The NBV of an existing asset master record could be transferred to another asset within the same company. Accumulated depreciation  (new asset)                       100-. Asset Accounting in SAP (FI-AA) is used for managing and supervising the fixed assets of an organization. Sap Asset Accounting is the process of managing and maintaining fixed assets. Assign the Main Asset in IO (Step-5) - KO02, 10. Asset class and Short Text 2. Cr. Asset Accounting. Account Determinations in SAP FICO. Asset accounting module in SAP is a very important module. Asset Acquisition:                               F-90 - With Vendor   Dr. (Or Copy Reference Chart of Depreciation). SAP FICO For SAP Project Implementation, Project Support, Placement, Training and Certification reach me at "SAPISPTC@gmail.com" HOME: FI CO: ABAP: SD MM: FI AA: FI RE: FAQ: SAP ECC 6.0: New GL Configuration Steps 1. Year-End-Closing in Asset Accounting The process described in this blog assists you in keeping on top of Critical Factors, such as data consistency, which can involve a considerable amount of time and work during the year-end closing phase in asset accounting.This blog takes you through all of the steps necessary for an unproblematic year-end closing, before the critical external audit phase. This is always designed as the master depreciation area that supplies value to your balance sheet. The NBV of an existing asset master record could be transferred to another asset within the same company. As far as reporting and field display are concerned, there is no difference between real or derived areas. Asset Accounting: Asset Accounting is used to manage transactions which are related to assets of an entity for an organization. Fixed asset – acquisition cost 1,000-Dr. For the new receiving asset, the transfer will be the same as if it is being acquired. This we do together with country-specific rules for asset valuation. SAP provides with a number of the country-specific standard cost of depreciation. For the same asset with historical cost $1,000 and accumulated depreciation of $100, the posting of the scrapping will be as follows: Dr. It manages fixed assets data of an organization by way of asset master records. Asset Accounting deals with all the fixed asset of the company and provides all the transaction details about fixed assets. SPRO => Financial Accounting (New) => Asset Accounting => Organization Structure => Asset Classes => Create Screen Layout Rule. For this, it uses some mathematical operations. With the advent of ECC 6 New GL, the SAP Asset accounting configuration has substantially changed. It further enables you to classify them for accounting purpose. Instead of selling, an asset could be disposed as a scrap. Asset Transactions - Accounting Entries : CIN - Country India Version - Excise Duty Configuration Steps: SAP AP: F110 Automatic Payment Run : Tables, Functionality of the Electronic Bank Statement. Noteworthy, you require only one chart of depreciation in SAP FICO Asset Accounting for all your company codes. For example, you can map all the cash GL accounts to the Cash account group. Customer account (A/R)                    1,100, Cr. There is no longer a need to assign different G/L accounts to different depreciation areas. Accumulated depreciation  (old asset)                        100, Dr. Define the Asset Class – for Main Asset - OAOA, a. Besides this, you can also do some other actions. Therefore, here I have mentioned two SAP FICO interview scenarios which are very commonly being asked. Thus, it really takes good efforts to properly understand this topic. Financial Accounting and Controlling (FICO) Solutions. SAP FICO has some major applications for which it is actually known. Simple Asset: A simple asset is represented by the main asset number and does not have any sub-asset. These include transactions like acquisition of fixed assets, sale of fixed assets, in-house development of assets, settlement of WIP, and accounting for depreciation on fixed assets and so on. Settle the amounts to Main Asset from AuC (Prcg type: Full) - KO88. It is the software that stores data, and also computes them and retrieves the result based on the current marketing scenario. What you can do with Asset Accounting in SAP FICO What is SAP FICO means, full form or FICO stands for (Financial Accounting) and CO (Controlling) is the best configuration for internal as well as external accounting processes, SAP (FI) offers highly sophisticated means of financial transaction reporting and better handling of accounts while SAP (CO) lays emphasis on data for internal users. SPRO => Financial Accounting (New) => Asset Accounting => Valuation => Depreciation Areas => Specify Transfer of Depreciation Terms. Else operate in different countries but with the same rules of asset valuation. Income. Asset Disposal – Sales to a Customer: F-92 - With Customer. SAP gives us the functionality in Asset module of managing depreciation and assets parallely according to various reporting requirements i.e. A depreciation area in SAP FICO Asset Accounting contains the parameters you require to value an asset. It helps to integrate Managerial Accounting and Financial Accounting Read more…, What is SAP Preliminary Costing? sap-f2.blogspot.com is not responsible for the compliance, legality, decency, accuracy, copyright or any other aspect of the content of other linked sites. It also gives a view of historical valuation. Nice explanation. SPRO => Financial Accounting (New) => Asset Accounting => Organization Structure => Asset Classes => Specify Account Determination. SAP Asset Accounting Tutorials Asset Accounting Overview :- Asset Accounting is an important module in SAP that manages assets of an organization by master records. When is the CO substitution NOT called? Reconciliation accounts in the general ledger are updated in real time when transactions are updated in asset accounts. Winshuttle solutions can greatly simplify the time-consuming process of updating SAP Financial Accounting and Controlling (FI/CO) data. Cash flow. if i am wrong please correct me. With S/4HANA it has become more advanced and more important. Thus, it allows you to make a single account assignment for several asset classes. Transaction code – OAOA. Fix asset – acquisition cost (old asset)                     1,000-, Dr. As a result, it ensures uniform depreciation in the target areas. While doing so, you can also define whether the transfer is mandatory or optional. That is to say, you need a separate asset class to represent such an asset. Leading ledger     It is a base ledger, which updates the cost center and consolidation. Final entry to close Gain/Loss Account will beDR P&L Account (Loss)CR Gain/Loss Account. This video will teach you to do step by step asset configuration in sap FI. Define the AuC Asset Class (with Line Item Settlement) - OAOA, 4. Asset Accounting in SAP (FI-AA) is used for managing and supervising the fixed assets of an organization. SAP FICO has two modules, SAP Fi and SAP Controlling. Fixed Assets 2. Click New Entries as shown in the following screenshot. You took the cream out. Asset Under Construction (AUC) Config & Process Steps: 1. It is great to understand the asset accounting entries, in asset disposal,check the entry u have passed,Cr. A fixed asset can be a simple asset or complex asset. In the next screen, enter the following details − 1. SAP FI-AA components The important components SAP financial accounting asset accounting … It starts with purchasing to retirement or scrapping. Cr. Noteworthy the optional setting allows you to enter the values during transaction postings. Create an AuC-Asset (using Step-1 Asset Class) - AS01, a. When is the CO Validation / Substitution NOT called ? It is denoted by a two-digit key. SAP Fico Consultant-Tech Resume. SAP - FIXED ASSETS ACCOUNTING 1. In case of any objection with content on this site then please contact us to remove that content immediatly. Bank accounting. On few occasions, SAP will prompt you that you should not change the pre-delivered scenarios. Besides, after each depreciation run, the system will issue a report which list out the depreciation posting amount of each individual assets as a record. 2. Asset accounting in SAP FICO manages all transactions realted to assets for an entity. if you Debit that, it eds with profit of 900 in p&l a/c eg. This is nice to understand about AUC. This includes initial and subsequent acquisition, retirement, transfer and scrapping. If financial reporting is your responsibility, you need to know what’s possible with SAP S/4HANA. Further, a chart of depreciation is made up of a list of such depreciation areas. SAP Modules. Click Here to watch video of practical application of these Scenarios. AUC is a special type of tangible asset. Thus, we use it to categorize assets into categories. Noteworthy, When you transfer legacy data, you actually transfer only the values to this area. Select the appropriate value in the G/L field to determine how the values from this area including depreciation are to be posted to G/L. Our Sap fico Trainers are working professionals with minimum 10+ Years of Expertise in Sap fico Domain and provide training with real-time projects. What is Asset Accounting in SAP SAP Asset Accounting is also called as sub ledger accounting, it is one of the important sub-module of SAP financial accounting (SAP FICO) module. An Account Group in SAP is a grouping of GL Accounts. It allows you to determine the planned costs of a product cost collector Read more…, SAP FICO Interview Questions on Fixed Assets, New Asset Accounting in SAP S4HANA Finance, Asset Accounting in SAP FICO by Pradeep Hota. In fact, all that matters in the accounting can easily be managed with this approach. 09:34. Accumulated depreciation 100Dr. Note that the above posting to G/L will be done in a summary level by G/L accounts and cost center levels because the depreciation expense has to be charged to cost center in CO. Assign the AuC – Asset in Settlement Rule in IO, 7. Each Account Group is assigned to a chart of accounts in SAP. Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset transfer, asset revaluation and asset depreciation. In SAP FICO, SAP FI take cares about accounting, preparation of financial statements, tax computations etc, while SAP CO take cares of inter orders, cost sheet, inventory sheet, cost allocations etc. It is also known as the Book Depreciation Area. Likewise, it provides valuation regarding retire or scraps an asset before its economic life expires. This will be helpful for me.....:), Hello, the posting is perfect. This is advised that this report should be kept as an additional audit trail. Note that the above posting to G/L will be done in a summary level by G/L accounts and cost center levels because the depreciation expense has to be charged to cost center in CO. 8. Defining Number Ranges for Asset Accounting in SAP FICO. My email id is khudu18@ SPRO => Financial Accounting (New) => Asset Accounting => Organization Structure => Copy Reference Chart of Depreciation/Depreciation Areas  Transaction Code- EC08. We have covered this new scenario in the SAP Asset accounting configuration guide. Thus, using this we can calculate the depreciation of assets, automatically and manually, both. Gain/loss of fixed asset disposal 900I think its correct as we have shown Gain/loss of fixed asset disposal 900 in debit it wll be loss only not gain because all loss are debit in P&l and all gain are credit. Posting could be done in FI posting only. Thanks for your efforts. Supposed an asset with historical cost $1,000 and accumulated depreciation of $100 is being sold to a customer at a price of $1,100, the posting entries will be as follows: Dr. FF.5 or FF_5. An asset class is a classification parameter. A goods receipt MIGO transaction … To change or denote a depreciation area as real or derived, copy the entry and select or deselect the Real checkbox. In this case, no revenue is expected and a loss will be realized in the P&L if the fixed asset being scrapped still carries a net book value. Click the Save icon to configure the asse… Customer account (A/R) 1,100. Objective : Extensive SAP FICO Techno-Functional Analyst experience which includes multiple full life cycle implementations. What you'll learn. Hello FI Gurus, I am new to SAP FICO and I am trying to configure asset accounting module. Each asset class has the control parameters and default values for general master data and depreciation terms. SAP Asset Accounting Configuration Steps :-Step 1 :- Copy Reference Chart of Depreciation/ Depreciation Area You may be interested in: Ledgers in SAP S/4HANA Finance. Asset accounting is a sub ledger to the SAP FI module for managing the Asset records. Intercompany transactions in SAP AP / AR : Cross Company Code Transaction, SAP ECC 6.0: New GL Configuration Steps *****, How the Profit Center derived in SAP R/3 *****, Delta Changes between 4.6C and ECC 6.0 *****, Valuated and Non-Valuated Sale Order scenario *****, Accounting Entries : Asset Tranasactions *****, Difference between ECC 6.0 VS 4.7EE - SAP FI / SD / MM /PP *****, Cross company code invoice posting - configuration, Migration to ECC 6.0: Data Consistency Check, Running new GL and traditional GL at the same time, Delta changes between 4.6 c and ECC 6.0 in MM module. Finance Accounting Asset Accounting. SPRO => Financial Accounting (New) => Asset Accounting => Valuation => Depreciation Areas => Specify Transfer of APC Values Transaction Code- OABC. Preliminary Costing in SAP Product Costing – Detailed Overview, Directly post the goods or invoice receipt from, Post asset sales from FI-AA to a customer account using FI-1R, Further, Capitalize the asset maintenance expenses in FI-AA using asset settlements through the PM module, Lastly, Pass depreciation from FI-AA to CO, Or operate in different countries but in the same industry. Dive into the core financial reporting areas: general ledger, segment, accounts payable and accounts receivable, asset accounting, and group … More about the book For SAP Project Implementation, Project Support, Placement, Training and Certification reach me at "SAPISPTC@gmail.com", Dr. The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date. Reclassify an existing asset to a new class or to correct an error. Complex Asset: While a complex asset is denoted by the main asset number that contains one or more sub-asset. Fix asset – acquisition cost (new asset)                   1,000, Cr. For depreciating at the main asset number level, you also must maintain the screen layout rule. Asset Class helps to make structure asset based on business and legal requirements. For more information about parallel currencies, see Parallel Currencies in New General Ledger Accounting and New Asset Accounting. Here, it uses the same currency as that of the company code. We usually call it as a subsidiary ledger of FI. Asset Type details 3. The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page. You cannot make this area adopt values or depreciation terms from other depreciation areas. In that case, you use a separate country-specific chart of depreciation. 03:50 . Introduction to Asset Accounting (AA) in SAP FICO. If you use parallel currencies, then you have to define the necessary parallel currency areas. Settle the amounts to AuC from IO - KO88, 8.