Fixed Assets
What are the organizational assignments in asset accounting?
Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code.
Under the Chart of depreciation all the depreciation calculations are stored
Explain the importance of asset classes. What asset classes are there?
The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset class are Plant& Machinery, Furniture&Fixtures, Computers etc. The asset class also contains the Gl accounts which is debited when any asset is procured . It also contains the gl accounts for depreciation calculation, scrapping etc
Whenever you create an asset master you need to mention the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the gl accounts attached to the asset class is automatically picked up and the entry passed.
You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class.
How are depreciation keys defined?
The specifications and parameters that the system requires to calculate depreciation amounts are entered in Calculation methods. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class. Refer to the configuration for more details of how depreciation is calculated.
What steps do you have to take into account to ensure that integration into the general ledger for the depreciation posting run works?
For each depreciation area and company code, specify the following:
the frequency of posting depreciation(monthly,quarterly etc)
CO account assignment (cost center)
For each company code you must define a document type for automatic depreciation posting only: This document type requires its own external number range.
You also need to specify the accounts for posting. (Account determination)
To ensure consistency between Asset Accounting and Financial Accounting, you must process the batch input session created by the posting report.
If you fail to process the batch input session, an error message will appear at the next posting run. The depreciation calculation is a month end process which is run in batches and then once the batch input is run the system posts the accounting entries into Finance.
How you change fiscal year in Asset Accounting?
The fiscal year change program opens new annual value fields for each asset. I e next year
The earliest you can start this program is in the last posting period of the current year.
You have to run the fiscal year change program for your whole company code.
You can only process a fiscal year change in a subsequent year if the previous year has already been closed for business.
Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons.
Is it possible to have depreciation calculated to the day?
Yes it is possible. You need to switch on the indicator Dep to the day in the depreciation key configuration.
Is it possible to configure that no capitalization be posted in the subsequent years?
Yes it is possible. You need to set it in the depreciation key configuration.
How are Capital WIP and Assets accounted for in SAP?
Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted onto an Asset Under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset Under Construction gets capitalized to an actual asset.
What is the purpose of defining Internal orders.?
Internal Orders are basically used for tracking of costs, which are proposed to be incurred over on a short term basis and time tracking is not of much essence.Eg an Advertisement campaign. Sales Promotion and Exhibition expenses etc.
Logistics Invoice Verification
Can you assign multiple G/L accounts in the Purchase order for the same line item?
Yes, we can assign multiple G/L accounts in the Purchase order for the same line item . The costs can be allocated on a % or quantity basis. If the partial goods receipt and partial invoice receipt has taken place, then the partial invoice amount can be distributed proportionally, i.e. evenly among the account assigned items of a Purchase order or the partial invoice amount can be distributed on a progressive fill-up basis, i.e. the invoiced amount is allocated to the individual account assignment items one after the other.
What is Credit memo and subsequent debit in Logistics Invoice verification?
The term credit memo refers to the credit memo from the vendor. Therefore posting a credit memo always leads to a debit posting on the vendor account. Credit memos are used if the quantity invoiced is higher than the quantity received or if part of the quantity was returned.
Accounting entries are : vendor account is debited and GR/IR account is credited.
Subsequent debit : If a transaction has already been invoiced and additional costs are invoiced later, then subsequent debit is necessary. In this case you can debit the material with additional costs, i.e. GR/IR account debit and Vendor account credit. When entering the Subsequent debit, if there is no sufficient stock coverage, only the portion for the available stock gets posted to the stock account and Rest is posted to the price difference account.
What do you mean by Invoice parking, Invoice saving and Invoice confirmation?
Invoice parking : The functionality wherein we can save the LIV(Logistics Invoice Verification) document as Parked, so that the document gets created in SAP, but its status is Parked.
The advantage is wherein we just want to create this document in database and we are not concerned whether the entries are balanced or not, correct/ incorrect. The accounting document is not created when the invoice is in the Parked mode.
We can later on rectify the Parked invoice.
Invoice saving : This is also called Invoice processing or Invoice posting. The accounting document gets created when the invoice is posted in SAP.
Invoice confirmation : There is no terminology in SAP as Invoice confirmation.
What are Planned delivery costs and Unplanned delivery costs? What is the basis on which the apportionment is done?
Planned delivery costs : are entered at the time of Purchase order. At goods receipt, a provision is posted to the freight or customs clearing account.
e.g. FRE is the account key for freight condition, hence the system can post the freight charges to the relevant freight revenue account and FR3 is the account key for Customs duty, hence the system can post the customs duty to the relevant G/L account.
These account keys are assigned to the specific condition types in the MM Pricing schema.
In terms of Invoice verification : If the freight vendor and the material vendor is the same : then we can choose the option : Goods service items + Planned delivery costs.
If the freight vendor is different from the material vendor : then for crediting only the delivery costs, we can choose the option : Planned delivery costs.
Unplanned delivery costs : are the costs which are not specified in the Purchase order and are only entered when you enter the invoice.
Unplanned delivery costs are either uniformly distributed among the items or posted to a separate G/L account.
For a material subjected to Moving average price, the unplanned delivery costs are posted to the stock account, provided sufficient stock coverage exists.
For a material subjected to Standard price, the unplanned delivery costs are posted to the Price difference account.
