Fixed Assets Master Data and Basic Customizing in #SAP

Fixed Assets Master Data and Basic Customizing in #SAP

What is #FixedAssets in #SAP? According to ChatGPT 4o - Free Online Unlimited:

 

“In SAP, fixed assets refer to long-term tangible and intangible assets that a company owns and uses in its operations to generate revenue. These assets are not intended for sale in the regular course of business and typically have a useful life of more than one year. The management of fixed assets in SAP is handled through the Asset Accounting (FI-AA) module, which is part of the Financial Accounting (FI) component.

Key Features of Fixed Assets in SAP:

1. Asset Master Data: Each fixed asset is represented by an asset master record, which contains essential information such as asset description, acquisition date, cost, location, and depreciation method.

2. Acquisition and Capitalization: SAP allows for the recording of asset acquisitions, whether through purchase, construction, or transfer. The costs associated with acquiring the asset are capitalized and added to the asset's value.

3. Depreciation: Fixed assets are subject to depreciation, which is the systematic allocation of the asset's cost over its useful life. SAP provides various methods for calculating depreciation, such as straight-line, declining balance, and others.

4. Asset Transfers and Retirements: SAP facilitates the transfer of assets between different locations or cost centers and allows for the retirement or disposal of assets when they are no longer in use.

5. Reporting: The system provides various reports to track fixed assets, including asset balances, depreciation schedules, and asset history, which help in financial reporting and analysis.

6. Integration: The Fixed Assets module integrates with other SAP modules, such as Financial Accounting (FI), Controlling (CO), and Materials Management (MM), ensuring that all financial transactions related to fixed assets are accurately reflected in the company's financial statements.

Overall, managing fixed assets in SAP helps organizations maintain accurate records, comply with accounting standards, and make informed financial decisions regarding their asset base.”

 

AS01

We will start by simply creating an Asset Master Data. This asset will be linked to GL accounts in account determination, as well as Depreciation Keys that will define depreciation terms. Selecta an Asset Class, Company Code and Number of Similar Assets. In this last one if more than 1 is indicated sub-assets will be created. Asset can also be created with reference to another asset, copying it´s main data.

Check that asset “INTERN-00001” indicates that this asset number range will be assigned internally. Enter Description. Other fields such as serial number, inventory number and Quantity can be used to store information for reporting.

In the next screen, assign cost center. This will come into play when running depreciation.

In the final tab, depreciation areas will be displayed. Each valuation área will be defined a depreciation key, useful life and depreciation start date. This can vary according to different valuation criterias. For example, for tax purposes some companies value the assets differently than for accounting purposes.

AW01N Asset explorer

The asset explorer is one of the main asset reports and will provide useful information regarding the asset.

Now we will proceed to check some basic Fixed Assets customizing.

OADB – Define depreciation areas. They will be assigned a target group and accounting principle. They can post in real time, or be used only for informative purposes. Each concept, such as acquisitions, revaluations or depreciation, can post only positive values, negative values, all values or no values at all. This is useful for restricting unwanted posting.

OAOA – Asset class definition. The Asset class will be assign an account determination and screen layout. The account determination defines to which concept each transaction type will be posted, whereas the screen layout will define the fields that can be populated in asset master data.

AO90 – Account determination. See in this example to which accounts acquisition movement will be posted, as well as retirement of assets. In a later screen depreciation accounts are defined.

OAYZ – Depreciation keys. Assignment of depreciation keys and useful life to depreciation areas. This can be modified when creating the asset master data.

AFAMA – Linked to the depreciation key you will find different ways of depreciating. For example, at the start of the year, at the end of the year, etc. This can be changed and customized accordingly.