Asset accounting Part - I

 This is sub ledger (subsidiary ledger) in SAP FI module, It deals with the assets of organization, The main aim of this module is to calculate the Depreciation, different types of depreciation methods are there. depend up on organization and country we are using relevant method. 

Chart of Depreciation:

This subsidiary ledger  customization will be done for Chart of Depreciation 

and It be assigned to company code/codes.

you can  copy either Germany chart of depreciation or your Country's chart of depreciation 

Depreciation areas:

Book depreciation (Postings to accounts)

Income tax depreciation 

Costing depreciation     

Group depreciation               | à for information only

     

Depreciation methods;

Straight Line Method  (SLM)

Written down value  (WDV)

Depreciation keys     Rate +Method

7% SLM Rate

7% WDV Rate

Transaction types(these are all sap standard )

100     External acquisition

110     In-house production 

210     Retirement with revenue

etc....

Asset debit

The debit going to be use of External acquisition (from Outside purchase) /In house production/Inter unit transfer/Inter company purchase.

With help of transaction type we can know because of what it is debited.

Posting keys: (sap posting keys)

70 Asset Debit

75 Asset Credit

Asset accounting is based on 4 rules:

1. Sub asset master is to be created   based on main asset master.

2. Main asset master is to be created based on asset class

3. Account determination is maintained in asset class

4. For account determination we maintain assignments of GL accounts based 

	Account determination	Asset class	Main asset master	Sub asset master
Purchase
200000 P & M	1.Land	Free hold
200000 P& M	2.Office	Lease
		Factory items Non factory items
	3. Plant & Machinery	Machine 1  Machine 2		Motor
	4. Furniture & Fixtures	plant furniture office furniture
	5. Vehicles	Heavy , Others
	6. Capital work in progress	General

from the account determination system going to pick the assigned general ledger accounts 

Main asset having  always sub number zero.

Crate machine no.999 Master                        999-0

Motor to machine no.1                    999-1

Addition to machine no.1               999-2

If we select  1-0 it gives main asset value

If we select 1-1 it gives motor value

If we select 1 it gives machines 1 with additions

Motor purchase: .

accounting entry 

Motor A/c       Dr        SL                   700000           Transaction type :100

                                                            2000000        P & M 50000 GL

            To Bank/cash  GL                           700000

Save