Fixed Assets Training Manual

Asset Accounting (FI-AA)

Zee Entertainment Enterprises Ltd & Zee News LimitedDoc. No.:-

Version No. :-Date of issue :-

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Purpose

The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP R/3 System. In SAP Financial Accounting, it serves as a subsidiary ledger to the FI General Ledger, providing detailed information on transactions involving fixed assets.

Structuring of Fixed Assets:-

Balance Sheet GL AccountAsset Classes Asset Master Records.

Prepared by : Allwyn Tauro, Johnson T F & Venkateswarlu KApproved by : Mehul Shah, Dinesh Garg & Sivananda L

Classification: For Internal Use Only




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Integration As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data directly to and from other modules. For example, it is possible to post from the Materials Management (MM) component directly to FI-AA

Chart of Depreciation Definition Charts of depreciation are used in order 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. A chart of depreciation, for example, can be used for all the company codes in a given country.

Chart of Accounts/Chart of Depreciation The assignment of a company code to a chart of accounts is independent from its assignment to a chart of depreciation. This means that several company codes can use the same chart of accounts, although they have different charts of depreciation (and vice versa).The most important control feature in the Asset accounting company code is the chart of depreciation. It contains the parameters (such as the depreciation keys) that are used for calculating asset values in a given Company.

You have to enter a company code when you create an asset. This ensures that each asset is always uniquely assigned to a company code.

Assignment to Cost Center and Profit Center

For internal accounting, you generally need to assign asset costs to cost centers. Therefore, you can assign each asset in Asset Accounting to exactly one cost center. You make this assignment in the asset master record.At the Level of Cost Centre You can






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1. Post all Depreciation2. Plan all future Depreciation.3. Statistically post gain or loss from sale of assets.

Asset Master Maintenance

OverviewTrigger:

Create Asset Master Record

Business Process Description Overview

The asset master record contains all information relating to an asset that remains unchanged over a longer period of time:

Technical master data Organizational allocations (usually time-dependent) like Business Area,

Cost Centres. In case certain sub fields are required within a Business Area, fields can be identified down to Locations and Room for easier tracking.

Depreciation terms, for different Depreciation Areas.

The system stores all the values and transaction data per each asset master record.

Assets can be represented differently in the FI-AA component according to their complexity. The structure of the master record is identical for all asset main numbers, asset sub-numbers and group assets. Therefore, the basic procedure for creating any of these objects is essentially the same.






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Input - Required Fields Field Value / CommentsAsset Class Determines not only the asset grouping but

screen layout and account determination.Company Code The company code to which the asset is

assigned.Description A useful description for identifying the asset

(non-generic)Business Area Required – if using Business AreasCost Center Required – Controlling Module is activeDepreciation Key Required for each depreciation area. These will

default in based on the asset class but can be overridden.

Useful Life Required for each depreciation area. These will default in based on the asset class but can be overridden.

Output – Results Comments

Asset Master

Tips and Tricks

For today’s date, use the keystrokes F4 followed by F2 instead of using the drop-down calendar feature.

Note:

1. Since we would be using the internal number assignment, the system automatically assigns the number.

Procedural Steps

Access transaction by:

Via Menus Accounting Financial Accounting Fixed Assets Asset Create Asset

Via Transaction Code AS01Prepared by : Allwyn Tauro, Johnson T F & Venkateswarlu KApproved by : Mehul Shah, Dinesh Garg & Sivananda L





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On “SAP R/3 Screen”, enter information in the fields as specified in the table below:






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Field Name Description R/O

User Action and Values

Comments

Asset Class The grouping, which is the main driver for the assets accounting.

R 2140 – Plant and Machinery Projection(Studio Equipments)

Determines the asset’s screen layout and account determination.

Company Code

The company code to which the asset is assigned.

R 1000

Number of similar assets

Number of similar assets that you want the system to create.

O Input quantity of similar assets available.

Reference Asset

Reference another asset to copy as starting point for new asset

O Use if creating several similar assets. Screen layout of this asset will determine what information is copied to the asset.

Reference Sub Number

Reference Asset Sub Number

O

Reference Company Code

Reference Company Code of Asset

O

Post Capitalization

If yes, capitalization date will be a Required field

O Typically, asset master is created prior to actual collecting asset costs.

Press ENTER or Green Check icon to advance to the next screen.

The following are Assets Class defined .

2000 GoodWill2010 License Fees2011 License Fees Networking2020 Software2021 Computer Software (Forex Adjust)2030 Trademark






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2100 Land2110 Land (Leasehold)2120 Building2130 Plant & Machinery2140 Plant & Machinery Projection(Studio Equipment)2150 Plant & Machinery IRD2160 Equipment2170 Furniture and Fixtures2180 Vehicles2190 Computres2191 Computres (Forex Adjst)2200 Leasehold Improvements2900 Capital Work In Progress3000 Commissioned Program3100 Movies (Acquired)

In Zeel / Znl Commissioned Programme & Movies are treated as Assets for the purpose of

Amortization, So Each Programme Episode & Movies are treated as Assets in SAP.

On the "SAP R/3” Screen and Tab labeled "General", enter information in the fields as specified in the table below:

Preliminary Description of Assets.Prepared by : Allwyn Tauro, Johnson T F & Venkateswarlu KApproved by : Mehul Shah, Dinesh Garg & Sivananda L





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GENERALField Name Description R/O User Action and

ValuesComment

sDescription Description of asset R This should by a

useful non-generic description of the asset

Description2

Additional description

O Use for model number or if more than 50 characters are needed for Description.

Asset main no. text

Used in reporting and accessing totals via asset main number

O This will automatically be populated by Description

Account Determination

Rule for determining general ledger accounts.

R System generated driven by the class.

Serial Number

The unique identifier of an asset

O Manufacture Serial no. to identified asset

Quantity Number of assets.

Unit of Measure

O

R

Used when grouping a number of assets under one asset.Unit of Measure is reuired.

Manage historically

System to manage asset with history

O The asset will be displayed in an asset chart

Last Inventory on

When the asset was last inventoried.

O Not used when creating a new asset record.

Include asset in inventory list

Will list asset in physical inventory list if checked

O Check Box

Inventory Note

Additional information regarding the asset’s inventory.

O Not used when creating a new asset record.

Capitalized on

Date asset is put into service

O Automatically populated from acquisition transaction

Note: Required if post






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capitalization selected

Deactivation on

The retirement date of the asset

O The system enters the asset value date of a retirement posting.

First Acquisition on

The date of the first acquisition posting

O The system automatically inputs this field

Acquisition year

The year of acquisition


Ordered on The order date of the first purchase order for the asset.







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Time Dependent.This is for defining the Business Area & Controlling Area.

Description R/O User Action and Values

Comments

Business Area

Group of the enterprise uses to report

R Required if using Business Areas.

Cost Center The unit to be charge with the asset’s depreciation or gain/loss.

R Required if Controlling Module is active.

Location Location with in the plant where the asset resides.

O Used to do location-related analysis of the asset. Plant is required if location is used.

Room Used to identify small areas within a plant

O This field is used for informational purposes only and does not have a verification check.

Jurisdiction Code

Jurisdiction for tax calculation - tax jurisdiction code

O It defines to which tax authorities you must pay your taxes. It is always the city to which the goods are supplied.






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Click "Allocations" Tab to continue creating asset and enter information in the fields as specified in the table below: (NO information is required to be populated in this Tab Sheet)AllocationsThis is for Grouping of Assets under one Asset Class.

Description R/O/C


Comments

Evaluation group 1

User defined field O User defined field 4 characters

Evaluation group 2


Evaluation group 3

User defined field O User defined field 4 character






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sEvaluation group 4


Evaluation group 5


Asset super number

Asset super number to which asset is to be assigned

O Data relating to the assets in a super number can be analyzed together

(NOTE: On the above table, in column “R/O; “R”=Required, “O”=Optional,






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Click "Origin" Tab to continue creating asset and enter information in the fields as specified in the table below: (NO information is required to be populated in this Tab Sheet)Origin

Description R/O/C


Comments

Vendor Alphanumeric identifier of the vendor

O May populate automatically from the purchasing information

Manufacturer Name of the manufacturer

O Informational use only. (To be populated manually, if information is required

Asset purchased new

Indicator of the asset is purchase new

R Most assets will fall in this category. Asset must be indicated either new or used

Purchased used

Asset was purchase used or second hand

R Asset purchase used should be indicated for tax purposes. Asset must be indicated new or used.

Country of origin

The country where the asset was manufactured

O Informational use only. (To be populated manually, if information is required

Type name Description of asset type

O Informational use only (To be populated manually, if

Original asset The number of the asset being transferred to this asset number. This would be the asset under construction number

O This should be populated when the asset under construction is settled to the asset.

Org. acquisition

The fiscal year the asset was

O This should be populated when the






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year acquired prior to transfer

asset under construction is settled to the asset

Original acquisition value

The value of the acquisition prior to transfer

O This field must be entered manually. It is not populated automatically. This might be used to maintain the original value of a used asset.

In-house prod perc

The percentage of the asset constructed in-house

O Informational use only.

Capital investment order

The internal order to which the asset should be statistically posted.

O Use with Investment Management.

(NOTE: On the above table, in column “R/O; “R”=Required, “O”=Optional)






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Please not to Click "Net worth Tax" Tab Also not to Click the insurance






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Click "Deprec. Area" Tab to continue creating asset and enter information in the fields as specified in the table belowDepreciation Area

Field Name Description R/O User Action and Values Comments

Deact. Deactivate Depreciation Area

O Will deactivate depreciation area

SHOULD NEVER BE TICKED

Depreciation Area

Depreciation Area R Will default from asset class

Depreciation Area Description

Depreciation Area Description

R Will default from asset class

Depreciation Key

Depreciation Method

R Will default from Asset Class. These keys may be manually overridden.*

Useful Life In years R Will default from Asset Class. These keys may be manually overridden.*

Useful life per

In months O Used for partial year depreciation

O. Depreciation Start

Depreciation calculation start date

O Automatically populated based on Depreciation Key. These keys may be manually overridden. *

Group asset indicator

Indicates group asset activated

R Active if manage values for group assets

The Group Asset Main Number and Sub Asset Number (obtained while saving them) should be populated in the said field. The same is a required field.






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Press the SAVE icon or Asset Save or Ctrl + S to save the Asset Master Record. In the error line at the bottom of screen, will be a asset number created.Asset Created under Co Code : 1000






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Asset Acquisition Overview

Trigger:

Accounts Payable invoice charges from a vendor for a fixed asset.


Asset Master records are created in transaction AS01 to represent fixed assets owned by an organization. Costs can be applied to these fixed assets through an accounts payable acquisition transaction as described here. For acquisitions that become a depreciable asset immediately or for an asset that is collecting costs over time (Assets under Construction) and is not depreciable, this accounts payable acquisition transaction can be used for two processes as follows:

Direct Purchase - An asset, such as an Vehicle, is being purchased (in a single transaction) and immediately written onto the books as a depreciable fixed asset. In this case, the Asset Master Record must be created ahead of time and this transaction will post charges to the asset in step explained above.. The document date of the transaction will be transferred to the Asset Master Record as the Capitalization date and the Acquisition date.

Asset under Construction - An Asset, such as a processing plant/ ob van or building is being created and costs are collected in the Asset Master Record located in a specific asset class for Assets under Construction. In this case, the Asset Master Record must exist ahead of time and this transaction will post costs to the asset in step I.4. An Asset under Construction is a temporary asset and will not depreciate. It will be distributed and settled in another transaction when the asset has been completed and is to be capitalized and begin depreciating.






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Asset Acquisition – Purchases-PurchasesInput – Required Fields Field Value/CommentsDocument Date Will populate Asset Master Acquisition & Capitalization

Dates.Document Type Defaults from the system- kzCompany Code Insert appropriate Company Code: 1000Posting Date Default from systemPosting period Default based on the Posting dateCurrency/rate USD unless otherwise indicatedPosting Key 31, Defaults from the systemAccount Vendor Account NumberAmount Amount to be posted to the assetPayment TermsPosting Key 70, Defaults from the systemAccount Asset NumberTrans Type 100, external asset acquisition

Output - Results Accounts Payable Open Item for Vendor Asset Master record with Value (Asset Master now contains Invoice

amount)

Note:1. For today’s date, use the keystrokes F4 followed by F2 instead of

using the drop-down calendar feature.2. For setting user-specific editing defaults, set your Editing Options

and User Parameters to default in the desired company code, currency and line layouts.

3. The Asset Master that is to receive the value must be already created prior to processing this transaction.






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Procedural Steps


Via Menus Accounting Financial Accounting Fixed Assets Posting Acquisition External Acquisition With VendorAccounting Investment Management Fixed Assets Posting Acquisition External Acquisition With Vendor

Via Transaction Code F-90






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‘Double Click’ on the Transaction Code to advance to the next screen.On screen “Acquisition from Purchase w: Header Data”, enter information in the fields as specified in the table below

Field Name

Description R/O

User Action and Values Comments

Document Date

Enter the document date

R Current Date (06.02.2010)

Document Type

The document type classifies accounting documents.

R Vendor Invoice (KR) Defaults to KR

Company Code

Enter the Company Code

R 1000

Posting The date the R System defaults to the






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Date acquisition is to be posted

current date

Period The period in which the acquisition is to be posted

R System defaults based on the posting date.

Apriil – 1 March 12

Currency / Rate

A medium of exchange in current use within a particular country.

R Enter the relative currency

Drop down menu / Default INR

Document Number

The unique identifier of the document. It can be a system generated or manually created number

Translation Date

Date used for the translation of currencies.

Only required if translating currencies.

Reference No

Identifier of the customer or vendor

Cross CC-no

A cross company identifier

Doc header text

A description of the transaction

Use to quickly identify the document

Trading Part BA

The trading partner’s Business area

Posting Key

Defaults to 31 R Vendor Invoice – Credit

Account Vendor Account Number

R The pull down can be used to find the correct vendor account number.






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Field Name

Description R/O/C

User Action and Values Comments

Amount Amount of the invoice for the asset

R Enter the amount of the invoice

Tax amount

Amount of tax on the asset

O Amount will be used along with the Tax code to correctly post the tax.

Tax calculate

Key indicator for the system to automatically calculate taxes.

O Clicking this radial button on forces the system to automatically calculate the tax.

Tax Code Tax jurisdiction code O Enter the appropriate tax code. The “**”






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Indicates that any tax code will be okay.

Bus. Area The business area of the transaction

C Required if business areas are used.

Payment Terms

Defaults from the Vendor Master Record

R Payment Terms may be changed, but will default based on Vendor Master.

Days/percent

The days and or percent for payment terms

R Defaults from the payment terms.

Baseline Date

Today’s date defaults O Baseline date may be changed

Fixed The setting for a fixed payment term

O Fixed rate may be changed

Discount base

The part of the amount to which the discount applies

O

Discount amount

The cash discount in the document’s currency.

O

Payment block

Indicator for blocking the payment transaction

O

Payment method

Payment method for pay the amount

O If this is used only the selected payment method can be used.

Assignment

This field is a sorting field

O

Text Free form data O Enter a description of the transaction

For reference

Posting Key

Enter 70 R Asset - Debit

Account Enter the Asset Number being charged

R Created by transaction AS01

Trans Type

Classifies the business transaction when the transaction is posted.

R Enter 100—External Asset Acquisition.

Defined in the IMG (Customizing)






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Click on or press “Enter” to proceed to the next screen.

On screen “Enter Vendor Invoice: Create Vendor Item”, enter information in the fields as specified in the table below:

(NOTE: On the above table, in column “R/O”; “R”=Required, “O”=Optional,)






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1.1.1.On screen “Enter Vendor Invoice: Add Asset Item”, enter information in the fields as specified in the table below:

Field Name Description R/O User Action and Values

Comments

Amount Enter the Amount of the Asset

R Enter an “*” to force the correct amount to balance the entry

Tax Code Enter the appropriate tax code

O If the tax interface is being used this will be a required field

Text Freeform data O Enter a description of the transaction

For reference






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(NOTE: On the above table, in column “R/O/C”; “R”=Required, “O”=Optional)

Click Overview Button to view the transaction.Confirm that the entry is balanced—Debits equal Credits






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Click the SAVE / Post the payment--Select the <POST> (diskette) icon— Control + S.

A message displaying the document number of the transaction will appear in the status line at the bottom of the screen.

Asset Under Construction

Overview

Assets, such as buildings and processing facilities, like ob van & other assets are built over a period of time and have multiple costs applied to them. These assets are created in a special asset class called Assets Under Construction, which acts as a temporary holding asset during construction for which no depreciation is charged. When the asset is completed, this transaction is used to transfer the asset to the appropriate asset category(s) where depreciation can occur.

Trigger:

After an Asset that has been classified as an Asset under Construction has been completed, it must be transferred to a valid asset category (capitalized) so that it can be subsequently depreciated.


This transaction is used to transfer the costs of an asset from the Asset Under Construction category to a newly created asset (or assets) in a valid asset class. It settles either all or part of the acquisition / development costs to a General Ledger Account, Project, Cost center. Transaction AS01 (Create an Asset) must be processed prior to this transaction to create the new asset in the appropriate asset class. This transaction will then settle the costs, transfer the asset value to the new asset master, and set the capitalization date, which will control the asset’s depreciation. When this transaction is successfully completed, the asset under construction no longer contains any costs while the new asset(s) contains the settled values.






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Input – Required Fields

Field Value/Comments

Old (AUC) Asset Number Asset Under Construction being capitalizedNew Asset Number New Asset that will receive values from AUC.

Output – Results CommentsUpdate of a new Asset Master record with capitalized values.

Tips and Tricks

The new Asset Master must be created in the correct Asset Class before this transaction can be processed.

To create AUC use T code AS01, in our case it is CWIP, select Asset class no 2900, and fill up all necessary information as explained in the step. above (ref. Asset Master no: 26000004)

To record value or expenses incurred during setting up to be recorded using T code F-90

Procedural Steps


Via Menus Accounting Financial Accounting Fixed Assets Posting Capitalize Asset Under Construction Distribute

Via Transaction Code AIAB Distribute

On screen “AUC Settlement - Initial Screen”, enter information in the fields as specified in the table below:






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Field Name

Description R/O/C


Comments

Company Code

4 Character Company Code

R 1000

Asset Asset to be Processed

R Enter the asset number being settled (26000004)

Asset Sub Number

Asset Sub Number, if applicable

O Will default from the Asset Number

Press Execute Button






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press enter button






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On screen “Maintain Settlement Rule: Asset List”, enter information in the fields as specified in the table below:

Field Name

Description R/O/C


Comments

Category (Cat)

The Category of the receiver object

R FXA for Fixed Asset

Receiver The Asset number(s) being

R This must be created prior to






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settled to this step.Percent % Of selected items

being settled to this asset

R Values should add up to 100%

From Year/Period

Enter the year and periodO This is the beginning date of a range During which settlement can occur.

To Year/Period

Enter the year and periodO This is the ending date of a rangeDuring which settlement can occur.

Come out using back arrow key status change from Red To Green as shown in the below screen

Next Screen will appear select all line item entries

Press Save Button and system show






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1.2. Access transaction by:

Via Menus Accounting Financial Accounting Fixed Assets Posting Capitalize Asset Under Construction Settle

Via Transaction Code AIBU Settle

On screen “AUC Settlement - Initial Screen”, enter information in the fields as specified in the table below

After Simulation






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If the Debit & Credit is 0 it is ok then Execute.

Come out from the above remove test check and execute , Asset will transfer from CWIP to Main Asset

Low Valued Assets

In general, LVAs are fully depreciated in the year of purchase or in the period of acquisition. This can be achieved by using/changing the depreciation Key.

The depreciation key used for Low valued Assets is

Z100 100% Depreciation in the month of acquisition.






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The Creation of Low Valued Assets are same as described above, the difference is In the Depreciation area we have to change the Depreciation Key.






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Depreciation CalculationOverview

Trigger:

Every asset transaction in the R/3 System FI-AA component 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 we run the periodic depreciation-posting run.






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Keys automatically control the calculation and planning of depreciation, interest and revaluation in the system, or we can manually post using a special posting transaction (Planning Manual Depreciation).

There are several different types of manual depreciation that can be differentiated according to the reason that manual depreciation is required:

There is an unexpected permanent reduction in the worth of the asset that you have to post as unplanned depreciation.

You have special tax depreciation that you only partially take into account.

You are using unit-of-production depreciation and want to manually plan depreciation, rather than using the depreciation key.

In both cases, planned depreciation from Asset Accounting must be periodically posted to the corresponding asset and expense accounts of the General Ledger. We carry out this posting using a batch-input session. This posting session posts the various depreciation types, if required, to be posted to the General Ledger

Input - Required Fields Field Value / CommentsCompany Code Enter Company CodeFiscal Year Enter Fiscal YearPosting Period Enter Posting PeriodReason for Posting Run Defaults to “Planned posting run”BDC Session Name Defaults to “RABUCH” (can be overridden)

Output – Results CommentsDepreciation Run






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Tips and Tricks

The Depreciation job may be executed (F8) On-Line in TEST mode but the actual postings must be executed in background (F9).

Procedural Steps

1.3. Access Process Asset Depreciation by:Via Menus Accounting Financial Accounting Fixed Assets

Periodic Processing Depreciation Run Execute

Accounting Investment Management Fixed Assets Periodic Processing Depreciation Run Execute

Via Transaction Code AFAB

Field Name Description R/O/C User Action and Values

Comments

Company Code

1000 R Enter Company Code

Fiscal Year R Enter Fiscal YearPosting Period

Depreciation period to be posted

R Enter Posting Period

Reason for Posting Run

Planned Posting Run is Default

R

Further Options/ Test Run

Allows review of depreciation information prior to producing a batch session

O Default is “on”. It is highly recommended that a test run is executed and reviewed prior to actual production run.

Once depreciation is posted it cannot be reversed

Asset Main Number(s)

Repeat Run Only - allows for

O






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depreciation posting for a select group of assets.

Asset Sub-Number(s)

Repeat Run Only - allows for depreciation posting for a select group of assets.

O

(Note: On table, in column marked “R, O “R”=Required, “O”=Optional,)






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Press F8 to execute the depreciation run, system shows the amount of depreciation to be posted. Check the depreciation and if every thing is ok come back and to main screen remove test run tick and again execute it will post the depreciation amount






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Use the menu path Program Execute in Background to execute the depreciation-posting program. The system requires this program to be executed as a background job due to the high volume of transactions that may be produced.

If executed in Background, the system will display a Pop Up screen asking when the job should be scheduled. Enter the appropriate timing for the job to be scheduled. Select CHECK icon to confirm correct selection. Select SAVE to process selection.

menu path Program Execute in Background






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To review the progress of the background job, use the menu path System Services Jobs Job Overview (Transaction SM37).

On screen "Simple Job Selection", (Transaction SM37) all required information will be defaulted






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Field Name Description R/O/C


Comments

Job Name Name of the Background Job

R Defaults to “*” – all jobs. User may enter the job name if known.

User Name System user name R Defaults to your user name

Press EXECUTE to advance to the next screen.

On the "Job Overview:" screen, review the status of the depreciation job. When the status is displayed as “Finished”, the batch input posting session has been produced and may be processed.

To access the Batch Input Posting Session, use the menu path System Services Batch Input Edit (Transaction SM35).






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On screen Batch Input: Initial Screen (Transaction SM35), all required information will be defaulted:






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Comments

Session Name

Name of the batch input session

R Defaults to “*” - all sessions. Enter the session name from the depreciation parameter screen to directly access the depreciation posting session.

Press ENTER to advance to the next screen.

Locate the depreciation posting session (RABUCH is the default name). Click on the session name and click the pushbutton PROCESS or Session Process Session.

A popup window will be displayed requesting a “run mode” for processing the session. The system defaults to “Process in Foreground”. This is not a viable option for a high volume of transactions. It is recommended that the user choose “Display Errors Only” or “Background” processing. This will allow for posting transactions to be processed without user intervention. The system will return a message once processing is complete. Any errors will be noted.

Once the batch-input session has been processed, the accounting documents for depreciation have been posted to the general ledger and the depreciation posting is complete.






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Asset Retirement

OVERVIEW

Trigger:

Asset removal through retirement with customer. Business Process Description Overview

Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This removal of a fixed asset from the asset portfolio is posted from a bookkeeping perspective as an asset retirement. In Asset Accounting, the removal of an asset by sale, as well as any resulting revenue, can be posted in a single step. At the same time, you can choose to post to Accounts Receivable (through integration with Financial Accounting) or to a reconciliation account.

Asset sale with customer

If the Financial Accounting module is being used along with AM when an asset is sold, the system enables you to post the entry to Accounts Receivable, the revenue posting and the asset retirement in one step.

An indicator in the posting transaction determines that the system posts the asset retirement after the revenue posting. The prerequisite for this is in the field status group of the revenue account in Financial Accounting, to which the revenue should be posted. The "Asset retirement" field (category Asset Accounting) must be defined as a required or optional entry field in the field status group of this revenue account (See the ‘Check Box’ – Asset Retirement in transaction F-92) . When using the standard transaction types, the system automatically creates a profit posting or a loss posting as well as a revenue clearing entry in addition to the asset and accumulated depreciation correction postings.






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The revenue clearing entry is the same amount as the revenue posting to the account "revenue for asset sale (clearing account)" but with a reverse debit/credit indicator. This account is needed because the sale of a fixed asset is subject to value-added tax (=> automatic generation of a tax posting in Financial Accounting). Internal clearing must, however, take place without taxes.

The profit/loss postings, as well as the revenue clearing entries, are dependent on transaction type. Their automatic creation is controlled by the indicator "profit/loss from asset retirement" in the definition of the transaction type and can be deselected if required. In this case, you must manually enter the corresponding postingsInput required field



Comments

Document Date

Entry Date R

Document Type

R “DR” defaulted by transaction code

Company Code

Asset Company Code R

Posting Date

Effective Date of G/L Posting

R

Posting Key First Line Item Posting KeyR Usually will be “01” Customer Invoice

Account Customer Account Number

R

Transaction Type

O May or may not be given

Tips and Tricks

On the CREDIT side the posting key to be used should be “50” and the GL Account to be given should always be ‘301205 – Fixed Asset Clearing Account.

Procedural Steps

Access “Process Asset Retirement with Customer” by:






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Via Menus Accounting->Financial Accounting->Fixed Asset->Retirement->Retirement with Revenue->With Customer

Via Transaction Code F-92

On screen “Asset Retirement from Sale w/Customer”: Header Screen, enter information in the Fields as specified in the below table

Field Name Description R/O/ User Action and Values

Comments

Document Date

Entry Date R 08.02.2010

Document R “DR” defaulted by






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Type transaction codeCompany Code

Asset Company Code

R

Posting Date

Effective Date of G/L Posting

R

Posting Key First Line Item Posting KeyR Usually will be “01” Customer Invoice

Account Customer Account Number

R 1100005

Transaction Type

O

(Note: On the above table, in column “R/O/C”, “R” = Required, “O” = Optional, )

On screen “Enter Customer Invoice: Add Customer Item” Screen, enter information in the fields as specified in the below table






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Field Name Description R/O/C User Action and Values

Comments

Amount The total amount of revenue

R

Posting Key Posting Key for Asset Revenue posting

R Will be “50”

Account General Ledger Revenue account

R 301205 F.A. clearing a/c

Transaction Type

Asset transaction code

O Usually “210” (sale fm prior year acquisitions)

Use “260” if current year acquisition is sold)

Press ENTER to advance to the next screen: “On Enter Customer Invoice: Add G/L Account Item” Screen, enter information (required) in the fields as specified in the below table:






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Fixed Assets Training Manual

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