What is Asset Accounting in SAP
SAP Asset Accounting is also called as sub ledger accounting, it is one of the important sub-module of SAP financial accounting (SAP FICO) module. Asset Accounting in SAP (FI-AA) is used for managing and supervising the fixed assets of an organization. The main purpose of asset accounting is to extract the exact values of the fixed assets owned by the company on a particular date.
SAP FI-AA components
The important components SAP financial accounting asset accounting are
- Traditional Asset accounting
- Preparation for consolidation
- Information system
- Processing leased assets
Important fundamentals of Asset Accounting
Fixed assets are assets used for running a business enterprise, where the fixed assets are used for more than one year.
The cost of using asset and the wear and tear in the asset is called as depreciation, where the depreciation is accounted at the end of accounting period.
The total value of assets are charged to profit & loss accounts over life cycle of asset.
Initially you need to configure company code in financial accounting, then you need to assign chart of depreciation to company code.
The values of assets from the date of purchase and to its final termination will be updated in SAP system.
Important configuration of Asset Accounting in SAP
The first step of configuration of asset accounting in SAP is ensuring that country specific template is available or not. If the organization is small with low assets, then we can go for the configuration through the asset accounting lean implementation method. Otherwise we can go for regular implementation method.
The important configurations of SAP FI – AA are as follows.
- How to define charts of depreciation
- Define tax code on sales and purchases
- How to Assign chart of depreciation to company code
- How to specify account determination
- How to create screen layout rules
- How to Maintain asset number range intervals
- How to define asset classes
- How to Determine depreciation areas in asset classes
- How to Specify intervals and posting rules
- How to define screen layout for asset master data
- Procedure to maintain screen layout for depreciation areas
- how to create base methods
- How to create declining balance method
- How to create multilevel method
- How to create depreciation key in SAP
- Create asset master data in SAP
- Create sub asset master data in SAP
Continue to read SAP FICO tutorial with real time issues and scenarios.