FI-AA Detail Workshop Et Rk015

SAP America Inc. FI-AA Detail.ppt Jan, 1999

Right Solution, Right Time, Right Price

FI-AA Detail Workshop


Business Process Workshop

The objectives of the Capital Business Process Workshop are to:

• Demonstrate SAP procedures

• Discuss Customer business requirements

• Communicate scope expectations

• Facilitate scoping and planning exercises


AgendaAttendees:

• Business Managers, Process Owners

Topics:

• Capital Orders

• Assets


In Scope

• Capital Orders

• Low Value Assets

• Leased Assets

• Fixed Assets

• Depreciation

• Reporting


Potential Future Phases • Capital Projects

• Investment Management

• Workflow - Mass Changes

• Integrated Corporate Planning

• Parallel Valuations

• Direct Adds (Statistical Orders)

• Insurance Contracts

• Sub Assets


Processes

• Capital Order Processing

• Low Value Assets

• Leased Assets

• Fixed Assets


Summary of Workshop

• (e.g. We verify with Customer our understanding of in/out of scope)

• (discussion)


Change Asset Master Record ...• not all optional data was available at time asset

was created

• data originally entered at time of asset creation is incorrect

• assignments such as cost centre, internal order or location have changed

• to change the useful life of the asset


Display Asset Master Record...

Asset Class“Buildings” Specific search criteria:

• asset class

• asset number


Deleting an Asset Record...A record would be deleted if:

• no item came in

• if the record was created in error


Asset Accounting as Subsidiary Ledger

Asset accountAsset account VendorVendor

Assets LiabilitiesAssets Liabilities

General LedgerGeneral Ledger

1000 1000

1000 1000


Asset Record is created when:Purchase Order created… Completion of a construction

project…


Asset Class

Generalledger

accounts

Balancesheet

Assetclasses

Assetmaster

records

A L

Vehicles Fixtures andfittings

Buildings Assets underconstruction

ASTC


Company code 1001

Balance Sheet

1000

Company code 1000

Balance Sheet

1000 2000 3000 - - -

Assets intangible assets

fixed assets

financial assets

Profit + loss statement

Expenses depreciation

- - -

Business area

Profit + loss statement

ClientClient

Client - Company Code

Software

Machines

Securities

100

50


Chart of Accounts - Chart of Depreciation

ClientClient

Country A

:

Chart of deprec.

Book deprec.

Tax deprec.

Cost-acc. dep.

Group deprec.

Chart of accounts

Company code Company code Company code Company code 1000 2000 3000 - - - -


Organizational Structure - Example

Charts of depreciationCharts of depreciation

Country ACountry A Country BCountry B

Machine Tools, Inc. Country A

Financing Services, Ltd.Country A

Charts of accounts

ClientClient

Industry Banking

Asset Cons-truction, Inc.

Country B

Asset Financing Co.Country B


Asset Accounting Company CodeChart of

accountsChart of

depreciation

Financial Accounting Company Code

+

Data for Asset Accounting

Asset Accounting Company Code

==


Cost Accounting Assignment

Controllingarea 1000

Company code1000

Company code1001

Cost centre

Act. Plan

Asset - Forklift

Cost centre

Order

Vehicles

Book deprec.

Tax deprec.

C-acc. deprec.

Order

Vehicles

Act. Plan

Depreciation

Interest

ClientClient


Functions of the Asset ClassAsset Class

Account allocation

Screenlayout

Number assignment

Special features

Default values

Selectionfeatures

Assets Liabilities

Asset portfolio

Real estate

Machinery

Financ. assets

Fixtures+fit.. . .

. . .

. . .

Bal. sheet items Acct. determinationAsset class

Assets

Lathe02200000

Create asset

Drillpress

02115000

1


Definition of the Asset Classes

Client levelClient level

Account allocationScreen layout ruleNumber rangeDefault values

Chart of depreciation Chart of depreciation levellevel

Section for valuation data

Selection of depreciation areas

Default values

Master data section

Asset classes


Account Assignment

10000Real estate

20000Technical assets

30000Fixtures and fittings

Class Chart of accounts CAUS

Chart of accounts INT

Account determination

Book depreciation

Cost-acc. depreciation

Deprec. Interest

Acquis. Retmt.D C

D C

D C

D C

D C

D C

D C

D C

D C

Deprec.

D C

D C

D C

D C

- - -

Accountallocation


Screen Layout for Asset Master Data

Computer 11

Asset Fixtures and FittingsFixtures and Fittings30003000Screen layoutScreen layout

Feldgruppe Screen layout Maint. levels

Req. Opt. Sup.Dis-play Class Main no. Sub-no.

Description

Inventory no.

Cost centre

x x x

x x

x x

x x

Asset master

Description ?

Inventory number

Cost centre ?

Asset classAsset class Fixtures and Fittings

:

Screen layout 3000

- - -


Number AssignmentCompany code - number assignment

Company code

1000

1000 1001

2000 3000

2000 3000

4711 4711 4711

4712 4712 4712

4713 4713 4713

4714

4715

4716

Assetnumbers


15

Transaction type groups

Special Asset Class: AuCClass: Assets u. const.

Extras

AuC status

Down payment

16 Down payment carried forward from previous years

AuC managed as total line item settlement capital investment measure

depreciationareas

deprec.key

Book dep. 0000Tax dep. 0000Cost-acc. LINA

negative values allowed

depreciation is not calculated in depreciation areas intended for the

balance sheet


Asset class - Depreciation area

Low value assets - Individual checkExactly 1 asset per master record

Low value assets - Quantity checkAny number of assets per master record

When posting: Check againstthe allowed maximum amount

or

Special Asset Class: LVA


Creating the Asset Master Record

using a referenceusing asset class

taking over the defaultvalues from the asset class

'copying' anexisting asset

Create asset


Time-Dependent DataASSET MASTER RECORD

- Time-dependent data -

Enter period under consideration

Valid from MMDDYYYY

Valid to MMDDYYYY

Cost centre A from 01/12/YY to 08/27/YYCost centre B from 08/28/YY to 11/30/YYCost centre C from 12/01/YY to 03/14/YY

. . . . .

. . . . .

. . . . .

New Interval

01Month

Calendar


Changing Assets

Document for this field changeDocument numberDate of changeName of user who made changeFields changedOld and new contents of field

Change asset

List of fields thatwere changed

Field 1Field 2Field 3

List of changes per field

Change 1Change 2Change 3

All for

document

2 x

on asseton asset on fieldon field

Change documents for assetChange documents for asset

Display asset

EnvironmentEnvironment

complete changedocument withall fields

Document for this changeDOCUMENT NO:DATE:CHANGED BY:OLD/NEW FIELD CONTENTS

Asset

Cost centre X

2 x


The Chart of Depreciation

Chart ofdepreciation

Depreciationarea 01

Depreciationarea 02

Depreciationarea 03

Depreciationarea 20

Bookdeprec.

Taxdeprec.

Specialreserves

Cost-acc.deprec.

Depreciationarea 30

Group deprec.


Areas

Depreciationkey

Proposeduseful life

Minimumuseful life

Maximumuseful life

Book dep.

10/00

__

__

DG30

decl-bal.3 X3 X

Tax dep.Tax dep.

10/00

__

__

SNFG

invest. support

Group

8/00

__

__

LINR

str.-line

Book dep.

12/00

__

LINB

str.-line

Group

8/00

__

__

LINR

str.-line

ACRSACRS

. . . .. . . .

__

__

. . . .. . . .

. . . .. . . .

. . . .. . . .

8/00

. . . . . .

Class

Chart of depreciation

Machines

USAGermany

Asset Classes in the CoD1


Rules for ValuationManagement of valuesRevaluation/Indexing

Functions ("real" or "derived" )

Dependent on other dep. areasControl of depreciation posting

Depreciation key/Calculation keyTransaction types

Asset valuesAsset valuesAPC

Depreciation

Replacementvalues

01

Book dep.

30

Group USD

31

Group DM

Values

Depreciationterms

Monthly?

Numberrange 02?

. . .,

Rules for valuationRules for valuationin the chart ofin the chart ofdepreciationdepreciation

1DE1DE

1US1US

1xx1xx


Screen Layout in Dep. Area & Maintenance

Level

Maintenance levelMaintenance levelScreen layout Screen layout

for areafor area

Dep. area Dep. Use. life

01 Book dep. DG30 5

02 . . . SNFG 5

:

Master recordMaster record

Uniform controlUniform controlof valuationof valuation

Chart of dep. ABCD per country's legislation

01 Book dep. DG30 1000

02 . . . SNFG 1000

:

Asset classAsset class

Dep. area Deact. Dep. Use. life Index Layout


Ordinary depreciation

Special depreciation

Unplanned depreciation

DepreciationReasons for depreciation:

Years

§§§§

§§

Determine depreciation areasDefine account determinationDefine depreciation keyDefine unit-of-production depreciation


Depreciation Key

Depreciation Depreciationarea key

01 LINR(straight-line, 1st yr.conv.)

20 LINA(straight-line, pro rata)

Master recordMaster record

Internal Calculation KeyInternal Calculation Key Ordinary depreciation Ordinary depreciation Special depreciation Special depreciation Interest Interest Cut-off value key Cut-off value key

controlscontrols

- depreciation type- depreciation type- class- class- method- method- base value - base value - declining balance deprec.- declining balance deprec.- changeoverchangeover- period control- period control


Elements of Depreciation Calculation

• D Percentage rate from useful life

• G Full percentage in concession period

• P Explicit percentage rate

• M Mean value from several areas

• S Unit of prod. / Total number of units

Acquisition value

Half of acquisition value

Replacement value

Net book value

. . .

Pro rata per start of period

Pro rata to mid-period per start of period

Pro rata per mid-period

First year convention of a half year

Per start of fiscal year

Per mid-year

Per year-end (= start in next year)

Per mid-quarter

Ordinary depreciation

Special tax depreciation

Interest

MethodsMethods Base Base valuevalue

PeriodPeriodcontrolcontrol

DepreciationDepreciation typetype

Decl.-balance Decl.-balance depreciationdepreciation

Multiplication factor

Maximum percentage rate

Minimum percentage rate

ChangeoverChangeover

Changeover method

Changeover depreciation key

Net book value for initiating depreciation changeover

Straight-line depreciation

Decl.-balance depreciation

Other depreciation

No assignment

ClassClass


ValuesValues

Year Deprec. Net book value 1 1000 9000 2 1000 8000 3 1000 7000 4 1000 6000 5 1000 5000 6 1000 4000 7 1000 3000 8 1000 2000 9 1000 1000 10 1000 0

Example:Example:

Book depreciation valuationBook depreciation valuation

- Declining balance 30% from- Declining balance 30% from net book value -net book value -

Example: Valuation for Book DepreciationDepreciation area 01 Book depreciationDepreciation area 01 Book depreciation

Depreciation keyDepreciation key LINKLINKUseful lifeUseful life 10 years10 yearsOrd. dep. startOrd. dep. start 01/01/YYYY01/01/YYYY


Example: Valuation for Tax DepreciationDepreciation area 02 Tax depreciationDepreciation area 02 Tax depreciation

Depreciation keyDepreciation key SNFGSNFGUseful lifeUseful life 10 years10 yearsOrd. dep. start Ord. dep. start 01/01/YYYY01/01/YYYYSpecial dep. start Special dep. start 01/01/YYYY01/01/YYYY

Example:Example:

Tax depreciation valuationTax depreciation valuation

Special depreciationSpecial depreciation: 50% of : 50% of APC; APC; alongside ordinary dep. alongside ordinary dep.

ValuesValuesYear Ord. dep. Spec.dep.Net book val. 1 1000 5000 4000 2 1000 - 3000 3 1000 - 2000 4 1000 - 1000 5 1000 - 0 6 0 - 0 7 0 - 0 8 0 - 0 9 0 - 0 10 0 - 0


Example: Derived Depreciation AreaDepreciation area 03 Special reservesDepreciation area 03 Special reserves

determined determined as the difference betweendepreciation areas 01 and 02Example:Example:

Tax valuationTax valuation

- Creation of special reserves -- Creation of special reserves -

ValuesValues

Book dep.Book dep. Tax dep.Tax dep. Special reserves Special reserves YearYear 0101 0202 03 03

11 10001000 6000 6000 -5000-5000 22 10001000 1000 1000 0 0

33 10001000 1000 1000 0044 10001000 1000 1000 0055 10001000 1000 1000 0066 10001000 00 +1000+100077 10001000 00 +1000+100088 10001000 00 +1000+100099 10001000 00 +1000+1000

10 10 10001000 00 +1000+1000

01

Book depreciation

02

Allowed tax dep.

03

Specialreserves

+ =Formula


Example: Cost-Accounting Depreciation AreaDepreciation area 20 Cost accountingDepreciation area 20 Cost accounting

Depreciation keyDepreciation key LINALINAUseful lifeUseful life 10 years10 yearsOrd. dep. start:Ord. dep. start: 01/01/YYYY01/01/YYYY

interest calculation and indexinginterest calculation and indexing negative net book value allowednegative net book value allowed

Example:Example:

Cost-accounting valuationCost-accounting valuation

- Straight-line from APC, also - Straight-line from APC, also below zero, indexing of APC below zero, indexing of APC and calculation of imputed and calculation of imputed interest -interest -

ValuesValues

YearYear Rep.val Rep.val Dep.Dep. NBVNBV InterestInterest 1 1 1000010000 10001000 90009000 500500 2 2 1030010300 10301030 82708270 515515 3 3 1060910609 10611061 75187518 530530 4 4 1092710927 10931093 67436743 546 546 5 5 1125511255 11261126 59455945 563563 6 6 1159311593 11591159 51245124 580580 7 7 1194111941 11941194 42784278 597597 8 8 1229912299 12301230 34063406 615615 9 9 1266812668 12671267 25082508 6336331010 1304813048 13051305 15831583 6726721111 1343913439 13441344 630630 672672:: :: :: :: ::


Depreciation areaDepreciation area

Replacement Values

20 Cost-acc. dep. ::

Revaluation ofRevaluation of XX APCAPC XX acc. dep.acc. dep.

::

Master dataDepreciation area 20 Cost-acc. LINW 10 00001

11 Replacement values Replacement values AssetsAssets

Index figure by fiscal year Index figure by fiscal year AgeAgeHistorical indexingHistorical indexing

Index classIndex class

Index seriesIndex series

Index figuresIndex figures

Asset master recordAsset master record

IndexIndex 00001

ClassClass 11SimulationSimulation 103.6103.6

IndexIndex 00001

YYYYYYYY 101.1101.1YYYYYYYY 103.6103.6


Calculating the Replacement Value

YEAR - 3 YEAR - 2 YEAR - 1 YEAR 0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

"normal"historic

Replacement values at end of fiscal year

Years

130 120

= 18904= 17450

130 100

= 19500= 15000

Year

Acquis. yearYear - 2Year - 1Current year . . .

Index

100 110 120

130 . . .

Acquisition 10000 Acquisition 5000

Rep. value (curr. yr.)Rep. value (curr. yr.) = Rep. valueIndex (curr. yr.)Index (prev. yr.)

Index (curr. yr.)Index (curr. yr.)Index (aquis. yr.)Index (aquis. yr.)Rep. value (curr. yr.) = APCRep. value (curr. yr.) = APC *

***

*


Depreciation Posting ProgramOrdinarydepreciation

Specialdepreciation

Periodicrevaluation

Ind

exIn

dex

manually planneddeprecia-tion

Dep.Dep. --PPOOSSTTIINNGG PPRROOGGRRAAMM Cost centre Order

Cost element

COCO

Individual assets

Accounts

FIFI

Interest10 %. . . . .

FI-AAFI-AA


Posting runPosting run

BDC SessionBDC Session Update of assetsUpdate of assets

Update of G/L AccountsUpdate of G/L Accounts

RABUCHRABUCH

Organizational Procedure for Depreciation Posting

Consistency!

Preconditions:Preconditions: Posting settingsPosting settings Document type with own Document type with own

external number rangeexternal number range Posting procedurePosting procedure AccountsAccounts

Monthly?

Number range 02?

. . .


Settings for Posting

10000 100010000 1000

1000010000 10001000 10001000

10001000 10001000

1000010000 10001000 10001000

Depreciation area 01: Book depreciation Automatic online posting of asset valuesAutomatic online posting of asset values Periodic posting of depreciationPeriodic posting of depreciation

Depreciation area 20: Cost-accountingPeriodic posting of depreciationPeriodic posting of depreciation

Depreciation area XY: Example Periodic posting of asset valuesPeriodic posting of asset values Periodic posting of depreciationPeriodic posting of depreciation

AssetAsset

Fixed assetsFixed assets Expense Expense Value adjustmt. Value adjustmt.

Fixed assetsFixed assets Expense Expense Value adjustmt. Value adjustmt.

Subsidiaryledger

Generalledger

Back-Back-groundground

Online

Cost-accounting Cost-accounting Offset acct. forOffset acct. for Imputed Imputed depreciationdepreciation cost-acc. dep. cost-acc. dep. interestinterest . . . . . .

Back-Back-groundground


Dep. Posting for Acquisitions during YearExample: Dep. posting cycle : monthly

Acquis. on 5/1/YY : 6000 Planned useful life : 5 yearsPeriod control : half year convention

050

100150200250300350400450500

1 2 3 4 5 6 7 8 9 10 11 12

Acquis. on 1/1/YY

smoothing

catch-up method

Depreciation posted

Month


Fiscal Year Change/Year-End Closing

Asset valuesat fiscal year start Year 2

Transaction 10000 0APC 10000 10000Ordinary dep. 3000 - 2100-Net book value 7000 4900


Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000


Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000

31Dec

Calendar

Fiscal Year Change

31

Dec

Calendar

Fiscal Year ChangeYear-end closing

Year-end closing program Year-end closing program - Check:- Check: Can the year-end closing be carried out? Can the year-end closing be carried out?- Maintenance of the last closed fiscal year - Maintenance of the last closed fiscal year

per company code per company code

Closing reportsClosing reports- Asset history sheet- Asset history sheet- Asset list- Asset list- . . . - . . .

Depreciation posting runDepreciation posting run1.1.

2.2.

3.3.

Year-end closing

Periodic processingPeriodic processingFiscal year changeFiscal year change

Fiscal Year Change


Year-End Closing

Depreciation postingDepreciation postingDepreciation postingDepreciation posting

Year-end closingYear-end closingprogramprogram

Year-end closingYear-end closingprogramprogram

ArchivingArchivingArchivingArchiving

OK?OK?OK?OK?Adjustment postingAdjustment postingAdjustment postingAdjustment posting

(Bulk) changes(Bulk) changes(Bulk) changes(Bulk) changes

Dep. simulationDep. simulationDep. simulationDep. simulation

No

OK?OK?OK?OK? No

OK?OK?OK?OK? No

Yes

Yes

Yes

Depreciation

Bal P&L

Asset history sheetDepreciation lists

Retmt.. . .

Acquis. . . .

Transfer. . .

Closing balance

Assets


Report Selection

Asset list

Balance sheet explanations

Explanations for P&L

Cost accounting

Depreciation forecast

Special valuationsReconciliation

Preparations for closingDaily total Taxes

History

Individual asset


Depreciation ontransactions

Display of documents for the asset

Goodsreceiptdocument

all values

display dep.calculation

dep.recalculation

dep. terms

currentbook values

Asset Value Display

Display valuesDisplay values

one year, one area

one year, several areas

several years, one area

several years, several areas

with simulated change of with simulated change of depreciation termsdepreciation terms

with simulated transactionswith simulated transactions

Simulated fiscalSimulated fiscalyear changeyear change

Asset value display

.

.

.

Postingdocument

2000.-


Depreciation Simulation

Do you want simulation into the current fiscal year?

Do you only want simulation for planned capital investments?

Do you want to include transactions from the current year in the simulation?

Do you want to include planned capital investments, that are represented by orders or projects, in the simulation?

Do you want to simulate a change in depreciation terms for the depreciation forecast?


Course of depreciation for Individual assets

Net

bo

ok

valu

e

Time

Display asset values

Report for all assets

Time

As

se

t v

alu

es

Use. life 5yr.

Use. life 4yr.

Development of asset valuesAsset class: Vehicles

Simulation versionSimulation version- depreciation areas- asset class- depreciation key- useful life- valid from / to

SimulatedSimulatedasset transactionsasset transactions- acquisitions- retirements- transfers . . .

Simulated Simulated depreciation termsdepreciation termsdepreciation key- useful life- index

P+L

Operating profitOperating profit

with spec. dep.

w/out spec. dep.

Asset Simulation


Depreciation Simulation (Order)

Year 1 10,000

Year 2 15,000

Year 3 35,000

Year 4 42,000

::

Depreciation Simulation

Dep. simulationDep. simulationwith plannedwith planned investmentsinvestments

CO order order / / CO projectCO project

Planned costs

Year 1 100,000Year 2 50,000Year 3 200,000Year 4 70,000:

planned start-up date 1/1/year 1

Depreciation termsArea Dp.key Use. life : :20 LINA 10 : :


110 In-house acquis.100 External asset acquis. 10 Acquis. Acquisition120 Goods receipt

15 Down paymt.

40 Post-capitalization

Changes to Asset History Sheet

Transaction type Hist. sheet group Item

11 Acq.- In-house prod. Acq.- In-house prod.

110 In-house acquis.100 External asset acquis. 10 Acquis. Acquisition120 Goods receipt

15 Down payment

40 Post-capitalization

History sheet version A

History sheet version B


Transfer of Old Assets DataPrevious system

o r

FI-AAFI-AA

Automatic transfer

(Direct data import)

Dialog transfer(for small volume of data)

Create old asset

Assets

Batch input procedure


Options During Old Asset Data Takeover

END YearCalendar

Old data takeoverOld data takeoverOld data takeover during fiscal year

Specifications: - Date of Old Asset Data Takeover

- Entry of APC or net book value- Calculate cumulative insurable value- Sequence of the depreciation areas during old data takeover- Calculate replacement value- Recalculate cumulative depreciation- Takeover during fiscal year:

enter last period depreciation was posted in your previous system


Transferring Old Data at Fiscal Year End

FI-AA

FI

Asset 1

200010000

Asset 2

400020000

Asset u. cons.100300

Non-curr. assets 30000

Value adjustments

6000

AuC G/L account 400

Asset 1200010000

Asset 2400020000

Asset u. cons. 100

300

SAP SystemSAP System

Previous systemPrevious system


Transferring Old Data During the Fiscal Year

FI

Non-curr.assets 10000

1000

Value adjustments2000

275

Values from previous yearsValues from previous yearsValues from the current yearValues from the current year

Values from previous yearsValues from previous yearsValues from the current yearValues from the current year

Asset values on 12/31 of previous yearAsset values on 12/31 of previous yearChanges during the current yearChanges during the current year

Value adjustments up to 12/ 31 of previous yearValue adjustments up to 12/ 31 of previous yearChanges during the current yearChanges during the current year

FI-AA

Asset 2000

27510000

1000

SAP SystemSAP System

Previous SystemPrevious SystemAsset

2000275

100001000

Transactions in the current year500

500 Transactions in the current year


Records with errorsRecords without errors

Automatic Transfer of Old Assets DataPrevious system

Inter.program RAALTD01

DIALOG INTERFACE

ANLHANLAANLBANLC :

Old data in transfer formatBALTD + BALTB

BatchInput


Before FI-AA is introduced

Account Control following Productive StartAccount control in productive FIAccount control in productive FI

After FI-AA is introduced

Pro

du

ctiv

e s

tart

Se

t rec

on

cilia

tion

ac

co

un

ts

1000 1000

1000 1000

1000

Vendor Asset

Fixed assets (Reconc. acct.)

Vendor Fixed assets (can be posted directly)


Right Solution, Right Time, Right Price

Documents

FI-AA Detail Workshop Et Rk015