Asset accounting Part - 3

Define asset classes:

Path : SPRO-Financial accounting-Asset Accounting –Organizational structures–Asset Class (Tr code is OAOA)

Select new entries button

Asset class    :any code

Description    :Free hold land(it is text field)

Short text also :Free hold land

Account determination       :select your account determination (10000)

Screen layout rule               :select 1000

No.rage                                  :01

Select included asset under inventory data

Select no.AUC or Summary Management of AUC

Save

Press enter to save in your request

Note: AUC stands for Asset Under Construction

Select next entry button  (F8)

Asset class                            :1100

Description                            :Factory Buildings (it is text field)

Short text                               : Factory Buildings

Account determination       :select 11000 Buildings

Screen layout rule               :2000

Number rage                         :02

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC

Save

Select next entry button  (F8)

Asset class                            :2000

Description                            :  Dept A

Short text                               : Dept A

Account determination       :select  20000 P & M

Screen layout rule               :3000

Number rage                         :03

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC

Save

Select next entry button  (F8)

Asset class                            :3000

Description                            :  Furniture & Fixtures

Short text                               : Furniture & Fixtures

Account determination       :select 30000 Furniture & Fixtures

Screen layout rule               :4000

Number rage                         :04

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC

Save

Select next entry button  (F8)

Asset class                            :3100

Description                            :  Vehicles and others

Short text                               : Vehicles and others

Account determination       :select 31000 Vehicles and others

Screen layout rule               :5000

Number rage                                     :05

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC

Save

Select next entry button  (F8)

Asset class                            :4000

Description                            : Capital Work in Progress -General

Short text                               : Capital Work in Progress -General

Account determination       :select 40000 CWIP-General

Screen layout rule               :6000

Number rage                                     :06

Select include asset under inventory data check box

Select line item settlement radio button

Save

Select include asset under inventory data check box:

Inventory means fixed inventory, whatever assets we create they will be included in fixed assets inventory.

As per companies auditors report order (CARO) – the auditor will state whether fixed assets have been physically verified by management or not.

Incase of big companies à physical verification in a phased manner

When we create an asset master – There is a field called last verification date

Asset nos                                          Last verification date

1                                                                                             31.03.2014

2                                                                                             31.03.2013

3                                                                                             31.03.2014

4                                                                                             31.03.2013

5                                                                                             31.03.2013

In the report we give the report date – From 01.04.2010 to 31.03.2014 we get the list of asset verified during the year

1             31.03.2014

2             31.03.2014

3             31.03.2014

4             31.03.2014

We have not selected for capital work in progress

We can not verify every that assets –once they are commissioned they will be shown under respective head and not under capital work in progress

For capital work progress general –Select line item settlement radio button

Machinery                 Debit to                      Asset commissioned on 22.11.2014

01/11/2008                CWIP                          as machine no.10

Fright AMT

15/11/2014

Settle from Capital Work In Progress  to machine no.10 line item wise

Commissioning charges 22/11/2014

Determine areas in the asset class

Path :SPRO-Financial accounting –Asset accounting-Valuation –Determine depreciation areas in the asset class (Tr.Code is OAYZ)

Give the chat of depreciation                     :AML

Enter

Select position button

Asset class :1000 (Free hold land)

Enter

Select 1000 (Free hold land)

Double click depreciation areas folder

Deselect deactivation check box for area 01 Book depreciation

Layout                        :Select 2000 depreciation on asset sub-no level

For area 01 layout 2000

For area 02 layout 2000

For area 30 layout 2000

Save

Press enter to save in your request

Select back arrow

The same procedure the followed for asset class

1100               Factory building

2000               Dept A

3000               Furniture & Fixtures

3100               Vehicles & other                 

4000               Capital work in progress

Deselect deactivation check box for area 01 for land there is no depreciation

In asset master creation-Capitalization date –required  Land purchase details registration date

Depreciation key(Rate)                               0%

For area 01- Select 2000 – Depreciation on asset sub number level

                        Asset no.                               Sub.no.

Machine 10   1          -                                   0                      10/08/2010

Motor              1          -                                   1