S4F17 – Asset Accounting (S/4HANA)

Unit-by-unit study notes written from the course material. Every lesson of the course is covered in the same order as the original.

Unit 1: Organizational Structures

Lesson 1: Assigning a Chart of Accounts and a Chart of Depreciation to a Company Code

Learn the organizational units relevant to FI-AA, understand what a chart of depreciation is, and see how a company code is made ready for Asset Accounting by assigning it a chart of accounts and a chart of depreciation.

Business context

External consultants have proposed an organizational structure for the group. The FI-AA project team has to evaluate the proposal, which requires a clear understanding of the organizational units, of the chart of depreciation concept, and of how a chart of depreciation is created and linked to a company code.

Organizational units used by Asset Accounting

FI-AA is a subledger of Financial Accounting, so it works within the FI organizational hierarchy. The relevant units are:

Document splitting (a function of the general ledger in S/4HANA) is what makes complete balances possible for business area, profit center and segment, because it enriches every line item with these characteristics.

Chart of accounts versus chart of depreciation

The chart of accounts holds all G/L accounts. FI-AA does not have its own chart of accounts; it simply uses the operative chart of accounts that is assigned to the company code in FI. Charts of accounts can be global, industry-specific or country-specific.

The chart of depreciation is a different kind of object. Its purpose is to cope with the many legal and business requirements for valuing and depreciating assets. It is essentially a catalogue of depreciation areas, together with the depreciation keys that are allowed within those areas. Important characteristics:

• Charts of depreciation are country-specific, so SAP delivers a sample chart of depreciation for many countries (for example 0DE for Germany, 0US for the United States, and so on). Sample charts cannot be used directly; you must copy a reference chart into your own chart and then delete the depreciation areas you do not need.
• Depreciation keys are defined per chart of depreciation, but the building blocks behind them (calculation methods, period controls and so on) are client-wide. The standard keys can be changed and extended.
• A chart of depreciation also contains objects for special valuations, for example investment support keys, settings for capital tax valuation, and the rules that capture differences between book and country-specific tax depreciation.
• Up to 99 depreciation areas can be managed in parallel; each depreciation area belongs to exactly one chart of depreciation.
• Each company code uses exactly one operative chart of accounts and exactly one chart of depreciation, but several company codes may share the same chart of accounts and the same chart of depreciation.

Copy hint from the course: copying a chart of depreciation also copies area-specific parameters such as the transaction-type restrictions that classic Asset Accounting required (stored in table TABWA). New Asset Accounting no longer needs restricted transaction types (the only exceptions are revaluations and investment support), so after copying you should check TABWA and remove obsolete restrictions, even if you copied from an SAP sample chart.

Training note: the S4F17 course does not use the country sample charts directly; the exercises use chart of depreciation Z000, which is a copy of 0DE with some additional values.

Depreciation areas

Asset portfolios and transactions have to be valued differently for different audiences. Each distinct valuation approach is represented in the system by a depreciation area. Typical approaches:

• Book depreciation according to local accounting law.
• Tax balance sheet valuation, if the tax authority permits a different valuation.
• Cost-accounting (imputed) depreciation for internal management reporting.
• Parallel accounting for group reporting under IFRS or US GAAP.

Each depreciation area therefore stands for one type of valuation (book, tax, group, cost-accounting). You can define additional areas of your own within a chart of depreciation.

Process: making a company code ready for FI-AA

1. Create and configure the company code in Financial Accounting (chart of accounts, fiscal year variant, currencies and so on).
2. Assign a chart of depreciation to the company code (ideally as a separate project step).
3. Complete the FI-AA-specific company code data through the various Customizing activities (number ranges, account assignments, posting rules and so on).

Once these three steps are done the company code is usable in Asset Accounting.

Lesson 2: Assigning Management Accounting Objects to Fixed Assets

Understand which Controlling (CO) objects can be stored in an asset master record and which of them can receive the depreciation postings.

Why the integration matters

Even though the course focuses on the asset subledger, depreciation is an expense that management accounting wants to see on the responsible cost object. The asset master record is the place where the link between the asset and the CO structure is maintained, so every asset can carry account assignment data from Controlling.

CO objects that can be assigned in the asset master

These objects belong to a controlling area, and a controlling area may span several company codes, so the same CO master data can be relevant for more than one company code.

In addition to pure CO objects, objects from other applications that have controlling functions can be assigned, for example a WBS element (Project System), a real estate object (RE-FX), a maintenance order (statistical only) or Public Sector Management (PSM) objects.

Where depreciation can be posted

The depreciation of any depreciation area can be posted to one of the following receivers:

• Cost center
• Real internal order
• Cost center plus a statistical order
• WBS element
• Cost center plus a statistical WBS element
• Real estate object
• PSM objects

A single asset can never be assigned to two cost centers. If depreciation really needs to be spread over several cost centers, assign the asset to a real internal order and settle that order periodically to the cost centers.

Lesson 3: Defining How Depreciation Areas Post to the General Ledger

Decide, for each depreciation area, whether and how its asset values and depreciation reach the general ledger, understand how areas are tied to accounting principles and ledgers, and assign financial statement versions for asset reporting.

Depreciation areas and financial statements

Assets are valued from different business, tax and legal perspectives, and each perspective is a depreciation area. Not every area needs to produce financial statements, however. You therefore define in Customizing which areas transfer values to FI and how that transfer happens.

Posting indicator of a depreciation area

Whatever the indicator, depreciation itself is always posted periodically by the depreciation run, program FAA_DEPRECIATION_POST. Areas used purely for reporting are set to indicator 0 and never touch the G/L.

Ledgers, accounting principles and depreciation areas

In S/4HANA the ledgers assigned to the company code in FI-GL and the depreciation areas of the chart of depreciation must correspond:

• Every ledger in which the company code updates balances must also be represented in Asset Accounting, so each base ledger must be controlled by a depreciation area.
• The link is made through the accounting principle: each depreciation area is assigned an accounting principle, and the accounting principle is assigned to a ledger group. All areas that represent the same valuation share the same accounting principle (and thus the same ledger group).
• The accounting principle is mandatory for every depreciation area, including non-posting areas and delta areas that exist only for reporting; it may never be blank.
• Depreciation area 01 is not automatically tied to the leading ledger 0L. In new Asset Accounting all depreciation areas are equal; there is no "leading" depreciation area.

Customizing paths: accounting principles are defined under Financial Accounting Global Settings → Ledgers → Parallel Accounting → Define Accounting Principles, and linked to ledger groups under Financial Accounting Global Settings → Ledgers → Parallel Accounting → Assign Accounting Principle to Ledger Groups.

With parallel valuation the system posts the parallel values in real time with their actual amounts, creating a separate document for each accounting principle. The two technical options for parallel valuation (ledger approach and accounts approach) are covered in Unit 4.

Currencies

The parallel currencies of Asset Accounting must mirror the currencies of the general ledger. Consequently two company codes can only share a chart of depreciation if they use the same non-leading ledgers and the same parallel currencies.

Financial statement versions for asset reports

Asset values and depreciation from the individual areas can flow into separate balance sheet accounts and P&L accounts. Financial statement versions (FSVs) are defined in G/L Customizing per chart of accounts, and you specify in which balance sheet or P&L item each account appears. Because asset reports can display financial statement items, you can assign one FSV per depreciation area under Asset Accounting → Integration with G/L Accounting → Specify Financial Statement Version for Asset Reports. Choosing an appropriate sort variant then lets asset reports be grouped by balance sheet item.

Lesson 4: Understanding the Importance of Asset Classes in Fixed Assets

Recognise the asset class as the primary classification criterion for fixed assets and know the elements it contains.

Business context

The company wants its fixed assets classified and needs an asset class catalogue. To design it you have to understand what an asset class controls and what functions its elements perform.

What an asset class is

• Every asset belongs to exactly one asset class. Typical classes: buildings, vehicles, fixtures and fittings, machines.
• Asset classes are created at client level.
• A class has two main sections: a master data section and a depreciation data section.
• One asset class can be linked to several charts of depreciation, which allows a globally uniform class catalogue even when depreciation areas differ by country.

What the asset class provides

Because assets that appear under different balance sheet items (for example buildings versus machines) need different G/L accounts, they must be placed in different asset classes. Special classes exist for assets under construction, low-value assets, intangible assets (patents, software) and leased assets.

Related applications

The course points out that the technical management of equipment is done in Plant Maintenance (PM, also called Enterprise Asset Management), that financial assets are handled by Treasury and Risk Management (Accounting → Financial Supply Chain Management → Treasury and Risk Management), and that rental and leasing contracts under IFRS 16 are evaluated with SAP Contract and Lease Management on RE-FX (see SAP Note 2255555).

Unit 2: Master Data

Lesson 1: Explaining the Components of an Asset Class

Understand each component of an asset class – account determination, number range interval, screen layout rules for master data and depreciation areas, account assignment objects, tab layout – and the special handling of assets under construction and low-value assets.

Business context

Consultants have proposed an asset class catalogue for the group. Because the asset class acts as the template for every asset master record created later, the project team has to decide carefully which default values and controls to store in each class so that assets are maintained uniformly.

Account determination

The account determination key in the asset class links the asset master records (and their values) to the G/L accounts that receive APC and depreciation postings. The key can be used in three patterns:

• One key per balance sheet account, with the key named after the account – only practical for a very small class catalogue.
• One key shared by several similar asset classes that all post to the same fixed asset balance sheet account.
• One key covering several company codes with different operative charts of accounts – the same key is mapped to different accounts per chart of accounts, so one key per class suffices.

Accounts are assigned in Customizing under Asset Accounting → Integration with General Ledger Accounting → Assign G/L Accounts (transaction AO90 in practice). For every depreciation area that posts depreciation you must additionally assign, for ordinary and unplanned depreciation, an accumulated depreciation account, an expense account and a revenue account for write-ups. Accounts for revaluation of depreciation and for interest (cost-accounting area) can be added if needed.

Number range interval

Number ranges are defined per company code under Asset Accounting → Organizational Structures → Asset Classes → Define Number Range Interval (AS08). Alternatively a cross-company-code number assignment can be set up under Asset Accounting → Organizational Structures → Specify Number Assignment across Company Codes, so that several company codes draw from one company code's intervals.

Screen layout for asset master data

The screen layout rule assigned to the class governs three things:

Account assignment objects

CO objects appear in the asset master only after they are activated under Asset Accounting → Integration with the General Ledger → Additional Account Assignment Objects → Activate Account Assignment Objects. After activation the screen layout decides how they appear (for example mandatory). Cost-accounting depreciation can be posted to cost centers, CO internal orders, WBS elements, real estate objects and PSM objects (funds center, fund, grant). APC values can also be posted to account assignment objects such as an investment order or WBS element of an investment project; this is needed for direct capitalization in Investment Management and for statistical budget monitoring of asset purchases.

Profit center and segment on the asset master (segment reporting for assets)

With segment reporting activated, the profit center and segment are derived from the cost center or internal order of the asset and stored in the asset master record. The additional account assignment can then be switched from cost center to profit center/segment – especially attractive for new implementations – and the function automatically performs the transfer posting of asset values when the cost center changes. Steps:

1. Activate under Asset Accounting → Integration with General Ledger Accounting → Segment Reporting → Activate Segment Reporting.
2. Activate the account assignment objects Profit Center and Segment (Additional Account Assignment Objects → Activate Account Assignment Objects).
3. Make the fields visible in the screen layout: Asset Accounting → Master Data → Screen Layout → Define Screen Layout for Asset Master Data, logical field group Time-dependent data.
4. Set the Record Account Assignment indicator on the Control Data tab of the asset reconciliation accounts.
5. For existing assets, run program FAGL_ASSET_MASTERDATA_UPD (Segment Reporting → Fill Master Data for Segment Reporting) to fill profit center and segment; after activation these fields are initially blank, and depending on Customizing the system may block postings until they are filled. If no unique value can be derived, correct the CO object or the asset master manually.

SAP Note 2318878 gives further details.

Customer fields and tab layout

Customer-defined fields can be added with the Fiori app Custom Fields and Logic; they then appear in Create Asset, Change Asset, Display Asset Master Worklist, Manage Fixed Assets, Asset History Sheet, Asset Balances, Depreciation Lists and Asset Transactions. Only time-independent fields can be added, there is no automatic input check and no field help. Separately, the tab layout defined per asset class decides how many tab pages exist, what they are called and which logical field groups (for example General Data, Posting Information) sit on each tab.

Screen layout for depreciation areas

Each depreciation area in the class gets its own screen layout rule for the depreciation data section. SAP delivers rules 1000 and 2000. Their maintenance level decides where depreciation terms are controlled:

The course works at asset level with AS02 and at class level with OAYZ (depreciation area defaults per class); detail screens per area are opened by double-clicking.

Additional class functions

• Copy from reference: new classes are created by copying an existing class in OAOA; the depreciation area defaults are copied too and can be adjusted afterwards.
• Allowed entries for user fields: standard informational fields usable as report selection criteria:

• Default values: once allowed entries exist they can be stored as defaults in the class.

Special class: Assets under Construction (AuC)

• Own class and own G/L account, because AuC are shown separately in the balance sheet.
• Depreciation key 0000 prevents depreciation, at least in the balance sheet areas; special tax depreciation and investment support remain possible.
• Down payments on AuC can be processed in Accounts Payable.
• Credit memos can still be posted after full capitalization if negative APC is allowed in the depreciation area detail screen.
• Investment Management (IM) integrates orders and projects with the AuC via the investment measure.

Special class: Low-Value Assets (LVA)

• Choose individual or collective management – each needs its own class.
• Collective management requires a base unit of measure in the class (OAOA).
• Maximum LVA amounts are stored per company code under Asset Accounting → General Valuation → Amount Specifications (Company Code / Depreciation Area) → Specify Max. Amount for Low-Value Assets + Asset Classes.

Lesson 2: Creating and Changing Master Data in Asset Accounting

Create asset master records (single, multiple, subnumbers), maintain time-dependent data and depreciation terms, understand change documents, and link assets to PM equipment.

Ways to create an asset master record

1. Via an asset class: enter company code and class; the class supplies the defaults.
2. Via a reference asset: an existing asset may give better defaults than the class alone, but be careful not to copy unwanted data such as the capitalization date.

In both cases fill the required fields, add optional data and save; the system assigns the asset number (Fiori app Create Asset, transaction AS01).

Creating multiple similar assets

When buying, say, 20 PCs or 12 desks, you can create several similar assets in one step. Per asset you can individually maintain description, inventory number, business area, cost center and evaluation groups 1–5. More fields can be made changeable by activating the configurable entry screen (Asset Accounting → Master Data → Screen Layout → Define Screen Layout for Asset Master Data → Configurable Entry Screen for Creating Multiple Assets, switch "Multiple") and then flagging field groups as ready for input when creating multiple assets in the screen layout rule. Most fields of tables ANLA and ANLZ can be selected.

Asset subnumbers

A complex asset can be split into subnumbers for technical or accounting reasons: to manage subsequent acquisitions in later years separately (buildings), to track individual components, or to split by technical aspects. The class decides whether subnumbers are numbered internally or externally – external numbering is handy during legacy data transfer, after which you switch to internal. If the depreciation screen layout allows maintenance at subnumber level, each subnumber can have its own depreciation terms (AS11).

Personal value list

The asset field offers a personal value list by default. It can be switched off in the Change Asset app (AS02) via More → Settings → Interface; existing entries must first be removed with Delete from Personal List before the general F4 search help appears.

Changing master data

• Time-dependent data holds the CO assignments (cost center, project) plus shift operation and shutdown, which affect depreciation and can change monthly. Intervals are maintained with the Further Intervals button on the Time-dependent tab.
• Every change creates a change document listing changed fields, number of changes per field, user, and old/new values. View them from AS02, with report RAAEND01, or via the Fiori tile Change Documents for Asset Master Record.
• Many assets at once: use a mass change (Lesson 3).

Depreciation areas in the asset master

Depreciation terms default from the class and can be changed per area in the asset. Some values (for example the depreciation start date) are derived from the first acquisition posting. Extra parameters such as index, variable depreciation portion and scrap value are mainly relevant to the cost-accounting area.

Asset and equipment integration (PM)

• Equipment is linked by entering the asset number in the equipment master; several pieces of equipment may point to one asset but each piece belongs to only one asset.
• The system can create an equipment master automatically when an asset is created, copying fields such as company code and inventory number, and keeps both records synchronized in either direction. A workflow can notify the PM manager.
• Customizing: Asset Accounting → Master Data → Automatic Creation of Equipment Master Records; see SAP Notes 370884 and 549929.

Lesson 3: Carrying Out Mass Changes to Asset Master Data Using a Worklist

Use a substitution rule plus a worklist to change a field (for example the cost center) on many asset master records in one run.

Concept

Mass changes are run from the FI-AA application menu by editing a worklist; the user only needs authorization for the application transaction, no workflow task assignment is required in Customizing. Technically the function is built on the workflow engine and Business Object Repository methods, so the basic workflow Customizing must exist (SWU3, automatic workflow Customizing – a decision to agree with IT; SAP Note 127931).

Substitution rule

SAP Note 210897 covers substitutions for time-dependent asset data.

Procedure

1. Define the substitution: Asset Accounting → Master Data → Define Substitution → Define substitution for mass changes → Substitution → Create Substitution, with at least one if-then step.
2. Assign the substitution to the company code with OA02.
3. Select the assets with any asset report, or via Environment → Worklist → Generate (AR01).
4. On the result list choose Create Worklist.
5. Enter a description and a purpose (a predefined standard task such as "change master data").
6. Pick the substitution rule in the dialog and save.
7. Process the worklist: Environment → Worklist → Edit (AR31).
8. Verify with the asset display or report RAAEND01 (change documents).

Unit 3: Asset Transactions

Lesson 1: Processing Acquisitions

Post an external asset acquisition integrated with Accounts Payable, understand the two-part document logic of new Asset Accounting (technical clearing account), know what transaction types and the asset value date do, and analyse the result in the Asset Explorer and the Manage Fixed Assets app.

Subledger principle

Asset Accounting is a subledger like AP and AR. Every posting to a vendor, customer or asset account immediately updates the related G/L reconciliation account, so subledger and general ledger are always in balance. The reconciliation accounts for fixed assets must be set up together with the asset department before the first posting.

Ways to post an external acquisition

Integrated acquisition with AP

With F-90 the vendor and the asset are posted in one document, which satisfies both FI and FI-AA. Every asset line requires a transaction type; it classifies the movement (acquisition, retirement, transfer …) and decides where the amount appears on the asset history sheet.

In new Asset Accounting the system splits an integrated acquisition into two parts:

1. Operational part (vendor invoice): one ledger-group-independent document, valid for all accounting principles, posted against the technical clearing account for integrated asset acquisitions.
2. Valuating part (capitalization of the asset): one ledger-group-specific document per accounting principle, also posted against the technical clearing account.

The technical clearing account therefore always nets to zero per accounting principle and account assignment object; to protect this, manual postings to it are not allowed. It is defined under Asset Accounting → Integration with General Ledger Accounting → Technical Clearing Account for Integrated Asset Acquisition. Prerequisites: a balance sheet account, created as a reconciliation account for fixed assets, and not used in any account determination.

If document splitting is active, the document type of the entry view cannot always be inherited by the valuating documents (required items may exist only in the operational document). You can then define an alternative document type under Integrated Transactions: Alternative Doc. Type for Ledger-Grp-Spec. Docs → Specify Alternative Document Type for Acctg-Principle-Specific Documents.

Transaction types

• Mandatory on every asset posting; they identify acquisitions, retirements, transfers and so on and position the value on the asset history sheet (for example as a current-year or prior-year acquisition).
• SAP delivers all necessary transaction types; customers can copy or create their own under Asset Accounting → Transactions.
• Every transaction type belongs to a transaction type group, and the groups themselves are fixed by SAP and cannot be changed.

Asset Explorer (AW01N)

The Asset Explorer shows one asset with all its depreciation areas in a tree (icons distinguish real from derived areas), header information (company code, main number, subnumber), a jump to master data, and tabs for planned values, posted values, transactions and a Compare tab that shows value development over several years and several areas side by side. The bottom-left pane lists related objects (cost center, G/L account, vendor, purchase order, equipment) with direct navigation. Functions include transparent depreciation calculation with depreciation key details, drill-down to the FI document, currency conversion, calling asset reports, print/export, and simulation of transactions and changed depreciation terms.

Manage Fixed Assets (Fiori)

This app gathers everything about an asset in one place, including a graphical life-cycle chart and key figures (APC, accumulated depreciation, net book value) that make unexpected value changes – for example special depreciation after an accident – easy to explain. Reach it from Display Asset Master Worklist or from the reporting apps Asset History Sheet, Asset Balances, Depreciation Lists and Asset Transactions. Functions: key characteristics, overview of all parallel depreciation areas and their parameters, key figures by area and by type of value correction, life-cycle chart, multi-year/multi-area comparison, time-dependent and time-independent master data, attachments, notes and editing.

What the first acquisition does to the master record

Default asset value dates per transaction type can be set in Customizing. The asset value date is the real activation date; together with the depreciation key it fixes the depreciation start and hence planned annual depreciation and interest, which are updated with every further posting. Posting date and asset value date must lie in the same fiscal year.

The FI document: number ranges and gross/net document types

• The document type (client-wide, two characters) points to a number range interval, but the interval itself is maintained per company code (FBN1); if year-dependent numbering is not wanted, enter year 9999.
• With the ledger solution, document types used for postings to non-leading ledgers only need separate number ranges so the leading view has no gaps.
• Default document types per transaction are set in OBU1 (Financial Accounting Global Settings → Document → Default Values).
• The document type also defines allowed account types and whether the document is gross or net. Here gross/net has nothing to do with tax: a net document type lets the system compute the cash discount from the payment terms and capitalize the invoice amount minus tax minus discount; a gross type capitalizes without deducting the discount.

If the discount actually taken at payment differs from the amount deducted, document splitting corrects the APC automatically at payment time; without document splitting you run the P&L adjustment program SAPF181 in collective processing. For non-integrated acquisitions the full APC is capitalized and the discount is handled only on the vendor side.

Lesson 2: Posting Non-Integrated Asset Acquisitions and Understanding the Integration with MM

Post an acquisition with automatic offsetting entry via a clearing account when invoice and asset arrive at different times, and follow the purchasing route from purchase requisition to invoice receipt.

Acquisition with clearing account (automatic offsetting entry)

When the acquisition is not integrated, a clearing account bridges AP and FI-AA. Typical reasons: the invoice arrives before the asset, or the asset is already delivered and in use while the invoice is still outstanding. Two postings result, in whichever order the business dictates:

• AP side: debit clearing account and input tax, credit vendor.
• FI-AA side (ABZON): debit asset, credit clearing account.

Newer features of the offsetting-entry transaction: you can create a new asset master record directly while posting, and you can post to several existing assets in one step.

Acquisition via Materials Management

1. Create a purchase requisition and, if needed, the asset master record.
2. Create the purchase order (possibly from the requisition) with account assignment category A (asset). The asset number is entered in the item detail; for even tighter integration the asset master can be created from within the PO transaction.
3. Post the goods receipt. The PO decides whether the GR is valuated (asset capitalized at GR) or non-valuated (asset capitalized at invoice receipt). A valuated GR is useful when goods arrive before the invoice; if the invoice later differs, adjustment postings are made to the asset. With a non-valuated GR nothing is capitalized yet, so no correction is needed, but the GR date still becomes the capitalization date.
4. Post the invoice receipt. For a non-valuated GR this is the moment the asset is capitalized, line items are created and the value fields updated.

Lesson 3: Posting Integrated and Non-Integrated Asset Retirements

Retire assets with or without revenue, with or without a customer, completely or partially, individually or en masse, and understand how the system determines proportional depreciation and gain or loss.

Integrated retirement with customer

In the customer invoice (F-92) you post the revenue to the "revenue from asset sales" account and tick the Asset Retirement checkbox. A dialog then asks for the asset number, the retirement transaction type, the asset value date (retirement date) and either the portion retired or the complete-retirement indicator.

How the system computes the result

1. The retirement date determines the retirement period; the period control method of the depreciation key decides up to which period depreciation may still be posted.
2. The system calculates the proportional value adjustments (accumulated depreciation) for the retired portion up to that period and reverses them.
3. It removes the APC (or the retired share) and posts the retirement.
4. Gain or loss = revenue − (APC − value adjustments). In the course's T-account example a complete retirement with revenue produced a loss of EUR 1,300.

The balances of the revenue-from-asset-sales and clearing-asset-retirement accounts can be disclosed in the notes to the financial statements.

Retirement variants

The first three can each be complete or partial.

Mass retirement with a worklist

1. Select the assets with an asset report.
2. Create a worklist.
3. Choose the purpose: retirement without revenue or retirement sale with revenue (standard tasks).
4. Enter the revenue distribution.
5. Edit if necessary, release and process the worklist.

Lesson 4: Performing Transfers Within Company Code and Intercompany Asset Transfers

Transfer assets within a company code (for example after a wrong class) and between company codes, understanding relationship types, transfer variants, transfer methods and cross-company depreciation areas.

Intracompany transfer

Reasons: the asset was created in the wrong class; part of an asset is split off or moved to a new asset; an AuC is to be moved to a finished asset (possible, but SAP's AuC settlement in Lesson 5 is the better tool). Transaction ABUMN is used. The system applies transfer variant 4 for transfers within a company code; one task of a transfer variant is to determine the transaction types recorded on the source and the target asset. All variants are maintained under Asset Accounting → Transactions → Intercompany Asset Transfers → Automatic Intercompany Asset Transfers → Define Transfer Variants.

Automatic intercompany transfer (ABT1L)

Used when an asset is sold or moved to another company code; acquisition and retirement are posted in one step. The system derives a relationship type from the company IDs of the two company codes:

The company is the smallest unit for which individual financial statements are legally required, so it represents a legal entity. The derived assignment can be reviewed under Define Transfer Variants → Check Company ID of Company Codes; exceptions can be coded in a customer program exit.

Transfer methods

Most intracompany transaction types use the gross method. SAP's standard transfer variants (combinations of transaction types and methods) are said to cover about 80 % of cases; see SAP Note 327088 for details and SAP Note 379944 for mass transfers. If your enterprise structure differs, define your own variants with standard or custom transaction types.

Cross-company depreciation areas

When the two company codes use different charts of depreciation, equivalent areas may have different keys. Before transferring you therefore define cross-company depreciation areas: client-wide keys with a description and no control parameters of their own, which map "same function" areas to each other. If none is defined the system uses an asterisk (*) as generic entry. Caution: once you use cross-company areas you must define one for every area that is transferred, even where the keys already match.

Lesson 5: Representing, Distributing, and Settling Assets Under Construction

Manage an asset under construction through its two phases and settle it, line item by line item, to one or more completed assets.

Phases and representation

An AuC passes through an under-construction phase and a useful-life phase. Because the two phases are shown under different balance sheet items, they are represented by different asset master records (AuC class vs. final asset class). Moving from the first to the second is the capitalization of the AuC. In FI-AA an AuC can be managed either as a normal asset for summary settlement or as an asset with line item management. For large investments with internal activities, Investment Management (orders/projects as investment measures) is the appropriate tool (see e-learning S4F18e).

Line-item settlement procedure

1. Assign a settlement profile (SAP standard AI) to the company code: Asset Accounting → Transactions → Capitalization of Assets under Construction → Define/Assign Settlement Profiles.
2. In the distribution transaction (AIAB) select all line items that go in the same proportion to the same receiver.
3. Define distribution rules (percentages or amounts) for them.
4. Run the settlement (AIBU); all line items that have a rule are settled to their receivers.

The system automatically separates current-year from prior-year line items and uses different transaction types for each. You need not settle everything at once nor distribute 100 % of each line item; to settle by amounts, select and distribute items one at a time.

Lesson 6: Entering and Analyzing Unplanned Depreciation

Post manual unplanned depreciation for selected depreciation areas and know when it reaches the general ledger.

Posting unplanned depreciation

• Beyond the depreciation planned by the depreciation key, you can manually schedule unplanned depreciation for an individual asset (ABAA). The transaction type (for example 640) tells the system that this is unplanned depreciation.
• A dialog lets you choose the depreciation areas affected – useful when a write-down is permitted for book purposes but not for tax.
• Because the amount is only planned manually, no FI document is created at entry. The G/L document is generated when the periodic depreciation posting run (FAA_DEPRECIATION_POST) executes.

Analysis

Manual depreciation is evaluated with a dedicated report: Accounting → Financial Accounting → Fixed Assets → Information System → Reports on Asset Accounting → Explanations for P&L → International → Manual Depreciation. The Asset Explorer also shows the planned unplanned depreciation per area.

Unit 4: Periodic Processing and Valuation

Lesson 1: Defining Depreciation Areas, Keys, Calculation, and Posting

Understand what a depreciation area controls, how a depreciation key is assembled from calculation methods, how the depreciation engine derives amounts (period intervals, time-dependent terms, interest, indexing), and how the depreciation run posts to FI and CO.

Periodic processing at a glance

What a depreciation area defines

Areas are identified by a two-character numeric key. Each area's definition (Asset Accounting → General Valuation → Depreciation Areas → Define Depreciation Areas, OADB) decides:

• whether and how APC, proportional value adjustments and depreciation are posted to the G/L (posting indicator), or whether the area is for reporting only;
• which valuation purpose the area serves (balance sheet, tax, cost accounting …);
• how values are managed, for example whether only APC is allowed, or positive and/or negative net book values;
• how posting values and depreciation terms are transferred from (and to) other areas.

Depreciation types

Which types are allowed is activated per depreciation area.

Depreciation key and calculation methods

A depreciation key is a container of calculation methods, each holding part of the parameters the system needs:

Methods are assigned to the key in AFAMA (Asset Accounting → Depreciation → Valuation Methods → Depreciation Key → Maintain Depreciation Key). Advantages over the old internal calculation keys: country-specific requirements become chart-specific methods, the number of keys stays manageable, and keys can be defaulted per company code or area. The method detail list for a key is visible from AFAMA, from the asset master and from the Asset Explorer.

How values are calculated

• The depreciation terms (key, useful life, scrap value …) live in the asset master per area. Depreciation start = asset value date interpreted by the period control method. Depending on the area, revaluation and imputed interest are computed as well.
• Changing a key in Customizing does not change already calculated values; you must recalculate depreciation (AS02 for one asset, program RAAFAR00 / AFAR for many).
• Period-interval logic (depreciation engine, part of EA-FIN): the engine checks how long a reference value (APC, NBV) stays constant within the year. With no transactions there is one interval (periods 1–12); every transaction creates a new interval according to period control.

Time-dependent depreciation terms

Depreciation key, useful life (years/periods), variable depreciation portion, absolute scrap value and percentage scrap value can be maintained in time intervals in the depreciation area detail of AS02 (Further Intervals / Add Interval), analogous to time-dependent master data. Without intervals, a parameter change recalculates the whole open fiscal year and all future years; with a new interval only future periods are affected. Changes only take effect if they respect area rules – otherwise the system applies the reduction of calculated depreciation. Course example: area 03 is derived as 02 − 01 and must not be positive; shortening the useful life only in area 01 would make area 03 positive, so the change in area 01 is silently ignored.

Cost-accounting depreciation area

For the cost-accounting area you decide whether interest is calculated and whether depreciation continues below zero. Example terms given in the course:

Imputed interest

Prerequisites: allow interest in the depreciation area; set "post interest" for company code and area; use a depreciation key with an interest calculation method. If the interest base is the replacement value, indexed interest results. Interest is posted by the periodic depreciation run to the accounts of the area's account determination, with the cost center or order of the asset as additional account assignment.

Replacement values and index series

For areas with revaluation/indexing you default an index series in the asset or class. Index figures must be entered for each fiscal year; missing figures make the system fall back to a simulated annual rate. Indexed revaluation can also be applied to accumulated depreciation and to interest (when interest is based on replacement value). For G/L posting you choose whether only APC revaluation or also depreciation/interest revaluation is posted.

The depreciation run

FAA_DEPRECIATION_POST (Fiori: Schedule Asset Accounting Jobs / Post Depreciation, AFAB) posts ordinary depreciation (book and imputed), tax/special depreciation including allocation and write-off of reserves, unplanned and other manual depreciation, imputed interest, and revaluation of APC or accumulated depreciation. It writes FI-AA and G/L directly, posts additional account assignment objects and creates CO documents. Run it first in test mode; errors are shown with red lights and an error list. Typical errors:

• Invalid account assignment object (e.g. cost center locked in CO).
• Missing account assignment type in FI-AA Customizing ("account requires an assignment to a CO object").
• Missing depreciation accounts in account determination.
• Posting period not matching the posting interval defined in Customizing.
• Posting cycle not maintained for the depreciation area.

The log of a productive run (program RAPOST2001) lists all documents: Periodic Processing → Depreciation Run → Display Log.

Configuration checklist for depreciation posting

1. Define the posting areas: General Valuation → Depreciation Areas → Define Depreciation Areas.
2. Assign depreciation accounts: Integration with General Ledger Accounting → Assign G/L Accounts.
3. Assign document type AF to the company code: Post Depreciation to General Ledger Accounting → Specify Document Type for Posting of Depreciation (SAP Note 890976 if an external number range is still used).
4. Specify intervals and posting rules per area (monthly, quarterly …).
5. Activate account assignment objects: Additional Account Assignment Objects → Activate Account Assignment Objects.
6. Specify account assignment types (e.g. cost-accounting depreciation to the asset's CO object): Additional Account Assignment Objects → Specify Account Assignment Types for Account Assignment Objects. Active objects can be listed with program RAACCOBJ01 / transaction AACCOBJ.

Lesson 2: Executing Programs for Fiscal Year Change and Year-End Closing in AA

Open the new fiscal year for asset postings and close the old one, in the right order relative to the general ledger.

Fiscal year change

• In S/4HANA the new year in FI-AA is opened by the central balance carry-forward of FI-GL (FAGLGVTR); a separate AA fiscal year change program (formerly AJRW) is no longer needed.
• Technically the change opens new annual value fields for every asset; it may be started in the last posting period of the current year.
• A change to year N+1 is only possible if year N−1 is already closed in FI-AA (at most two open years).

Year-end closing

1. Check depreciation lists and the asset history sheet, then post depreciation for the final period.
2. If results are unsatisfactory, use depreciation simulation, mass changes or adjustment postings – and rerun depreciation afterwards.
3. Run the year-end closing program (Accounting → Financial Accounting → Fixed Assets → Periodic Processing → Year-End Closing → Execute/Undo or Execute (Cross-Company Code and Ledger); Fiori job template "Year-End Closing Asset Accounting (Cross-Company Code and Ledger)" in Schedule Asset Accounting Jobs).
4. The program checks that depreciation is fully posted and that no asset is erroneous or incomplete. If clean, it sets the last closed fiscal year per depreciation area and blocks asset postings into the closed year.

Order matters: all subledgers, including FI-AA, must be closed before the fiscal year is closed in the general ledger; doing it the other way round can create serious G/L inconsistencies. A closed AA year can be re-opened with the Undo option if corrections are needed.

Lesson 3: Investment Support Measures

Define investment support (government subsidy) measures and understand the two accounting treatments: as a special reserve on the liabilities side or as a reduction of APC on the assets side.

Concept and definition

Investment support is a subsidy for certain investments. It is either shown as a value adjustment on the liabilities side (special reserve) or as a reduction of the asset's APC; in either case the subsidy must be identifiable separately from the real APC. Each measure is represented by an investment support key defined under Asset Accounting → Special Valuations → Investment Support → Define Investment Support Measures. The key stores:

All areas of one measure must belong to the same accounting principle; a measure cannot span accounting principles. Hence, if ledgers 0L (IFRS) and 2L (local GAAP) are both updated, two investment support keys are required.

Marking eligible assets

Entering the investment support key in the asset master creates the required depreciation area(s) for that asset. Any number of measures can be managed per asset, but each needs its own area so that, for example, the subsidy share of a partial retirement can be isolated. The class must therefore have all potentially needed areas maintained. With the key on the asset the system can produce a claim list (optionally with automatic posting), run plausibility checks, post the necessary entries on retirement automatically, and flag retention-period issues on retirement or intracompany transfer.

Generated transaction types

Claims are posted manually per asset with ABIF or in bulk with program RAINZU10N.

Liabilities-side treatment

• The full APC is depreciated over the useful life; the subsidy sits in a special reserve on the liabilities side and is written off in parallel.
• Requires at least one separate depreciation area posting automatically to FI; several parallel measures need one real-time-posting area each, and parallel currencies need additional areas too.
• Any depreciation key may be used; letting the support area adopt its terms from the local area ensures write-off in line with local law.
• Retirement within the retention period: use transaction type 201 (retirement due to catastrophe) when no repayment is due – the system writes off the reserve; use a normal retirement type (e.g. 200) when repayment is due – the system posts the repayment plus repayment expense according to the repayment type. If the claim was posted in the same year as the retirement, reverse the claim first.

Assets-side treatment

• Allowed when the subsidy need not be shown separately in the balance sheet; APC is reduced by the subsidy and depreciation is based on the reduced amount.
• One measure per asset needs no extra area – it is managed in the area that posts to the G/L. Several measures posted separately need additional areas with the same depreciation terms as the posting area.
• Accounts needed: an APC balance sheet account for the allocation (counterpart of the special reserve account) and a clearing account for the allocation.
• Supported automatically: claiming, and retirement of the subsidy together with the APC. Not supported automatically: retirements within the retention period, the related extraordinary write-off and the repayment; these must be posted manually in FI, and no warning is issued when the retention period is violated.

Lesson 4: Parallel Accounting in Asset Accounting

Represent several accounting principles in FI-AA with depreciation areas and post them to the G/L either into parallel ledgers (ledger approach) or onto parallel account sets (accounts approach); handle recognition and valuation differences.

Mapping options

In new Asset Accounting every accounting principle gets its own depreciation area(s); the assignment of an accounting principle to the area says which valuation it represents. Two scenarios exist:

In both approaches exactly one area per valuation posts APC to the G/L in real time; all areas have equal status and you choose which of the posting areas feeds the leading ledger. One or more areas form a valuation, and all areas of a valuation must carry the same accounting principle.

Configuration steps (both approaches)

1. Define the ledger group: Financial Accounting Global Settings → Ledgers → Ledger → Define Ledger Group.
2. Assign the accounting principle to the ledger group: Ledgers → Parallel Accounting → Assign Accounting Principle to Ledger Groups.
3. Assign the accounting principle to the new depreciation area: Asset Accounting → General Valuation → Depreciation Areas → Define Depreciation Areas.

Note that it is the accounting principle – not a ledger or ledger group – that is assigned directly to the depreciation area.

Differences between accounting principles

Recognition (what is capitalized): an asset capitalized under only some principles is a unilateral asset; it may carry only the areas in which it is really capitalized. Recommended procedure:

1. Use separate asset classes for objects not capitalized under all principles (alternative: deactivate areas directly in the asset master).
2. Deactivate the non-capitalizing areas in that class: General Valuation → Determine Depreciation Areas in the Asset Class.
3. For the deactivated areas maintain the capitalization-differences / non-operating expense account in Assign G/L Accounts (field KTNAIB), so that the amount goes to expense for that principle.

Valuation at capitalization: post the vendor invoice with the full amount for all principles, then post an asset-specific credit memo valid for one accounting principle only; that principle's capitalization is reduced and the difference goes to expense. For in-house produced assets, Investment Management's capitalization-value determination lets you set per area the percentage capitalized vs. posted to non-operating expense at settlement; a preliminary settlement can move non-capitalizable costs to cost centers (they then can no longer go to the asset/AuC and appear as cost in all areas). From a CO viewpoint a cost-accounting area must be fully settled. The area of the leading valuation must always exist on the AuC and cannot be deactivated.

Depreciation: each area has its own depreciation rules and useful life; depreciation is calculated and posted separately per area – into parallel ledgers or onto parallel accounts depending on the approach.

Unit 5: Reporting in Asset Accounting

Lesson 1: Executing Various AA Reports Using SAP List Viewer and Sort Variants

Use the ALV functions and sort variants to sort, total and filter asset reports so the portfolio can be reviewed before year-end closing.

SAP List Viewer (ALV)

All asset reports output through the SAP List Viewer, which standardises list handling with the ALV grid control. The functions you use most:

• Hide, insert and rearrange columns.
• Sort any column ascending or descending.
• Build totals and subtotals over one or several columns.
• Save a personal or global layout for reuse.
• Filter rows by criteria.

Sort variants

A sort variant bundles up to five sort criteria (ABAP Dictionary fields such as company code, balance sheet account, asset class, cost center) that define grouping and totalling in every FI-AA report. On the report selection screen you also set:

Sort variants work with any FI-AA report. For the standard reports RABEST_ALV01 (asset balances), RAGITT_ALV01 (asset history sheet) and RABEWG_ALV01 (asset transactions) the fields chosen under "Custom selection" can also be passed into the ALV list as columns.

Lesson 2: Analytics Architecture in SAP S/4HANA

Grasp how embedded analytics (CDS views, virtual data model) delivers live operational reporting, and know the Fiori analytical apps for Asset Accounting.

Embedded analytics

S/4HANA Embedded Analytics merges transactions and analytics so that operational reports run on live transactional data without a separate data warehouse. Three user roles are distinguished:

The technical basis is SAP Core Data Services (CDS) views, which form a Virtual Data Model (VDM) on top of the transactional and master data tables. CDS views are developed and extended in the ABAP layer; the system generates SQL runtime views in SAP HANA so that reading and transforming data happens inside the database. Analytical artefacts build on each other: an analytical query prepares columns and filters, a report is a table or chart over several measures and dimensions, and a KPI evaluates one leading measure from an aggregated management perspective.

Fiori app: Asset Accounting Overview

A central entry page for the asset accountant with KPIs, trends, filters and navigation to related apps.

Fiori app: Asset Balances

Shows fixed asset balances by criteria such as company code, depreciation area, segment or profit center and explains the net book value as APC minus depreciation. Values are organised in key figure groups that bundle key figure codes (acquisitions, retirements, transfers, depreciation). Own groups are defined under Asset Accounting → Information System → Define Key Figure Groups for Asset Balances (Fiori).

Per asset the app shows cumulative APC at the reporting date, accumulated depreciation per depreciation type split into posted and not-yet-posted current-year amounts, and the planned book value at period end. Results appear in a grid that can be filtered, re-pivoted by dragging characteristics onto the axes, and exported to Microsoft Excel.

Lesson 3: Executing Depreciation and Transaction Simulation

Forecast depreciation and simulate transactions for one asset in the Asset Explorer, and for many assets with the depreciation simulation report and simulation versions.

Simulation in the Asset Explorer

Further options: jump to the FI document, to related objects and to the master record, call reports (own report variants via Goto → Maintain Reports), refresh after changes, and include all subnumbers.

Depreciation simulation report

Program RASIMU_ALV01 (the lesson title also refers to its predecessor RASIMU02) forecasts depreciation for a single asset, a part of the portfolio or the whole portfolio and for future fiscal years. "Simulation" here means an experimental change of depreciation parameters that affects valuation without being posted. Planned investments can be included: keep the planned amounts as planned costs on a CO order or project, give it depreciation terms and a planned start-up date, and the report shows the future depreciation of the investment.

Simulation versions

A simulation version describes an alternative depreciation logic: for each depreciation area, asset class and depreciation key you specify the alternative depreciation key and useful life to use in the simulation. A validity interval restricts the version to assets whose capitalization date falls inside the interval.

Lesson 4: Understanding the Layout of an Asset History Sheet

Run the asset history sheet, understand its rows and columns (history sheet version or key figure groups), and know how to define your own version.

Purpose and structure

The asset history sheet is the key year-end (or interim) report that reconciles opening balances, movements of the year and closing balances of fixed assets. SAP delivers program RAGITT_ALV01 for it; like any asset report it supports sort variants and totals at every group level. Usage options:

• Compact totals list without individual assets.
• Drill down from the totals to single assets and on to the Asset Explorer.
• Start other FI-AA reports through the report-report interface (RRI).
• Define your own history sheet versions: at most 10 rows and 8 columns, with headers for each item and rules defining which transaction type groups feed each item. SAP also ships country-specific versions that meet local legal requirements.

Asset History Sheet Fiori app

The app shows the value changes of fixed asset balances in one fiscal year for one depreciation area, so balances can be documented per accounting principle, local regulation or management need. Instead of a history sheet version it uses key figure groups (customisable under Asset Accounting → Information System → Asset History Sheet → Define Key Figure Groups for Asset History Sheet (Fiori)).

As with Asset Balances you filter, view a grid, re-arrange characteristics on the axes and export to Excel.

Unit 6: Legacy Data Transfer

Lesson 1: Entering Legacy Data

Transfer legacy asset master data and values into FI-AA manually or automatically, choose the right transfer date, and understand why takeover values in new Asset Accounting are posted documents that can only be corrected by reversal.

Where the transfer fits

After configuration and the definition of the asset class catalogue, the legacy data transfer is the first activity in a new production system. Values are taken over per asset class, and what has to be transferred depends on the transfer date and the other parameters you choose.

Transfer methods

The old ECC batch-input / direct-input programs RAALTD01 and RAALTD11 are no longer the recommended route; the course's assessment lists only AS91/ABLDT, AS100 and the BAPI as valid methods.

Correcting takeover values

Because takeover values are real posted transfer documents, the only way to change them is to reverse the transfer document and post it again. A transfer document can be reversed only if the asset has no follow-on transactions, since the takeover is the value foundation of the asset. If follow-on postings exist: reverse them (preferably in reverse order), reverse the transfer, post the new takeover values, then re-enter the follow-on transactions individually.

Assets under construction

For AuCs you cannot transfer cumulative APC or accumulated depreciation; the open items must be transferred as transactions:

• Manually with AB01 or, since SAP Note 2294012, with the dedicated transaction ABLDT_OI instead of ABLDT.
• With the BAPI, fill the TRANSACTIONS table rather than CUMULATEDVALUES.
• Line-item-managed AuC transactions use the special legacy transaction types 900 and 910.

SAP Note 2208321 covers the details; SAP Note 2304473 explains how to reconcile the legacy transfer with the G/L.

Company code status and transfer date

1. Set the company code status to "Asset data transfer not yet completed" under Asset Accounting → Asset Data Transfer → Parameters for Data Transfer → Define Transfer Date and Additional Parameters. While the status is "ongoing" you can transfer legacy data but cannot post normal asset transactions.
2. Define the transfer date. All legacy values are transferred as they stood on this date; no legacy data can exist in SAP before it. The date may be either the end of the last closed fiscal year or any date within the following fiscal year (a mid-year transfer).
3. After the transfer is complete and reconciled, set the status to "transfer completed" so that normal postings become possible.

The transfer updates the G/L account balances through the transfer clearing account; the clearing account is then reconciled against the balances migrated into FI-GL.

Migrate Your Data – Migration Cockpit

The S/4HANA app for migrating business data, directly from certain SAP source systems or through staging tables. With it you create migration projects and monitor them, select the relevant migration objects (for example fixed assets including values), work through the mapping tasks, simulate the migration before loading, and finally migrate and monitor the result.