Asset Accounting Configuration in SAP
S/4 HANA
What is Asset Accounting ?
Asset accounting in SAP is a module that manages an organization's fixed
assets throughout their lifecycle. It involves recording, tracking, and
managing tangible assets such as buildings, machinery, and equipment.
Key functionalities include asset acquisition, depreciation calculation,
asset retirement, and reporting for financial and managerial purposes.
This module ensures accurate financial reporting and compliance with
accounting standards.
Configuration steps to set-up Asset Accounting :
1. To Copy Reference Chart of
Depreciation/Depreciation Areas (EC08 )
Charts of Depreciation - are used to manage various legal requirements
for the depreciation and valuation of assets. These charts of depreciation
are usually country-specific and are defined independently of the other
organizational units. Example: You can use one chart of depreciation for
all company codes in a country.
2 :- Depreciation Areas - in SAP contains the parameters required
to evaluate an asset. It is defined by a two-digit numeric key. You may use
more than one depreciation area to represent different asset valuations
for cost accounting or legal reporting. For example, A chart of
depreciation is made up of a list of such depreciation areas.
Click on Depreciation areas
Real depreciation area: Values are committed to the database
Area does not post: Used for reporting purposes, such as areas for other
currencies
Area posts in real time: Used for depreciation areas that post both
acquisition and production costs (APC) and depreciation to the general
ledger.
3:- Assign Input & Output tax indicator for non-
taxable acquisition ( OBCL )
Input tax indicator -
Output tax indicator -
4:- Define Accounting Principle
In SAP (Systems, Applications, and Products), accounting principles refer
to the fundamental rules and guidelines used to prepare and present
financial statements within the SAP system. These principles dictate how
transactions are recorded, classified, and reported to ensure accuracy,
consistency, and compliance with regulatory standards. They form the
basis for financial accounting processes within SAP and help maintain
transparency and reliability in financial reporting.
New Entry
5:-Assign Accounting Principle to ledger
6:- Define Settings for Ledger and Currency Type
Currency Types
To supplement standard SAP currency types, such as Document Currency
(00), Company Code Currency (10), Controlling Area Currency (20), and
Group Currency (30), you can create your own currency types.
Check your currency settings and create more currency types, if
necessary. The currency types that you create can be made up of a
combination of letters and digits or of letters only. However, they must
begin with the letter Y or Z. For example, Y1, Y2, ZA, or ZB.
§ Global Currency Conversion Settings view
For your own currency types, enter the currency into which the conversion
shall be made (Currency field), and the currency from which currency
conversion is to be made (Source Currency field). In addition, enter the
exchange rate type and the date on which the translation shall be
performed (document date, posting date, or translation date). You can
also decide whether the currency conversion shall be done in real time. If
you don’t select Real-time Conversion, you can do so at period-end closing
using the foreign currency remeasurement run.
§ Currency Conversion Settings for Company Codes view
For each combination of company code and your own currency types,
make your settings as described previously.
§ Company Code Settings for the Ledger view:
Assign the new currency types to the ledger, where you want to use it.
7:-Assign Chart of Depreciation to Company code
(OAOB)
In this configuration activity we are assigning chart of depreciation to
company code. You can have only one chart of depreciation to one
company code.
8:- Technical Clearing Account for Integrated Asset
Acquisition GL Map
The system ensures that the Technical Clearing Account for Integrated
Asset Acquisitions has a balance of zero (for each ledger and account
assignment object) for every accounting principle in the chart of
depreciation. So that the system can ensure the zero balance, manual
postings cannot be made to the account. The account does not appear in
the balance sheet, but in the notes to the financial statement (since it has
a zero balance).
New Entry
9:- Specify Document Type for Posting of
Depreciation (AO71)
Path:-Simg, Financial Accounting, Asset accounting, Integration with
General Ledger Accounting, Post Depreciation to General Ledger
Accounting, Specify Document Type for Posting of Depreciation.
In this configuration activity we are able to specify document type for
posting of depreciation. It is assigned per company code.
10:- Specify Account Determination
The account determination key defines the accounts in Financial
Accounting that should be posted during asset transactions, for each chart
of accounts and depreciation area (defined as an automatic posting area)
in the chart of depreciation.
New Entry
11:- Create Screen Layout Rules
The screen layout specifies the status of the fields in the asset master
record. You use the screen layout to determine if fields are required entry
or optional entry fields, or if they are suppressed completely, for example
you create only the keys and descriptions of the screen layout controls.
12:- Define Number Range Interval (AS08)
13:-Asset Class Tcode (OAOA)
Asset classes are the most important means of structuring fixed assets.
You can define an unlimited number of asset classes in the system. You
use the asset classes to structure your assets according to the
requirements of your enterprise. Asset classes apply in all company
codes.
New Entry
Click on save
14:-Create GLs Tcode (FS00)
Create Machinery GL
Create GL Accumulated Depreciation Machinery
Create GL loss on assets sale
Create GL SALES ASSETS clearing
Create GL profit on asset sale
Create GL depreciation
15:- Configuration to the determine the G/L account
to Post the Asset (AO90)
Select Chart Of account and Enter Account Determination Tab
Select C001mach and Enter Balance Sheet Account
GLs Maping
Enter Depreciation tab
16:- Determine Depreciation Areas in the Asset
Class (OAYZ)
In this configuration activity we are able to determine depreciation areas
in the asset class. Usually in one asset class, we use the same
depreciation terms. Here we are making the default settings for them.
Depreciation areas
Thank you for your time in reading my blog, Asset Master Data and Asset
Posting will be covered in my Next Blogs.