Asset Accounting is based on the universal journal entry. This means there is no longer any redundant data store, General Ledger Accounting and Asset Accounting are reconciled Key changes are listed below: —. We need to answer some basic question before configuring new asset accounting in S4 Hana environment as this would determine the required minimum depreciation areas to align the FI with Asset Accounting.
Explaining with ledger approach example. From release i. This means, the sum of all depreciations does not balance with the activation value for the additional currencies. In this activity, you define transfer rules for the posting values of depreciation areas. These transfer rules let you ensure that certain depreciation areas have identical asset values. In this activity, you specify how the depreciation terms for a depreciation area are adopted from another depreciation area.
You can specify if the adoption of values is optional or mandatory. If you specify an optional transfer, then you can change the proposed depreciation terms in the dependent areas in the asset master record. In the case of a mandatory transfer, you cannot maintain any depreciation terms in the asset master record.
In this way, you can ensure that depreciation is uniform in certain depreciation areas. For every additional currency type defined on the company code a corresponding depreciation area needs to be set up. As explained in previous step here we need to define the currency for each dep area so for example if a company code has 2 ledgers i. With this setting its ensured that all currency types are aligned with respective depreciation area and asset values are getting updated parallel to Financial accounting per currency.
Architecture has been changed in the way that we now post in asset accounting for each valuation a separate document. So we perform on the asset part accounting principle specific postings.
Technically we perform ledger-groups specific postings. On the operational part accounts receivable, accounts payable the value is always the same for each accounting principle. So for the operational part we have to perform postings which are valid for all accounting principles.
Technically we perform postings without specifying the ledger-group. The Operational Entry Document posts to a technical clearing account. The Operational Entry Document does not update the asset values; the asset data is only used to perform checks. Accounting principle specific documents 1 to n. The accounting principle specific documents post to: — the technical clearing account in each view balancing to zero and the asset reconciliation account and update the asset line items.
The transfer date is the cut-off date for the transfer of legacy data. The transfer will only include data up to this point in time. There are two possible scenarios. In this case, you do not need to include any posted depreciation or transactions in the transfer of legacy data.
You only need to transfer master data and the cumulative values as of the end of the last closed fiscal year. Along with the general master data, and the cumulative values from the start of the fiscal year time period Ayou must also transfer the following values.The closing operations component supports the preparation and carrying out of activities required for closing.
For this purpose, the system provides various standard reports that you can use to generate evaluations and analyses directly from the posted account balance. All the three levels of closing operations are summarized below. At the beginning of the new fiscal year, the user is required to open the posting periods in the new fiscal year and carry forward the balances from the previous year. You do not have to close the old fiscal year and make the closing postings before opening the new fiscal year.
Before the General Ledger begins the month-end closing activities, the sub-ledgers must have completed their closing activities under the respective processes as follows.
In this procedure, we valuate items in foreign currency at the end of a period in order to post expenses or revenues from currency fluctuations. If the program for all open items in foreign currency is run, then all items posted to accounts that are open item managed would be valuated. The individual valuation principle determines the way valuation is carried out: only individual items that are still open on the key date are considered for valuation.
For expense from currency valuation, the posting is:. Foreign Currency transactions with Foreign Vendors and Customers that are open as on Closing Date can be revalued for any foreign exchange fluctuations that have taken place after the transaction has been posted. Exchange rate differences resulting from the valuation of open items and foreign currency balance sheet accounts are automatically posted to specific accounts that will be configured in the system.
When valuating open items, the system posts to a balance sheet adjustment account and an account for currency exchange differences resulting from the valuation. This could be either a gain or a loss account. For the valuation of foreign currency balances and, to post the exchange rate differences arising on such valuation, a revenue and expense account would be defined.
This posting is then cleared by an offsetting entry on the vendor account at Invoice Verification stage. In vendor accounts credit line item say invoices are to be set off against debit entry payment entry.
Similarly in customer accounts debit line item say invoices are to be set off against credit entry payment entry. This process is known as clearing and it helps in analyzing the open items of a customer. The basic prerequisite for clearing is that the accounts must be kept on an open item basis. Customer and Vendor accounts are by default open item managed. This allows monitoring of outstanding receivables and payables at any time. The open item management option, however, must be defined for general ledger accounts.
If the payments are made without clearing the open items in debit and credit of the vendor may disturb the aging reports. The open debit and credit items are to be adjusted through auto clearing or manual clearing for each invoice. The basis of clearance will be specifically decided during realization phase of the project.
The Manual Accruals component enables you to calculate and post values in General Ledger Accounting and through a Transaction these can be reversed on the desired date.
SAP supports all kind of Foreign Currency postings to General Ledger and Sub Ledgers, these foreign currency amounts are converted into local currency based on exchange rates maintained in the Exchange rate table. The system uses the type M exchange rates for foreign currency translation when posting and clearing documents. In this activity Central Finance department needs to enter the Exchange Rate. An entry must exist in the system for this exchange rate type.
The exchange rates apply to all company codes. Adjustment of Accounts receivable is needed because of bad debt. This process contains of four steps:. Investment orders are generally used to collect and settle the costs of an investment project towards assets within Asset accounting. Investment orders are settled in two steps:. This should have been done before the period end closing process starts.
Also maintaining settlement rule and changing status for the order should have been done before the period end closing starts.
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.There are some scenarios where it is necessary to allow the system to post negative acquisition in the asset.
In this page we expect to be able to show you options and the step-by-step on how you can allow the negative values in the Assets Accounting by customizing. If this field is not available, you will need to adjust the screen layout rule to be able to check this box. In this case, please check the screen layout for the related asset class via transaction code AS SAP Note : Negative net book value, neg.
APC, below zero depreciation. ERP Financials. Browse pages. A t tachments 12 Page History. Jira links. Created by Former Memberlast modified on Sep 09, Purpose There are some scenarios where it is necessary to allow the system to post negative acquisition in the asset.
Overview In this page we expect to be able to show you options and the step-by-step on how you can allow the negative values in the Assets Accounting by customizing. Where to customize the negative values? Powered by Atlassian Confluence 6.The purpose of this page is to clarify the understanding of the system logic and requirements in relation to the settlement of asset under construction through transaction codes AIAB and AIBU.
Now the distribution rules are created.
Capex Projects- Capitalization by accounting principle in S4 HANA
Fill out Fields Document Date, Posting date and Asset Values it cannot be a date prior to this asset capitalization date. Basics of Asset Accounting - Asset Acquisition. Basics of Asset Accounting - Asset Retirement. Basics of Asset Accounting - Asset Transfer.
Cross system Depreciation Areas and Intercompany Asset transfer. Defining posting rules for depreciation. Settlement of an Asset under Construction. ERP Financials. Browse pages. A t tachments 11 Page History. Jira links. Created by Former Memberlast modified on Aug 14, Purpose The purpose of this page is to clarify the understanding of the system logic and requirements in relation to the settlement of asset under construction through transaction codes AIAB and AIBU.
Preparing scenario Creating the Assets: 1. S etting distribution rules through transaction code AIAB 2. No labels. Arvind Pereira. Permalink May 08, Powered by Atlassian Confluence 6.Asset accounting I have a prb with Asset under construction.
Here in this I dont want to maintaine any depkey and useful life but this are coming as default for dep key I am using zero rate key but I am unable to escape from useful life It is asking to assign useful life.
But, I already tried in Ao21 and oayz. What is your exact requirement. In case you feel that at the time of the creation of the AUC, it is cumbersome to fill the depreciation key and the useful life in years and period each time, then you can go to. I do agree with you that's what I posted over here. But, My manager wants that 'it should not come in the master record of auc since we are not using that'. So, that is the need actully, I tried many ways such as by modifying tab layout etc.
Not what you're looking for? Search community questions. This question has been deleted. This question has been undeleted. Former Member. Posted on Mar 21, at AM Views. Hi everybody, please help me regarding asset accounting, Asset accounting I have a prb with Asset under construction. FIN Finance. Add comment. Related questions. Sort by: Votes Newest Oldest. This answer has been deleted. This answer has been undeleted.Fixed Asset — Acquisition Cost.
Vendor Accounts payable.
The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date. Instead of selling, an asset could be disposed as a scrap. The NBV of an existing asset master record could be transferred to another asset within the same company. The transaction could be used in the following scenarios:.
The old asset being transferred will become a retired asset and the transfer posting date will be updated as the retirement date in the asset master record. For the new receiving asset, the transfer will be the same as if it is being acquired. The transfer posting date will be used as the capitalization date. Depreciation expense. Accumulated depreciation.
However, the detailed depreciation amount of each asset will also be stored in Asset Accounting such that each unique asset master record will also have its unique posted depreciation amount. 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. This is advised that this report should be kept as an additional audit trail. Internal Order as Investment Measure:.
Settlement Profile - OKO7. Create an Internal Order - KO With the Investment Profile Step Create the Main Asset - AS AuC using Line Item Settlement:. Post the amounts to IO - FB Fixed asset — acquisition cost 1, Dr.
Accumulated depreciation Dr. Asset Transactions - Accounting Entries :. Fixed Asset — Acquisition Cost Cr.
The depreciation start date of each depreciation area will also be determined and updated 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. The transaction could be used in the following scenarios: Reclassify an existing asset to a new class or to correct an error Transfer an asset to a new one with the same class. Depreciation expense Cr. Settlement Profile - OKO7 b.
Create an Internal Order - KO01 a. With the Investment Profile Step-2 b. Material supplied to Asset Expenditure. Cash account. Asset Under Construction account Cr.Capital project expenditure Capex leads to build of assets of different asset classes. Capitalization policies vary for different cost categories labor, material etc.
Project is released. Actual cost is posted either via valuated goods receipt for PO, personal time recording, journal entry, or manual cost allocation. Project actual cost line item report is executed. From the report, for the posted actual cost line item, drilldown to accounting documents. Alternately, the accounting documents can be accessed from result list of settlement transaction CJ88 as shown. Open Asset transaction from the list of documents to review APC posting details to asset in leading ledger.
Reference cost element Difference in the acquisition values between depreciation areas, as expected, is evident too. They can be viewed on the Asset explorer.
Technical Articles. Posted on December 9, 3 minute read.
Follow RSS feed Like. Period end settlement is executed for the project that settles cost to AuC. Similar outcome can be obtained for Final fixed asset too when its asset class is configured.
Alert Moderator.AUC settlement CJ88
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