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Learn how to configure and use asset accounting in SAP S/4HANA.
The book is organized into the following chapters:
We start with an introduction to SAP S/4HANA and how the SAP HANA database works. We explore how SAP S/4HANA was developed together with SAP Fiori.
You’ll learn how new asset accounting differs from classic asset accounting in SAP ERP, and how it supports multiple valuation principles and real-time integration with the general ledger in SAP S/4HANA.
In this chapter, you learn how to set up the organizational structures of asset accounting including the company code, charts of depreciation, depreciation areas, and fiscal year variants. We also configure example asset classes.
We define company codes and settings including the chart of accounts, credit control area, posting period variant, and field status variant. A company code is the main organizational object in financial accounting, which represents your organization's legal entities.
We set up a chart of depreciation, which defines the valuation for your fixed assets. Learn best practices in setting up charts of depreciation relative to company codes and the legal structure of your organization.
We configure depreciation areas for a chart of depreciation and discuss how depreciation areas define valuation principles for fixed assets.
Depreciation is the decrease in the fair value of an asset over time. Most assets decrease in value over time through use and because of technological advances. The value of the asset must be reduced in the balance sheet through depreciation, which is an accounting process that reduces the value of the asset.
In this chapter, you’ll learn how to configure asset master data including account determinations, screen layout rules, and number ranges. Then, you’ll build an asset master data hierarchy using asset super numbers, group numbers, main numbers, and subnumbers. You’ll also learn how to set up user fields in asset master records.
We explain how to value fixed assets according to multiple valuation frameworks. You’ll learn how to set up accounting principles and ledgers and how to configure asset accounting real-time integration with the general ledger in S/4HANA.
This chapter is the most extensive chapter in our book. We teach you how to configure and use every business process available in asset accounting, such as acquisitions, transfers, retirement, manual value corrections, and unplanned depreciation.
An asset acquisition is the process of acquiring fixed assets. In most cases, assets are acquired by a purchase from a vendor. In some cases, the asset acquisition may need to be posted against a general ledger account. Specific steps are required when acquiring assets from an affiliated company. Another common method of acquiring assets is via the assets under construction process where you build the asset internally instead of purchasing an already made asset.
We examine assets under construction, starting with the required configuration in asset accounting. Then, we show you how to to capitalize assets under construction directly and then in integration with investment management and project system.
In complex projects, you can capitalize assets under construction in integration with project system. Project system is a process area in SAP S/4HANA for managing big and complex projects. You define a project, and in its hierarchical structure, you define the various tasks that comprise it.
The main building block of a project is a work breakdown structure (WBS) element. Like investment orders, you accumulate costs on the WBS element level, and then the WBS element is settled to the asset under construction. When you create a WBS element, you can automatically create an asset under construction, and you maintain the settlement rule of an asset.
So far, you’ve learned how to create assets and post various business transactions to them.
The valuation of fixed assets is performed by periodic processing procedures, which are essential because they enable you to value your assets according to multiple valuation frameworks and in line with legal and business requirements.
In this chapter, you learn in detail how to configure and use the periodic processing in asset accounting.
In asset accounting, periodic processes, such as depreciation, are executed as part of the period-end and year-end closing. You’ll learn how to conduct asset depreciation, revaluation, and year-end closing.
In this chapter, you learn how to use the extensive asset accounting information system. We examine asset overview and balance reports as well as history sheet and asset transactions reports. We cover how to use both SAP GUI and SAP Fiori reports.
This chapter shows you how to migrate your legacy asset data into SAP S/4HANA. You’ll learn the various checks and tools that SAP S/4HANA provides to facilitate the migration process. You’ll learn the configuration activities required in the migration process. We’ll examine how the SAP S/4HANA migration cockpit and the SAP S/4HANA migration object modeler work. We’ll also demonstrate both manual and automated migration processes.
In the Appendix, we provide a list of the obsolete and new transaction codes and tables.
SAP S/4HANA has many changes in the underlying data model, especially in finance and asset accounting. Obsolete tables and transaction codes have been replaced with new ones.
In the Appendix, we show you the replacements for transaction codes and tables that are now obsolete in SAP S/4HANA.
Continue Reading: Asset Accounting with SAP S/4HANA
Asset acquisition is the process of acquiring fixed assets. In most cases, assets are acquired by purchase from a vendor.
The chart of accounts is a defined list of general ledger accounts used and maintained at a global level (for settings that are valid for all company codes) and at the company code level (for settings that apply only to a particular company code).
A chart of depreciation is an organizational object in SAP S/4HANA that manages depreciation and other valuation requirements. This object contains one but usually multiple depreciation areas, each providing different valuation options for fixed assets.
The credit control area configures credit management for the company code. This field defines the available credit limits for customers in each company code.
Asset depreciation is a method of allocating the cost of a fixed asset over its useful life. Depreciation is a method of allocating the cost of a fixed asset over its useful life.Every asset has some value. When you acquire an asset, you incur a certain expense, which for many assets could be quite significant. But you’re not allowed to immediately expense that cost in your financial statements.
A depreciation area is an organizational structure object that defines the area for the valuation of fixed assets based on specific sets or rules. Depreciation rules and the useful life of assets are maintained on the depreciation area level.
The fiscal year variant defines the fiscal periods and calendar assignments used to post documents in financial accounting.
The field status variant defines which fields are required, optional, or suppressed during the posting of financial documents.
An internal order monitors the costs and revenue of an organization for short- to medium-term jobs. You can carry out planning at a cost element and detailed level and budgeting at an overall level with availability control.
Sometimes, you need to manually change the value of an asset to reflect changes in its condition or its usability or changes in the economic conditions that affect its use.
Such changes could increase or decrease the value of the asset. We examine the process of writing up and writing down the value of an asset and the process of posting manual and unplanned depreciation. We start by showing you the required configuration steps.
The posting period variant defines which periods are open and closed for postings in financial accounting. This collection of settings defines open and closed periods for various types of accounts, such as the general ledger and the customer, vendor, asset, and material accounts.
Unplanned depreciation is used when you need to post depreciation amounts to an asset that are additional to the ordinary depreciation calculated by the system. This capability is needed, for example, when a government allows additional depreciation expenses for certain assets.
Asset retirement is disposing of an asset by selling or scrapping it (retirement without revenue).
To post a revaluation run, you enter Transaction AR29N.
An asset transfer is transferring value from one asset to another. The transfer can occur within a single company code or between company codes.
In SAP S/4HANA Asset Accounting, you perform technical steps to execute year-end closing once a fiscal year is completed. SAP ERP required two steps in the year-end closing process:
In SAP S/4HANA, the process has been simplified, and the fiscal year-end change Transaction AJRW is obsolete. You now execute year-end closing with Transaction AJAB.
Stoil Jotev is an SAP S/4HANA FI/CO solution architect with more than 20 years of consulting, implementation, training, and project management experience. He is an accomplished finance digital transformation leader that has delivered many complex SAP financial projects in the US and Europe in various business sectors, such as manufacturing, pharmaceuticals, chemicals, medical devices, financial services, fastmoving consumer goods FMCG, IT, public sector, automotive, parts, commodity trading, and retail.
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John Jordan is a seasoned SAP consultant with 20+ years of experience in SAP S/4HANA Controlling. As Lead SAP S/4HANA Controlling Consultant at ERP Corp, he specializes in seamless transitions to SAP S/4HANA, focusing on Product Costing, Material Ledger, and Margin Analysis.
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