Spare part -- Fixed asset ???

Experts
We have spare parts as inventory in our plant. If we want to capitalize the spare part,
1. Can SAP handle this process?
2. If so, what is the steps need to be taken?
Thanks

Use Asset Accounting Module
Create Asset class/Account determination and assign GL accounts and create new depreciation key.
Create assets for ispare parts and assgn life and depreciation key.
Contacting your FI consultant helps you a lot
Srinivas

Similar Messages

Spare parts - assets or materials

Hi
I work for a power generator and our inventory mostly consists of spare parts - not items for sale.
For accounting purposes, we are required to classify some of these spare parts as fixed assets (rather than inventory) as these parts will not be used in the next financial year.
These spare parts sit in the store and from time to time are purchased or issued to maintenance orders or into assets.
We wish to record depreciation/provision for obsolescence on the spare parts.
I would appreciate some advice on the best way to treat these items in SAP is (from someone who has worked with Utility companies with similar issues). Is it:
- record them in MM but have posting to fixed assets g/l code and manually record depreciation/obsolescence?
- record in AA and have partial disposal when some spare parts are used?
- record quantities in MM and values in AA?
- other???
regards
CJ

Hi,
As per my understanding spare parts, even if to be used in fixed assets for replacements, should be treated as inventory only.
Therefore, you should inventories them and as and when they are issued, you should charge them off to profit and loss account (This is as per Accounting standard 10).
But, if you want to know a way out to transfer them as an asset, then also you need to keep it as inventory only till you utilise it. Once it is required to be capitalise, you can do so with transfer posting with a appropriate movement type, so that quantity shall be reduced from inventory and shall be capitalised.
Regards
K Khatri

Spare part accounting

Hi Friends,
We have requirement for spare parts.
When creating purchase order, the purchasing associate will determine if unit codt of spare parts and select respective GL account in sap system :
If the spare part value is :
Above 5000 USD then item should be capitalized :
Fixed asset
To Accounts payable account
In case withing 5000 USD
Current asset -
To AP account
Purchase of repaired item: GL would be same like purchase of spare part . Price would be same as repair price.
Can you please help me on this ASAP .

Hi<
Please let us know if you still need help on this. If so, we would like to move the questions to ERP space. Thanks a lot for your understanding.
BR

FIXED ASSET Note 113711 - FA ISR Depreciation Adjust. & IMPAC Balance Aver

Hi Gurus, I have a question about this note referent at Fixed Asset , in the next topic:
After release upgrade the import has to be repeated for the new
release.
Please take the transport from SAPSERVx, path:
~ftp/specific/latinamerica/MX/note.0113711
Directory note.0113711 contains the following transports files:
- For Rel. 3.0F and 3.1 please transport:
R900246.LD3 (data)
D900246.LD3 (cofile)
which will create the next objects:
DEVC ZAA Development class
DOMA ZINDE Domain for INPC value
DTEL ZINDE Data element for INPC value
FUGR ZINP Function group for table maintenance
PROG ZAAUFW01 MAIN PROGRAM
PROG ZXANLU04 Include with calculation logic
TABL ZINPC Table for INPC values
I don't understand the sentence :
"Please take the transport from SAPSERVx, path:
~ftp/specific/latinamerica/MX/note.0113711"
I don't know how connect at this server for download files .LD3.
that request the note 113711.
Thanks for the help.

Thanks for your answer Sreenivas, I have a doubt :
The first part of the note refered at release 3.0 and 4.0.
I have worked the version 5.0, and in the Note 113711 there is a paragraph that says:
"If you want to transport the INPCs values into the ZINPC table, please
AFTER having transported the previous files, transport files:
R900248.LD3
K900248.LD3
which contains the INPCs values since 1950.
- For Rel. 4.0B and after, please transport:
R900040.LD1
K900040.LD1
In rel. 4.0B and after, the program uses the INMA indexes tables. There is no need to create a table ZINPC anymore to maintain the INPCs values.
The Index that the program uses is the general one defined in the Inflation Method for the company code for FI. It uses the definive values of it."
My question is if I have download the files *.LD3 for release subsequent at 4.0 because I actually have worked version 5.0 of SAP R/3.
Thanks for your answer.

Posting of accounting entry related to Fixed assets

Dear All,
I have an issue as below:
We have implemented ECC 5.00 in oct,06. As part of implementation, asset management also has been implemented.
We have uploaded the asset values properly. At the same time we have posted an accouting entry through OASV to update the GL account balance.
It was observed that Fixed account and accumlated depreciation account has been posted with higher amount.
Value of the assets as per register 100,000
Less Accumulated dep.,                   10,000
Net value as per asset register          90,000
At the same time GL account balance has been posted as below
GL Account(cost of asset) :150,000
Less accumulated dep a/c     60,000
Net value as per B/s              90,000
When we compare asset register and GL balance, we could not find any difference as both are showing 90,000 only.
But when we compare cost of asset account(as per b/s) with value of the asset as per asset register we can found difference amount of 50,000.(150000-100000)
Same situation for Accumulated depreciation also. 50,000 has been posted excessivly.(60000-10000)
Now can some one tell me how to adjust the difference between asset register and b/s.
Is there any way we can get the individual balance sheet accounts to mirror the fixed asset register.
Can i post any adjustment entry through OASV as below
Accumulated dep account dr 50,000
cost of asset a/c                  50,000
Is it suggestble to post an account entry in 2006 as above.
Also let me know is there any side effects?
Thanks in advance
Regards,
Prasad

You can post this entry. This makes your recon perfect. However, it may not be advisable to post in 2006. Please find out from your finance users and try to post in the beginning of 2008, since 2007 must also be closed by now

Calculate Depreciation Forecast for Fixed asset

Dear all expert,
I'm new to ASO, would like to know if there's a way to do depreciation forcast for fixed asset in Essbase.
1. Database type is ASO
2. Assuming user will prepare forecast caplitialization of fixed asset then upload to Essbase
3. Attribute dimension "Useful life" has been defined and attached to specific "Accounts" dimension for calcluation
4. Need to calculate the forecast and spread of depreciation for future months
E.g. Input 32000 USD for a fixed asset cost with 32 months useful life
-> should calculate 1000 each month for the coming 32 months
Can any expert suggest how to do this in ASO? meaning only can do calculation in member formula itself, not calculation script.
Thanks for your help in advance,
Billy

I haven't used the feature, but the reference to 'local script_file' in the MaxL railroad diagram for the 'execute calculation' command suggests the location is relative to the client, if the semantics are consistent with the 'export data' command (the options for report scripts there are 'server' or 'local', although according to the railroad diagram there is no non-local alternative in this case!).
There is a worked example in a Rittman Mead blog post about this that might help: http://www.rittmanmead.com/2010/04/oracle-epm-11-1-2-essbase-calculations-on-aso-cubes-part-2-maxl-scripts-and-eas/
The DBAG also says that the script files should have suffix .csc, while the Tech Ref example has suffix .txt - helpful!! If they were actually meant to sit in the server's db directory, I would be surprised to find the .csc suffix used, since that is also the suffix for aggregation scripts. Although me being surprised doesn't mean much.

PR to be made for Spare Part

Hi All,
Standard PR:- 1500005005 is created for spare parts . Since the value of the PR is very high that is 60000 Euro it should not be in-ward to cost center. It should be in-ward to the inventory. At the time of consumption only cost center posting should happen. Since its spare part it cannot be an Asset PR.
Which way PR can be made. (Account Assignment Category K - cost center & A - Asset is not suitable). Can this be done with out selecting any Account Assignment Category for this scenario?
Help me out in resolving the client issue.
Thanks in advance,
Regards,
sapuser

Hi All,
Material type:- FHMI - Prod. resources/tools. Both Qty & Value is flaged again's the plant.
So for this PR without K - Cost Center & A - Asset in A/c ***. Catg it will be left (blank). Update it in this way for PR.
After the GR is being Cleared then while doing the Invoice post updated the cost center. Hope this will resolve the problem
Regards,
Pherasath

Partial retirement in fixed assets

Hi,
we are having one strange fixed asset problem.. today we have processed all the fixed assets transactions from january to may
2000.. we did a partial retirement of an asset in dec 2001.. like we had 4 units of it and we retired 1 becaz it was stolen..
the transaction worked in december everywhere (like in fixed assets, general ledger)..now in 2002 this transaction is there
in fixed assets but not showing in General ledger so our fixed asset is not matching with general ledger.. so can someone
suggest that where we did the mistake??? any help will be highly appreciated..please let me know if i'm not clear enough
becaz i'm new to oracle finance...
Thanks.
Sandeep

Hi Experts,
can anyone help me how can i identify what account i should be set-up in Account Determination of Fixed Asset
(Administration> Set-up> Fixed Asset> G/L Account Determination):
i am using SAP BUSINESS ONE 2007 A (8.00.181) SP:00 PL:47
1) Retirement: Net Method
a.) Sales Revenue for Asset Sales Net
b.) Asset Retirement with Exp. Net
c.) Revenue for Asset Retirement Net
2) Retirement: Gross Method
a.) Leave with Expense Net Book Value
b.) Leave with Revenue Net Book Value
I can not run the Retirement of Assets because this part was not been set-up
and Please do sent me also the copy of PDF to my e-mail.. thanks..

Forecasting the need of spare parts in Demantra

Hello everyone,
I would really appreciate if anyone who's had dealt with the following issue help us,
The thing is - we want to forecast 3 different kind of items:
1. Main items we sell - for examples - machines.
2. Accessories for machines we sell. A certian accessory can be used with several type of machines. (Cables, Batteries etc.)
3. Spare parts we need to keep in stock in order to provide repair services for our customers.
Each machine we sell has a different set of spare parts used when repairing.
The forecast for machines is a typical demantra model forecast.(sales forecast by the book).
My question is regarding the forecast for the spare parts we need for repairs.
We know that demand for a certain spare part is influenced by how many machines which use that part were sold to customers.
Also - it depends how common is the use of that part when fixing those machines that need service.
(some parts get broken more frequently etc).
Also since we provide fixed price insurance for customers, they dont "see" spare parts price as a factor.
(they dont naturally "buy" the parts).
How can demantra tie the forecast for the spare part to sales history of machines? Can demantra forecast service ?(which behaves alot different than sales). It is obvious that forecasting demand for spare parts with looking only at each part's history will not provide best forecast results.
Any insights anyone?
I'm pretty sure most implementations faced that issue - regarding the forecast of parts for service -
Would appreciate any reply,
Thanks alot,
Aaron.
Edited by: user10894682 on 07:30 05/02/2009

Hi Aaron,
Per my understanding,you sell machines as well as their accessories.So forecasting for them is by the book where you would be using the demand for machine as well as for accessories..
As far as the service parts' forecasting is concerned, Oracle has a seperate module for Service & Spare parts planning based on Demantra's forecasting engine.
Spare Parts Planning(SPP) has the following features:
1. Forecast accurately with built in Demantra's Forecasting engine
2. Replenish spares based on Single plan model
3. Distribute spares using SPP's plan
4. One single UI to carry out all 3 above processes for improved productivity
5. Forecasting based on Shipments, Spares Usage, and Returns
6. Plan based on Service parts failure rates calculations
7. Integrated with various APS modules like Demantra DM, CP, IO, and ASCP.
From demantra's perspective you may try out the following:
Since you provide fixed price insurance for customers,you would definitely be keeping track of the service provided like what spare was replaced and probably how many of the same spare have been replaced for a particular customer over a period of time. Also as per the insurance you must have specified that a particular spare would be replaced only x number of times within a span of say 6 months or 12 months.
You may utilize these information to classify the spares based on the frequency of use viz. very frequent, medium frequent and less frequent and associate some factor to it.You can club this information as well as the spare parts demand coming out of the BOM (bill of material) of the machine along with each part's history and come up with a forecast that can be more relied upon.
I hope this helps.
Regards,
Shekhar

Partial disposition of fixed assets

Hi
There is a fixed asset 450000008, in this asset, including many air conditioners,
but the user only want to disposit two of them, not all the air conditioners.
Would you tell me how to disposit a part of an asset ?
no sub assets number only main aassets number.
is it possible or not
Rgd

Actually I want to retire only particular transction not amt about amt I know but anyway you dont worry i think this is not possible pls can you tell me about this
Tcode :- ABAON > click on Partial retirement tab> in this tab two option under tab related to 1) Prior -yr acquis 2) From cur. yr. acq.
when I select Prior yr acq in partial payment i get below error .
"Error "
Retirement of old assets data not possible (No existing old assets data)
 Message no. AA 416
Diagnosis
 You have tried to post an retirement based on amount, using a
 transaction type which refers to old assets data (acquisitions from
 previous years).
 However, the sum of the APC at the start of the fiscal year and the
 transactions, related to the past, equals 0.
Procedure
 Check the transaction type entered and the asset.
 "Error end"
And when I select From cur yr acq then its O.K.
Its very helpful for me if you tell abt this .
Thanks a lot
null

GL Journal entry looks good but not Fixed Assets in 11.5.10.2.0 -

In the GL Journal entry it looks perfect, but not in FIXED ASSETS
This is on 11.5.10.2.0
Depreciation amount is not correct in Fixed assets and Any thoughts on that or please let us know how to go about
In the Form
Depreciation
Period
Jan-12
expenses 651.94000.89..whateer
Deprectiaon should be 442.00 whereas it is showing different number
whereas it does show properly in GL Journal entry
How to get this value transferred or migrated
GL looks good but not in Fixed assets- Is there a process we can review or
find more information on it

Hi,
I am pasting my comments next to yours :
These are the issues that needs to be resolved:
• Depreciated balance are over stated in Fixed Assets and needs to be adjusted to reflect what is in GL. => I wasn't sure how this was was possible, since I assumed that your Asset depreciation journals in GL were being fed from FA. So if depreciation was thought to be incorrect in FA, its corresponding balance in GL should've been incorrect as well. But I guess that's not the case because your other questions imply that some of these assets were acquired and their might have been some conversion activity involved.
• Fixed Assets mass additions are selecting GL accounts that should not be selected. We need to know how to change the criteria for selection. +=> Check the Asset Clearing and CIP clearing accounts on your asset categories+
Later:
• We need to learn the proper way to convert assets we acquired from acquisition into our Oracle Fixed Assets system, so that depreciation start at the time we acquire the assets. => That is correct, you could change your original date placed in service to the acquisition date as part of conversion and if you have the correct prorate convention, they should depreciate the way you want it to.

Capitalization of spare parts

Hi,
Spare parts are acquired via logistic workflow. At reception, they are entered in inventory. Accounting department verifies on monthly basis the list of spare parts but has to identify which one has to be capitalized.
How could you send spare parts sitting in inventory to asset register? If the spare part is capitalized but need to be replaced/ repaired, how could we change the value of the asset? How could we track the spare part if they are capitalized? How could we follow the spare part as soon as it is capitalized?
Any recommendation on the capitalization of spare parts?
Thanks
Sabine

Hi Anna,
Thanks for your answer. In fact, we try to see if we need to capitalize or not spare parts. I know that you suggested to keep them in inventory .
Here, they try to decide at the beginning of the process if they need to capitalize or not the spare part. There are 2 cases:
case 1: spare part bought at the same time as main asset to which there are related to (= critical spare part) and brought into use at the same time as main asset.
case 2: spare part bought for repair or replacement
I guess that we should capitalize the spare part in the first case. But if we capitalize the spare part, we could not do anymore an inventory management and follow the spare part. This is not very convenient.
In the second case, we need to decide if we are dealing with major spare parts and define some criteria to identify what "major" means (e.g. useful life higher than 1 year)... but this is very difficult to identify.
In the last case, it is more complicate because we probably go through the maintenance order but how do we capitalize then? If the costs are in stock then they can't be also in asset. Does this mean that we need to do some financial adjustments?
Any idea?
Thanks
Sabine

Import Fixed Asset by excel

Hi Every one,
     I am importing FA in SAP B1 PL 09 but failed, with system message log " Its active depreciation areas must be the same as those defined in the corresponding asset class. I checked depreciation areas and asset class, They corresponded to each other.
     Please help me to find way to solve this error.
Thanks & Best Regards
     Loan Tran

check below..
Fixed Asset SAP Business One 9.0 Configuration

Importing the (active) Fix Asset with ◦Accumulated ordinary depreciation to Sap Business One 9

Hi all,
I'm trying to upload the Active Fix Asset to the SBO (no new).
for example:
item:                          FixAsset
Useful life :                48 (month)
Remaining Life:        12 (month)
APC(Historical cost): 10000
Accumulated Ordinary Depr.: 7500
So Value Balance: 1500
and Life Balance :     12 month
I have tried to Import active ITEM by Excel ,follow this link : Importing Fixed Asset Master Data from Microsoft Excel - SAP Business One 9.0 - SAP Library
every time recieve the message :
Cannot import asset "fixasset"; a new asset's useful life and remaining life must be the same in depreciation area "AFA"

Hi,
Please check SAP note:
2001876 - The system does not consider the Salvage Value nor the
Remaining Book Value when you import assets
Thanks & Regards,
Nagarajan

Fixed Asset Data Migration Wizard

Hi All,
I tried to use Fixed Asset Data Migration Wizard to migration my fixed asset data from 8.82 to 9 in the development server. The server only accessible by myself.
When I start the migration run, system prompt me " To Continue with the fixed asset data migration, you must be the only user logged on to this company data".
In fact I'm the only user in the company data and system not allow me to execute the migration.
What are the causes that system recognise there is another user in the system?
Please advise.
Thanks in advance.
Best Regards,
Foong Yee

Hi,
If you're using SQL Server, try Detach (close existing connections) and re-Attach the database again then re-login and try executing again the wizard.
Regards,
Donald

Spare part -- Fixed asset ???

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