Asset Configuration

SAP ECC 6.00

June 2007

English

N72: Asset Management

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Building Block Configuration Guide

SAP Best Practices N72 - Asset Management: Configuration Guide

© SAP AG Page 2 of 111

Copyright

© Copyright 2007 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

MaxDB is a trademark of MySQL AB, Sweden.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

Separate Asset Class and Account Determination and GL accounts for Accumulated costs, Depreciation etc needs to be created for JISL

SAP Best Practices

© SAP AG

Icons

Icon Me

Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, options.

Cross

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables anames of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as ENTER

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

N72 - Asset Management: Configuration Guide

Page

Meaning

Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Description

Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, options.

Cross-references to other documentation.

Emphasized words or phrases in body text, titles of graphics and tables.

Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

Keys on the keyboard, for example, function keys (such as ENTER key.

Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

Asset Management: Configuration Guide

Page 3 of 111

Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and

Emphasized words or phrases in body text, titles of graphics and tables.

Names of elements in the system. These include report names, table names, and individual key

words of a programming language, when surrounded by body text, for

Screen output. This includes file and directory names and their paths, nd parameters as well as

Keys on the keyboard, for example, function keys (such as F2) or the

Exact user entry. These are words or characters that you enter in the

Variable user entry. Pointed brackets indicate that you replace these



ContentsN72 - Asset Management: Configuration Guide...............................................................................6

1 Purpose..................................................................................................................................6

2 Preparation ............................................................................................................................ 6

2.1 Prerequisites ...................................................................................................................6

3 Configuration .........................................................................................................................6

3.1 Organizational Structures................................................................................................6

3.1.1 Basic Settings......................................................................................................... 6

3.1.1.1 Checking Country-Specific Settings ..............................................................6

3.1.2 Chart of Depreciation..............................................................................................7

3.1.2.1 Copying Reference Chart of Depreciation/Depreciation Areas (Define Chart of Depreciation)...............................................................................................................7

3.1.2.2 Copying Reference Chart of Depreciation/Depreciation Areas (Specify Description of Chart of Depreciation)..............................................................................9

3.1.2.3 Assigning Chart of Depreciation to Company Code ....................................10

3.1.2.4 Specifying Number Assignment across Company Codes...........................11

3.1.3 Asset Classes.......................................................................................................12

3.1.3.1 Specifying Account Determination...............................................................12

3.1.3.2 Creating Screen Layout Rules.....................................................................13

3.1.3.3 Defining Screen Layout for Asset Master Data ...........................................15

3.1.3.4 Defining Screen Layout for Asset Depreciation Areas ................................16

3.1.3.5 Defining Number Range Interval (Asset Classes) .......................................16

3.1.3.6 Defining Asset Classes................................................................................18

3.1.3.7 Specifying Tab Layout for Asset Master Record .........................................23

3.1.3.8 Assigning Tab Layouts to Asset Classes ....................................................24

3.1.4 Depreciation Area.................................................................................................26

3.1.4.1 Defining depreciation areas (define depreciation areas) .............................26

3.1.4.2 Defining depreciation areas (specifying area type) .....................................29

3.2 Integration with the General Ledger..............................................................................30

3.2.1 Assigning G/L Accounts - Balance Sheet.............................................................31

3.2.2 Assigning G/L Accounts - Depreciation................................................................33

3.2.3 Specifying Financial Statement Version for Asset Reports..................................39

3.2.4 Specifying Document Type for Posting of Depreciation.......................................40

3.2.5 Specifying Intervals and Posting Rules ................................................................41

3.2.6 Specifying Account Assignment Types for Account Assignment Objects............43

3.2.7 Specifying Document Type for Periodic Processing ............................................44

3.3 Valuation .......................................................................................................................45

3.3.1 Depreciation Areas ...............................................................................................45

3.3.1.1 Specifying Transfer of APC Values .............................................................45

3.3.1.2 Specifying Transfer of Depreciation Terms .................................................46

Determine Depreciation Key .........................................................................................47

3.3.1.3 Determining Depreciation Areas in the Asset Class....................................49

3.3.1.4 Specifying Low-Value Asset Class ..............................................................59

3.3.1.5 Assigning Unit of measure to low value asset classes ................................60

3.3.1.6 Specifying Max. Amount for Low-Value Assets ...........................................61

3.3.1.7 Specifying Rounding of Net Book Value and/or Depreciation .....................62

3.3.1.8 Defining Depreciation Areas for Foreign Currencies ...................................63



3.3.2 Depreciation .........................................................................................................64

3.3.2.1 Determine Depreciation Areas (Ordinary Depreciation) ..............................64

3.3.2.2 Determining Depreciation Areas (Special Depreciation) .............................66

3.3.2.3 Determining Depreciation Areas (Unplanned Depreciation) .......................67

3.3.2.4 Limit Transaction Types to Depreciation Areas (Unplanned Depreciation). 68

3.3.2.5 Maintaining Depreciation Keys ....................................................................69

3.3.2.6 Defining Multi-level method .........................................................................70

3.3.3 Group Asset..........................................................................................................71

3.3.3.1 Specifying Depreciation Areas for Group Assets ........................................71

3.3.3.2 Specifying Asset Classes for Group Assets ................................................72

3.3.3.3 Changing the Field Status of the Asset G/L Accounts.................................73

3.3.4 Special Valuation..................................................................................................73

3.3.4.1 Investment Support......................................................................................73

3.3.4.1.1 Determining Depreciation Areas (Investment Support) ..........................733.3.4.1.2 Defining Investment Support Measures .................................................753.3.4.1.3 Specifying Depreciation Areas for Transaction Types (Inv.Supp.M)......773.3.4.1.4 Checking Transaction Types (Investment Support Measures) ..............78

3.3.4.2 Interest .........................................................................................................79

3.3.4.2.1 Determining Depreciation Areas (Interest) .............................................79

3.3.5 Transactions .........................................................................................................80

3.3.5.1 Allowing Down Payment Transaction Types in Asset Classes ...................80

3.3.5.2 Determining Cost Element for Settlement to CO Receiver..........................82

3.3.5.3 Assigning Settlement Profiles ......................................................................83

3.3.5.4 Defining Investment Profile..........................................................................84

3.3.6 Information System...............................................................................................86

3.3.6.1 Defining or Assigning Forms for History ......................................................86

3.3.6.2 Defining History Sheet Version....................................................................88

3.3.7 Asset Data Transfer..............................................................................................98

3.3.7.1 Setting Company Code Status ....................................................................98

3.3.7.2 Specifying Sequence of Depreciation Areas ...............................................98

3.3.7.3 Specifying Transfer Date/Last Closed Fiscal Year ....................................100

3.3.7.4 Recalculating Depreciation for Previous Years .........................................100

3.3.8 Preparing for production start-up........................................................................101

3.3.8.1 Authorization for Asset View......................................................................101

3.4 Import/Create Master Data..........................................................................................102

3.4.1 Creating Fixed Assets Master Data....................................................................102

3.4.1.1 Year End Closing of Previous Year ...........................................................102

3.4.1.2 Fiscal Year Change ...................................................................................103

3.4.1.3 Creating Values for old Assets ..................................................................103

3.4.1.4 Creating Asset - Master Data ....................................................................106

3.4.2 Investment Order - Direct Capitalization ............................................................107

3.4.2.1 Creating Investment Order for Direct Capitalization ..................................107

3.4.2.2 Order Plan for Direct Capitalization (KO12) ..............................................108

3.4.2.3 Cost Elements for Statistical Autom. Posting of Assets (OAK7) ...............109

3.4.2.4 Creating Asset Master for Direct Capitalization.........................................110




1 PurposeThis configuration guide provides the information you need to set up the configuration of this building block manually.

2 PreparationBefore starting the configuration of the building block, some preparation activities must be performed. All of these activities are described in the following chapters.

2.1 PrerequisitesIf you want to use this building block, you must first install all Layer 0 building blocks.

3 Configuration

3.1 Organizational Structures

UseThis section provides an overview of the organizational elements used in SAP Asset Accounting and their characteristics.

3.1.1 Basic Settings

Use

Some of the system settings in the FI-AA system are subject to different laws and guidelines in different countries. SAP provides these settings, for the most part, already preconfigured. However, SAP cannot take responsibility for their completeness.

3.1.1.1 Checking Country-Specific Settings

Use

The system uses the country-specific data in each company code that agrees with the country in the definition of the FI company code (FI Customizing).

SAP provides the appropriate default settings for most countries.

The standard defaults have to be checked for the selected country.

Procedure1. Access the activity using one of the following navigation options:

Transaction code OA08

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Check Country-Specific Settings

2. Choose relevant country (country key IN for this example) and choose “Details”.



3. On the Change View: “Asset Accounting: Country Information”: Details screen, check the following entries for your country (country key IN for this example).

Field name Description User action and values Note

Country currency

INR

Max LVA amount for posting

5000.00

Net book value for dep. change

No entry

Post net book value

No selection

Capitalize AuC w/o downpayment

No selection

4. Choose Save.

ResultThe Country-specific Settings are verified.

3.1.2 Chart of Depreciation

UseA chart of depreciation is a directory of depreciation areas arranged according to business requirements. Each chart of depreciation contains the rules for the evaluation of assets that are valid in a specific country or economic area.

Each company code defined in Asset Accounting must refer to a chart of depreciation.

3.1.2.1 Copying Reference Chart of Depreciation/Depreciation



Areas (Define Chart of Depreciation)

UseSAP provides country-specific charts of depreciation with predefined depreciation areas (for example, 0IN for India). These charts of depreciation are only references for customer charts of depreciation and therefore cannot be used directly. When you create your own chart of depreciation, you must copy a reference chart of depreciation.

When you create a chart of depreciation, the system copies all the depreciation areas from the standard chart of depreciation that you use as a reference. You must delete any depreciation areas you do not need from your chart of depreciation.

The chart of depreciation BPIN has been created as a copy of the chart of depreciation 0IN.


Transaction code EC08

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Copy Reference Chart of Depreciation/Depreciation Areas Copy Reference Chart of Depreciation

2. On the Organizational object Chart of Depreciation screen, select “copy org. object” (F6).

3. Make the following entries in the Copy dialog box and choose “Enter”.


From Chart of dep.

0IN

To Chart of dep.

JISL



ResultThe chart of depreciation has been created.

3.1.2.2 Copying Reference Chart of Depreciation/Depreciation Areas (Specify Description of Chart of Depreciation)

UseThe purpose of this activity is to change the description of the chart of depreciation BPIN.


Transaction code SPRO

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Copy Reference Chart of Depreciation/Depreciation Areas Specify Description of Chart of Depreciation

2. Change the Description of Chart of Depreciation BPIN to BPIN - Best Practices INDIA Chart of Depreciation



3. Choose Save (Ctrl+s).

ResultThe chart of depreciation description has been changed.

3.1.2.3 Assigning Chart of Depreciation to Company Code

UseWhen you assign a chart of depreciation, you define a company code for Asset Accounting. The chart of depreciation BPIN has been assigned to the company code BP01.

PrerequisitesThe company code must be defined in Financial Accounting.


Transaction code OAOB

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Assign Chart of Depreciation to Company Code

2. On the Change View: “Maintain company code in Asset Accounting”: Overview screen, make the following entries and save:


Co. BP01 Company Code



Chrt Dep. BPIN Chart of Depreciation

ResultThe chart of depreciation BPIN has been assigned to the company code BP01.

3.1.2.4 Specifying Number Assignment across Company Codes

UseIn the FI-AA module, you can assign the main asset number across company codes. Therefore, for every company code, you can determine from which (other) company code number assignment is to be carried out. In this step, you define a cross-company code assignment of the main asset number. If you do not want a cross-company code number assignment, you do not need to define any system settings here.

PrerequisitesYou must have edited the system-specific specifications of the company codes.


Transaction code AO11

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Specify Number Assignment Across Company Codes

2. On the Change View FI-AA: “Assignmt. to company code providing number range” screen, make the following entries:


CoCd Company Code BP01

No.Co.Cd. Company Code for Number Assignment

BP01

3. Choose Save.

ResultYou have determine which company code is to be used for the cross-company code number assignment for your company codes.



3.1.3 Asset Classes

UseAsset classes are the most important structuring elements for fixed assets. You can define any number of asset classes in the system. You can use them to structure your fixed assets according to different criteria. Asset classes are defined for all clients.

3.1.3.1 Specifying Account Determination

UseThe most important function of an asset class is to link asset master records to their respective general ledger accounts in Financial Accounting. This link is created by the account determination key in each asset class. You can assign several asset classes to the same account determination key.



IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Asset Classes Specify Account Determination

2. On the FI-AA: Account Determination screen, make the following entries:

Account Determination Name for Account Determination

IN10 Freehold land

IN11 Leaseholds

IN16 Residential buildings

IN17 Office and godown buildings

IN18 Factory buildings

IN20 Plant and machinery

IN21 Electrical installation

IN22 Factory equipment

IN23 Laboratory equipment

IN35 Aircraft and equipments

IN36 Railway sidings

IN37 Ships

IN40 Furniture and fixtures

IN41 Electrical fittings

IN42 Office equipments

IN50 Computers and accessories

IN51 Capitalized software

IN52 Web site

IN60 Vehicles

IN70 Development of property

SAP Best Practices

© SAP AG

IN75

IN76

IN95

IN99

3. Choose Save.

ResultThe account determination key is created.

In the sytem there can be more only the account determinations above are used.

3.1.3.2 Creating Screen Layout Rules

UseThe asset master record contains a large number of fields because it is used for many different purposes. To make it easier to maintain master data, you can adapt the asset master record to suit your own needs.



IMG menu Financial Accounting(New) Structures

2. On the Change View “Asset Accounting: Screen Layout for Master Record” the following entries and save:

Screen Layout Rule

IN10

IN11

IN16

IN17


Page

Goodwill

Patent, trademark and designs

Capital work-in-progress (CWIP)

Group asset-India income tax

The account determination key is created.

In the sytem there can be more than these account determination keys. For Best Practices only the account determinations above are used.

Screen Layout Rules

The asset master record contains a large number of fields because it is used for many t easier to maintain master data, you can adapt the asset master

Access the activity using one of the following navigation options:

SPRO

Financial Accounting(New) Asset Accounting Organizational Structures Asset Classes Create Screen Layout Rules

Change View “Asset Accounting: Screen Layout for Master Record” screen, make the following entries and save:

Name of Screen Layout Rule

Freehold land

Leaseholds

Residential buildings

Office and godown buildings


Page 13 of 111

than these account determination keys. For Best Practices

The asset master record contains a large number of fields because it is used for many t easier to maintain master data, you can adapt the asset master

Organizational Create Screen Layout Rules

screen, make



JS18 Factory buildings

JS20 Plant and machinery

IN21 Electrical installation

IN22 Factory equipment

IN23 Laboratory equipment

IN35 Aircraft and equipments

IN36 Railway sidings

IN37 Ships

IN40 Furniture and fixtures

IN41 Electrical fittings

IN42 Office equipments

IN50 Computers and accessories

IN51 Capitalized software

IN52 Web site

IN60 Vehicles

IN70 Development of property

IN75 Goodwill

IN76 Patent, trademark and designs

JS95 CWIP-Summary

IN98 CWIP-Investment measure

JS99 Group asset-India income tax

ResultYou have adapted the fields which will show up in the asset master record.



3.1.3.3 Defining Screen Layout for Asset Master Data

UseIn order to meet the needs of its many functions, the asset master record contains a large number of fields. To make master data maintenance nonetheless as simple and efficient as possible, the system enables you to design the asset master record to best suit your needs.

Screen layout rules IN10 to IN98 have been created and assigned to the asset classes. In all screen layout rules, the fields “Description 1” and “Cost Center” have been defined as required entry fields.



IMG menu Financial Accounting (new) Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Master Data Define Screen Layout for Asset Master Data

Since the screen layout has to be defined by each individual customer, only the field group assignment for the “Description 1” and “Cost Center” fields is described here. Set the entry fields for both fields mandatory in all screen layout rules.

2. On the Change View “Screen layout”: Overview screen select the screen layout you want to change.

3. Select “Logical field groups” in the Dialog Structure.

Field group assignment for “Description 1”:

4. On the Display View “Logical field groups”: Overview screen select the logical field group 1 (General Data).

5. Select “Field group rules” in the Dialog Structure.

6. On the Change View “Field group rules”: Overview screen define screen layout for field group 1 “Description 1”. Mark the field as required.

7. Select Logical Field groups.

Field group assignment for “Capitalization date”:

8. On the Display View “Logical field groups”: Overview screen select the logical field group 1 (General Data).


10. On the Change View “Field group rules”: Overview screen define screen layout for field group 2 “Posting information”. Mark the Capitalization date field as optional.

11. Select Logical Field groups.

Field group assignment for “Cost Center”:

12. On the Display View “Logical field groups”: Overview screen select the logical field group 3 (Time-Dependent Data).


14. On the Change “Field group rules”: Overview screen define screen layout for field group 15 “Cost Center”. Mark the field as required.

15. For the next screen layout rule go to procedure point two and continue.

16. Save the corrections.

ResultIn all screen layout rules, the fields “Description 1”, “Capitalization date” and “Cost Center” have been defined as required entry fields.

SAP Best Practices

© SAP AG

3.1.3.4 Defining Screen La

UseIn this step, you define the screen layout control for the depreciation terms (depreciation key, useful life, and so on) in the asset master record.

The standard screen layout 2000 has been assigned to asset classesscreen layout enables depreciation to be calculated at main number and sub



IMG menu Financial Accounting Screen Layout Areas

Since the standard screen layout is used, no further information is provided on the procedure.

3.1.3.5 Defining Number Range Interval (Asset

UseAn asset number uniquely identifies an asset. It always consists of a main asset number and an asset sub-number. Numbers can be assigned in the system externally or internally.

With external number assignment, the user is responsible for assigning the numbers. system displays only the defined number range interval and issues an error message if a number has already been assigned. With internal number assignment, the system assigns numbers sequentially.

All asset classes except class IN9900 (Group asset-India income tax)assignment (number range


Transaction code AS08

IMG menu Financial Accounting (New) Structures

2. In company code enters BP01

3. Choose Change Intervals button.

4. Make the following entries on the

No From Number

10 000010000001

11 000011000001

16 000016000001

17 000017000001

18 000018000001

20 000020000001


Page

Screen Layout for Asset Depreciation Areas

In this step, you define the screen layout control for the depreciation terms (depreciation key, useful life, and so on) in the asset master record.

The standard screen layout 2000 has been assigned to asset classes IN1000 to IN9screen layout enables depreciation to be calculated at main number and sub-number level.


AO21

Financial Accounting Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Depreciation Areas


Number Range Interval (Asset Classes)

set number uniquely identifies an asset. It always consists of a main asset number and number. Numbers can be assigned in the system externally or internally.

With external number assignment, the user is responsible for assigning the numbers. system displays only the defined number range interval and issues an error message if a number has already been assigned. With internal number assignment, the system assigns

All asset classes except class IN9598 (CWIP-Capital investment measure)India income tax) have been defined to use external number

assignment (number range 98 and 99).


AS08

Financial Accounting (New) Asset Accounting Organizational Structures Asset Classes Define Number Range Interval

BP01.

button.

Make the following entries on the Maintain Number Range Intervals screen:

From Number To Number

000010000001 000010009999

000011000001 000011009999

000016000001 000016009999

000017000001 000017009999

000018000001 000018000999

000020000001 000020009999


Page 16 of 111

Areas

In this step, you define the screen layout control for the depreciation terms (depreciation key,

9900. This number level.

Master Data Define Screen Layout for Asset Depreciation


)

set number uniquely identifies an asset. It always consists of a main asset number and number. Numbers can be assigned in the system externally or internally.

With external number assignment, the user is responsible for assigning the numbers. The system displays only the defined number range interval and issues an error message if a number has already been assigned. With internal number assignment, the system assigns

and have been defined to use external number

Organizational Define Number Range Interval

Ext.



21 000021000001 000021009999

22 000022000001 000022009999

23 000023000001 000023009999

35 000035000001 000035009999

36 000036000001 000036009999

37 000037000001 000037009999

40 000040000001 000040009999

41 000041000001 000041009999

42 000042000001 000042009999

50 000050000001 000050009999

51 000051000001 000051009999

52 000052000001 000052009999

60 000060000001 000060009999

70 000070000001 000070009999

75 000075000001 000075009999

76 000076000001 000076009999

95 000095000001 000095009999

98 E Z X

99 000099000001 000099009999 X

96 000096000001 000096009999

5.



5. Choose Save.

3.1.3.6 Defining Asset Classes

(Create a separate Asset Class for Low Value Assetsfor JISL)

UseFrom an accounting point of view, the asset class is the most important element for structuring fixed assets. Each asset must be assigned to one asset class only. The asset class assigns the assets and their business transactions to the appropriate general ledger accounts. Several asset classes can be assigned to the same account. This makes it possible for fixed assets to be structured in more detail at asset class level. Such detailed structuring is not necessary at general ledger account level. It is also possible to define the screen layout, tab layout, and asset number assignment for each class.


Transaction code OAOA

IMG menu Financial Accounting (New) Asset Accounting Organizational Structures Asset Classes Define Asset Classes

2. On the Change View “Asset Classes”: Overview screen, select “New Entries” (F5).

3. On the New Entries: Details of Added Entries screen, make the following entries and save:



Class Asset Class Description Short Text

IN1000 Freehold land Freehold land

IN1100 Leaseholds Leaseholds

IN1600 Residential buildings Residential bldg

IN1700 Office and godown buildings Office/godown bldg

IN1800 Factory buildings Factory bldg

IN2000 Plant and machinery Plant & machinery

IN2100 Electrical installation Electrical instaln

IN2200 Factory equipment Factory equip

IN2300 Laboratory equipment Laboratory equip

IN3500 Aircraft and equipments Aircraft & equip

IN3600 Railway sidings Railway sidings

IN3700 Ships Ships

IN4000 Furniture and fixtures Furniture & fixtures

IN4100 Electrical fittings Electrical fittings

IN4200 Office equipments Office equip

IN5000 Computers and accessories Computers & acc.

IN5100 Capitalized software Capitalized software

IN5200 Web site Web site

IN6000 Vehicles Vehicles

IN7000 Development of property Dvlpmnt of property

IN7500 Goodwill Goodwill

IN7600 Patent, trademark and designs Patent, tm & designs

IN9500 CWIP-Summary CWIP-Summary

IN9510 CWIP-Freehold land CWIP-F/H land

IN9511 CWIP-Leaseholds CWIP-L/H

IN9516 CWIP-Residential buildings CWIP-Res bldg

IN9517 CWIP-Office and godown buildings CWIP-Off bldg

IN9518 CWIP-Factory buildings CWIP-Fac bldg

IN9520 CWIP-Plant and machinery CWIP-P&M

IN9521 CWIP-Electrical installation CWIP-Elec instaln

IN9522 CWIP-Factory equipment CWIP-Fac equip

IN9523 CWIP-Laboratory equipment CWIP-Lab equip

IN9535 CWIP-Aircraft and equipments CWIP-Aircraft

IN9536 CWIP-Railway sidings CWIP-Rly sidings

IN9537 CWIP-Ships CWIP-Ships

IN9540 CWIP-Furniture and fixtures CWIP-F&F

IN9541 CWIP-Electrical fittings CWIP-Elec fittings



IN9542 CWIP-Office equipments CWIP-Off equip

IN9550 CWIP-Computers and accessories CWIP-Computers

IN9551 CWIP-Capitalized software CWIP-Software

IN9552 CWIP-Web site CWIP-Web site

IN9560 CWIP-Vehicles CWIP-Vehicles

IN9570 CWIP-Development of property CWIP-Dvlpmnt of prop

IN9575 CWIP-Goodwill CWIP-Goodwill

IN9576 CWIP-Patent, trademark and designs CWIP-Pat, tm & des

IN9598 CWIP-Capital investment measure CWIP-Invest measure

IN9900 Group asset-India income tax Group asset for IT

JS9600 Low Value Assets LVA

Account Determi-nation

Scr. Layout Rule

Base Unit

Num-ber Range

Ext. sub-no

Include Asset

No AuC or sum.mgt of AuC

Line Item Settlement

Investment Mea-sure

Manage h histori- c cally

Real estate indic.

IN10 IN10 10 X X 1

IN11 IN11 11 X X 1

IN16 IN16 16 X X 1

IN17 IN17 17 X X 1

IN18 IN18 18 X X 1

IN20 IN20 20 X X X 0

IN21 IN21 21 X X X 0

IN22 IN22 22 X X X 0

IN23 IN23 23 X X X 0

IN35 IN35 35 X X 0

IN36 IN36 36 X X 0

IN37 IN37 37 X X 0

IN40 IN40 40 X X X 0

IN41 IN41 41 X X X 0

IN42 IN42 42 X X X 0

IN50 IN50 50 X X X 0

IN51 IN51 51 X X X 0

IN52 IN52 52 X X X 0

IN60 IN60 60 X X X 0

IN70 IN70 70 X X 0

IN75 IN75 75 X X 0

SAP Best Practices

© SAP AG

IN76 IN76

IN95 IN95

IN95 IN10

IN95 IN11

IN95 IN16

IN95 IN17

IN95 IN18

IN95 IN20

IN95 IN21

IN95 IN22

IN95 IN23

IN95 IN35

IN95 IN36

IN95 IN37

IN95 IN40

IN95 IN41

IN95 IN42

IN95 IN50

IN95 IN51

IN95 IN52

IN95 IN60

IN95 IN70

IN95 IN75

IN95 IN76

IN95 IN98

IN99 IN99

The classes defined above should meet most of the requirements of customers in India. At least one asset class has been created for each asset account in the general ledger. Some asset classes refer to the same general ledger account (for example, IN9500 to IN9598

Asset class IN9598

The asset classes may


Page

76 X X

95 X X

95 X X

95 X X

95 X X

95 X X

95 X X

95 X X X

95 X X X

95 X X X

95 X X X

95 X X

95 X X

95 X X

95 X X X

95 X X X

95 X X X

95 X X X

95 X X X

95 X X X

95 X X X

95 X X

95 X X

95 X X

98 X X

99 X X

The classes defined above should meet most of the requirements of customers in At least one asset class has been created for each asset account in the

Some asset classes refer to the same general ledger account (for 0 to IN9598).

IN9598 is indicated as the asset class for investment measures.

may be revised, if required, when the system is set up.


Page 21 of 111

X 0

X 0

X 1

X 1

X 1

X 1

X 1

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

X 0

The classes defined above should meet most of the requirements of customers in At least one asset class has been created for each asset account in the

Some asset classes refer to the same general ledger account (for

is indicated as the asset class for investment measures.

when the system is set up.



ResultAsset classes have been defined.



3.1.3.7 Specifying Tab Layout for Asset Master Record

UseBecause of the large number of fields, the asset master record is divided into several tab pages. In this step, you define the layout of these tab pages.

You can specify which tab pages are displayed for each asset class (or if needed, by chart of depreciation within the asset class). For each tab page, you can specify which field groups appear in which positions on the tab page.


Transaction code AOLA

IMG menu Financial Accounting Asset Accounting Master Data Screen Layout Specify Tab Layout for Asset Master Record

2. On the “Choose activity” popup screen select “Define Tab Layout for Asset Master Data.

3. On the Change View “Layout”: Overview screen select “New Entries”.

4. Make the following entries:

Layout Layout Description

ZBPI Layout for India

5. Select line ZBPI and “Tab page titles” in the Dialog Structure.

6. On the Change View “Layout Asset Ma” screen select the following tab page:

Tab Layout Tab Page Title

ZBPI 01 General

ZBPI 02 Time-Dependent

ZBPI 03 Allocations

ZBPI 04 Origin

ZBPI 06 Insurance

ZBPI 07 Leasing

ZBPI 08 Deprec. Areas

7. Choose “Position of groups on the tab pages” in the Dialog Structure.

8. On the “Layout Asset Master Data: Position”: Overview screen enter the following data and save:

Tab Layout Tab Page Position Group Box

ZBPI 01 01 S0001

ZBPI 01 02 S0011

ZBPI 01 03 S0002

ZBPI 02 01 S0003

ZBPI 03 01 S0004

ZBPI 03 02 S0012

ZBPI 03 03 S0013



ZBPI 04 01 S0009

ZBPI 04 02 S0010

ZBPI 06 01 S0008

ZBPI 07 01 S0005

ZBPI 08 01 S0100

ResultThe Tab Layouts are designed.

3.1.3.8 Assigning Tab Layouts to Asset Classes

UseThe master data layout ZBPI has to be assigned to asset classes IN1000 to IN9900.


Transaction code AOLK

IMG menu Financial Accounting Asset Accounting Master Data Screen Layout Specify Tab Layout for Asset Master Record

2. On the “Choose activity” popup screen select “Assign Tab Layouts to Asset Classes.

3. Select the asset classes for Best Practices (beginning with IN1000).

4. Select General Assignment of Layout.

5. On the Change View “General Assignment of Layout”: Overview screen make the following entries:

Trans.grp Name Tab layout Layout des

Others Asset accountant ZBPI Layout for India

6. Go back and select the next asset class and begin again with step 3.

7. Save the entries.

ResultThe master data layout ZBPI has been created and assigned to asset classes IN1000 to IN9900:

Asset Class Trans. Grp Tab Layout

IN1000 OTHERS ZBPI

IN1100 OTHERS ZBPI

IN1600 OTHERS ZBPI

IN1700 OTHERS ZBPI

IN1800 OTHERS ZBPI

IN2000 OTHERS ZBPI

IN2100 OTHERS ZBPI

IN2200 OTHERS ZBPI



IN2300 OTHERS ZBPI

IN3500 OTHERS ZBPI

IN3600 OTHERS ZBPI

IN3700 OTHERS ZBPI

IN4000 OTHERS ZBPI

IN4100 OTHERS ZBPI

IN4200 OTHERS ZBPI

IN5000 OTHERS ZBPI

IN5100 OTHERS ZBPI

IN5200 OTHERS ZBPI

IN6000 OTHERS ZBPI

IN7000 OTHERS ZBPI

IN7500 OTHERS ZBPI

IN7600 OTHERS ZBPI

IN9500 OTHERS ZBPI

IN9510 OTHERS ZBPI

IN9511 OTHERS ZBPI

IN9516 OTHERS ZBPI

IN9517 OTHERS ZBPI

IN9518 OTHERS ZBPI

IN9520 OTHERS ZBPI

IN9521 OTHERS ZBPI

IN9522 OTHERS ZBPI

IN9523 OTHERS ZBPI

IN9535 OTHERS ZBPI

IN9536 OTHERS ZBPI

IN9537 OTHERS ZBPI

IN9540 OTHERS ZBPI

IN9541 OTHERS ZBPI

IN9542 OTHERS ZBPI

IN9550 OTHERS ZBPI

IN9551 OTHERS ZBPI

IN9552 OTHERS ZBPI

IN9560 OTHERS ZBPI

IN9570 OTHERS ZBPI

IN9575 OTHERS ZBPI

IN9576 OTHERS ZBPI

IN9598 OTHERS ZBPI



IN9900 OTHERS ZBPI

JS9600 OTHERS ZBPI

3.1.4 Depreciation Area

3.1.4.1 Defining depreciation areas (define depreciation areas)

UseThe depreciation areas in the chart of depreciation BPIN have the following functions:

Book Depreciation (01)

This area is the master area. Transactions for this depreciation area are posted directly to the general ledger (as per The Companies Act, 1956, India). Depreciation area 01 does not manage any special tax depreciation (for income tax purpose). This is represented in depreciation area 15.

Depreciation as per Income Tax Act 1961 (15)

This area manages the special tax depreciation. This area is set for calculating depreciation as required by Income tax laws in India. The Customizing setting ensures that the acquisition and production costs (APC or “Original Cost” as normally called in India) for this area are identical to those for the book depreciation area 01.

Cost-Accounting Depreciation (20)

Asset values for cost-accounting depreciation are managed in this area. This area permits the depreciation of replacement values. The depreciation can also occur below net book value zero – dependent on the depreciation key. Imputed interest is also calculated in this depreciation area.

Consolidated Balance Sheet in Local Currency (30)

If an organization is part of a corporate group, which has its own guidelines for the valuation of fixed assets, a separate area is required for the group valuation. In this area, acquisition and production costs, as well as depreciation parameters, can be managed alternatively to the balance sheet depreciation area.

In the chart of depreciation BPIN, area 30 is identical to area 01 (book depreciation) and may need to be adjusted in the customer system.

Consolidated Balance Sheet in group Currency (31)

If an organization is part of a corporate group, which has its own guidelines for the valuation of fixed assets, a separate area is required for the group valuation. In this area, acquisition and production costs, as well as depreciation parameters, can be managed alternatively to the balance sheet depreciation area

Book Depreciation in group currency (32)

This area represents book depreciation in group currency.

Investment Support Deducted from Asset (41)

This area represents investment support measures that are deducted from the acquisition and production costs (APC or “Original Cost” as normally called in India). In book depreciation (01), the APC (or “Original Cost” as normally called in India) are reduced by the investment support amount. If you want to use more than one investment support measure for an asset, you must create a further investment support area, which reduces APC (or “Original Cost” as normally called in India), for each additional support measure.

Investment Support Posted to Liabilities (51)

This area manages investment support measures that are posted to liabilities. The measures are posted as liability adjustment items for the acquisition and production costs. Acquisition and production costs (APC or “Original Cost” as normally called in India) are not reduced in the book depreciation area. Nor does posting take place in the book depreciation area. The

SAP Best Practices

© SAP AG

support amount managed on the liabilities side can be written off through desame way as the acquisition and production costs in the book depreciation area.

Since the chart of depreciation 0IN (in this case, BPIN), only minor adjustments are required.

PrerequisitesYou must have added your own chart of accounts.


Transaction code OADB

IMG menu Financial Accounting (New) Depreciation Areas Depreciation Areas

2. On the Change View: “Define Depreciation Areas”: Overviewdepreciation area and choose “Details”.

Since the chart of depreciation has been copied from 0areas already exist. If a depreciation area is missing add the new depreciation area by copying it from an existing area.

3. On the Change View: “Define Depreciation Areas”: Details entries:

Chart of Depreciation

Depreciation Area

BPIN 01

BPIN 15

BPIN 20

BPIN 30

BPIN 31

BPIN 32

BPIN 41

BPIN 51

Define Depreciation Areas

Depr. Area

Real Dep. Area

01 X

15 X


Page

support amount managed on the liabilities side can be written off through depreciation in the same way as the acquisition and production costs in the book depreciation area.

0IN was copied to the customer-specific chart of depreciation ), only minor adjustments are required.

You must have added your own chart of accounts.


OADB

Financial Accounting (New) Asset Accounting Valuation Depreciation Areas Define Depreciation Areas Depreciation Areas

Change View: “Define Depreciation Areas”: Overview screen, select the depreciation area and choose “Details”.

Since the chart of depreciation has been copied from 0IN, the required depreciatareas already exist. If a depreciation area is missing add the new depreciation area by copying it from an existing area.

Change View: “Define Depreciation Areas”: Details screen, make the following

Depreciation Short Text Description

Book deprec. Book depreciation

Tax bal.sht. Depreciation as per Income Tax Act 1961

Cost-acc. Cost-accounting depreciation

Group GBP Consolidated balance local currency

Group USD Consolidated balance group currency

BkDep(g.cur) Book depreciation in group currency

Inv.subsidy Investment support dasset

Inv.subs. 1 Investment support pliabilities

Areas

Posting in G/L

Target Ledger Group

Diff. Depr.area

1

0


Page 27 of 111

preciation in the

specific chart of depreciation

Valuation Define

screen, select the

, the required depreciation areas already exist. If a depreciation area is missing add the new depreciation area

screen, make the following

Depreciation as per Income Tax

epreciation

alance sheet in

alance sheet in

Book depreciation in group

Investment support deducted from

posted to

Cross syst. Dep. Area

SAP Best Practices

© SAP AG

20 X

30 X

31 X

32 X

41 X

51 X

Posting in G/L:0 = Area does not post1 = Area posts in real time2 = Area posts APC (or “Original Cost”)3 = Area posts depreciation only

Value Maintenance:

Depr. Area

Acqu. Value

Net book value

Investm. Grants

01 + + -

15 + + -

20 + * 0

30 + + -

31 + + -

32 + + -

41 0 - -

51 0 - -

0 = no values allowed

1 + = Only positive values or zero allowed- = Only negative values or zero allowed* = All values allowed

Entries for derived depreciation area

Depr. Area

Area Report. Purpos. only

Derived depr. area as real area

01

15

20

30

31

32


Page

3(0 for JISL)

0

0

0

0

0

0 = Area does not postArea posts in real time

APC (or “Original Cost”) and depreciation on periodic basis3 = Area posts depreciation only

Investm. Grants

Reva-luation

Ord. Depr.

Special Depr.

Un-plannedDepr.

Transfer reserv.

0 - 0 - 0

0 - 0 - 0

0 * - 0 - 0

0 - 0 - 0

0 - 0 - 0

0 - 0 - 0

0 + 0 + 0

0 + 0 + 0

values allowed

+ = Only positive values or zero allowed= Only negative values or zero allowed

* = All values allowed

Entries for derived depreciation area

Derived depr. area as

Depr. Area Sign (line1)

Divisor

(line1)

Area

(line1)

Depr. Area Sign (line2)

Divisor

(line2)


Page 28 of 111

epreciation on periodic basis

Trans-fer reserv.

Interest Reval. Ord. Depr.

0 0

0 0

+ *

0 0

0 0

0 0

0 0

0 0

Divisor

(line2)

Area

(line2)



41

51

Created a new depreciation by copying the income tax depreciation are (which will not post depreciation to the general ledger) and also depreciation area 20 should be 0 instead of 3 (no postings to be done)

4. Choose Save.

3.1.4.2 Defining depreciation areas (specifying area type)

UseDepreciation areas are assigned to a type, which describes the primary purpose of the depreciation area. When you create a chart of depreciation, the system copies this typing from the reference chart of depreciation. For example, area 01 is assigned to the ‘Book Depreciation’ type.


Transaction code OADC

IMG menu Financial Accounting Asset Accounting Valuation Depreciation Areas Define Depreciation Areas Specify Area Type

2. On the chart of depreciation screen, make the following entries:


ChDep chart of depreciation

BPIN Enter the chart of depreciation you have defined

3. On the Change View Actual depreciation areas: area type screen, make the following entries (Table V_T093A_01):



Area Name of Depreciation Area Type Description

01 Book depreciation 01 Valuation for trade bal. sheet

15 Depreciation as per Income Tax Act 1961

03 Valuation for tax bal. sheet (diff. from trade bal. sheet)

20 Cost-accounting depreciation 07 Cost-Acc. Valuation

30 Consolidated balance sheet in local currency

06 Group valuation

31 Consolidated balance sheet in group currency

06 Group valuation

32 Book depreciation in group currency 06 Group valuation

41 Investment support deducted from asset

08 Investment support

51 Investment support posted to liabilities

08 Investment support

Assigned the US depreciation are to 10 US federal tax type(10)

3.2 Integration with the General Ledger

Use

The system settings and entries you make in this section are required for the integration of Asset Accounting with the General Ledger:

Depreciation areas that post depreciation/APC (or “Original Cost”) automatically to the General Ledger

G/L accounts that are relevant for Asset Accounting (reconciliation accounts and accounts that are posted using batch input)

SAP Best Practices

© SAP AG

Screen layout controls for G/L accounts

Default input tax indicator for transactions not subject to tax

Specifications for periodic posting of deprec

Result

The depreciation areas that post their transactions and/or depreciation to the general ledger are specified.

3.2.1 Assigning G/L Accounts

UseYou need to specify general ledger accounts reserve accounts and depreciation accounts to be able to post your asset figures to general ledger accounts.

The system is preset in such a way that managed together in depreciation areas

PrerequisitesThe general ledger accounts must be set up.



IMG menu Financial Accounting (New) with the General Ledger

2. Choose “Balance Sheet Accounts” in dialog structure.

3. The following general ledger accounts (chart of accounts

Acct. Deter-mina-tion table 1

Depr. Area

Acquis. and prod. costs

IN10 1 20000000

IN11 1 20010000

IN16 1 20102000

IN17 1 20101000

IN18 1 20100000


Page

Screen layout controls for G/L accounts

Default input tax indicator for transactions not subject to tax

Specifications for periodic posting of depreciation to the General Ledger

The depreciation areas that post their APC (or “Original Cost” as normally called in India)transactions and/or depreciation to the general ledger are specified.

G/L Accounts - Balance Sheet

pecify general ledger accounts – such as balance sheet accounts, special reserve accounts and depreciation accounts to be able to post your asset figures to general

The system is preset in such a way that reserves for special depreciation managed together in depreciation areas 15.

The general ledger accounts must be set up.


AO90

Financial Accounting (New) Asset Accounting Integration with the General Ledger Assign G/L Accounts

Choose “Balance Sheet Accounts” in dialog structure.

The following general ledger accounts (chart of accounts BPIN) should be assigned.

and prod. Acquis. down Paymt

Contra acct. acquis. Value

Down paymt. Clearing acct.

Acquis. Affiliated comp.

Freehold land 18739011

Leasehold 18739011

20102000Residential

building 18739011

Office and Godown building 18739011

20100000 Factory Bld 18739011


Page 31 of 111

APC (or “Original Cost” as normally called in India)

such as balance sheet accounts, special reserve accounts and depreciation accounts to be able to post your asset figures to general

n can be

Integration

) should be assigned.

Acquis. Affiliated comp.

Revenue post capitaliz.

39117900

39117900

39117900

39117900

39117900



IN20 1 20200000 P & M 18739011 39117900

IN21 1 20210000 Elec. Inst. 18739011 39117900

IN22 1 20220000 Fac. Equpmt. 18739011 39117900

IN23 1 20230000 Lab Equip. 18739011 39117900

IN35 1 20350000 18739011 39117900

IN36 1 20360000 18739011 39117900

IN37 1 20370000 18739011 39117900

IN40 1 20400000 Fur & Fix. 18739011 39117900

IN41 1 20410000 Elec. Fittgs. 18739011 39117900

IN42 1 20420000 Offc . Equp 18739011 39117900

IN50 1

IN51 1

IN52 1

IN76 1

IN95 1 20950000 38739011 45100010


Depr. Area

Loss asset retirem. w/o revenue

Clear. Acct. revenue asset sale

Gain asset sale

Loss asset sale

Clear. Rev. sale to affil. Comp.

IN10 1 58190010 39117900 45100000 58190000

IN11 1

IN16 1

IN17 1

IN18 1

IN20 1

IN21 1

IN22 1 49030200 39117900 39300100 49030100

IN23 1 49030200 39117900 39300100 49030100

IN35 1 49030200 39117900 39300100 49030100

IN36 1 49030200 39117900 39300100 49030100

IN37 1 49030200 39117900 39300100 49030100

IN40 1 49030200 39117900 39300100 49030100

IN41 1 49030200 39117900 39300100 49030100

IN42 1 49030200 39117900 39300100 49030100

IN50 1 49030200 39117900 39300100 49030100

IN51 1 49030200 39117900 39300100 49030100

IN52 1 49030200 39117900 39300100 49030100

IN60 1 49030200 39117900 39300100 49030100

IN70 1 49030200 39117900 39300100 49030100

IN75 1 49030200 39117900 39300100 49030100



IN76 1 49030200 39117900 39300100 49030100

IN95 1 49030200 39117900 39300100 49030100


Depr. Area

Reval. acquis. and prod. costs

Offsetting acct. reval. APC

Cost element settlmt. AuC to CO obj.

Capital. difference / non operat. exp.

IN10 1IN11 1IN16 1IN17 1IN18 1IN20 1IN21 1IN22 1IN23 1IN35 1IN36 1IN37 1IN40 1IN41 1IN42 1IN50 1IN51 1IN52 1IN60 1IN70 1IN75 1IN76 1IN95 1

3.2.2 Assigning G/L Accounts - Depreciation

Use



IMG menu Financial Accounting (New) Asset Accounting Integration with the General Ledger Assign G/L Accounts

2. Choose “Depreciation” in dialog structure.

3. The following general ledger accounts (chart of accounts BPIN) should be assigned.


Depr. Area

Acc.Dep. accnt.for ord. depr.

Exp. Acc. for ord. depr.

Exp. Acc. for ord. depr. below zero

Revenue on Write-Up ord. depr.

Accum. Acct. special depr.

Expense acct. special depr.

Expense acct. special depr. below zero

Revenue from write-up special depr.

IN10 1 20110000 58100005

20



IN11 1 20110005 58110005 48110005

20 20110005 48110005

IN16 1 20160005 48160005 48160005

20 20160005 48160005

IN17 1 20170005 48170005 48170005

20 20170005 48170005

IN18 1 20110000 57000000 57000000

20 20110000 57000000

IN20 1 20200005 48200005 48200005

20 20200005 48200005

IN21 1 20210005 48210005 48210005

20 20210005 48210005

IN22 1 20220005 48220005 48220005

20 20220005 48220005

IN23 1 20230005 48230005 48230005

20 20230005 48230005

IN35 1 20350005 48350005 48350005

20 20350005 48350005

IN36 1 20360005 48360005 48360005

20 20360005 48360005

IN37 1 20370005 48370005 48370005

20 20370005 48370005

IN40 1 20400005 48400005 48400005

20 20400005 48400005

IN41 1 20410005 48410005 48410005

20 20410005 48410005

IN42 1 20420005 48420005 48420005

20 20420005 48420005

IN50 1 20500005 48500005 48500005

20 20500005 48500005

IN51 1 20510005 48510005 48510005

20 20510005 48510005

IN52 1 20520005 48520005 48520005

20 20520005 48520005

IN60 1 20600005 48600005 48600005

20 20600005 48600005

IN70 1 20700005 48700005 48700005

20 20700005 48700005

IN75 1 20750005 48750005 48750005

20 20750005 48750005



IN76 1 20760005 48760005 48760005

20 20760005 48760005

IN95 1

20


Depr. Area

Acc.Dep. accnt.for unplanned depr.

Exp. Acc. Unpl. depr.

Exp. Acc. Unpl. Depr. below zero

Revenue on Write-Up Unpl. Depr.

Value adj. acct. transfer of reserves

Contra acct. transf reserves

Revenue from write-up transfer reserves

IN10 1

20

IN11 1 20110005 48110005 48110005

20 20110005 48110005

IN16 1 20160005 48160005 48160005

20 20160005 48160005

IN17 1 20170005 48170005 48170005

20 20170005 48170005

IN18 1 20110000 57000000 57000000

20 20110000 57000000

IN20 1 20200005 48200005 48200005

20 20200005 48200005

IN21 1 20210005 48210005 48210005

20 20210005 48210005

IN22 1 20220005 48220005 48220005

20 20220005 48220005

IN23 1 20230005 48230005 48230005

20 20230005 48230005

IN35 1 20350005 48350005 48350005

20 20350005 48350005

IN36 1 20360005 48360005 48360005

20 20360005 48360005

IN37 1 20370005 48370005 48370005

20 20370005 48370005

IN40 1 20400005 48400005 48400005

20 20400005 48400005

IN41 1 20410005 48410005 48410005

20 20410005 48410005



IN42 1 20420005 48420005 48420005

20 20420005 48420005

IN50 1 20500005 48500005 48500005

20 20500005 48500005

IN51 1 20510005 48510005 48510005

20 20510005 48510005

IN52 1 20520005 48520005 48520005

20 20520005 48520005

IN60 1 20600005 48600005 48600005

20 20600005 48600005

IN70 1 20700005 48700005 48700005

20 20700005 48700005

IN75 1 20750005 48750005 48750005

20 20750005 48750005

IN76 1 20760005 48760005 48760005

20 20760005 48760005

IN95 1

20


Depr. Area

Reval. acc. ord. depr.

Offsetting acct. reval. ord. depr.

Expense acct. interest

Clearing interest posting

Exp. Interest book value below zero

IN10 1

20

IN11 1

20

IN16 1

20

IN17 1

20

IN18 1

20

IN20 1

20

IN21 1

20

IN22 1

20

IN23 1

20



IN35 1

20

IN36 1

20

IN37 1

20

IN40 1

20

IN41 1

20

IN42 1

20

IN50 1

20

IN51 1

20

IN52 1

20

IN60 1

20

IN70 1

20

IN75 1

20

IN76 1

20

IN95 1

20





Depreciation accounts for CWIP and Group for Income tax grouping need not be maintained

3.2.3 Specifying Financial Statement Version for Asset Reports

UseIn this step, you determine for each depreciation area which financial statement version the system is to use as a default. This default applies when the financial statement version is contained in the sort version used for a given report.

In company code BP01, financial statement version BPIN has been assigned to all depreciation areas.


Transaction code OAYN

IMG menu Financial Accounting (New) Asset Accounting Integration with the General Ledger Specify Financial Statement Version for Asset Reports



2. On the Change View: “Company code selection”: Overview screen select company code BP01 and choose then “Assign financial statement version” in the Dialog Structure.

3. On the Change View: “Assign financial statement version”: Overview screen make the following entries:

Company Code Area Financial Statement Version

BP01 01 BPIN

BP01 15 BPIN

BP01 20 BPIN

BP01 30 BPIN

BP01 31 BPIN

BP01 32 BPIN

BP01 41 BPIN

BP01 51 BPIN

4. Choose Save.

3.2.4 Specifying Document Type for Posting of Depreciation

UseIn order to post the depreciation with the depreciation posting run, you have to specify a document type and assign it to the company code. This document type must use internal number assignment and be used exclusively by the depreciation posting run.

Document type AF is assigned to company code BP01.



IMG menu Financial Accounting (new) Asset Accounting Integration with the General Ledger Post Depreciation to the General Ledger Specify Document Type for Posting of Depreciation

2. On the Document Type for Posting Depreciation screen, make the following entries:



Field Name Description User Actions and Values Note

CoCode JISL

Doc. Type AF

3.

4. Choose Save.

3.2.5 Specifying Intervals and Posting Rules

UseIn customizing, you specify the depreciation areas for which the depreciation is posted to the general ledger during the depreciation run. You also specify whether accounts are to be assigned to a CO object (cost center or internal order) and the period interval in which the posting takes place.


Transaction code OAYR

IMG menu Financial Accounting (New) Asset Accounting Integration with the General Ledger Post Depreciation to the General Ledger Specify Intervals and Posting Rules

2. On the change view “Company code selection”: Overview screen, select the company code BP01. In the Dialog structure select “Posting rules”.



3. On the change view “Posting rules”: Overview screen, select the depreciation area and go to details.

4. On the change view “Posting rules”: Details screen, make the following entries:


Depreciation area

01 Select

monthly posting

X Activate


Depreciation area

20 Select

monthly posting

X Activate

post interest X Activate



5. Choose Save.

ResultThe following settings have been made for company code BP01:

Deprec. Area Monthly Posting Assign Cost Centers

Post to Internal Order

Period Interval

01 X 001 (monthly)

15

20 X X X 001 (monthly)

30

31

32

41

51

3.2.6 Specifying Account Assignment Types for Account Assignment Objects

UseIn this step, you assign account assignment types to the account assignment objects.


Transaction code ACSET

IMG menu Financial Accounting (New) Asset Accounting Integration



with the General Ledger Additional Account Assignment Objects Specify Account Assignment Types for Account Assignment Objects

2. On the “Company Code”: Overview screen, select the company code BP01.

3. Select the “Depreciation Area” in the Dialog Structure.

4. On the “Depreciation Area” Overview screen select the depreciation area listed in the table below.

5. Select the “Account Assignment Objects” in the Dialog Structure.

6. On the “Account Assignment Objects” Overview screen make the following entries for account assignment type:

Company Code

Depr. Area

AcctAsgnOb

TTy Account Assignment Type AcctAssgnt

BP01 01 CAUFN * APC Values Posting X

BP01 01 CAUFN * Depreciation Run X

BP01 01 KOSTL * APC Values Posting X

BP01 01 KOSTL * Depreciation Run X

BP01 20 CAUFN * Depreciation Run X

BP01 20 KOSTL * Depreciation Run X

ResultIn chart of depreciation BPIN it is possible to post APC value with Cost Center & internal order & post depreciation values with cost centre & internal order in Area 01. In Area 20 it is possible to post depreciation values with cost center and order.

3.2.7 Specifying Document Type for Periodic Processing

UseIn this step, you assign the document type for period processing.




Transaction code ACSET

IMG menu Financial Accounting(New) Asset Accounting Integration with the General Ledger Post APC Values Periodically to the General Ledger Specify Document Type for Periodic Processing

2. Make the following entries and save:

Company code Doc Type Description

BP01 AC Asset Periodic Post

3.3 Valuation

Use

In this section, you make all configurations that have to do with the valuation of fixed assets.

3.3.1 Depreciation Areas

3.3.1.1 Specifying Transfer of APC Values

UseIn this step, you define transfer rules for the acquisition values of depreciation areas. These transfer rules ensure that certain depreciation areas manage identical acquisition values.

For the chart of depreciation BPIN, the acquisition costs for areas 15 has been defined as identical to those for the book depreciation area 01.


Transaction code OABC

IMG menu Financial Accounting (new) Asset Accounting Valuation Depreciation Areas Specify Transfer of APC Values

2. On the Depreciation Areas: Rules for value takeover screen, make the following entries:




Depreciation Area ValAd Ident.

BPIN 01 00

BPIN 15 01

BPIN 20 01

BPIN 30 01

BPIN 31 30 X

BPIN 32 01 X

BPIN 41 X

BPIN 51 00

3. Choose Save.

3.3.1.2 Specifying Transfer of Depreciation Terms

UseIn this step, you define transfer rules for the depreciation terms. You cannot define any depreciation terms in the asset master record for the depreciation areas to which the depreciation terms are being transferred. This ensures that the value of the depreciation areas is reduced uniformly.


Transaction code OABD

IMG menu Financial Accounting (New) Asset Accounting Valuation



Depreciation Areas Specify Transfer of Depreciation Terms

2. On the Depreciation areas: Rules for takeover of deprec. term screen, make the following entries:


Depreciation Area TTr (Terms Transfer) Identical

BPIN 01 00

BPIN 15

BPIN 20

BPIN 30 01

BPIN 31 30 X

BPIN 32 01 X

BPIN 41 01 X

BPIN 51 01 X

3. Choose Save.

Determine Depreciation Key1) Copy the Base Method of IN (std available) and create a new one with new

description

For US GAAP new Base method is created (dep. Rate on the basis of useful life)


IMG menu Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Calculation Methods Define Base Methods



2) Declining Base method is optional (for tax depreciation area already standard available)

Transaction code AFAMD

IMG menu Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Calculation Methods Define Declining Method

3) Maximum method is also Optional (Not required)4) Define Multi Level Method



Transaction code AFAMS

IMG menu Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Calculation Methods Define Multi-Level Methods

Companies Act

US GAAP

Costing

In the above case the validity start should be LEVELS



As per Income tax (perform the step in page no.71 for depreciation rates)

US GAAP

DEPRECIATION KEY INCOME TAX ACT

Transaction code AFAMA

IMG menu Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Maintain Depreciation Key



Companies Act Depreciation Key



US GAAP depreciation key



DEFINE INSURANCE VALUATION (MANUAL)

DEFINE INSUANCE TYPE



Transaction code OAVD

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Insurance Define Insurance Types

Create Insurance companies

Transaction code OAVF

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Insurance Create Insurance Companies

3.3.1.3

3.3.1.4 Determining Depreciation Areas in the Asset Class

UseWhen creating fixed assets, you can assign default values for the depreciation key and useful life, for example, by means of asset classes.

Since the number and structure of the asset classes is extremely customer-specific, only a few examples of asset classes have been created in the system.

The list above only shows the default values for the depreciation key and useful life in depreciation areas 01, 15 and 20. The default values for the remaining depreciation areas are not listed, since they are the same as the default values for depreciation area 01. Some asset classes have been set up without default values. When you create a fixed asset, you have to enter the depreciation key and useful life.

The asset classes always have to be revised when the system is set up.




Transaction code OAYZ

IMG menu Financial Accounting (New) Asset Accounting Valuation Determine Depreciation Areas in the Asset Class

2. On the Change View “Asset class”: Overview screen, select an asset class. Select “Depreciation Areas” in the Dialog Structure.

3. On the Change View “Depreciation Areas”: Overview screen enter the following data for the asset classes and save your entries. Activate only depreciation area 01, 15 and 20 as listed below. Deactivate rest of the depreciation areas.

Asset Class


Depreciation Area

Layout DepreciationKey

Planned Useful Life in Years(Use)

Planned Useful Life in Periods(Per)

IN1000 BPIN 1 2000 0000

IN1000 BPIN 15 2000 0000

IN1000 BPIN 20 2000 0000

IN1100 BPIN 1 2000 0000

IN1100 BPIN 15 2000 0000

IN1100 BPIN 20 2000 0000

IN1600 BPIN 1 2000 LINR 50

IN1600 BPIN 15 2000 IN1 50

IN1600 BPIN 20 2000 LINR 50

IN1700 BPIN 1 2000 LINR 50

IN1700 BPIN 15 2000 IN2 30

IN1700 BPIN 20 2000 LINR 30

IN1800 BPIN 1 2000 LINR 30

IN1800 BPIN 15 2000 IN2 30

IN1800 BPIN 20 2000 LINR 30

IN2000 BPIN 1 2000 LINR 10

IN2000 BPIN 15 2000 IN3 10

IN2000 BPIN 20 2000 LINR 10

IN2100 BPIN 1 2000 LINR 10

IN2100 BPIN 15 2000 IN3 10

IN2100 BPIN 20 2000 LINR 10

IN2200 BPIN 1 2000 LINR 10

IN2200 BPIN 15 2000 IN3 10

IN2200 BPIN 20 2000 LINR 10

IN2300 BPIN 1 2000 LINR 10

IN2300 BPIN 15 2000 IN3 10

IN2300 BPIN 20 2000 LINR 10



IN3500 BPIN 1 2000 LINR 10

IN3500 BPIN 15 2000 IN6 10

IN3500 BPIN 20 2000 LINR 10

IN3600 BPIN 1 2000 LINR 10

IN3600 BPIN 15 2000 IN3 10

IN3600 BPIN 20 2000 LINR 10

IN3700 BPIN 1 2000 LINR 10

IN3700 BPIN 15 2000 IN4 10

IN3700 BPIN 20 2000 LINR 10

IN4000 BPIN 1 2000 LINR 20

IN4000 BPIN 15 2000 IN2 20

IN4000 BPIN 20 2000 LINR 20

IN4100 BPIN 1 2000 LINR 20

IN4100 BPIN 15 2000 IN2 20

IN4100 BPIN 20 2000 LINR 20

IN4200 BPIN 1 2000 LINR 20

IN4200 BPIN 15 2000 IN3 20

IN4200 BPIN 20 2000 LINR 20

IN5000 BPIN 1 2000 LINR 5

IN5000 BPIN 15 2000 IN8 5

IN5000 BPIN 20 2000 LINR 5


IN5100 BPIN 15 2000 IN8 5

IN5100 BPIN 20 2000 LINR 5


IN5200 BPIN 15 2000 IN8 5

IN5200 BPIN 20 2000 LINR 5

IN6000 BPIN 1 2000 LINR 10

IN6000 BPIN 15 2000 IN3 10

IN6000 BPIN 20 2000 LINR 10

IN7000 BPIN 1 2000 LINR 50

IN7000 BPIN 15 2000 IN2 50

IN7000 BPIN 20 2000 LINR 50

IN7500 BPIN 1 2000 LINR 10

IN7500 BPIN 15 2000 IN5 10

IN7500 BPIN 20 2000 LINR 10

IN7600 BPIN 1 2000 LINR 10

IN7600 BPIN 15 2000 IN5 10

IN7600 BPIN 20 2000 LINR 10

IN9900 BPIN 1 1000 LINR 10



IN9900 BPIN 15 2000 IN5 10

IN9500 BPIN 1 2000 0000

IN9500 BPIN 15 2000 0000

IN9500 BPIN 20 2000 0000

IN9510 BPIN 1 2000 0000

IN9510 BPIN 15 2000 0000

IN9510 BPIN 20 2000 0000

IN9511 BPIN 1 2000 0000

IN9511 BPIN 15 2000 0000

IN9511 BPIN 20 2000 0000

IN9516 BPIN 1 2000 0000

IN9516 BPIN 15 2000 0000

IN9516 BPIN 20 2000 0000

IN9517 BPIN 1 2000 0000

IN9517 BPIN 15 2000 0000

IN9517 BPIN 20 2000 0000

IN9518 BPIN 1 2000 0000

IN9518 BPIN 15 2000 0000

IN9518 BPIN 20 2000 0000

IN9520 BPIN 1 2000 0000

IN9520 BPIN 15 2000 0000

IN9520 BPIN 20 2000 0000

IN9521 BPIN 1 2000 0000

IN9521 BPIN 15 2000 0000

IN9521 BPIN 20 2000 0000

IN9522 BPIN 1 2000 0000

IN9522 BPIN 15 2000 0000

IN9522 BPIN 20 2000 0000

IN9523 BPIN 1 2000 0000

IN9523 BPIN 15 2000 0000

IN9523 BPIN 20 2000 0000

IN9535 BPIN 1 2000 0000

IN9535 BPIN 15 2000 0000

IN9535 BPIN 20 2000 0000

IN9536 BPIN 1 2000 0000

IN9536 BPIN 15 2000 0000

IN9536 BPIN 20 2000 0000

IN9537 BPIN 1 2000 0000

IN9537 BPIN 15 2000 0000

IN9537 BPIN 20 2000 0000



IN9540 BPIN 1 2000 0000

IN9540 BPIN 15 2000 0000

IN9540 BPIN 20 2000 0000

IN9541 BPIN 1 2000 0000

IN9541 BPIN 15 2000 0000

IN9541 BPIN 20 2000 0000

IN9542 BPIN 1 2000 0000

IN9542 BPIN 15 2000 0000

IN9542 BPIN 20 2000 0000

IN9550 BPIN 1 2000 0000

IN9550 BPIN 15 2000 0000

IN9550 BPIN 20 2000 0000

IN9551 BPIN 1 2000 0000

IN9551 BPIN 15 2000 0000

IN9551 BPIN 20 2000 0000

IN9552 BPIN 1 2000 0000

IN9552 BPIN 15 2000 0000

IN9552 BPIN 20 2000 0000

IN9560 BPIN 1 2000 0000

IN9560 BPIN 15 2000 0000

IN9560 BPIN 20 2000 0000

IN9570 BPIN 1 2000 0000

IN9570 BPIN 15 2000 0000

IN9570 BPIN 20 2000 0000

IN9575 BPIN 1 2000 0000

IN9575 BPIN 15 2000 0000

IN9575 BPIN 20 2000 0000

IN9576 BPIN 1 2000 0000

IN9576 BPIN 15 2000 0000

IN9576 BPIN 20 2000 0000

IN9598 BPIN 1 2000 0000

IN9598 BPIN 15 2000 0000

IN9598 BPIN 20 2000 0000

IN9500 BPIN 1 2000 0000

IN9500 BPIN 15 2000 0000

IN9500 BPIN 20 2000 0000

IN9510 BPIN 1 2000 0000

IN9510 BPIN 15 2000 0000

IN9510 BPIN 20 2000 0000

IN9511 BPIN 1 2000 0000



IN9511 BPIN 15 2000 0000

IN9511 BPIN 20 2000 0000

IN9516 BPIN 1 2000 0000

IN9516 BPIN 15 2000 0000

IN9516 BPIN 20 2000 0000

IN9517 BPIN 1 2000 0000

IN9517 BPIN 15 2000 0000

IN9517 BPIN 20 2000 0000

IN9518 BPIN 1 2000 0000

IN9518 BPIN 15 2000 0000

IN9518 BPIN 20 2000 0000

IN9520 BPIN 1 2000 0000

IN9520 BPIN 15 2000 0000

IN9520 BPIN 20 2000 0000

IN9521 BPIN 1 2000 0000

IN9521 BPIN 15 2000 0000

IN9521 BPIN 20 2000 0000

IN9522 BPIN 1 2000 0000

IN9522 BPIN 15 2000 0000

IN9522 BPIN 20 2000 0000

IN9523 BPIN 1 2000 0000

IN9523 BPIN 15 2000 0000

IN9523 BPIN 20 2000 0000

IN9535 BPIN 1 2000 0000

IN9535 BPIN 15 2000 0000

IN9535 BPIN 20 2000 0000

On Asset Class for 01 Dep. Area Layout is 1000 specified so that System performance may not much affect.

Depreciation area 30, 31 32, 41 and 51 are deactivated for all asset class.

4. Choose Save.

3.3.1.5 Specifying Low-Value Asset Class

UseDuring every acquisition posting, the system checks the maximum low-value asset (LVA) amount, providing that the appropriate LVA indicator is set in the asset class concerned.

For chart of depreciation BPIN, the LVA indicator has not been set in the asset classes.




Transaction code

IMG menu Financial Accounting (New) Asset Accounting Valuation Amount Specifications (Company Code/Depreciation Area) Specify Max. Amount for Low-Value Assets + Asset Classes Specify LVA Asset Classes

2. If the dialog box “Chart of depreciation selection” appears, enter chart of depreciation BPIN and choose “Enter”.

3. On the Change View: “Asset Class: Overview screen select the following asset classes (one after the other) and select Low-val. asset check in Dialog Structure.

4. On the Change View: “Low-val. asset check”: Overview screen, make the following entries:

Asset Class Chart of Depreciation

Depreciation Area LVA Indicator

IN**** BPIN ** 0

LVA indicator is 0 or blank (No maximum amount check) for all asset classes in all depreciation areas.

5. Choose Save.

3.3.1.6 Assigning Unit of measure to low value asset classes

UseThe unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.

For chart of depreciation BPIN, no unit of measure setting is required.


Transaction code OAOA

IMG menu Financial Accounting (New) Asset Accounting Organizational



Structures Asset Classes Define Asset Classes

2. On the Asset Class: Overview screen select the following asset classes (one after the other)


3. On the Change View “Asset Classes”: Details screen make the following entry:


4. Choose Save.

3.3.1.7 Specifying Max. Amount for Low-Value Assets

UseIn this step, you define the maximum amount for low-value assets (LVAs) for each company code and depreciation area. The system checks the maximum amount during each acquisition posting, provided that the corresponding LVA indicator is set in the relevant asset class.

The following amounts have been defined for low-value assets for the depreciation areas in company code BP01:


Transaction code OAYK

IMG menu Financial Accounting (New) Asset Accounting Valuation Amount Specifications (Company Code/Depreciation Area) Specify Max. Amount for Low-Value Assets + Asset Classes

2. On the Company Code Selection: Overview screen select company code BP01 and select in Dialog Structure “amount for low value assets”.

3. On the “Amount for low value assets”: Overview screen, make the following entries:

Company Code Area LVA Amount Maximum LVA Amount for Purchase Order

BP01 01 5000.00 5000.00

BP01 15

BP01 20

BP01 30

BP01 31

BP01 32

BP01 41

BP01 51

4. Choose Save.

Maximum LVA amount 5000.00 INR

Maximum LVA amount for purchase orders for assets 5000.00 INR



3.3.1.8 Specifying Rounding of Net Book Value and/or Depreciation

UseYou can specify how net book values at year end, depreciation, and replacement values are to be rounded. You make the specifications for each depreciation area and company code.

No rounding specification has been defined for company code BP01.


Transaction code OAYO

IMG menu Financial Accounting Asset Accounting Valuation Amount Specifications (Company Code/Depreciation Area) Specify Rounding of Net Book Value and/or Depreciation

2. On the Change View “Company Code selection:” Overview screen select company code BP01 and select “Rounding specifications” in Dialog Structure.

3. On the Change View: “Rounding Specifications”: Overview screen select the depreciation area (see table below) and choose “Details”.

4. On the Change View: “Rounding Specifications”: Details screen, make the following entries for each depreciation area:

Area Net book value at year end

Autom. Calcul. Depr.

Replace-ment value

Arithm. Round.

Round up Round down

01 select select select

15 select

20 select

30 select

31 select

32 select

41 select

51 Select



5. Choose Save.

3.3.1.9 Defining Depreciation Areas for Foreign Currencies

UseIn Asset Accounting, you can manage depreciation areas in any currency. You can use the values from these areas for consolidation and evaluation purposes.

No foreign currency has been defined for company code BP01. All depreciation areas are managed in INR.


Transaction code OAYH

IMG menu Financial Accounting(New) Asset Accounting Valuation Currencies Define Depreciation Areas for Foreign Currencies

2. On the Change View “Company code selection”: Overview screen, select following line:

Company Code Company Name

BP01 Company Code BP01

3. On the Change View “Depreciation area currency”: Overview screen, make the following entries:

Area Name of depreciation area Crcy

01 Book depreciation INR

15 Depreciation as per Income Tax Act 1961 INR

20 Cost-accounting depreciation INR

30 Consolidated balance sheet in local currency INR

31 Consolidated balance sheet in group currency INR

32 Book depreciation in group currency INR

41 Investment support deducted from asset INR

51 Investment support posted to liabilities INR



4. Choose Save.

3.3.2 Depreciation

Use

In the following section, you make system settings for fixed asset depreciation.

3.3.2.1 Determine Depreciation Areas (Ordinary Depreciation)

UseIn this step, you determine the depreciation areas in which you want to manage ordinary depreciation. This setting means that this value type is allowed in the relevant depreciation area.

In chart of depreciation BPIN, ordinary depreciation can be managed in all depreciation areas.

Procedure

1. Access the activity using one of the following navigation options:

Transaction code OABN

IMG menu Financial Accounting (New) Asset Accounting Depreciation Ordinary Depreciation Determine Depreciation Areas

2. On the Specify depreciation areas for ordinary depreciation screen, activate for all depreciation areas.


Depr. Area Depreciation area Select all: 01, 15, 20, 30, 31, 32, 41, 51

Ord. Depr. ordinary depreciation

Select (all depreciation areas) Activate

3. Choose Save.



4. Choose one depreciation area after the other and go to detail screen.

5. On the Specify depreciation areas for ordinary depreciation screen, make the following entries:


Depr.Area Depreciation area for 01, 15, 20, 30, 31, 32

Only negative values and zero allowed

X Activate


Depr.Area Depreciation area for 41, 51

only positive values and zero allowed

X Activate

6. Choose Save.



3.3.2.2 Determining Depreciation Areas (Special Depreciation)

UseIn this step, you determine the depreciation areas in which you want to manage special depreciation. This setting means that this value type is allowed in the relevant depreciation area.

In chart of depreciation BPIN, special depreciation can be managed in depreciation areas 15(Special Tax Depreciation for APC (or “Original Cost” as normally called in India) in Fin. Statement).


Transaction code OABS

IMG menu Financial Accounting (New) Asset Accounting Depreciation Special Depreciation Determine Depreciation Areas

2. On the Specify depreciation areas for special depreciation Overview screen, enter the following values.


Depr.area depreciation area Select ‘15’

Spec. depr. special depreciation

X for depreciation areas ‘15’ Activate

3. Save your entries. Select one depreciation area after the other and go to detail.

4. On the Specify depreciation areas for special depreciation Detail screen, enter the following values.


Depr.area depreciation area Select ‘15’

only negative values and zero allowed

X Activate



5. Choose Save.

3.3.2.3 Determining Depreciation Areas (Unplanned Depreciation)

UseIn this step, you determine the depreciation areas in which you want to manage unplanned depreciation. This setting means that this value type is allowed in the relevant depreciation area.

In chart of depreciation BPIN, unplanned depreciation can be managed in all depreciation areas.


Transaction code OABU

IMG menu Financial Accounting (New) Asset Accounting Depreciation Unplanned Depreciation Determine Depreciation Areas

2. On the Change View “Asset Accounting: Define if unplanned deprec. pos/neg”: Overviewscreen, activate unplanned depreciation for the following depreciation areas.


Depr. area Depreciation area Select all: 01, 15, 20, 30, 31, 32, 41, 51

UDep unplanned depreciation

X Activate



3. Choose Save.

4. Choose one depreciation area after the other and select the details of depreciation area.

5. On the Change View “Asset Accounting: Define if unplanned deprec. pos/neg.”: Overviewscreen, enter the following data:


Depr.area Depreciation area Select depr. Areas 41, 51

Only positive values and zero allowed

X for depreciation area 41, 51


Depr.area Depreciation area Select depr. Areas 01 - 32

Only negative values and zero allowed

X for depreciation area 01 – 32

6. Choose Save.

3.3.2.4 Limit Transaction Types to Depreciation Areas (Unplanned Depreciation)

UseIn this step, you limit transaction types to depreciation areas in which you want to manage unplanned depreciation. This setting means that this value type of unplanned depreciation is allowed in the relevant depreciation area.




Transaction code OAXE

IMG menu Financial Accounting (New) Asset Accounting Depreciation Unplanned Depreciation Define Transaction Types for Unplanned Depreciation In Activities dialog choose Limit Transaction Types to Depreciation Areas

2. On the Change View “Transaction type selection”: Overview screen, select Tran. Type 640 and select Depreciation area specification in the Dialog Structure.

3. On the Change View “Depreciation area specification”: Overview screen, make the following entries.

Area Display for selection Always post

01 X X

20 X X

4. Choose Back and select Tran. Type 650 and select Depreciation area specification in the Dialog Structure.

5. On the Change View “Depreciation area specification”: Overview screen, make the following entries.

Area Display for selection Always post

01 X X

20 X X

6. Choose Save.

3.3.2.5 Maintaining Depreciation Keys

UseOnly depreciation keys contained in the standard system are used.

SAP Best Practices

© SAP AG

Only active depreciation keys can be assignedthe required depreciation keys have been activated.

Standard depreciation keys depreciation. Customers may choose these keys for their depreciation area 15.


Transaction code AFAMA

IMG menu Financial Accounting (New) Valuation Methods Key

Since the SAP standard listed.

3.3.2.6 Defining Multi

UseMulti-level methods M1 to M9 have been used in the standard depreciation keys for Indian Income tax laws. The following settings are made to enable calculationaccording to fiscal year.


Transaction code

IMG menu

2. On Change View “Multilevel Method”: Overview screen, make the following settings:

M-lev. Method

Decription of the method

M1 5% block, Income Tax Depreciation India

M2 10% block, Income Tax Depreciation – India






Page

Only active depreciation keys can be assigned to the fixed assets. Check that all the required depreciation keys have been activated.

Standard depreciation keys IN1 to IN9 have been created for India Tax depreciation. Customers may choose these keys for their depreciation area 15.

the activity using one of the following navigation options:

AFAMA

Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Maintain Depreciation Key

Since the SAP standard depreciation keys are used, the table contents are not

Multi-level method

level methods M1 to M9 have been used in the standard depreciation keys for Indian Income tax laws. The following settings are made to enable calculation of depreciation


AFAMS

Financial Accounting (New) Asset Accounting Depreciation Valuation Methods Depreciation Key Calculation methods Define Multi-Level Methods

On Change View “Multilevel Method”: Overview screen, make the following settings:

Decription of the method Validity Start Dep by fisc year

5% block, Income Tax Depreciation – 2

10% block, Income Tax Depreciation 2






Page 70 of 111

to the fixed assets. Check that all

have been created for India Tax depreciation. Customers may choose these keys for their depreciation area 15.

Depreciation Maintain Depreciation

depreciation keys are used, the table contents are not

level methods M1 to M9 have been used in the standard depreciation keys for Indian of depreciation

Depreciation Key

Level Methods

On Change View “Multilevel Method”: Overview screen, make the following settings:

Dep by fisc year




2


2


2

3. Choose each of the above multi-level methods, choose Levels on the Dialog structure and on Change View “Levels”: Overview screen make the following entries

M-lev. Method

Acq. year

Years Per BaseVal. Percent Rem. life Reduct.

M1 9999 100 26 5.00

M2 9999 100 26 10.00

M3 9999 100 26 15.00

M4 9999 100 26 20.00

M5 9999 100 26 25.00

M6 9999 100 26 40.00

M7 9999 100 26 50.00

M8 9999 100 26 60.00

M9 9999 100 26 100.00

4. Choose Save.

3.3.3 Group Asset

UseAs per Indian Income tax law, for the purpose of Income tax Assets have to be grouped for the purpose of calculating tax depreciation. For this purpose Assets have to be grouped together as per income tax requirement.

In this step we do the necessary customization for creating group assets.

3.3.3.1 Specifying Depreciation Areas for Group Assets

UseIn this step we specify depreciation area 15 (Depreciation as per Income Tax Act 1961) for group assets.


Transaction code OAYM

IMG menu Financial Accounting (New) Asset Accounting Valuation Group Assets Specify Depreciation Areas for Group Assets

On Change View “Company Code Selection”: Overview screen, select company code BP01 and choose Group assets on the Dialog Structure.



On Change View “Group assets”: Overview screen, specify only depreciation area 15 for group asset by ticking in Grp.asset column.

2. Choose Save.

3.3.3.2 Specifying Asset Classes for Group Assets

UseIn this step we specify asset class IN9900 as the class that consists of only group assets.


Transaction code OAAX

IMG menu Financial Accounting (New) Asset Accounting Valuation Group Assets Specify Asset Class for Group Assets

On Change View “Asset Class: Indicator for group assets only”: Overview screen, check the box in column Class consists entirely of group assets against Asset class IN9900. Do not check for all other asset classes.



2. Choose Save.

3.3.3.3 Changing the Field Status of the Asset G/L Accounts

UseValues can only be statistically updated to investment orders if the CO/PP Order field is defined as an optional entry field in the field status of the fixed asset balance sheet accounts.


Transaction code OBC4

IMG menu Financial Accounting (New) Asset Accounting Transactions Budget Monitoring with Statistical Orders/WBS Elements Change the Field Status of the Asset G/L Accounts– From Choose Activity Select and Choose -- Define Field Status Variants

2. Field status variant BP01 has been assigned to company code BP01. In the field status group G007 Asset Accts (W/o Accumulated Depreciatn), in Selection Group, the CO/PP Order field must be defined as an optional entry field under Additional Account Assignments.

3.3.4 Special Valuation

3.3.4.1 Investment Support

3.3.4.1.1 Determining Depreciation Areas (Investment



Support)

UseIn this step, you specify the depreciation areas for managing investment support. This specification ensures that the depreciation areas concerned allow you to use this type of value.

In chart of depreciation BPIN, you can manage investment support in all depreciation areas except area 20 (cost-accounting depreciation).


Transaction code OABX

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Investment Support Determine Depreciation Areas

2. On the “Asset Accounting: Management of investment support”: Overview screen, make the following entries and save:

Chart of Depreciation Area Investment Grants

BPIN 01 X

BPIN 15 X

BPIN 20 Blank

BPIN 30 X

BPIN 31 X

BPIN 32 X

BPIN 41 X

BPIN 51 X



3.3.4.1.2 Defining Investment Support Measures

UseThe investment support measures 01 (liability side) and 02 (deducted from asset) have been defined for the chart of depreciation BPIN.

Investment support measure 01 reduces the acquisition values in depreciation area 51.

Investment support measure 02 reduces the acquisition values in depreciation areas 01, 15, 31, 32, and 41.


Transaction code ANVEST

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Investment Support Define Investment Support Measures

2. On the “Investment Support Measure”: Overview screen, make the following entries:


Investment Support Investment Support Measure

BPIN 01 Investments in State Sponsored Area (Liab. Side)

BPIN 02 Investments in State Sponsored Area (Ded. from Asset)

3. On the “Investment Support Measure”: Overview screen, select Investment Support and select Time-Dependent Data in the Dialog Structure.



4. On the “Time-Dependent Data:” Overview screen make the following entries:


Invest. Support

Valid From

Valid To Period From

Retention Period (Years)

Retention Period (Months)

BPIN 01 01.04.1990 31.03.2400 1 03 00

BPIN 02 01.04.1990 31.03.2400 1 03 00

5. On the “Time-Dependent Data:” Overview screen select Default Values & Check Specifications in the Dialog Structure:

6. On the “Default Values & Check Specifications:” Overview screen make the following entries:

Max. Perc. Rate Max. Amount Base Area Support Area

100.0000 999,999,999.00 01 51

100.0000 999,999,999.00 01 41



3.3.4.1.3 Specifying Depreciation Areas for Transaction Types (Inv.Supp.M)

UseTransaction types I01 post depreciation area 51.

Transaction types I02 post depreciation areas 01, 15, 31, 32, and 41.


Transaction code OAXI

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Investment Support Check Transaction Types for Investment Support Measures Limit Transaction Types to Depreciation Areas

2. On the “Transaction type selection”: Overview screen, select following transaction types. Select Depreciation area specification in the Dialog Structure.

3. On the “Depreciation area specification”: Overview screen make the following entries:

Chart of Dep. Trans. Type Area Display for Selection Always Post

BPIN I01 51 X X

BPIN I02 01 X X

BPIN I02 15 X X

BPIN I02 31 X X

BPIN I02 32 X X

BPIN I02 41 X X



3.3.4.1.4 Checking Transaction Types (Investment Support Measures)

UseThe following transaction types have been defined for the investment support measure 01:

The following transaction types have been defined for the investment support measure 02:

Transact. Type Transaction Type Name

I02 Investments in State Sponsored Area (Ded. from Asset)



IMG menu Financial Accounting Asset Accounting Special Valuation Investment Support Check Transaction Types for Investment Support Measures Check Transaction Types for Investment Support Measures

2. On the “FI-AA: Transaction types”: Overview screen, select the following entries and enter following data in detail:

Trans. Type TransactionType Grp

Transaction Type Name

I01 50 Investments in State Sponsored Area (Liab. Side)

I02 50 Investments in State Spons. Area (Ded. from Asset)

Continuation of Table V_TABWT_01:

Transact. Type Transaction Type Name

I01 Investments in State Sponsored Area (Liab. Side)



Capitalize Fixed Asset

Deactivate Fixed Asset

Consolidation Transaction

Asset Hist. Sheet Grp

X 120 50

X 120 50

3.3.4.2 Interest

3.3.4.2.1 Determining Depreciation Areas (Interest)

UseIn this step, you determine the depreciation areas in which you want to calculate interest. This setting means that this value type is allowed in the relevant depreciation area.


Transaction code OABZ

IMG menu Financial Accounting (New) Asset Accounting Special Valuation Interest Determine Depreciation Areas

2. On the “Asset Accounting: Define Management of interest”: Overview screen, make the following entries:

Chart of Depreciation Depreciation Area +/- Sign for Interest

BPIN 01 Blank

BPIN 15 Blank

BPIN 20 X

BPIN 30 Blank

BPIN 31 Blank



BPIN 32 Blank

BPIN 41 Blank

BPIN 51 Blank

ResultIn chart of depreciation BPIN, interest is only calculated in depreciation area 20 (Cost-Accounting Depreciation).

3.3.5 Transactions

UseIn this step, you define the transaction types for asset transactions. You can also specify that only certain depreciation areas will be proposed for posting for certain transaction types.

The standard transaction types are used, which means that no new transaction types have to be created

3.3.5.1 Allowing Down Payment Transaction Types in Asset Classes

UseIn this step, you determine the asset classes for which postings are to be allowed with the transaction type groups for down payments.


Transaction code OAYB

IMG menu Financial Accounting (New) Asset Accounting Transactions Acquisitions Allow Down Payment Transaction Types in Asset Classes

2. On the Display View “Transaction type group selection”: Overview screen, select transaction type group 15 (and later 16). In the Dialog Structure select “Specification of asset classes”.

3. On the Change View “Specification of asset classes”: Overview screen enter the relevant asset classes.

4. Save your entries.

ResultThe following entries should be made for chart of depreciation BPIN:

TTG Name for the Transaction Type Group

Class Asset Class Description

15 Down Payment IN9500 CWIP-Summary

IN9510 CWIP-Freehold land

IN9511 CWIP-Leaseholds

IN9516 CWIP-Residential buildings



IN9517 CWIP-Office and godown buildings

IN9518 CWIP-Factory buildings

IN9520 CWIP-Plant and machinery

IN9521 CWIP-Electrical installation

IN9522 CWIP-Factory equipment

IN9523 CWIP-Laboratory equipment

IN9535 CWIP-Aircraft and equipments

IN9536 CWIP-Railway sidings

IN9537 CWIP-Ships

IN9540 CWIP-Furniture and fixtures

IN9541 CWIP-Electrical fittings

IN9542 CWIP-Office equipments

IN9550 CWIP-Computers and accessories

IN9551 CWIP-Capitalized software

IN9552 CWIP-Web site

IN9560 CWIP-Vehicles

IN9570 CWIP-Development of property

IN9575 CWIP-Goodwill

IN9576 CWIP-Patent, trademark and designs

IN9598 CWIP-Capital investment measure

16 Down Paymt Bal. frm Prev. Years IN9500 CWIP-Summary

IN9510 CWIP-Freehold land

IN9511 CWIP-Leaseholds

IN9516 CWIP-Residential buildings

IN9517 CWIP-Office and godown buildings

IN9518 CWIP-Factory buildings

IN9520 CWIP-Plant and machinery

IN9521 CWIP-Electrical installation

IN9522 CWIP-Factory equipment

IN9523 CWIP-Laboratory equipment

IN9535 CWIP-Aircraft and equipments

IN9536 CWIP-Railway sidings

IN9537 CWIP-Ships

IN9540 CWIP-Furniture and fixtures

IN9541 CWIP-Electrical fittings



IN9542 CWIP-Office equipments

IN9550 CWIP-Computers and accessories

IN9551 CWIP-Capitalized software

IN9552 CWIP-Web site

IN9560 CWIP-Vehicles

IN9570 CWIP-Development of property

IN9575 CWIP-Goodwill

IN9576 CWIP-Patent, trademark and designs

IN9598 CWIP-Capital investment measure

3.3.5.2 Determining Cost Element for Settlement to CO Receiver

UseWhen you settle an asset with line item management, debits can be settled to CO receivers (particularly cost centers). This might be necessary if debits were capitalized to the asset under construction by mistake. The system requires a cost element in order to make this settlement to CO receivers.

In chart of accounts BPIN, account 49519199 has been defined in AuC (or CWIP-Capital Work in Progress) account determination IN95 for depreciation area 01 as the cost element for settlement of the asset under construction to CO objects.





IMG menu Financial Accounting (New) Asset Accounting Transactions Capitalization of Assets Under Construction Determine Cost Element for Settlement to CO Receiver

2. On the screen Change View “Accounts: Cost Elements”, make the following entries:


Chart of Accts Chart of Accounts BPIN

Account Determ. Account Determination IN95

Area Depreciation Area 01

Cost Elem. for Settlmt AuC to CO Objects

49519199

3. Choose Save.

3.3.5.3 Assigning Settlement Profiles

UseIn order to settle assets under construction, you have to assign a settlement profile at company code level. The settlement profile includes settings on the allowed receivers of the settlement.

The standard SAP system contains settlement profile AI for settling assets under construction(i.e. capital work in progress, CWIP).

The standard settlement profile AI has been assigned to company code BP01.


Transaction code OAAZ

IMG menu Financial Accounting (New) Asset Accounting Transactions Capitalization of Assets Under Construction Define/Assign Settlement Profiles Assign Settlement Profile to Company Code

2. On the screen Change View “FI-AA: Settlement Profile”, make the following entries:


CoCd Company Code BP01

SProf. Settlement Profile AI



3. Choose Save.

3.3.5.4 Defining Investment Profile

Use

The investment profile controls the creation of an asset under construction belonging to the capital investment measure and the creation of the master data for the depreciation simulation/forecast when you create a capital investment measure.


Transaction code OITA

IMG menu Investment Management Internal Orders as Investment Measures Master Data Define Investment Profile Define Investment Profile

2. On the New Entries: Details of Added Entries screen, make the following entries:


investment profile

000001

name of capital investment profile

Model with AuC, summary settlement

Manage AuC X Activate

investment classes

IN9598

summary settlement

X Activate

Ident.Val. X Activate

Percentage rates

X Activate

Ovrl.plan value Ovrl.plan value X Activate




4. Go back to step 2 and enter the following other investment profile in addition.


investment profile

000002


Model for depreciation simulation only

Manage AuC do not activate

investment classes

do not enter a inv. class

summary settlement

X activate

Ident.Val. X activate

Percentage rates

X activate

Ovrl.plan value X activate


6. Go back to step 2 and enter the following other investment profile in addition.


investment profile

000003


Model with line item settlement of AuC

Manage AuC X activate

investment classes

IN9598

line item settlement and list of origins

X activate

Ident.Val. X activate

Percentage rates

X activate

Ovrl.plan value X activate



7. Choose Save.

3.3.6 Information System

3.3.6.1 Defining or Assigning Forms for History

UseWhen the historical management function is active (Manage Historically indicator), you can print an asset chart. The Manage Historically indicator has been set for all asset classes.

For each asset class, you can define a separate form for the asset history. The standard SAP form FIAA_F001 has been assigned to the example asset classes.


Transaction code OAAY

IMG menu Financial Accounting (new) Asset Accounting Information System Define or Assign Forms Assign Asset Class/History Sheet



2. Make the following entries on the Assignment of Form for History screen:

Class Layout Set Name

IN1000 FIAA_F001

IN1100 FIAA_F001

IN1600 FIAA_F001

IN1700 FIAA_F001

IN1800 FIAA_F001

IN2000 FIAA_F001

IN2100 FIAA_F001

IN2200 FIAA_F001

IN2300 FIAA_F001

IN3500 FIAA_F001

IN3600 FIAA_F001

IN3700 FIAA_F001

IN4000 FIAA_F001

IN4100 FIAA_F001

IN4200 FIAA_F001

IN5000 FIAA_F001

IN5100 FIAA_F001

IN5200 FIAA_F001

IN6000 FIAA_F001

IN7000 FIAA_F001

IN7500 FIAA_F001

IN7600 FIAA_F001

IN9500 FIAA_F001

IN9510 FIAA_F001

IN9511 FIAA_F001

IN9516 FIAA_F001

IN9517 FIAA_F001

IN9518 FIAA_F001

IN9520 FIAA_F001

IN9521 FIAA_F001

IN9522 FIAA_F001

IN9523 FIAA_F001

IN9535 FIAA_F001

IN9536 FIAA_F001

IN9537 FIAA_F001

IN9540 FIAA_F001



IN9541 FIAA_F001

IN9542 FIAA_F001

IN9550 FIAA_F001

IN9551 FIAA_F001

IN9552 FIAA_F001

IN9560 FIAA_F001

IN9570 FIAA_F001

IN9575 FIAA_F001

IN9576 FIAA_F001

IN9598 FIAA_F001

IN9900 FIAA_F001

JS9600 FIAA_F001

ResultThe report uses this form for assets from this class and generates an asset chart.

3.3.6.2 Defining History Sheet Version

UseThe asset history sheet is the most important and most comprehensive report for the year-end closing or for an interim financial statement. It can be set up with any sort versions, and total on any group level.

The structure of the asset history sheet varies widely from country to country. In this step we create a version for Schedule VI reporting for annual accounts in India. The customer can copy from this version and make changes to suit his requirement.


Transaction code OA79

IMG menu Financial Accounting (New) Asset Accounting Information system Asset History Sheet Define History sheet Versions

2. On the Choose Asset History Sheet Version choose New Entries

3. In the Dialog box Create History Sheet Version make the following entries:




Language EN

Version ZJIS You may enter your own name starting with ‘Z’

4. Choose Enter.

5. On the Maintain Asset History Sheet Version: EN BPIN screen

6. Enter description as Asset history sheet - BPIN Asset History Sheet

7. On the 3 column with blank squares on the heading enter 10, 20 and 30 on the square and choose Enter. The columns are transferred between column 00 and 99.

8. Make the following entries in the cells:

Column 00 Column 10 Column 20 Column 30 Column 99

Line 01 APC tot. Apr 1

Acquis.curr.yr Retir curr APC. Mar 31

Line 02 Acc Dep Apr 1

Dep.retir. Dep. curr.yr Acc Dep Mar 31

Line 03 Book val.Apr 1

Book val.Mar31

9. Double-click each of the above cell and make select the value to be included in it as follows. You may choose previous page and next page to scroll.

10. Line 01 Column 00:

*---Acc.dep.--* *-App-*

Grp Name asset hist. sheet group Trn Ord Spc Upl 6B Trn Ord IGr

70 Write-up special and ord. depreciation . . . .

71 Write-up ordinary depreciation .

72 Write-up special tax depreciation.

73 Write-up unplanned depreciation .

74 Write-up reserve transfer .

75 Write-up all depreciation types . . . .

YA Accum.values as of FY start (History X . . . .



As the other fields are grayed out only selected which are available

11. Line 02 Column 00:

*---Acc.dep.--* *-App-*




72 Write-up special tax depreciation . .




YA Accum.values as of FY start (History . X X X X

YY Annual values (History . . . .

YZ Accum.values as of FY end (History . . . . .



12. Line 03 Column 00

*---Acc.dep.--* *-App-*


10 Acquisition . . . . .

12 Reverse acquisition in following years .

15 Down payment .

20 Retirement X . . . .

25 Retirement of curr-yr acquisition X . . . .

30 Retirmt transfer of prior-yr acquis. . . . . .

31 Acquiring transfer of prior-yr acquis. . . . . .

32 Retirmt transfer of curr-yr acquis. . . . . .

33 Acquiring transfer of curr-yr acquis. . . . . .

34 Retirmt transfer of prior-yr acquis. fro . . . . .

35 Acquiring transfer of prior-yr acquis. f . . . . .

36 Retirmt transfer of curr-yr acquis. from .

37 Acquiring transfer of curr-yr acquis. fr . . . . .

40 Post-capitalization . . . . .

50 Allocation of investment support .

*---Acc.dep.--* *-App-*






72 Write-up special tax depreciation .




YA Accum.values as of FY start (History X X X X X




*---Acc.dep.--* *-App-*


10 Acquisition X . . . .

12 Reverse acquisition in following years X

15 Down payment X

20 Retirement . . . . .

25 Retirement of curr-yr acquisition . . . . .


31 Acquiring transfer of prior-yr acquis. X . . . .


33 Acquiring transfer of curr-yr acquis. X . . . .


35 Acquiring transfer of prior-yr acquis. f X . . . .


37 Acquiring transfer of curr-yr acquis. fr X . . . .

40 Post-capitalization X . . . .

50 Allocation of investment support X

*---Acc.dep.--* *-App-*







75 Write-up all depreciation types X X X X

YA Accum.values as of FY start (History . . . . .






*---Acc.dep.--* *-App-*




15 Down payment .

20 Retirement X . . . .

25 Retirement of curr-yr acquisition X . . . .

30 Retirmt transfer of prior-yr acquis. X . . . .


32 Retirmt transfer of curr-yr acquis. X . . . .


34 Retirmt transfer of prior-yr acquis. fro X . . . .


36 Retirmt transfer of curr-yr acquis. from X




*---Acc.dep.--* *-App-*

Grp Name asset hist. sheet group Trn Ord Spc Upl 6B Trn Ord IG











*---Acc.dep.--* *-App-*






15 Down payment .

20 Retirement . X X X X

25 Retirement of curr-yr acquisition . X X X X



32 Retirmt transfer of curr-yr acquis. . X X X X


34 Retirmt transfer of prior-yr acquis. fro . X X X X






*---Acc.dep.--* *-App-*


70 Write-up special and ord. depreciation X X X X

71 Write-up ordinary depreciation X

72 Write-up special tax depreciation X

73 Write-up unplanned depreciation X

74 Write-up reserve transfer X






*---Acc.dep.--* *-App-*


10 Acquisition . X X X X


15 Down payment .




31 Acquiring transfer of prior-yr acquis. . X X X X


33 Acquiring transfer of curr-yr acquis. . X X X X




35 Acquiring transfer of prior-yr acquis. f . X X X X


37 Acquiring transfer of curr-yr acquis. fr . X X X X

40 Post-capitalization . X X X X


*---Acc.dep.--* *-App-*









YY Annual values (History X X X X



*---Acc.dep.--* *-App-*




15 Down payment .















*---Acc.dep.--* *-App-*










YZ Accum.values as of FY end (History X . . . .


*---Acc.dep.--* *-App-*




15 Down payment .













*---Acc.dep.--* *-App-*












YZ Accum.values as of FY end (History . X X X X


*---Acc.dep.--* *-App-*




15 Down payment .












*---Acc.dep.--* *-App-*










YZ Accum.values as of FY end (History X X X X X

20. To check if you have taken all the values in the version in the menu on top go to Edit Completion check. A log is issued listing the values that are not included. Or the report will indicate the report is complete.



21. Save the version.

ResultHistory sheet version is created. This can be used in Report S_ALR_87011990 - Asset History Sheet.

3.3.7 Asset Data Transfer

3.3.7.1 Setting Company Code Status

UseStatus 2 (Test Company Code with Data Transfer Always Allowed) has been assigned to company code BP01. After the go live, status 0 (Asset Data Transfer Completed) should be set. The productive indicator prevents data in this company code being deleted by programs for deleting test data.



IMG menu Financial Accounting (New) Asset Accounting Asset Data Transfer Set Company Code Status

2. On the FI-AA: Set Status of the Company Code screen, make the following entries:


CoCd Company code BP01

Status 2

3. Choose Save.

ResultTest status is set for asset accounting. You still can delete your test data.

3.3.7.2 Specifying Sequence of Depreciation Areas

UseIn this step, you determine the sequence in which the system presents the depreciation areas for the asset data transfer transaction.

For company code BP01, the values are transferred in the following sequence:




Transaction code OAYE

IMG menu Financial Accounting (New) Asset Accounting Asset Data Transfer Specify Sequence of Depreciation Areas

2. On the Change View “Company Code selection”: Overview screen, select the entry company code BP01. In the dialog structure select Determine Sequence:

Area Name of Depreciation Area

01 Book depreciation

15 Depreciation as per Income Tax Act 1961

20 Cost-accounting depreciation

30 Consolidated balance sheet in local currency

31 Consolidated balance sheet in group currency

32 Book depreciation in group currency

41 Investment support deducted from asset

51 Investment support posted to liabilities

3. On the Change View “Determine Sequence”: Overview screen enter the sequence for depreciation areas.

Company Code Seq. Number for Legacy Data Transfer Depreciation Area

BP01 02 01

BP01 04 15

BP01 06 20

BP01 08 30

BP01 10 31

BP01 12 32

BP01 14 41

BP01 16 51

SAP Best Practices

© SAP AG111

3.3.7.3 Specifying Transfer Date/Last Closed Fiscal

UseIn this step, you determine the transfer date for the legacy data transfer. This date determines the posting status to be used for the transfer (posting up to this date will transfer), not the actual date the data transfer is carried out. This setting also determines whether you want to perform the transfer during the fiscal year (with transfer of posted transactions/depreciation in the current fiscal year) transactions).

The system automatically derives the last closed fiscal year from the transfer date.

The transfer date 31/03/<year of BP01, in other words, the values are transferred for fiscal year <current actual scenario this date will be one day early than the go live date .For example if the company is going live on 01.04.

If no data transfer is carto be opened using the “Carry Out Fiscal Year Change” function before the data transfer is carried out.

If no fiscal year change is carried out, the system outputs error message AY 252 “Current fiscal year xxxx has to be after transfer date xx/xx/xxxx” when the legacy data is created.



IMG menu Financial Accounting (New) Transfer

2. On the Change View “FI-AA: Date of Legacy Data Transfer” entries:

Field Name Description

Company Code

Take-Over Date

3. Choose Save.

3.3.7.4 Recalculating

UseYou can recalculate the accumulated depreciation from the past if a new depreciation area is to be created or if the values from a depreciation area are to be recalculated in the system.

This indicator has not been set in any depreciation areas for compan



Page

Transfer Date/Last Closed Fiscal Year

In this step, you determine the transfer date for the legacy data transfer. This date determines the posting status to be used for the transfer (posting up to this date will be included in the transfer), not the actual date the data transfer is carried out. This setting also determines whether you want to perform the transfer during the fiscal year (with transfer of posted transactions/depreciation in the current fiscal year) or at the end of the fiscal year (without

The system automatically derives the last closed fiscal year from the transfer date.

year of previous financial year> is proposed for company code alues are transferred for fiscal year <current financial year>.

actual scenario this date will be one day early than the go live date .For example if the company is going live on 01.04.2007 then this date will be 31.03.2007.

If no data transfer is carried out during the fiscal year, the current fiscal year first has to be opened using the “Carry Out Fiscal Year Change” function before the data

If no fiscal year change is carried out, the system outputs error message AY 252 rrent fiscal year xxxx has to be after transfer date xx/xx/xxxx” when the legacy


SPRO

Financial Accounting (New) Asset Accounting Asset Data Transfer Parameters for Data Transfer Date Specifications Specify Transfer Date/Last Closed Fiscal Year

AA: Date of Legacy Data Transfer” screen, make the following

Description User Actions and Values Note

BP01

31.03. <year of previous financial year>

Change as per the requirement

Recalculating Depreciation for Previous Years

You can recalculate the accumulated depreciation from the past if a new depreciation area is to be created or if the values from a depreciation area are to be recalculated in the system.

This indicator has not been set in any depreciation areas for company code BP01.



Page 100 of

Year

In this step, you determine the transfer date for the legacy data transfer. This date determines be included in the

transfer), not the actual date the data transfer is carried out. This setting also determines whether you want to perform the transfer during the fiscal year (with transfer of posted

or at the end of the fiscal year (without

year> is proposed for company code year>. In

actual scenario this date will be one day early than the go live date .For example if the

ried out during the fiscal year, the current fiscal year first has to be opened using the “Carry Out Fiscal Year Change” function before the data

If no fiscal year change is carried out, the system outputs error message AY 252 rrent fiscal year xxxx has to be after transfer date xx/xx/xxxx” when the legacy

Asset Data Date Specifications

screen, make the following

Note

Change as per the requirement

You can recalculate the accumulated depreciation from the past if a new depreciation area is to be created or if the values from a depreciation area are to be recalculated in the system.



Transaction code OAYF

IMG menu Financial Accounting (New) Asset Accounting Asset Data Transfer Parameters for Data Transfer Options Recalculate Depreciation for Previous Years

2. On the Change View “Company code selection”: Overview screen, select company code BP01 and mark “Calculate accumulated depreciation” in the dialog structure:

Company Code Sequential Number for Legacy Data Transfer

Depreciation Area

Recalculate Accumulated Depreciation

BP01 02 01

BP01 03 15

BP01 04 20

BP01 06 30

BP01 08 31

BP01 10 32

BP01 12 41

BP01 14 51

3.3.8 Preparing for production start-up

3.3.8.1 Authorization for Asset View

UseIn addition to the standard mySAP ERP authorization functions, the Asset Accounting component provides the asset view, which offers additional authorization protection. The "asset view" authorization object (A_A_VIEW) controls master data maintenance to a certain extent. You can use this object to assign users limited views of asset data and asset values.

To create asset master records you need at least one asset view. You have to use standard view 1 (asset accounting) in order to be able to create complete asset master records.

All depreciation areas can be maintained with asset view 1 (asset accounting).



IMG menu Financial Accounting (New) Asset Accounting Preparing for Production Startup Authorization Management Process Asset Views

2. On the Change View “Asset View”: Overview screen, select the entry for asset view “1” (Asset Accounting) and select in Dialog Structure “Authorization for Depreciation Areas”.

3. On the Change View “Authorization for Depreciation Areas”: Overview screen, mark the Authorization “Maintenance” for all depreciation areas.

View Chart of Depr. Depr. Area Authorization

01 BPIN 01 Maintenance






01 BPIN 31 No authority

01 BPIN 32 No authority



3.4 Import/Create Master Data

3.4.1 Creating Fixed Assets Master DataIn the following subchapters you can create the asset master data.

3.4.1.1 Year End Closing of Previous Year

Use

You use the year-end closing program to close the fiscal year for one or more company codes from an accounting perspective. Once the fiscal year is closed, you can no longer post or change values within Asset Accounting (for example, by recalculating depreciation). The fiscal year that is closed is always the year following the last closed fiscal year. You cannot close the current fiscal year.


SAP menu Accounting Financial Accounting Fixed Assets Periodic Processing Year-End Closing Execute

Transaction code AJAB

2. On the view Year-End closing Asset Accounting screen, make the following entries

Field name Description User action and values Notes

Company Code Company Code BP01

Fiscal year to be closed

Current fiscal year -1

Test run If you set this indicator, then the program will be started in test mode

3. Choose Program Execute in background (F9).

4. On the view Background Print Parameters screen, make the following entries

Field name Description User action and values Notes

Output Device Name of the printer e.g. LP01

5. Choose “Continue” (Shift + F1).



6. On the view “Information” screen, choose “continue” (enter).

7. On the view “Start Time” choose “Immediate” and save.

8. A message is created “Background job was scheduled for program RAJABS00”.

9. You can monitor the job and spool.

3.4.1.2 Fiscal Year Change

UseFrom the point of view of the system, a fiscal year change is the opening of a new fiscal year for a company code. At the fiscal year change, the asset values from the previous fiscal year are carried forward cumulatively into the new fiscal year. Once the fiscal year change takes place, you can post to assets using value dates in the new fiscal year. At the same time, you can continue to post in the previous fiscal year.

No business transactions can be posted in a new fiscal year before the fiscal year change. You can continue to post in the old fiscal year, even after the fiscal year change. The system automatically corrects any values that are affected by postings in the past.


Transaction code AJRW

SAP Menu Accounting Financial Accounting Fixed Assets Periodic Processing Fiscal Year Change

2. On the Asset fiscal year change screen enter the following data:


Company Code(s)

company code BP01

New fiscal year <current financial year> Change as per requirement

Test run

3. The fiscal year change has to be carried out as background processing for performance reasons. Therefore, starts the report as a background job (in the selection screen of the report: Program Exec. in background). You can carry out test runs with fewer than 1000 assets in the foreground.

3.4.1.3 Creating Values for old Assets

UseLegacy data transfer is the transfer of existing data from a previous system or from a manually maintained fixed asset card file. The transfer of legacy data is generally the first action after you configure the Asset Accounting (FI-AA) component and classify your assets. This task involves transferring asset master records and transactions from the start of the fiscal year up until you go live.

The asset data part of this transaction is the same as in the Create asset function (AS01). The data transfer transaction, however, also includes functions for entering cumulative asset values and the transactions in the current fiscal year.





IMG menu Financial Accounting (New) Asset Accounting Asset Data Transfer Manual Online Transfer Create/Change/Display Legacy Asset

2. On the Choose Activity screen choose Create Legacy Asset.

3. On the Create Legacy Data: Initial screen, provide the necessary data and select Master Data:


Asset class Name of the asset class

Company Code BP01

4. On the Create Legacy Data: Master Data screen, make the following sets of entries on register tab General and register tab Time-Dependent:

Asset num.

Asset class

Description asset class

Description Capitalized on

Cost center

Register tab General Register tabGeneral

Register tab Time-dependent

1 IN5100 Capitalized software

Software Finance 30.11.2000 1103

2 IN5100 Capitalized software

Software Finance 30.11.2000 1103

3 IN1000 Freehold land

Factory premises plant Vapi

01.01.2000 1101

4 IN1000 Freehold land

Factory premises plant Thiruvallur

02.01.2000 1101

5 IN1700 Office and godown buildings

Distribution Center Hyderabad

01.11.1996 1101

6 N1800 Factory buildings

Production Building III 30.04.2000 1101

7 IN2000 Plant and machinery

Hammer drill device Hilti 22 XL

01.01.2003 1302


Compressed air -screwdriver 262

03.06.2002 1302


Floor cleaning machine 234

12.11.2004 1302


Diagnostic device Bosch 759

12.11.2002 1301

11 IN6000 Vehicles Mercedes Benz MB100D

01.01.2003 1102

12 IN6000 Vehicles Opel Astra Combi 02.01.2000 1302



13 IN4200 Office equipments

Phone: ISDN 01.07.2000 1801


Mobile Phone 01.07.2000 1801


Copying machine EKTARANKO XEROX

01.01.2003 1102


Copying machine 02.01.2002 1102

17 IN5000 Computers and accessories

Laptop 2 02.01.2004 1601

18 IN5000 Computers and accessories

PC SNI 2000 02.01.2000 1102

19 IN4000 Furniture and fixtures

Desktop standard 01.07.1997 1601


Office equipment sales 01.01.1998 1602


Office chair MM type 94

01.06.1997 1102

5. On the Create Legacy Data: Master Data screen, choose Takeover values ((Shift + F8) and make the following sets of entries and save:

Asset num

Asset value fields 01 Book deprec. E

15 Income tax dep E

20 Cost-acc. INR

1 Accm.ord.deprec 387106.80 387106.80 387106.80

Cum.acquis.val. 516086.80 516086.80

2 Accm.ord.deprec 1738930.80 1738930.80 1738930.80

Cum.acquis.val. 2318260.80 2318260.80

3 Accm.ord.deprec

Cum.acquis.val. 160000000.00 160000000.00

4 Accm.ord.deprec

Cum.acquis.val. 94000000.00 94000000.00

5 Accm.ord.deprec 3200000.00 3200000.00 3200000.00

Cum.acquis.val. 8000000.00 8000000.00

6 Accm.ord.deprec 508800.00 508800.00 508800.00

Cum.acquis.val. 2120000.00 2120000.00

7 Accm.ord.deprec 72500.00 72500.00 72500.00

Cum.acquis.val. 290000.00 290000.00

8 Accm.ord.deprec 146739.20 146739.20 146739.20

Cum.acquis.val. 391304.40 391304.40

9 Accm.ord.deprec 4000.00 4000.00 4000.00

Cum.acquis.val. 4000.00 4000.00



10 Accm.ord.deprec 4100.00 4100.00 4100.00

Cum.acquis.val. 4100.00 4100.00

11 Accm.ord.deprec 331877.50 331877.50 331877.50

Cum.acquis.val. 995632.60 995632.60

12 Accm.ord.deprec 216659.40 216659.40 216659.40

Cum.acquis.val. 259991.30 259991.30

13 Accm.ord.deprec 21279.20 21279.20 21279.20

Cum.acquis.val. 23643.50 23643.50

14 Accm.ord.deprec 2424.50 2424.50 2424.50

Cum.acquis.val. 3469.60 3469.60

15 Accm.ord.deprec 168695.60 168695.60 168695.60

Cum.acquis.val. 421739.10 421739.10

16 Accm.ord.deprec 9380.90 9380.90 9380.90

Cum.acquis.val. 15634.80 15634.80

17 Accm.ord.deprec 13043.50 13043.50 13043.50

Cum.acquis.val. 39130.40 39130.40

18 Accm.ord.deprec 43460.90 43460.90 43460.90

Cum.acquis.val. 43460.90 43460.90

19 Accm.ord.deprec 17307.90 17307.90 17307.90

Cum.acquis.val. 25000.00 25000.00

20 Accm.ord.deprec 153846.40 153846.40 153846.40

Cum.acquis.val. 250000.00 250000.00

21 Accm.ord.deprec 3980.00 3980.00 3980.00

Cum.acquis.val. 3980.00 3980.00

3.4.1.4 Creating Asset - Master Data

UseIf you have no old assets you need to set up asset master data in the system.



SAP Menu Accounting Financial Accounting Fixed Assets Asset Create Asset

2. On the Create Asset: Initial screen, provide the necessary data and select Master Data:




Asset class Number of the asset class

Company Code BP01

3. On the Create Asset: Master Data screen, make the following sets of entries on register tab General and register tab Time-Dependent and save:

Asset Asset class Description Cost center

Register tab General Register tab Time-dependent

91 IN9500 Extension distribution Hyderabad 1101

92 IN9500 Extension plant building 3 1101

94 IN9500 New administration building 1101

96 IN9517 Extension sales office south 1101

65 IN4200 Mobile phones 1101

66 IN4200 Handsfree set 1102

3.4.2 Investment Order - Direct CapitalizationIn the following subchapters you can create the master data which are necessary for Direct Capitalization.

3.4.2.1 Creating Investment Order for Direct Capitalization

UseYou need to set up investment order master data in the system.


SAP menu Accounting Controlling Internal Orders Master Data Order Manager

Transaction code KO04

2. If the Set Controlling Area screen appears, make the following entries:


Controlling Area BP01

3. On the Order Manager screen, select Master Data Create (Ctrl + F1).

4. On the Create Internal Order screen, make the following entries:


Order Type STAT Statistical Order

Enter

5. On the Create Internal Order: Master Data screen, make the following entries:




Order Number of the internal order

600150 For example

Description Tata Indica For example

Company Code BP01

Profit Center 2100

6. Choose Save.

7. On the Display Internal Order: Master Data screen, select Master Data –> Create (Ctrl + F1) for another investment order.

8. On the Create Internal Order screen, make the following entries:


Order Type STAT Statistical Order

Enter

9. On the Create Internal Order: Master Data screen, make the following entries:


Order Number of the internal order

600151 For example

Description Mahindra Scorpio For example

Company Code BP01

Profit Center 5100

10. Choose Save.

3.4.2.2 Order Plan for Direct Capitalization (KO12)

UseYou have to plan the investment order for direct capitalization.


SAP Menu Accounting Controlling Internal Orders Planning Overall Values Change

Transaction code KO12

2. On the Change Overall Planning: Initial Screen, make the following entries:


Order 600150 The investment order you have created

3. On the Change Order Plan Values: Annual overview screen, make the following entries:




Plan Plan for period overall

5000 Select line “overall”

Plan Plan for period <current year>

5000 Select line for <current year>

4. Choose Save.

5. On the Change Overall Planning: Initial Screen, make the following entries for the other investment order:


Order 600151 The other investment order you have created

6. Choose “Overall Planning”.

7. On the Change Order Plan Values: Annual overview screen, make the following entries:


Plan Plan for period overall

6000 Select line “overall”

Plan Plan for period <current year>

6000 Select line for <current year>

8. Choose Save.

3.4.2.3 Cost Elements for Statistical Autom. Posting of Assets (OAK7)

UseYou have to create cost elements for statistical automatic posting of assets.

Prerequisites

The balance sheet accounts in the company code BP01 must have been created.

Procedure1. Access the activity using the following navigation option:

SAP menu No Menu

Transaction code OAK7

2. On the Creating cost elements for statistical autom. posting of assets screen, make the following entries:


Controlling area BP01

Valid from 01.04.1999

Valid to 31.03.2400



Test run Deselect this parameter

Execute (F8)

3.4.2.4 Creating Asset Master for Direct Capitalization

UseYou have to create asset master for direct capitalization.


SAP menu Accounting Financial Accounting Fixed Assets Asset Create Asset


2. On the Create Asset: Initial screen, provide the necessary data and select Master Data:



IN6000

Company Code BP01

Enter

3. On the Create Asset: Master Data screen, make the following entries on register tab General


Asset 68

Description Tata Indica

4. On the Create Asset: Master Data screen, make the following entries on register tab Time-dependent:


Cost Center 1101

5. On the Create Asset: Master Data screen, make the following entries on register tab Origin:


Investment Order 600150

6. Choose Save.

7. On the Create Asset: Initial screen, make the following entries for the second asset master data for direct capitalization and select Master Data:



IN6000



Company Code BP01

Enter

8. On the Create Asset: Master Data screen, make the following entries on register tab General


Asset 69

Description Mahindra Scorpio

9. On the Create Asset: Master Data screen, make the following entries on register tab Time-dependent:


Cost Center 1101

10. On the Create Asset: Master Data screen, make the following entries on register tab Origin:


Investment Order 600151

11. Choose Save.

Documents

Asset Configuration