Asset Accounting in SAP

Asset Accounting in SAP system (FI-AA) is primarily used for managing, supervising and monitoring fixed assets. Asset Accounting is classified as a subset of Financial Accounting and serves as a subsidiary ledger to the general ledger providing detailed information on transactions involving fixed assets.

SAP Asset Accounting is also called as sub ledger accounting and is one of the important sub-modules of SAP Financial Accounting (SAP FICO) module. The main purpose of asset accounting is to determine the exact value of the fixed assets owned by the company as on a particular date.

In SAP Accounting powered by SAP HANA only new Asset Accounting is available with new General Ledger Accounting. For you to be able to use new Asset Accounting, you need to have activated and set up the General Ledger Accounting (FI-GL) (New) application component.

Asset Accounting course content

1. Copy reference chart of depreciation
2. Assignment of chart of depreciation to company code
3. Creation of 0% tax codes for sales and purchases
4. Defining account determination
5. Definition of screen lay out rules
6. Definition of number ranges for asset master
7. Creation of asset classes
8. Integration with General Ledger & Posting rules
9. Defining Depreciation key
10. Definition of multilevel methods
11. Definition of period control methods
12. Creation of main asset master records
13. Creation of sub asset master records
14. Posting the transactions for Acquisition of fixed assets
15. Depreciation run and Asset explorer
16. Sale of fixed assets – with customer and without customer
17. Transfer of assets
18. Impairment of assets
19. Scrapping of assets,
20. Line item Settlement of assets under construction of capital work in progress

SAP FI-AA components

The important components SAP Asset Accounting are:

• Basic Functions:
  • Master data (asset maintenance)
  • Basic valuation functions
  • Depreciation
  • Transactions, such as asset acquisitions and retirements
  • Closing operations
  • And more
• Special Valuations: For example, for investment support and insurance
• Processing leased assets
• Preparations for consolidation for group financial statements
• Information System

Important Configurations of SAP FI-AA

The important configurations in SAP Asset Accounting are:

1. How to define charts of depreciation
2. Define tax code on sales and purchases
3. How to Assign chart of depreciation to company code
4. How to specify account determination
5. How to create screen layout rules
6. How to Maintain asset number range intervals
7. How to define asset classes
8. How to Determine depreciation areas in asset classes
9. How to Specify intervals and posting rules
10. How to define screen layout for asset master data
11. Procedure to maintain screen layout for depreciation areas
12. how to create base methods
13. How to create declining balance method
14. How to create multilevel method
15. How to create depreciation key in SAP
16. Create asset master data in SAP
17. Create sub asset master data in SAP

Integration of SAP Asset Accounting with other SAP modules

Asset Accounting transfers data directly to and from other systems. As an instance, it is possible to post from the Materials Management MM component directly to Asset Accounting. When an asset is purchased or produced in-house, you can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse, to assets in the Asset Accounting component. At the same time, you can pass on depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO) components. From the Plant Maintenance (PM – Plant Maintenance) component, you can settle maintenance activities that require capitalization to assets.