Asset Accounting in SAP S/4HANA
Asset Transaction Types
Every transaction in Asset Accounting carries an asset transaction type. There are groups of transaction types for specific operations:
Acquisitions
Retirements
Transfers
Post-capitalizations
Investment support measures
Depreciation
Write-ups
The group a transaction type is assigned to defines a lot of basic characteristics for the transaction, such as which value fields are updated, the valid fiscal year (current or previous), the sign (positive, negative) of the sum of the postings for a fiscal year, and more. The transaction type groups are hardcoded system settings and can’t be changed.
Additionally, each transaction type has a set of controls that you configure. The specifications can differ according to the transaction type group.
Depending on the transaction type group of the transaction type, you define settings such as the following:
Debit/Credit Capitalize/Retire Document Type Posting to Affiliated Company Post Gross/Net Asset History Sheet Group
In Figure 4.14, you can see the definitions maintained for the transaction type 100 of group 10 (Acquisition). The SAP S/4HANA system comes with transaction types preconfigured that should cover the requirements of most customers.
Figure 4.14 Asset Transaction Type Configuration
Asset Acquisitions
An asset acquisition capitalizes an asset and usually signifies the start of the depreciation calculation. There are three basic ways to post external acquisitions in SAP S/4HANA:
Acquisition with automatic offsetting
Acquisition integrated with AP
Asset acquisition with purchase order integrated with Materials Management (MM)
Let's explore these further.
Acquisition with Automatic Offsetting
The acquisition with automatic offsetting entry is often used to capitalize an asset for which the invoice isn’t yet received or has been received and posted to the supplier already. With a posting of this type, the system debits the assets and credits a predefined offsetting account. The idea is that the offsetting entry will be balanced back to zero with the pending (or posted) invoice entry. To make it simpler to understand, let’s assume an asset is worth $10,000 USD, and you need to capitalize it first, as shown in Table 4.1.
Line Item | Account | Debit/Credit | Amount |
1 | Asset Clearing | Debit | $10,000 |
2 | Offsetting Account | Credit | $10,000 |
Table 4.1 Asset Capitalization with Offsetting Entry
The invoice is posted in a second step (example with 10% tax), as shown in Table
4.2.
Line Item | Account | Debit/Credit | Amount |
1 | Supplier Account | Credit | $11,000 |
2 | Offsetting Account | Debit | $10,000 |
3 | Tax Account | Debit | $1,000 |
Table 4.2 Supplier Invoice to Offsetting Account
The second line from each table is for the same amount on the same account but with opposite directions for debit/credit; thus, the offsetting account is balanced to zero.
On the initial screen for posting the acquisition (Figure 4.15), you have the option to select an existing asset master record or create one on the fly. You can also post to a specific accounting principle (or even depreciation area). The usual minimum fields required to create an asset are available on the screen (Asset Class, Description, and Cost Center). The MasterData button is also available to fill in additional details. From the same screen, you can select to post to multiple assets at the same time. The transaction is very simple: you enter the date definitions, the amount, and, where valid, the quantity and line item text. This is enough information to post, but there is a screen with more details where you can make additional definitions.
Figure 4.15 Asset Acquisition Transaction Data
You can see the additional details screen in Figure 4.16. The Document type, Offsetting Account, and Transaction Type fields will all be filled automatically from the settings in Customizing if you don’t manually alter them. The rest of the fields are optional and will remain blank by default.
Figure 4.16 Asset Acquisition Additional Details
Acquisition Integrated with Accounts Payable
Acquisition integrated with AP is used when purchasing an asset without a purchase order. In this case, the FI posting updates both the AP and the asset accounts in a single step. The typical (single asset) acquisition entry is shown in Table 4.3.
Line Item | Account | Debit/Credit | Amount |
1 | Supplier | Credit | $11,000 |
2 | Asset Clearing | Debit | $10,000 |
3 | Tax | Debit | $1,000 |
Table 4.3 AP Integrated Asset Acquisition
The application used to enter this type of document is the complex posting screen.
In this case, you fill the document header first and start building up each line item in a separate screen. You must manually enter the posting key for the second line (70 to debit the asset) and the transaction type (100 for asset acquisition). In Figure 4.17, you can see the line item for the asset; you can add another asset acquisition line by entering the posting key, (asset) account, and transaction type in the bottom of the screen, in the Next line item section. By selecting the More button, you can enter the Reference Date, which is the asset value date the system will use as the asset capitalization date.
Figure 4.17 AP Integrated Acquisition
Asset Acquisition with Purchase Order Integrated with Materials Management
Asset acquisition with purchase order integrated with MM is probably the most common acquisition method for most companies. It creates a posting like the one created by the AP integrated posting, but with the purchase order details and posted through the MM Invoice Verification. In this case, the flow of documents is as follows:
(Optional) Purchase requisiti
A purchase requisition is often the first step of the purchasing workflow. At the purchase requisition phase, you might already have and assign a specific asset master record in the document. Most commonly, though, this is done in the next stage.
Purchase order
The purchase order is a required step in purchasing assets with MM. To order an asset, you enter the assignment category A in the line of the purchase order, and this will allow you to enter an asset in the account assignment. An important decision when entering the purchase order is if you’re posting a valuated goods receipt or not.
Goods receipt/invoice receipt
With a valuated goods receipt, the asset is capitalized when you post the goods receipt with the value defined in the purchase order. With the invoice receipt, the system will adjust the value of the capitalized asset if required. In this case, the goods receipt isn’t valuated (probably the more common case for assets), the asset isn’t updated during goods receipt, no values are posted until the invoice receipt, and no adjustment postings are required because the value is based on an actual invoice. With the nonvaluated goods receipt, the system still uses the goods receipt date as the asset capitalization date.
In integrated external acquisitions, the system posts the entry document without a ledger group specification, and as shown in the tables previously, by debiting the asset clearing account. At the same time, the system creates an additional document for each additional accounting principle. These documents balance the technical clearing account back to zero.
The additional documents post a debit to the actual asset reconciliation account while crediting the asset clearing account. The accounting-principle-specific documents post to the ledger group assigned to the accounting principle and indicated in the relevant depreciation area. For example, if you update two accounting principles in parallel, the system will post one operational document, debiting the asset clearing account, plus two accounting-principle-specific documents (one for each accounting principle) where each document debits the (same) asset clearing account.
As seen in Figure 4.18, you select 1 to switch between accounting principles in the output display of a document. In 2 you see the IFRS document posted to ledger group 0L and in 3 you can see the Local GAAP document posted to ledger group 2L.
The asset technical clearing account is an asset reconciliation G/L account that isn’t entered in the asset account determination. Instead, there is a separate step to define the technical clearing account for integrated asset acquisition.
The accounting-principle-specific documents can be designated to have a different document type than the entry document. A common setting here is to define that for supplier invoices (document type KR), the system posts accounting-principle-specific documents to document type AA (asset document).
Asset Retirements
There are two basic ways to perform asset retirements: scrapping and selling. Both lead to the asset being removed from your asset registry, as opposed to assets that have been fully depreciated, which remain, even with no accounting value.
Asset sales to customers are generally performed through FI, and not Sales and Distribution (SD). This is because selling assets is usually not a normal business activity for most companies. As in the case of the acquisition integrated with the supplier, the posting is performed through the complex posting transaction.
Posting an Asset Sale Invoice
To post an asset sale invoice, you debit the customer and credit the G/L Revenue from Fixed Asset Sale account. You don’t credit the asset directly with posting key 75 and a sale transactions type. The revenue account has a special configuration provided by its field status group to accommodate asset retirements. When using this account, you mark the Asst retirement checkbox, and the system produces a popup window to enter details for the asset sale (see Figure 4.19).
Figure 4.19 Asset Details Popup When Selling an Asset
Creating Asset Retirement
The Create Asset Retirement popup window (Figure 4.19) is where you enter definitions for the following:
Asset
This is the asset (or asset subnumber) the sale concerns. You can only enter a single asset per line, so you just add lines crediting the revenue from the fixed asset sale account. TransactionType
This is the retirement transaction type with the default 210 for a normal asset sale in the current fiscal year proposed by the system. You can change this if required. Asset Val. Date
The asset value date is the date for calculations in Asset Accounting. This date is very important for calculating the profit or loss from the asset sale.
Compl. Retirement
This checkbox indicates whether the asset is to be fully or partially retired.
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Asset Sale Line Items
When performing a retirement, the system calculates all related values automatically and updates all accounting principles and gain/loss accounts. In Figure 4.20, you can see an example of the lines generated for an asset sale. The lines without the ledger group are the ones we manually enter during posting (customer, revenue from asset sale). The other lines are generated automatically and are accounting-principle-specific lines. That is because the calculations depend on the values for each accounting principle and different depreciation amounts, and accounting-principle-specific postings need to be taken into consideration. The system will calculate the depreciation up to the asset value date indicated. In the specific example, the asset was sold for $50,000 USD, the acquisition value is $40,000 USD, and the depreciation up to the point of the sale was $2,500 USD. Therefore, the profit for the sale is $12,500 USD. The revenue from the asset sale is balanced by the clearing from the asset disposal account. The posting is similar for the other accounting principles (only the values and ledger group will change). Note that it’s possible to have a profit in one accounting principle and a loss in another, and the account is adjusted for each.
Figure 4.20 Asset Sale Line Items
You can also perform asset sales without customer integration. In this case, the transaction looks like the nonintegrated asset acquisition with the addition of a tab with specifications for a partial retirement.
A similar application is used for asset scrapping, except there is no customer and no revenue, which means no profit. You can also perform a partial scrapping by selecting as always an amount, percentage, or value. The application offers facilities to perform scrapping for multiple assets.
Retirements Worklist
The SAP S/4HANA system offers the possibility to perform retirements (nonintegrated sale or scrapping) using a worklist. In this case, you perform the following:
- Execute the report with the specific selection criteria to select the exact assetsyou want to retire.
- Create a worklist for the items. You must indicate the purpose of the worklist(retirement with/without revenue), as shown in Figure 4.21.
- If there is revenue, distribute the revenue to the selected assets.
- Edit/release the worklist.
Figure 4.21 Worklist Creation from the Asset Balances Report
Asset Transfers
Asset transfers are transactions that remove values from one asset and transfer the same value to another one. Two types of transfers are supported: intracompany and intercompany. Let's explore both of those individually.
Intracompany Transfers
Intracompany asset transfer is performed within a company code between two asset master records of the same or different asset classes, as shown in Figure 4.22. There are two main reasons for posting an asset transfer:
The initial asset wasn’t created in the right asset class. You create a new asset (in the correct class) and transfer the values to this new asset.
You want to transfer part or full value of the asset to different assets to better depict the asset components, for example, to track the location of each on the asset.
Figure 4.22 Asset Transfer within the Company Code: Intracompany
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Intercompany Transfer
An intercompany transfer represents the transfer of an asset from one company code to another within the same corporate group, as shown in Figure 4.23. The system posts a retirement for the sending company and an acquisition for the receiving company code. On the corporate group level, it’s a transfer that should balance to zero in the group asset history sheet. An intercompany asset transfer within a corporate group may be necessary for one of the following reasons:
The asset is moved, making it necessary to assign the asset to a new company code.
Due to a reorganization at the corporate group, you must assign assets to a different company code.
Figure 4.23 Asset Transfer: Intercompany
A differentiator for the type of transaction that will be posted is whether the company codes between which the transfer is taking place are assigned to the same company. If this is the case, the transfer is posted as a transfer. If the company codes are assigned to different companies, the system posts a retirement in the sending company code and an acquisition in the receiving company code.
Transfer Methods
The transfer method (see Specifications for Revenue in Figure 4.23) defines the way values are transferred between the assets. There are three transfer types: the gross method, the net method, and the new value method.
The gross method is the most common, in which the historic values of the asset are all transferred to the new asset (see Table 4.4).
Asset | Acquisition and Production Cost | Accumulated Depreciation |
Sender | 20000 | 4000 |
Receiver | 20000 | 4000 |
Table 4.4 Gross Method
The net method transfers the net book value of the sender to the receiver (see Table 4.5).
Asset | Acquisition and Production Cost | Accumulated Depreciation |
Sender | 20000 | 4000 |
Receiver | 16000 |
Table 4.5 Net Method
The new value method capitalizes the new asset at a manually entered revenue amount (Table 4.6).
Asset | Acquisition and Production Cost | Accumulated Depreciation |
Sender | 20000 | 4000 |
Receiver | 15000 |
Table 4.6 New Value Method
In the rare case where you’re transferring an asset between company codes that are assigned to different charts of depreciation with mismatched depreciation areas, you can create cross-company code (or cross-system) depreciation areas that will map the depreciation areas between the differing charts of depreciation. The mapped depreciation areas have the same function and significance in all charts of depreciation within a corporate group but with different keys. The crosscompany depreciation area is only defined by a key and descriptions and carries no depreciation definitions of its own.
Low-Value Assets
Low-value assets (LVAs) are always completely depreciated in the year in which they are acquired. You generally don’t have to report on their values individually. LVAs are maintained in specific LVA asset classes.
In Customizing, you configure the maximum value an asset can have to be considered an LVA. This is done on the country level (see Figure 4.1) but can be specified on a lower level as well and specifically per company code and depreciation area (see Figure 4.24).
Figure 4.24 Configuration of Low-Value Assets
LVAs can be managed individually, and, in this case, the acquisition value for the single asset is compared to the maximum amounts defined for each depreciation area.
Alternatively, LVAs are managed collectively in accordance with the quantity posted. In this case, the value of the acquisition is divided by the quantity entered, and this value is then compared to the maximum amounts.
Assets Under Construction
Assets under construction (AuC) require a separate asset class because they must be displayed in separate accounts for the financial statement. An AuC doesn’t post depreciation, and this is guaranteed in the system by the assigned depreciation key 0000 (Figure 4.25).
Figure 4.25 Asset under Construction Depreciation
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Even when an AuC has been fully capitalized, it’s still possible to post credit memos, meaning negative APC values must be permitted.
When the AuC moves from the under-construction phase to the useful life phase, the values are transferred to one or more final assets. This (depending on the AuC asset class type) can be done either in a one-step summary settlement (e.g., an intracompany asset transfer) or with line item management. By settling line items, you have full control over which posted values are capitalized in each individual depreciation area. You must first assign a settlement profile to the company code. You then define distribution rules per expenditure and depreciation area to define what value percentage or amount goes to which final asset.
Figure 4.26 Settlement Maintenance per Line on AuC
In Figure 4.26, you can see an example of an AuC with 5 separate lines. Three lines are for the IFRS accounting principle and two for the Local GAAP. The green traffic line in the first column indicates the settlement rule is maintained.
Figure 4.27 Settlement Rule Maintenance
In Figure 4.27, you can see the definition of the settlement rule. In the first column you define the settlement category (like fixed asset, or cost center). In the second column, you specify the settlement receiver. In the fourth column displayed, you define the settlement percentage.
You don’t have to perform a full settlement of the asset values because you might continue the AuC project and produce other assets, or you might post the remaining value as operating expense instead.
Asset Depreciation
Depreciation posting is a periodic activity that is executed during period-end closing. The depreciation itself is calculated and stored in the Asset Accounting component for each asset after any asset transaction or change to the master record that might influence the calculated depreciation. The system uses the calculated depreciation values when posting the depreciation, and depreciation isn’t recalculated for the execution.
Calculation of Depreciation
Calculation of depreciation is based on depreciation keys assigned to the asset per depreciation area. The depreciation key calculation is controlled through the calculation methods assigned to the key. The various types of calculation methods are listed here but not explored because analyzing the details of what each method controls is beyond the scope of the associate certification:
Base method
Declining-balance method
Maximum amount method
Multilevel method
Period control method
You create new depreciation keys usually to comply with new legal regulations. In most cases, it’s adequate to copy and modify an existing method and then assign it to a new depreciation key that is in turn copied from the closest similar depreciation key. You need to execute a recalculation of depreciation in cases where a new key is assigned to assets. This will update the planned values of depreciation. In Figure 4.28, you can see the assignment of the calculation method to a depreciation key.
Figure 4.28 Depreciation Key Definition
If the APC value of the asset changes in a year (e.g., due to a partial sale), the depreciation posted already for the year isn’t changed; however, the depreciation of the next period will be adjusted in accordance with the period interval definition. In the most common case, the new depreciation values calculated for the asset and the system will catch up the differences immediately in the following period. As an example, if the value of the asset is reduced, the system will post less depreciation in the period of the reduction than the new periodic depreciation amount is calculated as to catch up with the increased depreciation posted in the prior months.
Time-Dependent Depreciation Definitions
You can make time-dependent changes to an asset’s depreciation terms, meaning you can define a new period interval from which date the new depreciation settings are effective. The definitions you can make with time-dependency are the following: Depreciation key
Useful life (year or period)
Variable depreciation portion
Absolute or percentage scrap value
When using time-dependency, the system won’t catch up or smooth the values over the remaining periods/years. In the depreciation area, allowed values are maintained and any change to depreciation terms must always comply with the value rule definitions of the affected depreciation area.
In Figure 4.29, you can see the detailed depreciation area definitions for an asset. Selecting More Intervals takes you to the screen you can see in Figure 4.30, where the intervals are displayed.
Figure 4.29 Depreciation Details for Asset
Figure 4.30 Intervals for Depreciation Details
Depreciation Posting Run
The depreciation posting run posts depreciation to the G/L accounts in FI, as shown in Figure 4.31. The transaction debits the depreciation expense account and credits the accumulated depreciation account for each asset and depreciation area per the account determination of the asset class. For example, for a company code with 100,000 active not fully depreciated assets and 3 depreciation areas that post depreciation, the system will post 300,000 document line items.
Figure 4.31 Scheduling the Asset Depreciation Run
There are two major advantages of posting with this level of detail:
No need for reconciliation of
There is a single source of truth, which means you can blindly trust your reporting.
Depreciation will be posted e
The program posts depreciation for all assets that it can. If you re-execute depreciation for the period (usually after correcting the problems), the system will only post the missing lines for the assets that caused problems. If you’ve closed the period before the assets could be corrected, the system will adjust the depreciation (e.g., post double the amount) in the following depreciation run.
Because one side of the depreciation posting is to an expense account, the system also posts to a controlling account assignment. Most commonly, this is the cost center maintained on the asset account master record.
The depreciation program is always executed in the background (and usually off system peak usage hours). The depreciation run can be executed as a test run online for up to 1,000 assets. The test run can run for unlimited assets as a background job. Testing the depreciation run might be useful to find assets with errors before committing the actual depreciation run. Because the test run can be executed at any time, and not only during period-end, you can start correcting problems early on.
After you execute the depreciation posting, the system outputs a log, and you can select the detailed log option to see every line item posted per depreciation area, as shown in Figure 4.32. A similar log can be produced for test runs as well.
Figure 4.32 Depreciation Posting Run Log
Asset Year-End Process
As the Asset Accounting balances are made up of line items that are in the Universal Journal, the carryforward for these items is executed through the balance carryforward program in FI-G/L. The balance carryforward is executed usually near the very end of the current fiscal year or at the very beginning of a new fiscal year. To post to Asset Accounting in a new fiscal year, the balance carryforward must be executed successfully.
In Asset Accounting, you can have up to two fiscal years open at the same time. The idea is that you open a new fiscal year with the balance carryforward, and you close the previous fiscal year when the previous year is closed for any accounting transactions. If you already have two years open, you won’t be able to post to a third fiscal year even if the balance carryforward has been performed for the new year.
Figure 4.33 Year-End Closing for Asset Accounting
To close a fiscal year, you execute the year-end closing program (Figure 4.33). The program checks that depreciation is posted fully, and there are no assets that contain errors. If the year-end closing program finds no errors, it blocks posting in Asset Accounting for the closed fiscal year. If for some reason you need to post in a closed year, you can reset the year-end closing. You’ll need to close the year again through the year-end closing program.
Asset Reporting
Asset reporting is how you keep track of all the asset balances, transactions, and can simulate depreciation values in future periods. There are two basic report categories, reports for individual assets and reports for multiple assets. We will go over the most important reports for each category.
Asset Value Report
The most important report for checking values for an individual asset is the Asset Values application (Asset Explorer as it’s called in the SAP GUI), as shown in Figure
4.34.
Figure 4.34 Asset Values Report (Asset Explorer)
You can get a complete overview of the planned and posted values of the asset per depreciation area and year. You can check and directly display the transactions posted to the asset in the year. You can see and drill down to the related objects of the asset such as the cost center, G/L account, supplier, and so on. You can also perform value simulations based on what-if scenarios, for example, of changing the depreciation key. In addition, in the Comparisons tab where you can compare values (plan and actual) between different depreciation areas. Finally, you can view the details and valuation methods of the depreciation key assigned to the asset and selected depreciation area.
Asset Balance Report
The Asset Balances report gives you a quick overview of the balances for multiple assets, as shown in Figure 4.35. The range of assets, company code, ledger, depreciation area, year, currency type, and period up to which the values should be selected are mandatory fields when executing the report. There are also many more filters you can add to specify the assets (G/L account, asset class, etc.).
The output displays various key figures such as APC value, Depreciation Posted, and Net Book Value. There are predelivered key figure variants for different purposes. Using the Navigation Panel, you can easily add or remove report characteristics to rows and columns. You can also export to a Microsoft Excel file for further calculations.
Figure 4.35 Asset Balances
Asset History Sheet
The final report to remember is the Asset History Sheet, as shown in Figure 4.36. This sheet is a legal requirement in some countries, and SAP offers predefined layouts that cover the local legal requirements for those countries. The report application itself is like the Asset Balances report but uses a specific key figure group and is more focused on showing the changes to asset values within a year. You can create your own key figure groups in Customizing.
Figure 4.36 Asset History Sheet
Asset Legacy Data Transfer
The data migration of legacy data from a previous system to an SAP S/4HANA system is a very important process where you must match the settings of an old system, whether an SAP ERP (usually the easy case) or a non-SAP system. You then usually use a mass transfer method to perform the actual data migration.
Migration Preparation Customizing
To prepare for data migration in the system, you perform the following customizing steps:
You ensure the company code status allows data migration (Figure 4.37). This is allowed when the company code is set to status 1 or 2. Status 0 is what you set for a productive company code to ensure the data integrity is protected for “accidental” migration activities.
Figure 4.37 Set Company Code Status
You define the offsetting account for Legacy Data Transfer. In this customizing activity, you specify the G/L account used for transferring asset balances.
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You define the document type that is to be used while posting. In the standard system document type UE is pre-defined for all migration activities.
You define the take-over date per company code (Figure 4.38). This is the date of the last period closed in the legacy system. Up to this date, the SAP S/4HANA uses the values from the legacy system and from this date forward, SAP will calculate its own values.
Figure 4.38 Defining the Date for Legacy Data Transfer
If the migration takes place mid-year, you define the last posted period in a second customizing screen, shown in Figure 4.39.
Figure 4.39 Mid-Year Asset Takeover
Performing Data Migration
The process to manually create a legacy asset is similar to the one for creating assets during normal operation, the main difference being you must enter the capitalization date manually and you (usually) input the Original Asset, which corresponds to the asset number in the legacy system (Figure 4.40). The transaction is also different in this case (transaction AS91, accessed through the SAP GUI).
Figure 4.40 Legacy Data, Master Record Origin Details
You post the transfer values using a separate step (Transaction ABLDT, Figure 4.41). The system posts a separate universal journal entry for the takeover values of each asset, debiting the asset account, crediting the accumulated depreciation, and crediting the remaining balance to the offsetting account defined.
Figure 4.41 Entering Manual Takeover Values
In an actual project, you would generally not perform a manual migration for assets unless the number of assets is extremely limited. For this, in addition to the manual transfer, the following automatic (mass-compatible) transfer methods are available:
Legacy data transfer using Microsoft Excel (Transaction AS100): an example form is shown in Figure 4.42.
Legacy data transfer using Legacy System Migration Workbench (Transaction LSMW): in this case you often perform a screen recording of the manual transaction and upload a file for batch execution. Legacy data transfer using Business Application Programming Interface (BAPI): in this case you create a custom program together with a technical consultant.
Figure 4.42 Excel Legacy Master Record Form
Important Terminology
In this chapter, the following terminology was used:
Chart of depreciation
The chart of depreciation organizes all depreciation areas valid for a country. Asset Accounting is activated for a company code by assigning the chart of depreciation to the company code.
Depreciation area
The depreciation area is used to calculate values according to various legal and internal reporting requirements. Each depreciation area is assigned to an accounting principle. A depreciation area can post all values, post only depreciation, or not post at all.
Asset class
The asset class is used to group assets according to basic criteria, including the
Important Terminology
G/L accounts updated, the default valuations and depreciation settings, and the nature of the asset. All assets are assigned to an asset class, which is used to control the data maintenance screen and number range.
Account determination
The account determination is where all balance sheet and P&L accounts are assigned per depreciation area for APC, depreciation, and special reserves postings. You assign the account determination to one or more asset classes.
Asset transaction type
The transaction type holds definitions on all aspects of an asset transaction such as if it’s a debit or a credit, if the asset is capitalized or retired by posting, and others. Each transaction type belongs to a transaction type group that defines many characteristics of the transaction. Examples of groups include acquisitions, retirements, transfers, and depreciation.
Technical clearing account
The technical clearing account facilitates external asset transactions (acquisitions from suppliers, sales to customers, etc.). The account is posted in the operational document and is credited by the accounting-principle-specific documents so it always balances to zero after each posting.
Asset value date
You define this date during posting for which the transaction is updated for Asset Accounting. This date is the basis for deciding the capitalization date and ordinary start date for depreciation for asset acquisitions and the retirement date for asset sale or scrapping.
Low-Value Asset (LVA)
In LVA is an asset that has an acquisition value below a predefined threshold. These assets are posted to a separate LVA class and are depreciated fully within the year of acquisition.
Asset under construction (
This asset is being built/produced and acts as a cost collector for capital and other expenditures. When the asset is complete (or in various other intervals), the AuC is capitalized into a final asset.
Depreciation key
This key defines the way the depreciation is calculated for an asset, including the method for depreciation (straight line, variable), the depreciation start date definition (in relation to the acquisition date), and many more.
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