Asset Shutdown

If you want to stop calculating periodic depreciation from a certain period or a specified period for certain assets.  Then you should use the functionality of Asset Shutdown.

You should identify the depreciation key where you want asset shutdown activated and then tick the asset shutdown on the asset master data with the time interval.

IMG setting

Asset Accounting -> Depreciation -> Valuation Methods -> Depreciation Key -> Maintain Depreciation Key

( Tcode S_ALR_87015165 or AFAMA ).

Select the depreciation key and down click on Assignment of Calculation Methods on left side.  On the field “Shutdown”, select Yes on the drop down and save.

Asset Master

Call transaction AS02, go to tab Time-dependent. You will notice a field Asset Shutdown. Tick the box and enter period when you do not want the periodic depreciation be calculated and save.

When you run the periodic depreciation (Tcode AFAB), the depreciation will not be calculated for assets that are Asset Shutdown.

 

Instructions for Using the Asset Shutdown Functionality of SAP

 

Advertisements

Chart of Depreciation Overview

The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country.
You must assign a chart of depreciation to each company code that is defined in Asset Accounting. SAP provides country-specific charts of depreciation with predefined depreciation areas. These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are therefore not directly accessible in the SAP system. When creating a chart of depreciation, you have to copy the reference chart of depreciation.
When you create a chart of depreciation, the system copies all of the depreciation areas in the reference chart of depreciation. You have to delete any depreciation areas that you do not need in your chart of depreciation. Depreciation areas that are not used can still be activated at a later point in time (after the production startup). A newly activated depreciation area can take over values from another depreciation area.
SAP has provided chart of depreciation for various countries. Unfortunately for India it has not provided any chart of depreciation. Therefore we use German chart of depreciation.

Chart of Depreciation defines the various depreciation areas and valuation methods for assets. In SAP, they are defined for each country at client level and can be modified to suit the requirements.

The various features of chart of depreciation are as under:

1. The chart of depreciation is a directory of depreciation areas organized according to business management requirements.

2. The characteristics and significance of the individual depreciation area is defined in each chart of depreciation. A depreciation area is always assigned to only one chart of depreciation.

3. Depreciation keys for automatic calculation of depreciation are also defined in chart of depreciation. They are based on elements for calculation (calculation methods, period controls, and so on) that are available client-wide.

4. There are specific objects in the chart of depreciation for special calculations of asset values

Each company code is assigned to on chart of depreciation.

 Chart of depreciation is nothing but a chart containing difference areas of deprecations like Book depreciation, Tax depreciation, consolidated depreciation, etc. Because we have to prepare our statements as per Indian Companies Act (Book depreciation), Income Tax Act (Tax depreciation)like that…Like in Chart of accounts … there we have list of GL accounts in COA whereas we have list of depreciation areas in Chart of Depreciation.

Master Depreciation Area:

The master depreciation area (area 01) has a special significance. This area is generally the area for balance sheet values. This master area is subject to the following restrictions:

  • The values of this area are always automatically posted to Financial Accounting.
  • During the legacy data transfer, you must always enter values in this area first.
  • It is not possible for the master area to adopt values or depreciation terms from other depreciation areas.
  • The currency of this area must always match the currency of the its company code.
  • You cannot delete the master area.

RATES OF DEPRECIATION AS PER COMPANIES A CT, 1956 SCHEDULE XIV

Rates of depreciation:
Rates of depreciation are provided in Schedule XIV to Companies Act. The excel file contains rates of depreciation as per Companies Act for the Financial Year 2012-13.
How depreciation is calculated as per Companies Act?
Depreciation as per Companies Act can be calculated both on WDV or SLM basis.
Is it mandatory to claim depreciation?
As per Section 205 of Companies Act, no dividend shall be declared or paid by a company for any financial year except out of the:
a)  profits of the company for that year arrived at after providing for depreciation; or

b)  profits of the company for any previous financial year or years arrived and after providing for depreciation.

 RATES OF DEPRECIATION AS PER COMPANIES ACT,1956

Asset Accounting noted Points

If you use different Financial Versions,you have to post more than one depr area to the General Ledger.

Chart of depreciation is assigned to Company Code.

Account assignment mus be activated before they can be maintained in the master data.

Depreciation areas can have the same values and depreciation term but can be displayed in difference currency.

Several Chart of depreciation can be assisgned to one asset class. This ensure that asset class catalog in uniform despite using different depreciation area.

Each asset is assigned to only one asset class

We can supress individual depreciation area in asset class.

The essential function of asset class is to establish link betwwen the Asset master record and the accounts to which the related values and depreciation are posted in G/L.

You can not assign asset to cost center, instead you can assign asset to a (real) order that will be settled to the respective cost center. In this way you can summarize the cost your project (The asset being part of it)

  Chart of depreciation is always Country Specific

Chart of depreciation is a Catalog of country specific depreciation area

Each Company code uses One chart of account and one chart of Depreciation.

Depreciation attribute can be overwritten if necessary, but if they are specified by the system you cannot change them.

Even after AUC fully capitalized you can still post C/Memo to it. However you have to allowed negatice APC.

You can define depreciation area for report purposes only, which do not post any value in G/L, Eg: Depr area for tax balance sheet.

in FI-AA you can manage different values of fixed asset in depreciation area.

In each asset class you enter a screen layout rule for each depreciation area. This rule applies to the valuation fields in the depreciation Area.

Asset that are appear in different places / balance sheet item have to be assign to different asset class.

Asset class used as a templete for asset master records that are created later . It is therefore necessary to decide which default value to be stored in asset classes to ensure the uniformity of the asset.

You can create a new chart of depr by copying reference charts of depreciation. you can delete the depreciation areas you do not need. It must be done before asset is created.

SAP Provides model chart of depreciation for many contries these contain pre defines depreciation area. You can also define your chart of depreciation (by copying & Changing)

Several asset classes can use same A/C “Account Determination Key ” if they use the same chart of account and they post to the same G/L account

Depreciation 01 is the leading depreciation area (Area 01 is the book depreciation)

Asset class are created at Client level

Thankz

Jayanth Maydipalle

SAP Asset Accounting Configuration Document – Realtime Project

his material, from a realtime project, provides step by step customization/configuration instructions related to Asset Accounting submodule in SAP FI. Following are headlines from the document;

  • Organizational Structures Configuration

In this section features of the Asset Accounting organizational objects (chart of depreciation, FI company code, asset class) are defined. All assets in the system are assigned to these organizational objects that you defined.

  • Integration with General Ledger Ao90

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

  • Valuation Configuration

In this section,all configurations that have to do with the valuation of fixed assets are made. We define and manage all valuation and depreciation parameters in the chart of depreciation

  • Depreciation Configuration

The settings for fixed assets depreciation are defined in this section.

  • Special Valuation Configuration
  • Master Data Configuration
  • Transaction Types Configuration

Click on below mentioned link to view full SAP Asset Accounting configuration Document – Realtime Project

asset-accounting-configuration-realtime-project

Asset Accounting User Manual -SAP

SECTION 1 ASSETS MASTER DATA PROCESSING
1.1 CREATE ASSET
1.2 CHANGE ASSET MASTER
1.3 DISPLAY ASSET MASTER
SECTION 2 ASSET ACCOUNTING- BUSINESS TRANSACTIONS
2.1 ASSET ACQUISITION (CAPITALIZATION OF ASSET)
2.2 REVERSE ASSET DOCUMENT
2.3 DEPRECIATION RUN
SECTION 3 ASSET ACCOUNTING INFORMATION SYSTEMS
3.1 STANDARD SAP REPORTS

Click on below link

asset-accounting-user-manual

Asset Retirement

Overview

The following paragraphs and pictures will describe an EXAMPLE in steps of an asset retirement and the functionality of the main fields and buttons.

Asset Retirement with transaction code ABAVN

To retire an asset go to Navigation:  SAP Easy Access -> SAP Menu -> Accounting -> Financial accounting -> Fixed Asset -> Posting -> Retirement -> Asset Retirement by Scrapping

Alternatively: Transaction code ABAVN

1) Fill out Field Asset with your asset number already created and with postings (press enter)
2) Fill out Fields Document Date, Posting date and Asset Values (it cannot be a date prior to this asset capitalization date.

3) If you press Line items , you will see the values generated for each depreciation area.

4) If you press Simulate button you will see the accounts that will be credited and debited. In this case 11000, 11010 and 200010.

5) Double clicking on each line item you can see all details of these transactions.