Asset Accounting

1. Define Chart of Depreciation EC082. Assign Chart of Depreciation to Company Code OAOB3. Specify Number Assignment Across Company Codes AO114. Specify Account Determination : Account Determination links an asset master record

to the general ledger accounts to be posted for an accounting transaction using the asset class Account Determinations are defined and maintained in the asset classes.

5. Create Screen Layout Rules6. Define Number Range Interval : AS087. Define Asset Classes : OAOA8. Define Screen Layout for Asset Master Data :

9. Define Screen Layout for Asset Depreciation area : AO21

10. Define how depreciation areas post to General Ledger : OADX

11. Specify document types for posting of depreciation : AO7112. Specify Intervals and Posting Rules : OAYR13. Define Depreciation Areas : OADB14. Specify transfer of APC Values : OABC15. Specify transfer of Depreciation Terms : OABD16. Determine depreciation areas in the asset class : OAYZ17. Specify Amounts for Low Value Assets : OAYK18. Specify rounding of net book value/ depreciation : OAYO19. Specify depreciation area for group assets : OAYM20. Specify asset classes for group assets OAAX21. Determine depreciation areas for ordinary depreciation : OABN22. Assign Accounts for Ordinary Depreciation : AO9323. Determine depreciation areas for unplanned depreciation : OABU24. Assign Accounts for Unplanned Depreciation : AO9525. Define Transaction types for unplanned depreciation : AO7826. Define Depreciation Keys : OA2727. Define period control : OAVS28. Define calendar assignments : OAVH29. Define multi level methods : AFAMA30. Define Period Control Method : ANHAL31. Define Transaction Types for Acquisitions : AO7332. Assign Accounts for Acquisition : AO8533. Define transaction type for retirements : AO7434. Determine Posting Variants : AO7435. Define transaction types for capitalisation of asset under construction : OAXG36. Define/ Assign Settlement Profiles : OK0737. Define Asset History Sheet Versions : OA79

a. Organistional Setup like Asset Class, Chart of Depreciation, Depreciation Areas

b. Account Determination with GL, Reconciliation between GL & Asset

c. Use of Depreciation keys, Period Controls, and levels

d. Use of Asset Transaction Types & Asset Under Construction

e. Important AA tables like ANLA, ANLB, ANLC, ANEP, ANEK

f. Migration of Legacy data using LSMW, AS91 to 93.

g. Typical Closing Activities Depr Run etc., (Monthly) and Fiscal Year Close, Revaluation, Carry Forward (Yearly)

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1)  What is Asset History? ( OAOA)

ANS:Asset History can be displayed using report S_ALR_87012075. In this report, system will display the

details of the Asset. You can also view the Asset postings using Asset Explorer AW01N. 

2) How the data flows from Asset Accounting to Controlling?

 

ANS:In Asset Master in Time dependant tab you maintain the Cost Object - Cost Center. Through this link

data flows to CO Module. Basically, the depreciation postings are updated in CO Module.

3) When the asset value is zero and the Company is still using the asset then, how the Company generally proceed

to calculate depreciation further? (Curb) (SPRO>Financial Accounting>Asset Accounting>Depreciation>Valuation

Methods> Depreciation Key>Calculation Methods> Define Base Methods)

 

ANS:When the Asset value is reduced down to 0, you can not continue calculating depreciation. Company

can continue to use the asset as long as they want, but can not charge any depreciation for that asset

4) In asset accounting, why 0% Tax code is created for not taxable transaction and why it is compulsory to do it

before assigning the chart of depreciation to company code?

ANS: While posting some transactions tax may not be required even though those are tax effected

accounts... for that you need configure for tax codes for non-taxable transactions. 

5) What configuration is required to bring all the “Fields” in depreciation area tap of Asset master creation?(AO21)

and (AS01)

 

[If we make any changes in Tcode AO21 and they are not getting reflected in depreciation area (Last Tab) in creation

of asset master (AS01). So how to make the configuration to get those changes reflected in dep. area (last tab) in

creation of asset]

ANS:There are no specific settings needed other than AO21. Please check whether maintainance level is at

main asset.

 

6) What are difference between Germany Chart of Dep. and Great Britain Chart of Dep. (UK)?

 

What are the organizational assignments in asset accounting?Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code.Under the Chart of depreciation all the depreciation calculations are stored.

How do you go about configuring Asset accounting?The configuration steps in brief are as follows:-a) Copy a reference chart of depreciation areasb) Assign Input Tax indicator for non taxable acquisitionsc) Assign chart of depreciation area to company coded) Specify account determinatione) Define number range intervalf) Define asset classes

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g) Define depreciation areas posting to general ledgerh) Define depreciation key

Explain the importance of asset classes. Give examples?The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset class are Plant& Machinery, Furniture & Fixtures, Computers etc. The asset class also contains the Gl accounts which are debited when any asset is procured. It also contains the gl accounts for depreciation calculation,scrapping etcWhenever you create an asset master you need to mention the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the gl accounts attached to theasset class is automatically picked up and the entry passed. You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class.

How are depreciation keys defined?The specifications and parameters that the system requires to calculate depreciation amounts are entered in Calculation methods. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class.Refer to the configuration for more details of how depreciation iscalculated.A company has its books prepared based on Jan –Dec calendar year for reporting to its parent company. It is also required to report accounts to tax authorities based on April- March. Can assets be managed in another depreciation area based on a different fiscal year variant?No. Assets accounting module cannot manage differing fiscal year variant which has a different start date (January for book depreciation and April for tax depreciation) and different end date (December for book depreciation and March for tax depreciation). In this case you need to implement the special purpose ledger.

What are the special steps and care to be taken in Fixed asset data migration into SAP system especially when Profit center accounting is active?Data migration is slightly different from a normal transaction which happens in Asset accounting module.Normally, in asset accounting the day to day transactions is posted with values through FI bookings and at the same time the asset reconciliation is updated online realtime. Whereas In data Migration the asset master is updated with values through a transaction code called as AS91. The values updated on the master are Opening Gross value and the accumulated depreciation. The reconciliation GL account is not automatically updated at this point of time.The reconciliation accounts (GL codes) are updated manually through another transaction code called as OASV.If profit center is active, then after uploading assets through AS91 youshould transfer the asset balances to profit center accounting through a program.Thereafter you remove the Asset GL code (reconciliation accounts) from the 3KEH table for PCA and update the Asset reconciliation account (GL code) through OASV. After this step you again update the Asset reconciliation account in the 3KEH table. The reason you remove the Asset reconciliation code from 3KEH table is that double posting will happen to PCA when you update the Asset reconciliation manually.

Is it possible to calculate multiple shift depreciation? Is any special configuration required?Yes it is possible to calculate multiple shift depreciation in SAP for all types of depreciation except unit of production. No special configuration is required.

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How do you maintain multiple shift depreciation in asset master?The following steps are needed to maintain multiple shift depreciation:1. The variable depreciation portion as a percentage rate is to be maintained in the detail screen of the depreciation area.2. The multiple shift factor is to be maintained in the time dependent data in the asset master record. This shift factor is multiplied bythe variable portion of ordinary depreciation.Once you have done the above the SAP system calculates the total depreciation amount as follows:-Depreciation amount = Fixed depreciation + (variable depreciation * shift factor)

Let’s say you have changed the depreciation rates in one of the depreciation keys due to changes in legal requirements. Does system automatically calculate the planned depreciation as per thenew rate?No. System does not automatically calculate the planned depreciation after the change is made. You need to run a program for recalculation of planned depreciation.

What are evaluation groups?The evaluation groups are an option for classifying assets for reports or user defined match code (search code). You can configure 5 differentevaluation groups. You can update these evaluation groups on to theasset master record.

What are group assets?The tax requirements in some countries require calculation ofdepreciation at a higher group or level of assets. For this purpose you can group assets together into so-called group assets.

What are the steps to be taken into account during a depreciation run to ensure that the integration with the general ledger works smoothly?For each depreciation area and company code, specify the following:1 The frequency of posting depreciation(monthly,quarterly etc)2 CO account assignment (cost center)3 For each company code you must define a document type for automatic depreciation posting: This document type requires its own external number range.4 You also need to specify the accounts for posting. (Accountdetermination)Finally to ensure consistency between Asset Accounting and Financial Accounting, you must process the batch input session created by the posting report. If you fail to process the batch input session, an errormessage will appear at the next posting run. The depreciation calculation is a month end process which is run in batches and then once the batch input is run the system posts the accounting entries into Finance.

How do you change fiscal year in Asset Accounting?Run The fiscal year change program which would open new annual value fields for each asset. i e next yearThe earliest you can start this program is in the last posting period of the current year.You have to run the fiscal year change program for your whole company code.You can only process a fiscal year change in a subsequent year if the previous year has already been closed for business.Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons.

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Is it possible to have depreciation calculated to the day?Yes it is possible. You need to switch on the indicator “Dep to the day” in the depreciation key configuration.

Is it possible to ensure that no capitalization be posted in the subsequent years?Yes it is possible. You need to set it in the depreciation key configuration.

How are Capital Work in Progress and Assets accounted for in SAP?Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP.All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted ontoan Asset Under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset Under Construction gets capitalized to an actual asset.

The company has procured 10 cars. You want to create asset masters for each of this car. How do you create 10 asset masters at the same time?While creating asset master there is a field on the initial create screen called as number of similar assets. Update this field with 10. When you finally save this asset master you will get a pop up asking whether you want to maintain different texts for these assets. You can update different details for all the 10 cars.

What steps do you have to take into account to ensure that integration into the general ledger for the

depreciation posting run works?

For each depreciation area and company code, specify the following:

  the frequency of posting depreciation(monthly,quarterly etc)

  CO account assignment (cost center)

  For each company code you must define a document type for automatic depreciation posting only: This

document type requires its own external number range.

  You also need to specify the accounts for posting. (Account determination)

  To ensure consistency between Asset Accounting and Financial Accounting, you must process the batch input

session created by the posting report.

If you fail to process the batch input session, an error message will appear at the next posting run. The depreciation

calculation is a month end process which is run in batches and then once the batch input is run the system posts the

accounting entries into Finance.

How you change fiscal year in Asset Accounting?

  The fiscal year change program opens new annual value fields for each asset. I e next year

  The earliest you can start this program is in the last posting period of the current year.

  You have to run the fiscal year change program for your whole company code.

  You can only process a fiscal year change in a subsequent year if the previous year has already been closed for

business.

Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal

year change is needed only in Asset Accounting for various technical reasons.

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Is it possible to have depreciation calculated to the day?

Yes it is possible. You need to switch on the indicator Dep to the day in the depreciation key configuration.

Is it possible to configure that no capitalization be posted in the subsequent years?

Yes it is possible. You need to set it in the depreciation key configuration.

How are Capital WIP and Assets accounted for in SAP?

Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class.

Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an

Internal Order and through the settlement procedure can be posted onto an Asset Under Construction. Subsequently

on the actual readiness of the asset for commercial production, the Asset Under Construction gets capitalized to an

actual asset.

What is the purpose of defining Internal orders.?

Internal Orders are basically used for tracking of costs, which are proposed to be incurred over on a short term basis

and time tracking is not of much essence.Eg an Advertisement campaign. Sales Promotion and Exhibition expenses

etc

What is the procedure in SAP for Initial stock uploading? Mention the accounting entries also.Initial stock uploading in SAP from the legacy system is done with inventory movement type 561.Material valuated at standard price : For a material valuated at standard price, the initial entry of inventory data is valuated on the basisof standard price. If you enter an alternative value at the time of 561, then the system posts the difference to the price difference account.Material valuated at moving average price : The initial entry of inventory data is valuated as follows : If you enter a value when entering initial data, the quantity entered is valuated at this price. If you do not enter a value when entering initial data, then the quantity entered is valuated at the MAP present in the material master.The accounting entries are : Inventory account is debited and Inventory Historical upload account is credited.

Asset Accounting: Accounting Entries:

1. Acquisition: With Vendor -F-90Fixed Asset a/c Dr(With acquisition cost)Vendor Cr

2. Asset Disposal – Sales to a Customer: - F-92

Dr. Customer account (A/R)Dr. Accumulated depreciationDr. Clearing account for asset disposal

Cr. Revenue for asset disposalCr. Fixed asset – acquisition costCr. Gain/loss of fixed asset disposal

The posting date of the retirement posting will also be updated into the field

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"deactivation date" in the asset master as the retirement date.

3. Asset Disposal – As a Scrap -ABAVNAn asset could be disposed as a scrap. In this case, no revenue is expected and a losswill be realized in the P&L if the fixed asset being scrapped still carries a net bookvalue.

Cr. Fixed asset – acquisition costCr. Gain/loss of fixed asset disposalDr. Accumulated depreciation

4. Asset Transfer within a Company – Reclassification

The NBV(Net Book Value) of an existing asset master record could be transferred toanother asset within the same company.Cr. Asset – acquisition cost (old asset)Cr. Accumulated depreciation (new asset)Dr. Accumulated depreciation (old asset)Dr. Asset – acquisition cost (new asset)

The old asset being transferred will become a retired asset and the transfer postingdate will be updated as the retirement date in the asset master record. For the newreceiving asset, the transfer will be the same as if it is being acquired. The transferposting date will be used as the capitalization date.

5. Asset under Construction (AUC)(Internal Order as Investment Measure)

1. Define the AUC Asset Class (with investment measure) - OAOA2. Define the Asset Class – for Main Asset - OAOA3. Define Investment Profile - OITA-Assign the AUC Asset Class (Step-1) in the investment profile4. Assign Investment Profile to Model Order - OITA5. Define Order Type (Investment) - KOT2- Settlement Profile - OKO7- Maintain Allocation Structures - OKO6- Planning Profile - OKOS- Budget Profile - OKOB

6. Create an Internal Order - KO01- With the Investment Profile

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- AUC automatically created by the system using Asset Class given in the InvestmentProfile

1. Post the amounts to IO - FB01Dr. Material supplied to Asset (Expenditure)Cr. Cash account

2. Settle the amounts to AUC from IO (Pricing type: Automatic) - KO88Dr. Asset under Construction accountCr. Contra CapitalizedCreate the Main Asset - AS01

3. Settle the amounts to Main Asset from AUC - KO88Dr. Final Asset accountCr. Asset under Construction account

4. Sale of Asset from One Company code to another Company codeA. If Selling and Buying Company is separate Entities:In Selling Company:A/R Posting

Dr Customer a/c (for the sale value)Dr Clearing of Asset RetirementDr P&L (Loss)Dr Accumulated DepreciationDr Asset

Cr Revenue –Asset Retirement Asset PostingCr Asset In Buying Company:Cr Vendor

Note:- Posting date of the document will be copied into the asset master as thecapitalization date.- The depreciation start date of each depreciation area will also be determined andupdated in the depreciation area data tab page.- Asset acquisition posting could also be done without PO from the MM module.- Posting could be done in FI posting only.B. If selling and buying Company is Inter Companies - ABT1NAn inter company transfer in the asset history sheet can be an asset acquisition in onecompany code and an asset retirement in another company code. Fixed assets can only

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be evaluated at client, and not company code level.

In Selling Company:A/R Posting

Cr Revenue –Asset Retirement Asset PostingCr Asset $6000

Dr Clearing of Asset RetirementDr P&L (Loss) $1300Dr Accumulated DepreciationDr Inter Company Customer a/c

In Buying Company:

Dr AssetCr Inter Company Vendor

1. Note:- Posting date of the document will be copied into the asset master as thecapitalization date.- The depreciation start date of each depreciation area will also be determined andupdated in the depreciation area data tab page.- Asset acquisition posting could also be done without PO from the MM module.- Posting could be done in FI posting only.

2. Note:The process for posting intercompany transactions is as follows:- The initial entry is parked.- Then an email is sent to the other branch to view the document.- On approval of the transaction, the parked document is then posted to the g/l in bothcompanies. The company receiving the revenue will be the one responsible to bookinto system using the US dollar as base currency.

5. Month End Processing – Depreciation Run-AFABDr. Depreciation expenseCr. Accumulated depreciation

Asset Accounting in SAP ECC 6.0a. Fixed Assets can have multiple depreciation areas to handle multiple GAAP

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requirements. e.g., Local GAAP vs. US GAAP.Note: Specify the General Ledger that is posting to Asset Accounting (Definevaluation areas for parallel valuation, and Delta valuation area to post valuationdeference)• Depreciation area 01 – Asset valuation area 01 (will always link to the LeadingLedger)• Depreciation 02 and depreciation area 12 – Other asset valuation areas that can betied to NLs as required.b. The program used for transaction ASKB has changed to RAPERB2000 and forAFAB, it is RAPOST2000c. Functional area assignment is mandatoryd. Previously in 4.6C we use to give the batch ID in the variants in ASKB and AFAB.Now it is mandatory to have direct postings done for depreciation and APC postings.Therefore for document types which handle depreciation, the batch input session mustbe unchecked.e. Posting indicators in depreciation area (Old assignments)

1. Post depreciation at periodic intervals to the general ledger.2. Post asset values & depreciation at periodic intervals3. Automatically post values online (real time)

Additional Assignments as New GL

4. Post APC directly + depreciation5. Post APC only on periodic basis6. Post APC only

What’s Asset Data Uploaded process?ANS:

If the legacy transfer date is set at 31.08.2012 , then you have to migrate the assets in 2 ways ;

1. Assets for previous year i.e assets having capitalization date upto 31.12.2011.

2. Assets capitalized for the year 2012 .

Remember , for previous year assets you will have to have the following data in AS91 :

- Acquisition value

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- Accumulated depn ( Depn up to 31.12.2011 )

- Depn. posted for the current year ( Depn for 8 months )

For current year assets , you will have to have the following data in AS91 :

- Depn posted for the current year i.e 2012 .

- You will have to make transactions for current year asset as you cannot post the acquision values in AS91

as you do it for previous year ,

Here you need to use the transaction types and do the current year transactions . for Eg. for Asset

acquisition it is 100 .

In current year , you can either post only the additions or can post all the transactions as per your

requirement.

Asset A/C Dr

To Acc. Depr A/C Cr

To Takeover (initial upload) A/C Cr

AB01

Defining a transfer date

Create legacy assets through AS91

Transfer balances to GL Accounts through OASV

 

Asset Year-end Closing

The year-end closing enable the company to produced the final balance sheet and profit and loss statement for its annual report, which has to be created to meet the particular legal obligations in each country. 

Once the fiscal year is closed, you can no longer post or change values within Asset Accounting (for example, by recalculating depreciation). The fiscal year that is closed is always the year following the last closed fiscal year. You cannot close the current fiscal year. 

AJAB - Year-End Closing Asset Accounting

Company code : Your Company code

Asset classed asset u. const.  : Optional 

For fiscal year : Last closed fiscal year

Uncheck 'Test run' if this is a production run

At menu bar, click Program -> Execute in background.  

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Perform Fiscal year close for fixed Assets. 

While doing a Test run, message is that fiscal year close could not be performed but it does not display any Asset details .It says Other Error.  I am not able to identify what those other Errors could be.

Also, I have checked Incomplete Assets list As well but that list is empty as well. Also while running tcode AUVA there is a tab correct incomplete Assets, can anyone tell what deos that mean and when its to be used.

You can check and edit Asset accounting closing status using tcode OAAQ.

But you seem to be not clear on process.

AJAB is for closing Asset Accounting books. AJRW is a technical step of changing fiscal year in system.  If not done, it will not allow you to view asset reports in current fiscal.

Now, your error says incomplete asset.  Please run ajab in test mode, check for details. It will give you asset details and error details as well.  Go to asset explorere and check if the asst in question has been fully depreciated for the year.

If not run repeat deprecation for the asset in period 12 and then try closing asset books. You can also check asset and GL inconsitency using tcode ABST.  

Process Fixed Asset Depreciation

Every asset transaction immediately causes a change of the forecasted depreciation. However, it does not immediately cause an update of the depreciation and value adjustment accounts for the balance sheet and profit and loss statements. The planned depreciation is posted to the general ledger when you run the periodic depreciation posting run. This posting run uses a batch input session to post the planned depreciation for each posting level for each individual asset as a lump sum amount. 

The calculation and scheduling of depreciation, interest and revaluation are automatically controlled by keys in the system, or you can control them manually using a special posting transaction. In both cases, planned depreciation from Asset Accounting must be periodically posted to the corresponding asset and expense accounts of the general ledger. You carry out this posting using a batch input session. In addition to the various depreciation types, interest and revaluation, this batch input session also posts the allocation and writing off of special reserves. 

When the system posts depreciation, it creates collective documents. It does not create separate documents for each asset.

Depreciation Posting Run is done via transaction code 'AFAB'.

The program creates batch input sessions for posting depreciation and interest to the G/L accounts in Financial Accounting and/or to Controlling.

Fields Description :-

Company code  : Your Company Code

Fiscal Year   : Your fiscal year

Posting period : Your depreciation period 

Reason for posting run (choose one)

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Planned posting run  : X (default)

List assets : (tick if you want to see the detail)

Test run : (tick if you run in test mode else untick for production run)

Main asset number : (you can specify certain asset number if you click repeat run or test run)

Note :  Click the execute button if this is a test run.  Click the menu bar -> Program -> Execute in background if this is a production run. 

You should get this message : Background job was scheduled for program RABUCH00 and print out the output.

Release and Process the Batch Input Session in transaction code 'SM35'.

Process Session RABUCH00 X - Display errors only Additional functions X - Dynpro standard size

Click the Process button

If there is error, the system will pop up the error message.

Correct the error and recreate the session in transaction 'AFBD'.

Fields Description :-

Company code : Enter your company code

Fiscal year  : Enter your fiscal year

Posting period : Enter your posting period

List assets : (tick if you want to see the detail)

Test run : (tick if you run in test mode else untick for production run)

Asset Reverse Year-End Closing

If you closed a fiscal year too soon, and still need to make corrections, you can reset the last closed fiscal year in Customizing for :-

Asset Accounting (Periodic processing -> Year-end closing -> Reverse). 

Using this function, you can re-open the last closed fiscal year, either for selected depreciation areas in a company code, or for all depreciation areas in a company code. You do this by changing the field for the last closed fiscal year. 

Be careful if you re-open a fiscal year only for certain depreciation areas, and you need to make adjustment postings only in these areas. You cannot use the standard transaction types for these postings, since the standard transaction types post to all depreciation areas. Instead, you have to define your own transaction types in Customizing for Asset Accounting (Transactions), limiting them to the required depreciation areas.

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OAAQ - Reverse year-end closing for deprciation area

At the desired company code, change the fiscal year in 'Closed fiscal year' column.

Save entries and create a new request.  Change Asset fiscal year 

AJRW - Asset fiscal year change

Company code : Your Company code

New fiscal year : Last closed fiscal year

Uncheck 'Test run' if this is a production run

At menu bar, click Program -> Execute in background. 

How to reset Asset Data?

You can reset the entire AA data from Img->FA-> AA-> Preparing for production startup ->Tools -> Reset company code.

This will reset only the asset accounting data from the company code. But before you perform this you have to make sure that you reverse all the transaction you have posted and have gone to the FI. As this reset will not effect FI GL data.

You can then reset the depreciation posted and then the recon accounts.

When you reset the recon accounts, it will enable you to post directly to the account like normal GL. Then you have to post JV and rectify you GL(recon account).

Then upload the correct data. After the data is uploaded set the recon accounts. this will reconcile the amount with

the assets and activate the company code (in asset area).        

Mass change for assets

I am experiencing problems in OA02, Asset Mass Change. I am using 4.6C.

What happened was that I created the Substitution, then created the Step, and I then SAVED.  I am not sure if I need to create a RULE or not.  I have already defined in a STEP, (using Formula Builder) that most assets belonging to a certain asset class, 9011 with a current Cost centre, Z01, are to be assigned to another Cost Centre Z02, within the same Co.  Code.  I then saved the Substitution, although I noticed that there was a "?"  icon next to the RULES folder.  I am well aware that for Time Dependent Data, we would need to specify a "Valid From" date. (ADATU, in Table ANLZ)  But, do we need to specify a "Valid To" date as well ?

My data is like this.....

PREREQUISITES:    Asset Class =3D '9011'

SUBSTITUTION:        Valid From is substituted by Constant '19.08.2001'                      Cost Centre is substituted by Constant 'ZB02'

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If I need to create a Rule, What would I need to enter ?  I then created a WorkList, and assigned the Substitution to it. After this, I generated the Worklist in Background using AR31.   Everything seems ok, but when I check the Assets, I still see the old Cost Centre, NOT the New Cost Centre.

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Rules are not required. You get a ? because you probably started to create one and did not finish.

For a Cost centre mass change, if you want to have it time dependent, you must  specify 'valid from' and 'valid to' in the substitution rule.  In config you determine if you want to use the time dependency or not (default is : Yes)

Assuming that you are newly implemention with go live date of Sept 1st 2006 and Fiscal year January - December, what will be the best way?   Would it be better to define a Shortened Fiscal year for Sept-Dec 2006 and then regular Fiscal years OR Define a full Fiscal year for the entire 2006 and future FYs 

Normally, the best way is to keep it simple and leave the first year "normal" (12 + 4 months starting January). You convert old data as of August 31 (unless the client requests opening balance as of December 31, 2005 and then monthly movements - I have experienced both options) and then start normal bookings in month 9 on September 1. 

We never tried shortened fiscal year in this context and it is surely not needed here. It just adds complexity. 

Explain Retire Asset with Revenue and Retire Asset Without Revenue.

Asset  sale

* Without customer - Transaction ABAON - in case that a sale invoice is issued and posted in SD (or FI) and asset retirement is posted in FI-AA - Transaction ABAON. 

* Between affiliated companies - Transaction ABT1N - asset transfer  between company codes  

* With customer known - Transaction F-92 - in case that a sale invoice is not issued and book through SD  but in FI-AA - Transaction F-92.

* The sale invoice posted in FI-AA - document posted in AA or FI (document type ZN) and issued (printed) by transaction what has to be modiffied.  

Asset sale without customer - transaction ABAON (old t - ABAO)

In case you want system to calculate Gain/loss from sale for you enter Manual value (revenue amount) in specification for revenue. It is not allowed from the legal point of view for France.

If you want the asset to be retired in NBV choose which depreciation area (e.g.01 - management reporting area required) net book value should be posted.

Enter transaction type to specify the business operation you want to make.

(e.g. Retirement with revenue 210, 

Retirement of new acquisition with revenue 260)

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An asset retirement can refer to an entire fixed asset (complete retirement) or part of a fixed asset (partial retirement). 

In case of partial retirement enter amount posted, percentage rate or quantity.

System calculates the gain/loss from the asset sale and makes posting on gain/loss on sales asset account.

The difference (gain/loss) is counted from NBV of the asset and the revenue amount (clearing account e.g.5700990)

Retirement without revenue - Transaction ABAVN

Retirement due to scrapping, donation, deficit, damage

Retirement without revenue is a removal of an asset from the asset portfolio without any revenue, for example, by scrapping. When you use this posting option, the system does not create revenue and gain/loss postings. Instead it creates a loss from an asset retirement without revenue posting in the amount of the net book value being retired.

Retirement without revenue transaction posts NBV to one account specified in account determination for each reason of disposal.

Additional account assignments with specific transaction types can be created to fullfill requirements of posting on different accounts for each or some of disposal reasons (e.g. different account for scrapping than for donation). This specific posting is allowed only for book legal depreciation area, for management area account for retirement due to all reasons is the same (e.g.5700000).  

Explain Mass Retirement.

When an enterprise sells a large portion of its fixed assets (such as a plant or a building), it is necessary to post the retirement of all the individual assets which make up the whole. Since the number of affected assets can be very large, the Asset Accounting (FI-AA) component makes it possible to make the necessary postings using mass

processing.    What is asset retirement?

Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This removal of an asset (or part of an asset) is posted from a bookkeeping perspective as an asset retirement. Depending on organizational considerations, or the business transaction which leads to the retirement, you can distinguish the following types of retirement:

- An asset is sold, resulting in revenue being earned. The sale is posted with a customer. - An asset is sold, resulting in revenue being earned. The sale is posted against a clearing account. - An asset has to be scrapped, with no revenue earned. - An asset is sold to an affiliated company (refer to Manual Posting of Intercompany Asset Transfer/Retirement) 

There is a requirement to dispose 900 + assets. Can someone please let me know what are the options available? It should be similar to F-92 - Asset Retirement from Sale with customer but should to do mass number. 

If it’s a mass retirement, it’s possible - but I doubt mass physical deletion of assets.

Follow the steps below if you want to do mass retirement : 

1] AR01 -> Give your company code -> and the asset numbers  Now press F8 to execute the same

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2] At this point -> Go to the work list -> create -> Enter in the mandatory tab and select the retirement without revenue -> Enter

3] Enter dates / transaction type -> now you will get a work queue number

4] Go to AR31 and execute the work queue -> Then click the Release button

This will work as a mass scrapping of assets.

How to asset retirement asap & configuration?

There is no specific configuration for asset retirement. For retirement there are 3 ways as following:

1. Scrapping Asset - ABAVN

2. Sale of asset with revenue - F-92

3. Asset retirement without revenue - ABAON

Asset retirement is an integral part of asset management. An asset can be retired in following ways :-

1. By Scrap - T.Code ABAV/ABAVN

2. By sale. In sale there can be following cases :-

a. with revenue - 

b. without revenue

c. with customer - T Code F-92

d. without customer - T Code ABAON

How to update the New Depreciation Area in the Asset Master Data?   Answer:  When you add new depreciation area, you have to execute AFBN transaction.    When you have activated the area you can run the program AFBN - New Depreciation Area to load the values in the depreciation area. When it create posting in FI you have to make a total posting for the values with the transaction OBF1 or OASV   a) The procedure is as follows:   1. Create Depreciation area via OADB.    2. Activate Depreciation area via OAYZ.    3. Automatic opening of new depreciation are via AFBN and program RAFABNEW   3.1 Indicator: Leave values initial = not ticked.    - Do not set this indicator if you want the system to copy the values from depreciation area 01.    

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3.2 Indicator: Leave values initial = ticked.    - Set this indicator if you want to open the newly created depreciation area without any values i.e. blank.    4. Recalculate depreciation via AFAR and program RAAFAR00.    b) Helpful notes:   430618 (Procedure for setting up new depreciation area)  301113 (Restrictions of RAFABNEW)  421549 (RAFABNEW: Error with closed fiscal years)  

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