8/10/2019 Asset APC

1/2

APC is acquisition and production cost.

As a result of the integration in the R/3 System, Asset Accounting (FI-AA) transfers data directly to and from other R/3 components. For example, it is possibleto post from the Materials Management (MM) component directly to FI-AA. When anasset is purchased or produced in-house, you can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse, to assets in the Ass

et Accounting component. At the same time, you can pass on depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO) components.From the Plant Maintenance (PM) component, you can settle maintenance activitiesthat require capitalization to assets

If you post to an asset when entering a purchase requisition or an outline agreement, the system checks, with reference to the planned delivery date, whether the fixed asset actually exists and whether you can post to it. The same checks are carried out if you post to a fixed asset when entering a purchase order. Moreover, the system ensures that you do not exceed the upper limit for low-value assets. You can still change the asset, for which account assignment is to be performed, until receipt of the first goods or invoice for a purchase order.

If you want to carry out account assignment to assets when creating purchase orders, purchase requisitions and outline agreements, the account entered in Financial Accounting for "Acquisition and production costs" must be assigned to a field status group that allows entries in the field groups "asset number/sub-number," "transaction type," and "quantity."

APC = Acquisition and production costs

This is the valuation of an asset in the Balance sheet.In the case of external acquisition we incur certain costs which include all expenses for the acquisition

including incidental acquisition costs less reduction to the purchase price.

You might ask what are incidental costs :

eg are Freight charges,Forwarding costs,commissions etc

Reduction in purchase price could be

Rebates,Cash Discounts,

Bonuses,Subsidies granted by third party etc.,

There might be in house acquisition costs which include production costs

eg Direct and Indirect costs which includes materials handling overheadDirect Labour costs which includes payroll OHSpecial production costs

Question: Why and How we Revalue the Fixed Assets in SAP?Answer

8/10/2019 Asset APC

2/2

Purpose of RevaluationA revaluation of fixed assets is a technique that may be required to accuratelydescribe the true value of the capital goods a business owns. The purpose of a revaluation is to bring into the books the fair market value of fixed assets. This may be helpful in order to decide whether to invest in another business. If acompany wants to sell one of its assets, it is revalued in preparation for sales

negotiations.

Procedure for Revalue the Fixed Assets:1. Go to OABW and check both revalue APC and depreciation in the depreciation area where you want to post. This would help in identifying the area where the revaluation will have to be posted.2. Go to OAYR and select the company code. Then click on the posting rules.In the book depreciation area, go to other posting settings. Check post revaluation. This setting is required for posting the revaluation amount.3. Go to AO90 and Create a revaluation APC as well as clearing account. The revaluation APC has to be a recon account and the revaluation clearing a P&L. Similarly create for depreciation as accumulated and a normal P & L.

4. Now go to ABAW, and select the asset to be revalued. Put the transaction typeas 800. Press enter.In the next screen give an asset value date, amount to be posted as revaluation.Now click save. An asset accounting document will be generated.

Note:This revaluation amount will not be posted automatically. Once depreciation runtakes place then only the amount gets posted to the GL account. Hence it is advisable to run at the year end.Also the depreciation run has to be for the first time in order to get the revalued amount to be posted. Otherwise, the amount will not be posted in the GL account.Run the Depreciation for a period in AFAB. If you do a test run you would be abl

e to see the revaluation amount that has to be posted and the same would be reflected in the planned values in asset explorer (AW01N).Same wont be reflected in the posted values unless the depreciation run was not atest run.Once the depreciation run is done, revaluation account APC will be debited and the revaluation clearing account will be credited.This revaluation account will then be transferred to P & L account by passing amanual entry.