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Setup company codes to be used for asset accounting. 1. Copy chart of depreciation. [Transaction EC08] 2. Set default tax codes for non-taxable transactions which require tax code. (Impt., errors often rise because this step is omitted) 3. Setup asset classes. 4. Set no posting to G/L for all classes except book depreciation (this is the typical setting) 5. Enable posting of unplanned depreciation and any other special postings (e.g. revaluation) 6. De-activate depreciation areas not required 7. Setup account assignments for all the asset classes. Note that the minimum accounts required are a balance sheet account for asset cost, for accumulated depreciation, and a P&L account for asset depreciation expense. [Transaction AO90]. Additional accounts that will be required are the gain/loss on sale and asset scrapping accounts. Note that more than 1 asset class can share the same account assignment. 8. Assign how depreciation posts to cost centers [Transaction OAYR] 9. Assign asset balance sheet A/Cs to profit centers if required [Transaction 3KEH] 10. Allow revaluation postings for selected company codes with revaluation [Transaction OAYR] 11. Run program RACHECK1 to eliminate inconsistencies between company code and asset management account data 12. Set document types for postings: (setting for transaction types). Suggested document types below:

Steps Asset Accounting

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Asset Accounting

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Setup company codes to be used for asset accounting

Setup company codes to be used for asset accounting.

1. Copy chart of depreciation. [Transaction EC08]

2. Set default tax codes for non-taxable transactions which require tax code. (Impt., errors often rise because this step is omitted)

3. Setup asset classes.

4. Set no posting to G/L for all classes except book depreciation (this is the typical setting)

5. Enable posting of unplanned depreciation and any other special postings (e.g. revaluation)

6. De-activate depreciation areas not required

7. Setup account assignments for all the asset classes. Note that the minimum accounts required are a balance sheet account for asset cost, for accumulated depreciation, and a P&L account for asset depreciation expense. [Transaction AO90]. Additional accounts that will be required are the gain/loss on sale and asset scrapping accounts. Note that more than 1 asset class can share the same account assignment.

8. Assign how depreciation posts to cost centers [Transaction OAYR]

9. Assign asset balance sheet A/Cs to profit centers if required [Transaction 3KEH]

10. Allow revaluation postings for selected company codes with revaluation [Transaction OAYR]

11. Run program RACHECK1 to eliminate inconsistencies between company code and asset management account data

12. Set document types for postings: (setting for transaction types). Suggested document types below:

AA Asset acquisition AS Asset disposal AT Asset transfer AX Asset reversal AF Asset depreciation [Transactions A071, OBA7]

13. Specify transfer of APC values [Transaction OABC]

14. Specify rounding of figures for net book value to nearest whole dollar [OAYO], table T093B

15. Setup depreciation keys as necessary: [Transactions AFAMA]

0000 No depreciation and no interest SLFD Str.line frm acq.value to 0 w/o int. frm start day

-Base method 11: Ordinary straight line using % from life to end of life

SLFM Str.line frm acq.value to 0 w/o int. frm start mth

-Base method 11: Ordinary straight line using % from life to end of life

16. Switch on only the required depreciation areas [Transaction OAYZ]

- Enter default depreciation keys for these 2 asset classes

17. Setup asset number ranges in production client [Transaction AS08]

Additionally, specify company independent number ranges that refer to a base company if necessary [Transaction AO11]

18. Check FI document number ranges for asset postings

19. Check that all asset G/L accounts have tax code and account groups correctly setup

20. Define screen layouts for each asset class as per user requirements

21. Set inter-co transfer methods (Maintain view [V_T093A_05])

Indicator: Transfer with historical values This indicator controls how the system treats transfers between affiliated companies. If this indicator is set, transfers in this depreciation area are not identified as acquisitions or retirements. Instead they are identified as transfers (particularly in the asset history sheet). In addition, posting of the transfer is gross (that is, with historical acquisition costs and depreciation).

Note:This indicator has the affect described above only if it is used in combination with these two indicators in the definition of the transaction type: post to affiliated company gross Maintain view [V_T082I_01] for inter-company transfer settings

Optional-Revaluation Setup (Under special valuation section os AA IMG)

22. Set revaluation of cost and accumulated depn for all areas [OABW]

23. Define revaluation measures. (key, description, depreciation areas and posting data).

24. Specify G/L accounts for revaluation of asset acquisiton cost

25. Maintain transaction types for asset revaluation postings if necessary.How To Configuration in Asset Accounting in FI

These are the steps that you need to do to create Asset Accounting (tested in 4.7 version) :

Copy Reference Chart of Depreciation/ Depreciation Areas Menu Path is: IMG> Finanacial Accounting> Asset Accounting> Organization Structures> Copy Reference Chart Of Depreciation/ Depreciation Areas, - Double click on Copy Reference Chart Of Depreciation - Click on Copy Icon and update it from ODE to your Chart Of Depreciation and change the description too.

Assign Input tax Indicator for Non-Taxable Acquisitions: IMG> Finanacial Accounting> Asset Accounting> Integrate With the General Ledger> Assign Input Tax Indicator for Non-Taxable Acquisition - Save this.

Assign Chart of Deprecaition to your Company Code : If Co Code is not properly Done then it will give Problems but still save it.

Specify Account Determination: IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Specify Account Determination - Make the GL Accounts for this and those GL accounts to be specified here, Example for Land, Building, Plant & Machinery, Vehicles And Asset Under Construction then again - Save it.

Create Screen Layout Rules: IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Create Screen Layout Rules: - Here we copy the screen Layouts from the standard Co Code 1000 We will copy for each Asset Class like Land, Building, Plant & Machinery, Vehicles And Asset Under Construction, - Now save it again.

Define Number Range Interval: IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Define Number Range Intervals - Click On Intervals - Click On Interval and update the following: - For all the Five Asset Classes - Save It.

Now Define the Asset Classes: IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Define Asset Classes - Click on New Entries and fillout the Page in the blank space where Asset Class is given give the Asset Class GL number and in Description give the name in long and short form, - Go to next level and give the Screen layout Rule number - Give the number ranges 01 and in Status Of AuC click the first Radio button: No Auc Or Summary Management of Auc and in History Status click Manage Historically and save it. - Likewise Create for Building, Plant & Machinery and Vehicles and in case of Asset under Construction Update in Status of - Auc the second Radio Button: Line Item Settlement and - Save it now.

Integrate with General Ledger: IMG> Financial Accounting> Asset Accounting> Integration with the General Legder> Define how Depreciation Areas Post to General Ledger and then Assign the General Ledger Accounts

IMG> Financial Accounting> Asset Accounting> Integration with the General Legder> Assign G/L Accounts and then Specify Document Type AF and specify intervals

1 Monthly 3 Quaterly Posting 6 Semi- Annually 12 Annually.