In this book, noted expert andrew okungbowa explains sap asset accounting fiaa in saperp, including its associated business benefits, and guides you through the considerable complexities of saperp configuration. Sap new asset accounting interview questions zarantech. You can set it for the asset class as active or inactive. In this fico configuration activity we are able to define depreciation areas for a chart of depreciation. In the book depreciation area, go to other posting settings. Decliningbalance depreciation depreciation areas, specify description chart of accounts, copydelete depreciation areas in sap fi. This course focuses on managing fiaa master data and on the handling of the various business processes in fiaa. In a nutshell, it is an assets gradual fall in book value. Is it possible to reverse depreciation after posting in asset. This uptodate quick reference guides the reader through the most popular sap module.
Sap can post the apc transactions of one depreciation area to the general ledger online automatically. Sap delivers standard declining balance methods for use. Sap fico depreciation area learn sap fico in simple and easy steps from basic to advanced concepts with clear examples including introduction, sub components, company, company code, assign company code to company, business area, consolidated business area, assign business area to consolidated business area, functional area, financial management area, assign company code to financial. If you need to specifically set the amount of depreciation, the system offers a manual unplanned depreciation forecasting option. Hand book on sap fico module for beginners learners nn. Go to ao90 and create a revaluation apc as well as clearing account. Depreciation calculation methods sap library asset. Just select 0, area do not post for depreciation area 2. Net book value may 12, 2016 here i have given process flow for sap asset accounting. Andrew okungbowa is an accountant and a certified sap fi professional with many. Asset accounting in sap fico step by step guide skillstek. This document will show you how to configure it step by step and explain some of the business processes around it. With this guide to sap s4hana finances innovations, uncover the fundamental changes that can transform your finance more about the book.
Straight line method is the simplest method available and its a method of calculating depreciation of an asset which assumes the asset will lose. Sap menu accounting financial accounting fixed assets periodic processing depreciation run afab execute. Hand book on sap fico module for beginners learners nn satya. Discover sap s4hana finance and legacy solutions here. This depreciation is based on the matching principle of accounting. Apr 24, 20 tagged asset class, book depreciation, chart of depreciation, consolidated depreciation, depreciation area in sap, sap aa, sap asset accounting, t096, tax depreciation 1 comment follow blog via email enter your email address to follow this blog and receive notifications of new posts by email. From my point of view, it is better to make a full sap fico configuration from a to z and then to dive into the details. Asset accounting configuration in sap erp a stepbystep. This video includes chart of depreciation, account determination, screen layouts,asset class, asset master,submaster and depreciation. Specify rounding for net book value andor depreciation path. Sap fico is the finance and cost controlling module in sap erp where fi stands for financial accounting and co stands for controlling. For the rest, transactions to the general ledger can be posted automatically using periodic processing. Sap has the flexibility of calculating depreciation with the help of depreciation key.
Ordinary depreciation, which is nothing but planned depreciation. Sep 11, 20 depreciation method used straight line written down value method treatment of the depreciation at the end of planned useful life of asset or when the net book value of asset is zero explained in detail later in other related transactions. Sap fico overview presentation slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. This setting is required for posting the revaluation amount. May 30, 2017 in this article we shall go through the explanation of how and what debit credit entries are posted to the system in sap for ap, ar, assets, product costing and in bank communication management. An asset may fall in value as its economic usefulness declines.
In this book, noted expert andrew okungbowa explains sap asset accounting fiaa in saperp, including its associated business. Fi for end users not sure how sap fi works for end users. You change over to straightline or complete depreciation under these conditions. What is the difference between book depreciation and tax. Define depreciation areas in asset accounting sap fico. If for any reason you do not have the values for accumulated depreciation in your legacy system, but have instead, the net book values may be through a valuation process then, the net book value may be entered instead, during the asset takeover value entry. As a rule, the system automatically determines the planned depreciation for the current fiscal year by means of the depreciation keys entered in the master record.
Under the tab of treatment of end of depreciation you specify the treatment at the end of the life of asset or when net book value becomes zero. A depreciation area in sap fico asset accounting contains the parameters you require to value an asset. Special depreciation, which is over and above ordinary depreciation, used normally for taxation purposes. As per the requirement of my client, they need to book depreciatioon for first month as half mnth depreciation and normal for rest of the period. Here you will find basic tutorials for configuration sap fico. Straight line method slm this is the simple method of depreciation. In this way, you will start to understand much faster what you will see in the advanced books. Mar 29, 2014 under the tab of treatment of end of depreciation you specify the treatment at the end of the life of asset or when net book value becomes zero. Here one can read and download complete hand book guide on sap fico module for beginners learners nn satyan which includes accounts payables, asap methodology, accounts receivables, asset accounting, cost element accounting, profitability analysis etc content. Period control method depreciation key depreciation key 1052014 sap fico trainingasset accounting calculating depreciation values 1052014 sap fico trainingasset accounting example. Sprofinancial accounting newasset accountingvaluationdepreciation areasdefine depreciation areas. A newly activated depreciation area can take over values from another depreciation area. Sap fico works on the ecc model, while sap s4hana finance simple finance is based on the in memory hana database which works on cloud technology. Question asset accounting ordinary depreciation greater than.
The planned values tab will display planned values book depreciation. In this article we shall go through the explanation of how and what debit credit entries are posted to the system in sap for ap, ar, assets, product costing and in. Whether it will be book depreciation, cost accounting depreciation or both. In sap, you will come across three types of depreciation. Example of calculating straight line method of depreciation. It includes material on sap erp financials, sap fico, and sap r3. Are you an sap fico user or consultant who needs training in the daily tasks of the sap fi module. Here one can read and download complete hand book guide on sap fico module for beginners learners nn satyan which includes accounts payables, asap methodology, accounts receivables, asset accounting, cost element accounting, profitability analysis etc. If you want it to work for your company code then it has to be assigned to your company code. The asset accounting fiaa sub module in sap manages a. Copy reference chart of depreciation depreciation areas.
Depreciation is the reduction in the book value of an asset due to its use over time decline in economic usefulness or due to legal framework for taxation reporting. Book and tax depreciation refer to the processes used to account for depreciable assets, while intangible valuation is a process used to account for intangible. Sap asset accoungting training depreciation book value. Straight line method of depreciation calculation in sap fi. Sap fico is a module used for financial reporting both externally and internally. Dec 21, 2009 this uptodate quick reference guides the reader through the most popular sap module.
This page has been created in a way where it is easy for you to navigate through all the configuration steps. Asset accounting module in sap is a very important module. Asset accounting module of sap calculates the depreciation on assets based on the configuration done for depreciation key. This method involves applying the depreciation rate on the net book value nbv of asset. These include transactions like acquisition of fixed assets, sale of fixed assets, inhouse development of assets, settlement of wip, and accounting for depreciation on fixed assets and so on. Using selection from asset accounting configuration in sap erp. After depreciation run, which depreciated amount wold be captured by the cost center assigned in asset master. Ordinary depreciation greater than accumulated depreciation fiaa. The main difference between sap fico and s4 hana finance is the technology used in them. Spro financial accounting asset accounting depreciation valuation method depreciation key calculation method define declining balance method you can define the maximum and minimum percentage. Sap fico consultant resume example san jose, california. Sap fico works on the ecc model, while sap s4hana finance simple finance is based on the inmemory hana database which works on cloud technology.
It is one of the very important and widely implemented modules in sap. We have configured in the sap fi gl configuration book a. Afamp maintain period control methods spro img financial accounting new asset accounting depreciation valuation methods depreciation key calculation methods maintain period control methods it is one of the most relevant method to keep control on the calculation of depreciation. Specify rounding of net book value andor depreciation. If you install sap s4hana finance but keep running your accounting practices as before, youll be missing out. Valuation for book depreciation sap ag 1999 year depreciation j net book valueh 1 9000 2 8000 3 7000 4 6000 5 5000 6 4000 7. Top 10 sap fico asset accounting interview questions sap. Depreciation 01 is the leading depreciation area area 01 is the book depreciation. Several asset classes can use same ac account determination key if they use the same chart of account and they post to the same gl account.
Example of book depreciation lets assume that equipment used i. Difference between sap fico and s4 hana finance skillstek. Spro select sap reference img financial accounting asset accounting valuation amount specification company codedepreciation area specify rounding for net book value andor depreciation. Unlike most books that only provide questions and answers for certification or interview preparation, this book covers fifty common business situations related to erp financialsfico and provides practical solutions for them. Define depreciation area 1 book depreciation area and 30 depreciation area. These books will get you working, get you certified, and get you busy. Importantly, you may use more than one depreciation area to represent different asset valuations. Also, book depreciation is supposed to roughly approximate the actual usage of fixed assets, while tax depreciation methods are essentially. Get working, get certified, and get busy with our books. How to define depreciation area for sap asset accounting. This is multiplied with the falling net book value of the fixed asset. You can perform depreciation run to there respective general ledger accounts through sap path.
How to copy reference chart of depreciation depreciation areas, specify description chart of accounts, copydelete depreciation areas in sap fi. The depreciation calculation method makes it possible to carry out the numerous different types of depreciation calculation in the system. Configuring the chart of depreciation, depreciation areas for book depreciation, provided functional assistance in the development of ricefwreports, interfaces, conversions, extensions, forms and workflow developed functional specifications for interfaces from legacy to sap. Mar 20, 2020 define depreciation areas in asset accounting sap fico. Participants will learn something about organizational structures in asset accounting and fi, as fiaa is a subledger of fi. You can post planned depreciation to there respective general ledger accounts by executing transaction code afab or following path. Asset accounting configuration in saperp is a timely, practical, and stepbystep illustrative guide to demystifying the complexities involved in sap asset configuration. Mar 29, 2014 you can perform depreciation run to there respective general ledger accounts through sap path. The depreciation is usually calculated taking into account the economic life of the asset, expected value of the asset at the end of its economic life. Dec, 2018 the step by step guide to configuring fico. Book depreciation, special tax depreciation and derived depreciation are already defined in the system.
Definition of book depreciation book depreciation is the amount recorded in the companys general ledger accounts and reported on the companys financial statements. Is it possible to reverse depreciation after posting in. Are you looking to configure sap fico or just refreshing your memory on certain steps. Apr 30, 20 the depreciation key settings determines how the system behaviour may vary in each case. It often happens that business has omitted to book apc values of fixed.
Unlike most books that only provide questions and answers for certification or interview preparation, this book covers fifty common business situations related to erp financials fico and provides practical solutions for them. Difference between depreciation, accumulated depreciation and apc. Sap fico module is very robust and covers almost all business process encountered in various industries. Definition of book depreciation book depreciation is the amount recorded in the companys general ledger accounts and reported on the companys financial. In this step you assign different values in combination of asset class, cod and depreciation areas. How to create chart of depreciation in sap asset accounting. Sap has provided chart of depreciation for various countries. Unfortunately for india it has not provided any chart of depreciation.
Sap fico training fi accounting sap press books and. Difference between depreciation, accumulated depreciation. Oct 12, 2010 basic configuration settings for implementing asset accounting in sap 6. Sap fico transactions and exercises are intended for sap beginners and sap experts, with the goal that they can execute and configure the sap fico erp modules. Sap fico complete end user training real time project. How to configure depreciation key in sap your finance book. This blog is meant to be a forum for sap fico professionals all over the world to share knowledge and experience, as well as to provide timely suggestions and solutions for the work related issues. Fico configuration sap bpc and fico consultant blog. The depreciation calculation method is the most important characteristic of the base method. Apr 28, 2009 depreciation is the reduction in the book value of an asset due to its use over time decline in economic usefulness or due to legal framework for taxation reporting. Sap fi asset configuration it training and application. In this method, depreciation of the asset is done at a. Tagged asset class, book depreciation, chart of depreciation, consolidated depreciation, depreciation area in sap, sap aa, sap asset accounting, t096, tax depreciation 1 comment follow blog via email enter your email address to follow this blog. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period.
Depreciation is the reduction in the book value of an asset due to its use over. Are you looking to configure sap fico or just refreshing your memory on certain steps this document will show you how to configure it step by step and explain some of the business processes around it. Chart of depreciation contains all the depreciation areas in sap. To define a declining balance method in sap you enter the transaction code afamd or path. The asset accounting module in sap is one where the accounting pertaining to fixed assets is done.
These include transactions like acquisition of fixed assets, sale of fixed assets, in house development of assets, settlement of wip, and accounting for. It manages fixed assets data of an organization by way of asset master. Basic configuration settings for implementing asset accounting in sap 6. If you continue browsing the site, you agree to the use of cookies on this website. Financial accounting new asset accounting valuation depreciation areas define depreciation areas. While defining you must define one depreciation area as valuation for trade bal. You can only use ledgers that are assigned to application figlf. Fi and co is the core centre module of the sap erp system. The main difference is depreciation has to decrease from the asset and the asset shown at net value. Basic configuration settings for implementing asset. In the same way we will specify ledger group x1 for depreciation area 30. Postcapitalization in asset accounting sap s4hana cloud. Where in case of accumulated depreciation, asset shown at book value and seperate account for acc. Is it possible to reverse depreciation after posting in asset accounting.
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