Asset accounting : Briefing

Asset Accounting

 

Like AP and AR, Asset Accounting  is the subsidiary ledger of Financial Accounting. The appropriate general ledger are updated each time we post. There are various accounts maintained on Fixed Asset like Appreciation and Depreciation, Asset purchasing, Asset Selling , Scrapping, Transfer of Asset etc 

 

Asset Class

Fixed assets are categorized into Asset Classes as per legal & Management requirements. Example: Land, Buildings, Vehicles, Furniture, Machines etc.

Asset classes are created at Client level and hence can be used by all the company codes in the client.

One asset can be assigned to one asset class only. All the property of that asset class will imply to that asset

 

Asset classes have Two sections

Ø  Master Data section: In this section, data related to asset master

Ø  Depreciation Area Section : Depreciation terms for each depreciation area

 

Chart of depreciation

Chart of Depreciation is the list of depreciation areas created according to business requirement.

The Chart of Depreciation is highest node in asset accounting. The Chart of depreciation is country specific. For all the country, SAP has predefined Chart of Depreciation. Just like chart of accounts has all the list of GL accounts and their descriptions, The Chart of depreciation has list of Depreciation areas.

One or more company code in the same country  can be assigned to one chart of depreciation for same country.

 

SAP: Depreciation Types

Book Depreciation: It is the actual description

Tax Depreciation: The tax depreciation is calculated on the company’s income tax returns and will be based on the countries tax rules.

Group Depreciation

Cost Accounting Depreciation