: 300102
Gain from asset sale: 300103
Loss from asset sale: 400302
Select save button (or) (ctrl + s), ignore the message
Press enter
Specify document type for posting of depreciation:
Path:SPRO àFinancial accounting à asset accounting à Integration with the general ledger àpost depreciation to the general ledger à specify document type for posting of depreciation.
Double click define document types
Select position button
Give the document type: AF (Depreciation posting)
Enter
Select AF depreciation postings
Select details button
Note down the No. range: 04
Select No. range information button
Give the company code: AML
Select change intervals button
Select interval button
No. range: 04
Year: 2006
From no: 700001 to 800000
Select external check box
Enter and save
Advantage of selection of external check box:
In every month it automatically calculates the depreciation.
Example: 1) Depreciation A/C Dr
To Accumulated Depreciation - building
To Accumulated depreciation - plant & machinery
To Accumulated depreciation – Furniture & Fixtures
To Accumulated depreciation – Vehicles
(It automatically calculated depreciation at a time and give the no ranges automatically)
Specify intervals and posting rules:
Same path (Transaction code: OAYR)
Select company code: AML
Double click on posting rules folder
Select 01 (Book depreciation)
Select details button
Select monthly postings radio button
Save
Specify rounding of net book value and /or depreciation:
SPRO à Financial accounting àAsset accounting àValuation àamount specifications (Company code/depreciations area) à specify rounding of net book value and /or depreciation (Transaction code: OAYO)
Select company code: AML
Double click on rounding specification folder
Select 01 (Book depreciation)
Select details button
Select automatically calculated depreciation check box
Select round to nearest whole radio button
Save
Save in your request
Define screen lay out for asset master data:
Path:SPRO àFinancial accounting à asset accounting à Master data àscreen lay out àdefine screen lay out for asset master data
Double click on define screen lay out for asset master data
Select AML1 (Land)
Double click on logical field groups
Select 2 (Posting information)
Double click on field group rules
Capitalization date: Make it required entry field
Select main no. check box
Select sub no. check box
Select copy check box
Select save button (or) (ctrl + s)
Select back arrow
Select: 3 (time dependent data)
Double click on fields group rules folder
Business area: Make it required entry field
Select main No. Check box
Select sub no. check box
Select copy: check box
Save
Select back arrow 2 times
The same procedure is to be followed lay out AML2, Layout AML3, Layout AML4, AML5, & AML6
Define screen lay out for asset depreciation areas:
Same path: (Transaction code: A021)
Select screen layout 2000 (dep. on asset sub no. lay out)
Double click on field rules folder
Depreciation keys: make it required entry field
Select main No: check box
Select sub No: check box: select copy check box
Select save button (or) (ctrl + s)
Depreciation keys: Rate + Method
a. Define base methods
b. Define declining balance methods
c. Define multi level methods
d. Define period control methods
e. Maintain depreciation key: assigned (Assigned to asset master)
Note: a,b,c,d assigned to main depreciation key
a. Define base methods:
Path:SPRO àFinancial Accounting à Asset accounting à Depreciation àValuation methods à Depreciation key à Calculation methods àDefine base methods.
Note down: Base method: 0014 (ordinary: explicit it percentage (after end of life))
b. Define declining balance methods:
Same path
Give your chart of depreciation: AML
Enter
Note down: 001 (0.00X/0.000%/0.000%
If the 002
Decimal factor 2%
Maximum: 20%
If the depreciation is 5%: value of the asset is 100000/-
1st 4 years: 5 + 5 + 5 + 5 = 20%
Depreciation is = 100000 * 5/100 * 98/100
Define multi level methods:
Same path: (Transaction code: AFAMS)
Select new entries button
Multi level method: A1
Description: 5% SLM (Straight line method)
Validity start: Select from ordinary depreciation start date
Save
Save in your request
Double click on levels button
Select new entries button
Acquisition year: 9999
Years: 999
Periods: 12
Base value: select 01 (Acquision value)
Percentage: 5%
Save
Acquision year: 9999 (Any year acquision)
Year: 999 (Maximum No. of years)
Period: 12 (12 months)
Base value: acquision value + purchase cost
Percentage: Rate of depreciation
Reduction: Ex: Book value: 100000
Rate of depreciation – 5%
Residual values – 5% of book value
Book value = 100000
5% Residual value = 5000
(Scrap value) -----------
95000
------------
5% depreciation on 95000/- only
Select back arrow 2 times
Select next entry button
Give the multi level method: A2
Description: 5% WDV
Validity start: select from ordinary depreciation start data
Save
Double click on levels folder
Select new entries button
Acquision year: 9999
Years: 999
Periods: 12
Base value: select 24 (net book value)
Percentage: 5%
Save (or) (ctrl + s)
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