Fixed Assets Capitalizations, Transfers and Disposals in #SAP

 

Fixed Assets Capitalizations, Transfers and Disposals in #SAP

Capitalization

According to chatgpt4o.one:

“In SAP, the capitalization of fixed assets refers to the process of recording the acquisition costs of an asset in the Asset Accounting (FI-AA) module. This process ensures that the costs associated with acquiring an asset are properly reflected in the company's financial statements and that the asset is depreciated over its useful life.”

In order to capitalize, we will analyze 1 options:

F-90 – asset purchase from vendor. This reflects a purchase through and invoice without purchase order. Consider that capitalizations usually happen through a Purchase Order, in which case the purchase process is followed with PO, Goods Receipt and Invoice.

Asset is capitalized using posting key 70, following the asset number. This asset is linked to an asset class, which in turned is linked to it´s own account determination. By entering the asset and the transaction type (100), the system already know which account to post to.

 

The asset is debited (capitalized), and the vendor is credited, reflecting the open item in accounts payables side.

ABZON – Acquisition with automatic offsetting entries. This transaction is usually used when implementing Fixed asset module to capitalize assets. It is settled against a “bridge” account, that will compensate against the Accounts Payable open item.

 

Transfer:

According to chatgpt4o.one:

“Transferring fixed assets in SAP involves moving an asset from one location, cost center, or business area to another within the organization. This process is essential for maintaining accurate asset records and ensuring that financial reporting reflects the current status of the assets. The transfer can occur for various reasons, such as organizational restructuring, changes in asset usage, or relocation of physical assets.”

ABUMN - In order to transfer fixed assets, use this transaction. The asset can be settled against an existing asset, or against a new one. If a new asset is selected, the master data will be completed automatically by filling in Description and Asset Class. For this exercise we will select an existing asset. The transfer can be done partially or fully. In case of partial transfer, an amount will remain in the original asset, the receiving asset capitalizing the the amount entered here.

Sale

According to chat gpt:

Selling a fixed asset in SAP involves a series of steps to ensure that the asset is properly disposed of in the system, and that the financial implications of the sale are accurately recorded. This process is managed through the Asset Accounting (FI-AA) module. 

ABAON – Sale without Customer. This can be an internal sale to another company in the same group, or a sale to a final customer that has no invoice. Manual revenue is entered, and the cost of sale is deducted to reflected the earning/loss in the operation.

ABAVN – Asset retirement by scrapping. The asset is partially of totally retired. The net value of scrapping is deducted from the asset.

F-92 – Sale with Customer. In this case, the sale is invoice to a customer. The customer is entered with posting key 01. Later on, sales account is entered with posting key 50.

To retire the asset, click on the check box “Asset retirement”.

The sale produces 2 documents: the first is the sale itself versus the customer. The second refers to the earning/loss deducting the cost of the sale.