Superhero Asset Accounting Tax Question

My future best friend/s-
Background:
I work for an energy company specifically natural gas. We have assets (pipelines, metersu2026etc) that are placed in service (put in the ground) and maintained in a excel spreadsheet. After they go through an internal approval process (which causes a huge backlog for input) they are entered into SAP (or the asset is created). My problem is some assets are installed one year (amounts are maintained in the offline excel spreadsheet) and entered into SAP in another year after the previous year is closed. Our SAP isnu2019t catching the tax books depreciation amounts correctly.
Example:
Asset entered in 2008 (pipe put in ground and tracked in excel)----->Asset entered/created in SAP 2010 (after 2008 and 2009 is closed).
Possible solutions I am looking for:
1.     Can I make the tax books have a different fiscal period or none at all?
2.     Is there something I can do with the depreciation keys, useful life, period control or anything that will help with me?
3.     I know about the write-up functionality, however, the tax accountants (funny I never knew how difficult accountants could beu2026especially since I use to be one) will only use it as a last resort.
4.     Is there any books or web-videos that can teach me this type of stuff in SAP that donu2019t read like stereo instructions (I guess this is a general question).
If you can solve this problem you will be a superhero in my book. Please let me know if you need more info (BTW this is my first blog ever).
Thanks,
Jack

Hi Jack,
What has been said above is right. In AS01 all you do is use the 'post-capitalization' indicator at the start, then you see in the 'General' tab that the 'Capitalization on' field is (in my system at least) a required field. Here for example I enter 01.01.2008. Once hitting enter, following fields are filled automatically and remain greyed out:
First acquisition on 01.01.2008
Acquisition year 2008 001
In tab 'Depreciation areas' in AS01 field ODepr.Start is also automatically filled with value 01.01.2008.
Then comes the posting: as for the value you post, for example in the open fiscal year 2010 (e.g.01.01.2010) you can observe nicely the different system behaviour in case you post an normal external acquistion (ANZON) or indeed a post-captitalization (ABNAN). You will see that in later transaction (ABNAN) you find a value adjustment is posted in AW01N to represent the ord.depreciation calculated and so adjusted for 2008 & 2009. So, only the remaining ord.depreciation will then be planned and posted in the remaining useful life
However, if you for example post a normal external acquisition to an asset (set up with 'post-capitalization' indicator and cap.date 01.01.2008 in AS01), you will also observe, that the FULL depreciation for the asset is now calculated and spread over the remaining useful life.
And yes, whether or not in the first period the planned depreciation is a 'catch-up' amount or an equal 'smooth' amount depends on your setting in the company code in OAYR, just as well explained already above (indiator 'Smoothing').
I hope this further clarifies and helps explain - best of luck!
Kind regards,
Brigitte

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Asset accounting-QUESTIONS

Hi Gurus,
I got some questions for asset accounting request all of you to kindly extend your help
my questions are
    What is Asset History? ( OAOA)
2)     How the data flows from Asset Accounting to Controlling?
3)     When the asset value is zero and the Company is still using the asset then, how the Company generally proceed to calculate depreciation further? (Curb) (SPRO>Financial Accounting>Asset Accounting>Depreciation>Valuation Methods> Depreciation Key>Calculation Methods> Define Base Methods)
4)     In asset accounting, why 0% Tax code is created for not taxable transaction and why it is compulsory to do it before assigning the chart of depreciation to company code?
5)     What configuration is required to bring all the Fields in depreciation area tap of Asset master creation?(AO21) and (AS01)
[If we make any changes in Tcode AO21 and they are not getting reflected in depreciation area (Last Tab) in creation of asset master (AS01). So how to make the configuration to get those changes reflected in dep. area (last tab) in creation of asset]
6)     What are difference between Germany Chart of Dep. and Great Britain Chart of Dep. (UK)?
Be assured about the points
Thx
Vinod R Khelani

Hello
Charts of depreciation are used in order to manage various legal requirements for the depreciation and valuation of assets. These charts of depreciation are usually country-specific and are defined independently of the other organizational units. A chart of depreciation, for example, can be used for all the company codes in a given country
In the simplest scenario, all of your company codes are in the same country and are subject to the same legal requirements for asset valuation, meaning that you only need one chart of depreciation.
The chart of depreciation consists of the following parts:
In general, you are required to calculate values for assets for different needs, both internal and external (such as book depreciation and cost depreciation). Therefore, the Asset Accounting component enables you to manage values for assets in parallel in up to 99 depreciation areas. The chart of depreciation, therefore, is a directory of depreciation areas organized according to business management requirements. You define the characteristics, and thereby the significance, of the individual depreciation areas in each chart of depreciation. A depreciation area is always assigned to only one chart of depreciation.
You flexibly define the keys for the automatic depreciation of assets in each chart of depreciation. They are based on elements for calculation (calculation methods, period controls, and so on) that are available client-wide.
Use
SAP supplies typical reference charts of depreciation for each country. They have different depreciation areas and depreciation keys depending on that countrys specific requirements. You cannot use these charts of depreciation directly. You must create your own chart of depreciation by copying the reference chart of depreciation. Delete any depreciation areas that are not needed.
You can document the meaning of any chart of depreciation you set up in the system by writing a description for it.
Reg
*assign points if useful

Question on SAP Asset Accounting

Dear Friends,
We are working on a new enhancement for our project. In this development we have to implement parallel ledger with Asset Accounting. We have already Asset Accounting implemented, and two months of depreciation already posted. The current COD is now used by 4 company codes across 4 countries.
Our Requirement.
1. We have 4 ledgers. with OL, we have US for US GAAP, and two Nonleading ledger LS, LT for Australia, Local reporting. The requirement is the Asset posting happening in Asset environment should hit all the ledgers( OL, US, LS, LT)
Solution planned - We thought to create a new COD and assign the depreciation areas with the ledger groups . BUT WE ARE NOT SURE HOW CHANGING THE COD IN THE SYSTEM IN THE SYSTEM WILL IMPACT.
2. We have another requirement. for any acquisition of Low Value Asset, we have to
For Australian reporting the entry should be
Asset A/C ....... DR
to Vendor A/C
For US reporting the same transaction entry should be
Asset Expenses A/C ........... DR
To Vendor.
Solution Planned - We planned to create two different Depreciation Area for LVA transaction and for one LVA depreciation area we will maintain Asset Account in APC account and in another LVA depreciation Area we will maintain Asset Expenses GL as APC account. BUT not sure how the system will react.
Please reply the above doubt. We are in a very critical position in our project.
Regards
Ranjan82

HI ,
For point 1
You can define depreciation area and in Integration wth GL you can define the Traget ledger group of posting for each depreciation as below screen shot
For Point 2 you can create a depreciation key with 100 % which will depreciate asset fully in same here and will book as expese . I have done this for many conutries and it works without effecting any other thing in system .
Please test these in you test system and let me know if you need more help .
many Thanks

Clarifications in Asset Accounting

Dear Experts,
Please clarify below questions.
1) What is the difference between Depreciation Area and Depreciation Key?
2) What is the importance of Recalculate value button in Asset Accounting?
3) Suppose I have 1000 assets, if I want to run depreciation only for 200 assets how can I do that?
4) If suppose I have 5 Depreciation areas, I am able to see the book depreciation values only, where I
can see the other depreciation values? If we cant see for which purpose we are using other
depreciation areas?
5) Vendor and Customer balances get update regularly or once in a month or year?
6) Where we have to create number ranges either in Production or Development Environment?
7) How can we transfer GLs from one environment to another?
Full points will be assigned as way of thanks
Regards,
Vineela

Hi Krishna,
Thanks for your reply,But still I need some more clarifications please respond........
2) What is the importance of Recalculate value button in Asset Accounting?-
(A)recalculates depr when asset parameters are changed
Where it will be there as it(recalculate button) is not there in AFAB
3) Suppose I have 1000 assets, if I want to run depreciation only for 200 assets how can I do that?
(A)select those 200 and run depreciation
Here Assets Selection option is there only in test run not there in update run.
4) If suppose I have 5 Depreciation areas, I am able to see the book depreciation values only, where I can see the other depreciation values? If we cant see for which purpose we are using other depreciation areas? (A)use AW01N- you cans ee all dep areas
In AW01N only book depreciation values is displayed,how can I see other depreciation area values
Regards
Vineela
Edited by: Vineela Siri on Apr 9, 2008 7:22 AM

Re - Process asset accounting year end process

Hi,
Case- XYZ company is already on K4 fiscal year variant, they want to switch from K4 (calendar year) to V3 (Non- calendar year). Standard SAP process is to create shortened fiscal year for 3 months. But this is only allowed if no entries posted in new fiscal year. This XYZ company is already in the month of Feb. How can we manage this situation in SAP. Asset accounting is implemented in the system. Planned depreciation has already been calculated for 12 months, how can we rewrite planed depreciation? and depreciation has been posted for one Jan 2011.
Plan 1- Keep K4 variant as it is and control this with the help of OB52 to restrict posting. This will allow them to run their day to day process with out any errors in fiscal year 2011
Plan 2 - Maintain K4 as shortened fiscal year and update table T093C to allow system to identify that this 2011 fiscal year is shortened fiscal year. but in both cases question remains what to do with planned depreciation of remaining 9 months?
Waiting for your feed back.
Thanks and Regards,
Sany..

Hi
The system will show you the list of Assets which are incomplete.
I think for the incomplete asset you have not assign the group asset.
Hence in AS02 transaction enter one by one the incomplete assets and complete the same. then run the AJAB transaction which will allow you to close the asset year.
if the answer is helpful kindly assign points
Thanks & Regards
Mahesh

Asset Accounting Doubts

Hi Experts
Can you please tell me how we can calculate tax for assets while doing depreciation.
what are the month-end & year-end activities in asset accounting.
what is the use of assigning cost center in AA.

Hi Venu,
Calculate taxes while running depreciation - Not sure why there is requirement to calculate taxes for depreciation run. If it is tax depreciation (as per income tax laws), you can have a separate depreciation area and assign depreciation key as per the law.
Month end and year end closing activity - You need to run depreciation monthly. If you have a non leading ledger, run ASKB to post to non-leading ledgers. Year end you need to run AJAB to close the year and then AJRW to do a fiscal year change.
Use of assigning cost center in AA - We do this to determine the responsibility center for the asset (where location is not used) as well to post depreciation to the correct cost center.
Hope this helps.
Thanks and Regards
anit

Incorrect posting in asset accounting after legacy asset transfer

I have an issue in Asset accounting.
The depreciation key used is LINA (with a base method 0009 and Dec. bal. method 001 straight line depreciation)
My question is:
An asset was acquired 02/01/2005. It has an expected useful life of 1/11.
Under AS93.
I see the asset ***. acquisition value 205,695.00
Accu.ord. deprec - 78,784.06
The asset was transferred to SAP at 03/31/2007.
Now In aw01n I see the following:
Legacy data transfer Per 3 Ord. deprec 10,143.87
Posted Per 4 13,364.13
Posted 5 5877.00
Posted 6. 5877
Till 8th month posted 5877.
The posted values are wrong. Since it was transferred to SAP it has a useful life
of 1 year. At this rate it will go for 3 years.
What can I do to rectify this error?
Why is it posting 5877?
Thanks,

Hi Roma,
The useful life has to be the Total Useful life of the asset.
Since your useful life is less than the expired usefull life the system is calculating depr. for after the end of useful life, which for base method 0009 is curbing.
<i>Curb
With depreciation beyond the planned useful life, the depreciation percentage rate can be derived, not only from the planned useful life, but also from the actual useful life. This method produces a declining-balance effect instead of a straight-line effect (curb).
Use Base Method 0007, this does not curb.
Kind regards
An asset that originally had a useful life of 10 years is depreciated in year 11 by 1/11 = 9.09 %, in year 12 by 8.33 % and in year n with 100/n %.
When you use below-zero depreciation with a curb, the system determines the percentage rate, after the end of planned life, to the exact period and not to the year.</i>

How to delete depreciation areas when a posting is made in asset accounting

Hi All,
We are implementing asset accounting to few of our company codes as a new company code start up project. We have opened depreciation areas for tax for one company code and found that we are not going to use this company code for asset accounting.
We have already opened 2 depreciation areas one for tax and the other as difference between book and tax depr in our development client. One of our member has created an asset and posted values to it. Now, we were told that we dont need to open the depreciation areas. When i am trying to delete it system giving error message saying you cannot delete the derived depr as the values have already been posted.
Please advice how i should proceed with the above issue for deleting the depreciation areas. Your help is much appreciated.
Thanks in advance

Hi Rose,
For the below mentioned issue do the following:
1) reset all the depreciation data ( t code OAGL)
2) reset all the asset account co code data (t code OABL)
then u can go and delete the depreciation areas.
regards,
Kiran

Error during Year-end closing Asset Accounting (AJAB)

Hi,
While executing transaction AJAB (year end closing AA) the system, the system issues a message "Transactions not completely periodically posted". The detailed message is AU075 "Asset balance sheet values not completely posted".
Processing the error message:
While proceeding through the error message details I checked "Define How Dep Areas Post to GL" and found that 4 depreciation areas are maintained as under:
Area/Description/ G/L/ Target Group
01/ Book dep/1 (Area posts in Realtime)/0L (Leading Ledger)
15/Income tax dep/0 (Area does not post)/ Blank
21/ IFRS/ 3 (Area posts dep only)/1F (IFRS Ledger)
Then I clicked on start APC program, which leads to transaction ASKB (Periodic Asset Posting). The transaction could not be posted as document type is not assigned for periodic posting of Asset Values in SPRO>Fin. Accounting (New)>Asset Accounting>Integration with GL Accounting>Post APC values periodically to GL Accounting>Specify document type for periodic posting of asset values.
I've got 2 queries:
1) whether year-end closing can be executed if the document type is assigned and transaction ASKB is run.
2) If the answer to first query is yes, how come the same error did not encounter in other company codes (the error occurred only in 2 company codes). I've also checked the depreciation area maintained in asset masters of the company code where no such problem was encountered and found it to be same as the company code where the problem has occurred.
Seek your expert advise to resolve the issue.
Thanks,
Vipin Patankar

Hi Malhar,
Thanks for your prompt reply. I understand that the issue can be resolved by assigning document type and execute ASKB. At present document type 'AF' is being used for depreciation posting, can we use the same document type for APC value posting or some other document type should be used.
I still need some more highlight on the reason for not facing the problem in other company codes.
Thanks,
Vipin Patankar

Asset accounting - asset year end closing

Dear Experts,
For the year 2008 the depreciation was not processed in asset accounting and now i processed depreciation for the total year from 1 period to 16 th periods by keeping FI period 2008 open and documents were posted successfully. Now i want to close the 2008 period for asset acccounting and i want to open 2009 period for asset accounting .
But i am getting error like Transactions not completely periodically posted. It is taking to 2 paths.
One is Define How depreciation Areas post to General Ledger
Here for my client 3 depreciation areas are there 1) book depreciation 2) Tax depreciation 3) Delta depreciation.
Second is Start APC Posting Programme: When i try run this programme "i am getting message like there are no documents to be posted"
Please help me
Thanks
Balu

Hi,
please read the WIKI guide [Year-End-Closing in Asset Accounting (best practices)|/people/javier.reviriego/blog/2008/07/09/year-end-closing-in-asset-accounting-best-practices].
Even if there are no transaction to be posted, you have to execute the periodic posting run. The run itself will create a protocol entry in any case, if there are values to be posted or not. The fiscal year close process checks thit protocol entry.
Regards,
Markus

Account payable,account receivable, asset account

HI sir /madam
i want to know the process of ACCOUNT RECEIVABLE, ACCOUNT PAYABLE,ASSET ACCOUNT what ficos consultancy do, what are steps in fico do other then mm and sd person do.
i want to know the only fico job in in this process AP,AR,AA.
please guide me what they role in that

Hi,
Welcome you post on the forum.
However, you need do you homework first. Your question does not belong here. Search the whole SCN site for wiki, e-learning first to find the basic info.
This forum is dedicate to SAP Business One - one package for all solution for SME customer. There is no individual module for FI CO SD MM etc.
Thanks,
Gordon

What is FI-Asset Accounting mean

hi
can you guide me for this question
1. What is FI-Asset Accounting mean to you?
2. What is Business value it adds?
3. Why business looking for this data?
4. Why kind of Key performance indicates involved in this?

this thread will help out to understand ur questions:
Need help understanding functionally FI Asset Accounting..

Usage of Transaction types in other than asset accounting

Hi,
can someone tell me the usage of transaction types in FI other than Asset accounting.
Thanx,
Sowmya

Hi,
Transaction types are used in several components in SAP, e.g. in CS
http://help.sap.com/erp2005_ehp_04/helpdata/EN/d7/07542843b911d189ee0000e81ddfac/frameset.htm
Since, it's a more 'what is it?' question, you can esaily find the answer by searching 'Transaction type' on hep.sap.com.
Regards,
Eli

Activation of Additional Account Assignments for Asset Accounting

Hi,
I am facing the problem while running depreciation run through AFAB in that the system giving the error message i.e the cost center I3010 is not relevant to business area 7211 but it is 7210.But when I check Cost center(I3010) Master Record it has been correctly assigned with as system saying with 7210 Business Area and not 7210.Eventhough I assgined correct business area in CCTR Master Record why this error is still coming.
And in the error help it is saying that you should make explicit assignment with 7210 business area and for this you have to make business area field as a readily input in cutomizing.After that I check in Asset Accounting additional account object I dont have business area at all.
My questions ?
1.To rectify this where I have to make this BA field as ready input in customizing ?
2.If it is yes in Additional Accounts Objects in AA how I can define newAdd Acc Obj in customizing ? Is it possible ?
Can you plz explain with clear answer becz we are trying since pasy 2 days but the results are hopeless.
Waiting for quick reply.

Hi E Pericherla
Have you checked up the relevant Asset master, regarding Cost Center and BA Assigned there.
REgards
Chandrasekaran

Vat charge when we sale asset through asset accounting f-92

what configuration settings we need to be done to charge vat on asset sale through asset accounting f-92.

Hi Abhi
What I have seen clients doing is this:
They post F-92 to remove the assets from the assets register...Either with or without tax
Then they post VF01 with 100 discount so that VF01 posts only the Tax amount incase its not posted in F-92
Later on you can print the invoice from SD and pass it on to the customer
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Superhero Asset Accounting Tax Question

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