Asset Accounting with SAP S/4HANA 337 Pages, 2020, $89.95 ISBN 978-1-4932-1940-7

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This sample chapter explains how to organize your fixed asset structures in an SAP S/4HANA system. It covers the main organizational objects relevant to financial accounting, and fixed assets specifically, and shows you how these objects are integrated.

“Organizational Structures”

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Index

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Stoil Jotev Asset Accounting with SAP S/4HANA 337 Pages, 2020, $89.95 ISBN 978-1-4932-1940-7

www.sap-press.com/5028 Chapter 1 1 Organizational Structures

This chapter explains how to organize your fixed asset structures in an SAP S/4HANA system. We’ll explain the main organizational objects relevant to financial accounting, and relevant to fixed assets specifically, and show you how these objects are integrated. Using best practice examples, we’ll teach you how to define the optimal structure for your organization.

Asset accounting is tightly integrated with the other process areas in financial accounting and is based on the financial accounting organizational structure. On top of the financial accounting organizational structure, asset accounting adds several unique organizational structures such as the chart of depreciation, depreciation areas, and asset classes. Properly setting up your organizational structure is the core foundation for asset accounting in SAP S/4HANA and a prerequisite for correctly representing your assets in your business processes. Therefore, in this chapter, we’ll explain in detail the configuration steps for setting up the organizational structure and share best practices to guide you through fulfilling the business needs of your organization. We’ll start by defining company codes, which represent the legal entities of your organization being represented in the system. A company code is the main organizational object in financial accounting. Then, we’ll set up a chart of depreciation, which defines the valuation for your fixed assets. You’ll learn best practices in setting up charts of depreciation relative to company codes and the legal structure of your organization. Later in this chapter, we’ll configure depreciation areas for a chart of depreciation. Depreciation areas define various valuation principles under which fixed assets must be valuated.

31 1 Organizational Structures 1.1 Company Codes

We’ll conclude this chapter with a definition of asset classes, which classify assets To create a company code, you’ll access the configuration menu in SAP S/4HANA. To 1 into groups. You’ll learn best practices in structuring asset classes based on your busi- access the configuration menu, enter Transaction SPRO and then follow the menu ness requirements. path Enterprise Structure • Definition • Financial Accounting • Edit, Copy, Delete, Check Company Code. You can also access the menu directly with Transaction EC01, after which you’ll see the screen shown in Figure 1.1. 1.1 Company Codes

A company code is the main organizational unit in financial accounting. All business transactions that post in financial accounting are posted with a company code. In this section, we’ll teach you how a company code fits into the overall organizational structure of SAP S/4HANA. Then, you’ll learn how to define and configure new company codes.

1.1.1 Company Codes in the Organizational Structure In most cases, a company code is used to represent a legally independent unit within an organization. But sometimes a company code could represent a dependent com- mercial entity. For example, a company code could be used for an office in foreign country that is not set up as a legal entity in that country. However, this office fulfills its reporting needs in the local currency and according to local accounting and tax frameworks. The company code is the organizational object for which the full set of financial state- ments are produced to satisfy both the external reporting requirements and internal reporting requirements. Therefore, defining your company codes carefully so they correctly represent the legal structure of your organization is important. Figure 1.1 Company Code Activities In this book, we’ll use examples involving a major global company with headquarters in the US. This company has representations in all major regions and in multiple Double-click the Copy, delete, check company code activity, which opens the screen countries across the globe. Often with companies like this, more than one legal entity shown in Figure 1.2. exists in many of the countries in which it operates. To represent such an organization, each legal entity should be set up as a company code, including the main hold- ing company based in the US.

1.1.2 Defining Company Codes Now, let’s create a company code for a trading company in the US that owns a lot of Figure 1.2 Organizational Object: Company Code fixed assets. We’ll use this example company throughout the book to illustrate various asset accounting processes and transactions.

32 33 1 Organizational Structures 1.1 Company Codes

Click on in the top menu, which enables you to copy one company code to 1 another, as shown in Figure 1.3.

Figure 1.5 Controlling Area Assignment Message

Figure 1.3 Copying a Company Code In our example, we’ll use the standard controlling area delivered for the US—US01, so we’ll confirm this selection by clicking the Yes button. In practice, you’ll usually keep When creating a new company code, we always recommend copying an existing the assignment to the existing controlling area as well, since the source and target company code with similar parameters so that the important control parameters are company often share important control parameters, such as the controlling area. always copied but can be changed as needed. In our example, we’ll copy the SAP- At the end, the system will issue a confirmation message, shown in Figure 1.6, con- provided country template for the US (company code US01) to a new company code, firming that the company code has been successfully copied. which we’ll call US10. Click the button to proceed. The system will display a warning message, as shown in Figure 1.4.

Figure 1.6 Company Code Confirmation

1.1.3 Company Code Settings Figure 1.4 Copy General Ledger Account Message After creating the company code, go back to the previous screen, shown earlier in Figure 1.1, and select the Edit Company Code Data activity. In this transaction, we’ll A convenient approach is to also copy the general ledger accounts from the source review and change the basic controlling parameters of the company code and its company code to the new company code, but only if the two company codes are name. On the initial screen of the configuration transaction, shown in Figure 1.7, assigned to the same chart of accounts. In our example, we want to copy the general you’ll see a list of the company codes already defined in the system. ledger accounts too, so we’ll click the Yes button. Double-click on the company code we just created, US10. The next screen, shown in The system will issue the message shown in Figure 1.5, which gives you the option to Figure 1.8, enables you to change the name of the company code and its basic param- assign the same controlling area. eters.

34 35 1 Organizational Structures 1.1 Company Codes

Figure 1.9 Updated Company Code

Let’s now review other various control settings for company codes by following the menu path Financial Accounting • Financial Accounting Global Settings • Global Parameters for Company Code • Enter Global Parameters. Alternatively, you can enter Transaction OBY6. The first screen of the transaction provides a list of already defined company codes, Figure 1.7 Company Codes List as shown in Figure 1.10.

Figure 1.8 Editing a Company Code

Since this company code is a US company code, we’ll leave the country code as “US”, the currency as “USD”, and the language as “EN”. We’ll enter “US Corp.” as the company name and “New York” as the city, as shown in Figure 1.9. Finally, save the entry by clicking the Save button. Figure 1.10 Company Code Selection

36 37 1 Organizational Structures 1.2 Charts of Depreciation

Double-click on the company code we just created, US10, which allows you to review ½ Credit control area 1 and edit the company code’s global settings, as shown in Figure 1.11. The credit control area configures credit management for the company code. This field defines the available credit limits for customers in each company code. ½ Fiscal Year Variant The fiscal year variant defines the fiscal periods and calendar assignments used to post documents in financial accounting. In our example, we assigned the standard SAP fiscal year variant K4, which matches the calendar periods (period 01 corre- sponds to January; period 02, to February; period 03, to March, and so on). ½ Pstng period variant The posting period variant defines which periods are open and closed for postings in financial accounting. This collection of settings define open and closed periods for various types of accounts such as the general ledger and the customer, vendor, asset, and material accounts. ½ Field status variant The field status variant defines which fields are required, optional, or suppressed during posting of financial documents.

Adapt the settings as required and save these settings by clicking the Save button.

1.2 Charts of Depreciation

Depreciation is the decrease of the fair value of an asset over time. Most assets decrease in value over time through use and because of advances in technology. Figure 1.11 Company Code Global Settings Therefore, the value of the asset must be reduced in the balance sheet through depreciation, which is an accounting process that reduces the value of the asset (by credit- Let’s look briefly at the most important settings you can configure: ing the asset balance sheet account) and simultaneously records a depreciation ½ Chart of Accts expense (by debiting the depreciation expense account). The chart of accounts is a defined list of general ledger accounts used and main- A chart of depreciation is an organizational object in SAP S/4HANA that manages the tained at a global level (for settings that are valid for all company codes) and at the depreciation and other valuation requirements. This object contains one but usually company code level (for settings that are applicable only to a particular company multiple depreciation areas, each providing different valuation options for fixed code). In our example, the chart of accounts is CANA, which is the standard chart assets. of accounts provided by SAP for North America. ½ Company In this section, we’ll first analyze how a chart of depreciation fits into the overall orga- In this field, you can assign a group company, which is the parent company of the nizational structure of SAP S/4HANA. Then, you’ll learn how to configure a chart of company code. depreciation.

38 39 1 Organizational Structures 1.2 Charts of Depreciation

1.2.1 Charts of Depreciation in the Organizational Structure 1 A chart of depreciation is the highest organizational object in asset accounting. Com- pany codes are assigned to a chart of depreciation. In most cases, the company codes within a country are each assigned to the same chart of depreciation. Figure 1.12 shows how a chart of depreciation fits into the overall financial organizational structure.

Client

Chart of Asset Depreciation Classes

Chart of Company Accounts Code

Figure 1.13 Chart of Depreciation Activities Asset Master Records Double-click on the first option, Copy Reference Chart of Depreciation. You’ll see the Figure 1.12 Chart of Depreciation in the Organizational Structure blank screen shown in Figure 1.14.

The chart of depreciation is positioned centrally because all asset processes are based on it. The chart of depreciation is defined at the client level, and company codes are assigned to it. Then, asset master records are created for each company code and thus inherit the chart of depreciation and related chart of accounts. Asset master records are organized in asset classes, which we’ll examine in detail in Section 1.4.

1.2.2 Configuring the Chart of Depreciation Now, let’s configure a chart of depreciation for our example company code, US10. Figure 1.14 Copying a Chart of Depreciation: Initial Screen A new chart of depreciation should be created by copying an already existing chart of depreciation, such as the SAP-provided reference chart of depreciation, which con- Click on the in the top menu, which opens a dialog box where you can choose a tains predefined depreciation areas able to meet many local, country-specific source chart of depreciation and specify a target company code, as shown in Figure requirements. 1.15. To configure a chart of depreciation, follow the menu path Financial Accounting • Asset Accounting • Organizational Structures • Copy Reference Chart of Deprecia- tion/Depreciation Areas. You’ll see the screen shown in Figure 1.13.

40 41 1 Organizational Structures 1.2 Charts of Depreciation

Click on the Completed activities tab to see what the system accomplished, as shown 1 in Figure 1.18.

Figure 1.15 Copying a Chart of Depreciation: Dialog Box

In our example, we’ll copy from the SAP reference chart of depreciation provided for the US, which is called 0US. To create our target, we’ll enter “US01” as the name of our new chart of depreciation. Click the button to proceed. The system will issue an information message, shown in Figure 1.16, confirming that Figure 1.18 Copying a Chart of Depreciation: Copy Log Activities the chart of depreciation has been successfully copied. Click the button to proceed. Go back by clicking the button. Now, in the screen shown earlier in Figure 1.13, select the Specify Description of Chart of Depreciation activity to modify the description of the new chart of depreciation, as shown in Figure 1.19.

Figure 1.16 Copying a Chart of Depreciation: Information Message

The next screen, shown in Figure 1.17, provides you with a log of the copy. In our example, the system indicates that the copy was performed from chart of depreciation 0US.

Figure 1.17 Copying a Chart of Depreciation: Copy Log Figure 1.19 Copying a Chart of Depreciation: Description

42 43 1 Organizational Structures 1.3 Depreciation Areas

In our example, we named this chart of depreciation USA chart of depreciation. We’ll complicate things further, this project was running on SAP ERP, before the great 1 use this chart of depreciation for all US company codes. Save the entry by clicking the advancements that SAP S/4HANA brought to financial accounting and to asset Save button. accounting specifically. Prior to SAP S/4HANA, maintaining all these parallel valuation frameworks was a cumbersome process that required running periodic programs that would post the differences between the non-leading and leading 1.3 Depreciation Areas valuation in even further delta depreciation areas. Now, with SAP S/4HANA at your disposal, particularly with the new asset accounting, A depreciation area is an organizational structure object that defines the area for the setting up so many depreciation areas is unnecessary! SAP S/4HANA has signifi- valuation of fixed assets, based on specific sets or rules. Depreciation rules and the cantly improved the process of reporting multiple parallel valuations in asset useful life of assets are maintained on the depreciation area level. accounting. The postings occur in real time in all depreciation areas, and no delta In this section, we’ll start by explaining the process of defining various valuation depreciation areas are needed to post differences. frameworks. Then, we’ll show you how to configure valuation frameworks using dif- Let’s delve into how you can set up depreciation areas in your chart of depreciation. ferent depreciation areas.

1.3.2 Depreciation Area Settings 1.3.1 Portraying Valuation Frameworks In this section, we’ll first show you how to set up a chart of depreciation. Then, you’ll Each chart of depreciation represents a collection of depreciation areas, which define learn how to define depreciation areas. Then, we’ll configure the transfer of acquisi- an asset valuation based on various requirements in the country. Usually, more than tion and production costs (APC) values and depreciation terms. Finally, you’ll learn one depreciation area is needed because your organization will probably need to how to assign a chart of depreciation to a company code. comply with multiple valuation principles in several countries. For example, in the US, companies must valuate their assets based on US Generally Accepted Accounting Principles (US GAAP). Additionally, big international companies will need to valuate Setting Up a Chart of Depreciation their assets according to International Financial Reporting Standards (IFRS). In many Depreciation areas are dependent on the chart of depreciation. When you configure other countries, valuation must be performed based on the relevant local accounting depreciation area settings, the system will default to the last-used chart of deprecia- standards. These local accounting standards may differ from valuation from a tax tion. However, a useful configuration transaction is available for setting the desired point of view, which would be set up as an additional depreciation area. chart of depreciation. Start by following the menu path Financial Accounting • Asset Accounting • General Valuation • Set Chart of Depreciation. The system will open the Therefore, when you set up depreciation areas in your SAP S/4HANA system, you’ll popup window shown in Figure 1.20. need to confirm the local legal and tax requirements, as well as the international reporting requirements, that apply to your organization. Then, you should define your depreciation areas accordingly. Let’s discuss this further using a real-life example. We worked on a project for a global manufacturing company headquartered in the US with a global presence across all major regions. For a rollout in Poland, we determined that three valuation areas were needed, starting with one to represent US GAAP, which would be the group valuation of the company. A second depreciation area was required to handle IFRS. Then, two Figure 1.20 Chart of Depreciation Selection more depreciation areas for local purposes in Poland had to be defined—one to represent local accounting principles and another to represent local tax rules. To

44 45 1 Organizational Structures 1.3 Depreciation Areas

Enter the new chart of depreciation we created in Section 1.2.2, US01. Confirm your 1 selection by clicking the button. The system will display the message Chart of depreciation US01 was set.

Defining Depreciation Areas To configure depreciation areas, follow the menu path Financial Accounting • Asset Accounting • General Valuation • Depreciation Areas • Define Depreciation Areas. The system will display several activity options, as shown in Figure 1.21.

Figure 1.22 Depreciation Area Definition

In this configuration transaction, you can modify existing depreciation areas and create new areas. Let’s create a new depreciation area for handling local tax reporting requirements. Again, we’ll copy an existing depreciation area and modify it instead of starting from scratch. Let’s copy depreciation area 1, which represents book depre- Figure 1.21 Depreciation Area Activities ciation in local currency. Select the depreciation area by selecting its checkbox on its left and then clicking on the in the top menu, which opens a screen displaying the Double-click on the first option, Define Depreciation Areas, which will show you the details of the depreciation area. Only the top part of this lengthy screen is shown in depreciation areas already defined in the system, as shown in Figure 1.22. Figure 1.23. These areas have been copied from our source chart of depreciation 0US. Delivered The following configuration fields can be maintained on this screen: by SAP, these areas are based on the requirements for US GAAP. Notice how some ½ Depreciation Area depreciation areas are already available to handle tax requirements in the US such as Number of the depreciation area. Typically, a two-digit code is used, except for the the Accelerated Cost Recovery System/Modified Accelerated Cost Recovery System main book depreciation area, which normally is 1. The numbering of your depreci- (ACRS/MACRS) and the alternative minimum tax. Therefore, a good practice is to ation areas should be meaningful; for example, areas for local GAAP purposes copy standard SAP-delivered objects such as 0US to quickly adopt a configuration could start with 2, while areas for local tax purposes could start with 3, and so on. that is based on the best practices gathered by SAP over the years.

46 47 1 Organizational Structures 1.3 Depreciation Areas

½ Cross-Syst. Depreciation Area 1 A cross-system depreciation area is used to combine depreciation areas. This field consists of a key and a description without control parameters. Note that, with SAP S/4HANA, posting both APC and depreciation in real time makes sense because then you won’t need to run periodic programs to post adjustment entries to non- leading depreciation areas. ½ Posting in the General Ledger This indicator controls how the depreciation area posts to the general ledger. The following options are available: – Area Does Not Post In this case, the depreciation area does not post to the general ledger; therefore, the depreciation area is for information purposes only. – Area Posts in Real Time All postings in the depreciation area are posted to the general ledger. – Area Posts Depreciation Only Only the depreciation postings in the depreciation area are posted to the general ledger. – Area Posts APC Immediately, Deprecation Periodically Only the APC postings in the depreciation area are posted to the general ledger in real time. Figure 1.23 Depreciation Area Details Scroll down to see the remaining fields, as shown in Figure 1.24. ½ Description The following configuration fields can be maintained on this screen: Meaningful long and short descriptions of the depreciation area. ½ Value Maintenance ½ Real Depreciation Area In this section, you’ll configure whether all, only positive, or only negative values This indicator determines whether the system will store the values of the depreci- are allowed for the various value categories, such as acquisition value, ordinary ation area in the database. If so, the area is not a derived depreciation area. depreciation, net book value, and so on. ½ Accounting Principle ½ Entries for Derived Depreciation Area In this field, you’ll link the depreciation area with an accounting principle, which is These settings are applicable only for derived depreciation areas. In this section, a method of valuation, such as IFRS or local GAAP. Based on the accounting princi- you can set the depreciation area for reporting purposes only and define it as a ple, the system will automatically populate the target ledger group, which is linked derived depreciation area. In this case, you’ll need to define how it derives its val- to the accounting principle. ues by entering the depreciation areas from which it takes values with positive ½ Alternative Depreciation Area signs and areas from which it takes values with negative signs. For example, you In this field, you can enter a depreciation area, the account determination of which can define an area that is equal to a specific area minus another area. the system will use when posting to parallel accounting.

48 49 1 Organizational Structures 1.3 Depreciation Areas

Figure 1.25 Defining Depreciation Area Local GAAP Figure 1.24 Depreciation Area Details, Continued You’ll also need to go through the other depreciation areas that were copied from Now that you’re familiar with the various settings that can be maintained, let’s define chart of depreciation 0US. Right now, these areas are not assigned to a ledger group, our local GAAP depreciation area. We’ll call it area 21, as shown in Figure 1.25. which defines in which ledgers they post in the general ledger. Go back to the previ- Maintain the long and short descriptions and map the depreciation area with an ous screen, shown earlier in Figure 1.22, and select each depreciation area you would accounting principle that represents local GAAP valuation. These accounting princi- like to keep by double-clicking on it. For example, let’s start with area 10 Federal Tax ples are maintained in the financial accounting global settings, and their configura- ACRS/MACRS. In the Accounting Principle field, enter “GAAP,” which represents US tion lies outside of the scope of this book. But in asset accounting, you can choose GAAP valuation, as shown in Figure 1.26. from several already defined accounting principles based on the valuation frame- You can also remove depreciation areas that are not needed by selecting them on the work you want to portray. screen shown earlier in Figure 1.22 and then clicking the button to delete them. Now that you’ve defined your depreciation areas, you’ll need to specify their types. Note Go back to the screen earlier in Figure 1.21 and select the Specify Area Type activity. More information about the configuration of accounting principles can be found in You’ll see the configuration screen shown in Figure 1.27. the book Configuring SAP S/4HANA Finance, available at: https://www.sap-press.com/4857

50 51 1 Organizational Structures 1.3 Depreciation Areas

On this screen, each depreciation area has a specified area type. The type defines the 1 purpose of the depreciation area. These types have been copied from the standard depreciation area that served as the basis for our depreciation area. Depreciation area 01, which is the main book depreciation area is linked with area type 01, which represents valuation for the trade balance sheet. Other commonly used types are 06 for group valuation and 03 valuation for the trade balance sheet. Notice also special depreciation area types for specific US tax purposes, such the alternative minimum tax and adjusted current earnings. In our example, we won’t change the proposed standards.

Specifying the Transfer of APC Values Now, let’s continue with some further configuration transactions for depreciation areas. You’ll also need to specify how depreciation areas receive their acquisition and depreciation values. To configure the transfer of APC values, follow the menu path Financial Accounting • Asset Accounting • General Valuation • Depreciation Areas • Specify Transfer of APC Values. On the configuration screen, shown in Figure 1.28, you can specify a source depreciation area for the APC values for each depreciation area.

Figure 1.26 Mapping Depreciation Area and Accounting Principle

Figure 1.27 Depreciation Area Types Figure 1.28 Transfer of APC Values

52 53 1 Organizational Structures 1.4 Asset Classes

In our example, areas 10, 32, 40, and 80 take their APC values from the main area 01. Assigning a Chart of Depreciation to a Company Code 1 However, tax depreciation areas such as 11, 12, and 13 take their APC values from area In the next step, you’ll assign a company code to the chart of depreciation by follow- 10, which serves to provide the valuation from a federal tax point of view. ing the menu path Financial Accounting • Asset Accounting • Organizational Struc- tures • Assign Chart of Depreciation to Company Code. The configuration screen, Specifying the Transfer of Depreciation Terms shown in Figure 1.30, lists the company codes available in the system. In a similar fashion, you’ll have to configure the transfer of depreciation values. To configure the transfer of depreciation values, follow the menu path Financial Accounting • Asset Accounting • General Valuation • Depreciation Areas • Specify Transfer of Depreciation Terms. On the configuration screen, shown in Figure 1.29, you can specify a source depreciation area for the depreciation values for each depreciation area.

Figure 1.30 Assigning a Chart of Depreciation to a Company Code

Now, assign the chart of depreciation we created (US01) to our new company code (also US01). Then, save the entry by clicking the Save button. With this step, you’ve completed the setup of depreciation areas as organizational Figure 1.29 Transfer of Depreciation Values objects.

The logic is the same as with APC value—the depreciation area specified in the TTr column provides the source values for depreciation. When no depreciation area has 1.4 Asset Classes been specified in this column, no depreciation values are transferred from another area. An asset class is the main master data object that forms the organizational structure of asset accounting. This object serves to classify together assets that have a similar

54 55 1 Organizational Structures 1.4 Asset Classes

function and purpose. Think of an asset class as a grouping of similar assets that pro- Therefore, assets should be grouped in the same asset class when they have similar 1 vide numerous controlling characteristics to its member assets, such as the number properties like the following: ranges within which they are created, the accounts that they post to, the fields avail- ½ Account determination able in their master records, and so on. ½ Screen layout In this section, we’ll start our discussion of asset classes with the best practices in ½ Number range assignment structuring asset classes and describe how you can most effectively organize your ½ Additional features assets into asset classes. Then, we’ll teach you how to configure asset classes step-by- ½ step. Default values ½ Selections

1.4.1 Structuring Asset Classes Note that the asset class is not dependent on a company code or a chart of depreciation. Therefore, when you create them, asset classes can be available to all countries Asset classes are the foundation of asset master data in SAP S/4HANA. Therefore, and company codes. However, you can still decide which asset classes will be enabled structuring your asset classes well is of paramount importance. in each chart of depreciation and depreciation area and which classes will not be To define your asset classes appropriately, you must understand the functions of an active at that level. asset class. Figure 1.31 shows a graphical summary of the functions of an asset class. From our experience, around 20 to 30 asset classes should fulfill the needs of most global companies. All different groups of assets should be covered, but you shouldn’t Account Number Additional Screen layout Default values Selections determination assignment features also fall trap to expanding the number of asset classes beyond what you need. Many times, we’ve seen that, when the system is being rolled out to new country, the local team may push to create new asset classes that currently do not exist in the template. You must carefully consider whether these new asset classes are needed; perhaps Asset class Account determination assets could still be classified under an existing class. Creating new asset classes just

Balance sheet items for the needs of one country should be a rare exception that occurs only in really strong business cases. Assets Liabilities Based on our experience, some sample asset classes that could apply for many com- Create Asset Asset portfolio 02300000 panies include the following: Vehicles 1000 Machinery ½ Land . . . Equipment 02225000 ½ Buildings . . . 1000 Intangible assets . . . ½ Leasehold improvements ½ Vehicles Figure 1.31 Asset Class Functions ½ IT equipment ½ IT infrastructure ½ Communication systems ½ Tools

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½ Furniture and fixtures 1 ½ Warehouse equipment ½ Office equipment ½ Software licenses ½ Trademarks ½ Goodwill ½ Investments in affiliates ½ Assets under construction

Even this concise list includes most main types of tangible assets (buildings, vehicles, tools, etc.); intangible assets (trademark, goodwill, etc.); and assets under construction (assets being produced internally). Now, let’s delve into the details of configuring an asset class.

1.4.2 Configuring Asset Classes An asset class is a configuration object that combines various other configuration objects, such as account determinations, screen layouts, number range assignments, Figure 1.32 Account Determinations and so on, as shown in Figure 1.31. In this section, we’ll create these configuration objects so we can include them in asset classes, but we’ll configure these objects in detail later in Chapter 2.

Specifying the Account Determination The first step is to create the account determinations. To create an account determination, follow the menu path Financial Accounting • Asset Accounting • Organiza- tional Structures • Asset Classes • Specify Account Determination. The screen shown in Figure 1.32 displays existing account determinations, including several provided by SAP. To create a new account determination, click the New Entries button in the top menu. On the blank screen, enter an account determination code and a description, as shown in Figure 1.33.

Figure 1.33 Creating an Account Determination

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You’ll need to come up with a naming convention for your account determination To create a new screen layout, choose an existing layout by selecting the checkbox to 1 codes. A good practice to use the same number of digits for all account determina- its left and then clicking on the button in the top menu. On the next screen, tions. In our example, we used seven digits. You can use consecutive numbering such shown in Figure 1.35, enter a screen layout code and a description. as 1000000, 2000000, and 3000000 or 1000010, 1000020, and so on. Or another good idea to base the numbering of account determinations on the main general ledger account numbers on which the acquisition costs are booked. For example, if the general ledger acquisition account for buildings is 10000020 (eight digits), we would name the account determination for buildings 1000020 (since we decided that account determinations will use seven digits but with the same numbering as the general ledger account). This convention will help asset accountants reconcile asset accounting with the general ledger. After maintaining all the needed account determinations, save your entries by click- Figure 1.35 Creating a Screen Layout ing the Save button. As with the account determinations, you’ll need to come up with a naming conven- Creating Screen Layout Rules tion for the screen layout codes. To distinguish these screen layouts from the stan- In the next step, you’ll create screen layout rules. Start by following the menu path dard SAP-created screen layouts, we recommend starting them with Z or Y in the Financial Accounting • Asset Accounting • Organizational Structures • Asset Classes • reserved customer number range. Some reference to the related account determina- Create Screen Layout Rules. The screen shown in Figure 1.34 will list screen layouts tion should also be used, for example, the number 2 shown in Figure 1.35. already defined in the system. After maintaining all the needed screen layouts, save your changes by clicking the Save button.

Defining Number Range Intervals In the next step, you’ll define the number range intervals that you’ll use in your asset classes. Start by following the menu path Financial Accounting • Asset Accounting • Organizational Structures • Asset Classes • Define Number Range Interval. In the initial screen, shown in Figure 1.36, enter a company code, for example, “US10.”

Figure 1.34 Screen Layouts Figure 1.36 Number Range Intervals

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Click the Change intervals button, which opens a blank screen, shown in Figure 1.37, 1 where you can enter the new intervals.

Figure 1.37 Creating Number Range Intervals

Normally, you would need to create separate number ranges for each asset class. In Figure 1.38 New Number Range Intervals Defined some cases, this separation may be useful if more than one asset class shares the same number range. For example, for legal or internal reasons, a certain group of When you save your changes by clicking the Save button, the system will display the assets may need to be created in a consecutive number range but still need to be information message shown in Figure 1.39. treated separately, in separate asset classes. To create several new number ranges, click Insert Line from the top menu. A blank line will appear where you can define as many new number ranges and intervals as you need. Then, you can enter new number range intervals, as shown in Figure 1.38. In the No column, enter the two-digit code that identifies the number range. This code is what you’ll subsequently enter when defining the asset class. Then, in the From No. and To Number columns, define the limits of the number range. For example, in range 03, we defined numbers from 3000000 to 3999999; the first asset within the range will be created with number 3000000, the second 3000001, the third 3000002, and so on. In our example, we’re using 7-digit asset numbers, which can accommodate up to 1 million assets in this number range alone. Of course, if you think you may run over 1 million assets, you could define number ranges using up to 12 digits.

Figure 1.39 Number Range Transport Message

62 63 1 Organizational Structures 1.4 Asset Classes

Thus, number ranges must be maintained separately in each client of the system and Define Asset Classes. In the initial screen, shown in Figure 1.41, you’ll see a list of 1 are not included in a transport. This restriction is valid for all number ranges objects defined asset classes, along with the names of their account determinations and in the system, not only in asset accounting, and is enforced to avoid the inconsisten- screen layouts. cies often caused by transporting number ranges. Confirm the message by clicking the button. Go back to the screen shown earlier in Figure 1.36. From this screen, you can also modify the current number within a range by clicking on the NR Status button, which opens the screen shown in Figure 1.40.

Figure 1.41 Asset Classes

SAP provides several standard example asset classes. As with account determinations and screen layouts, you’ll need to define a naming convention for asset classes. Using the naming convention already used for account determinations makes sense. In our example, we based the naming convention for the account determination from the main general ledger acquisition account numbers, which is also what we’ll use for our asset classes, but with 7 digits codes. You can use up to 8 digits for asset class codes. To create a new asset class, click on the New Entries button in the top menu and enter the required information, as shown in Figure 1.42.

Figure 1.40 Number Range Status On this screen, you should maintain the following configuration fields: ½ Asset Class In the NR Status column, enter a number that will become the current number within This field is the numeric code representing the asset class. the range. For example, if you enter “3000005” in range 03, the next asset created ½ Description will have the number 3000006. In the NR Status field, the system stores the current In this field, you can add a meaningful long description for the asset class. number within a range. ½ Short Text In this field, you can add a meaningful short description for the asset class. Creating Asset Classes Finally, you’re ready to create an asset class. Start by following the menu path Finan- cial Accounting • Asset Accounting • Organizational Structures • Asset Classes •

64 65 1 Organizational Structures 1.4 Asset Classes

½ Lock status 1 Select this checkbox to block the asset class; new assets cannot be created with this asset class.

Scroll down to reveal the remaining configuration fields on this screen, as shown in Figure 1.43.

Figure 1.43 Creating an Asset Class, Continued

Figure 1.42 Creating an Asset Class The following fields are available: ½ ½ Account determ. Manage historically In this field, you can map the asset class with an existing account determination to This indicator defines whether the asset should be managed with a history, which define which general ledger accounts will be posted with the various asset transac- means that the asset is displayed in an asset chart. The asset and its values and tions. transactions also cannot be reorganized until the asset is deactivated. ½ ½ Scr.layout rule Technical information In this field, you can map the asset class with an existing screen layout to define With this section, the system stores administrative information about the cre- which fields are required, optional, and suppressed when creating assets within ation of the asset class, such as: this asset class. – Created on ½ Number range – Created by In this field, you can map the asset class with an existing number range to define – Changed on the numbers assigned when creating assets within this asset class. – Changed by ½ Status of AuC In this field, you can define whether the asset class manages assets under con- After entering all the required information, save your changes by clicking the Save struction (internally produced) and, if so, how the settlement of the related line button. items is performed. In this way, define all the asset classes required by your organization.

66 67 1 Organizational Structures 1.4 Asset Classes

Modifying Settings for Country-Specific Requirements Select an asset class by selecting the checkbox on its left and double-clicking on 1 Now that you’ve completed the organizational setup for fixed assets, you can further Chart-of-depreciation-dependent data from the navigation menu on the left. Ini- fine-tune the settings to accommodate country-specific requirements. tially, the screen will be blank, as shown in Figure 1.45. As mentioned earlier, asset classes are independent of charts of depreciation, which means that, once created, asset classes are available throughout the system. How- ever, in some cases, you may want to use different a screen layout and/or account determination for each chart of depreciation. Fortunately, SAP provides mechanism for that through standard configuration. As a result, you can use the same asset classes throughout your organization, while also defining country-specific settings for account determinations and screen layouts. To configure chart of depreciation-specific screen layouts and/or account determinations, follow the menu path Financial Accounting • Asset Accounting • Organizational Figure 1.45 Creating Chart of Depreciation-Dependent Data Structures• Asset Classes • Specify Chart-of-Dep.-Dependent Screen Layout/Acct Assignment. In the initial screen, shown in Figure 1.44, you’ll see a list of defined asset Click on the New Entries button in the top menu. Now, on the right, you’ll see chart of classes on the right. On the left is a navigation menu, which you can use to specify depreciation-dependent data already defined, and on the left, you can enter a differ- chart of depreciation-dependent settings, after selecting an asset class. ent screen layout and account determination for the specified chart of depreciation, as shown in Figure 1.46.

Figure 1.46 Chart of Depreciation-Dependent Data Changed Figure 1.44 Chart of Depreciation Settings

68 69 1 Organizational Structures 1.5 Summary

In our example, we specified that, for chart of depreciation US01, we’ll use screen lay- In the No. CoCd field, enter the company code to be used for the assignment of num- 1 out Z010 (instead of Z020) and account determination 1000010 (instead of bers to asset master records. The number range from this company code will be used 1000020). for number assignments across company codes assigned to it. In our example, we’ll After maintaining the asset classes as needed with your chart of depreciation-specific specify that US10 will use numbers from the number ranges of company code US20. settings, save your changes by clicking the Save button. With this step, we’ve completed the setup for asset classes in our organizational Recall that the asset class determines the number range. These numbers are assigned structure. from within the assigned number range and also within the company code. In other words, for example, the first asset created in number range 03 will be 3000000 in company code US10. However, if we create the first asset in the same number range 1.5 Summary in another company code, that number will also be 3000000. Therefore, all asset In this foundational chapter, we laid the groundwork for the proper organization and numbers are uniquely identified with a combination of asset number and company functioning of asset accounting. You learned how to define your requirements and code. set up the organizational structure for asset accounting. Additionally, the configuration transaction enables you to define cross-company We covered how to activate company codes for asset accounting. Then, you learned code asset number assignments. In this way, for every company code, you can deter- how to properly define other organizational objects in asset accounting, such as mine a company code from which the number assignment should be taken. Thus, charts of depreciation, depreciation areas, and asset classes. You learned some best more than one company code can share consecutive asset number assignments. practices on effectively organizing your assets in well-structured asset classes. We To configure cross-company code asset number assignments, follow the menu path provided some sample asset classes that cover many common business require- Financial Accounting • Asset Accounting • Organizational Structures • Specify Num- ments. In the process, we also created account determinations, screen layouts, and ber Assignment Across Company Codes. In the screen shown in Figure 1.47, specify a number ranges, all of which control how assets are created and transacted. company code for the number assignment. At this point, you’ve defined a basic organizational structure for handling fixed assets. In the next chapter, we’ll further develop our configuration for master data and teach you how create asset master data in SAP S/4HANA.

Figure 1.47 Cross-Company Code Number Assignment

70 71 Contents

Preface ...... 15 Introduction ...... 21

1 Organizational Structures 31

1.1 Company Codes ...... 32 1.1.1 Company Codes in the Organizational Structure ...... 32 1.1.2 Defining Company Codes ...... 32 1.1.3 Company Code Settings ...... 35 1.2 Charts of Depreciation ...... 39 1.2.1 Charts of Depreciation in the Organizational Structure ...... 40 1.2.2 Configuring the Chart of Depreciation ...... 40 1.3 Depreciation Areas ...... 44 1.3.1 Portraying Valuation Frameworks ...... 44 1.3.2 Depreciation Area Settings ...... 45 1.4 Asset Classes ...... 55 1.4.1 Structuring Asset Classes ...... 56 1.4.2 Configuring Asset Classes ...... 58 1.5 Summary ...... 71

2 Master Data 73

2.1 Screen Layouts ...... 73 2.1.1 Screen Layout Definition ...... 74 2.1.2 Field Control ...... 76 2.1.3 Layout for Depreciation Areas ...... 79 2.2 Account Determination ...... 81 2.2.1 Account Determination Definition ...... 81 2.2.2 Assigning General Ledger Accounts ...... 82

9 Contents Contents

2.3 Number Ranges ...... 89 3.4.4 Determining Depreciation Areas in the Asset Class ...... 143 3.4.5 Maximum Amount for Low-Value Assets ...... 146 2.4 Asset Hierarchy ...... 90 2.4.1 Asset Numbers ...... 91 3.5 Summary ...... 148 2.4.2 Asset Subnumbers ...... 99 2.4.3 Asset Group Numbers ...... 103

2.5 User Fields in Asset Master Records ...... 106 4 Business Transactions 151 2.5.1 Four-Character User Fields ...... 106 2.5.2 Eight-Character User Fields ...... 107 4.1 Acquisitions ...... 151 2.6 Asset Super Numbers ...... 109 4.1.1 Configuring Acquisitions ...... 152 2.7 Display Asset Master Worklist App ...... 111 4.1.2 Acquisitions with a Vendor ...... 159 4.1.3 Acquisitions with Automatic Offsetting Entries ...... 171 2.8 Summary ...... 115 4.1.4 Acquisitions from Affiliated Companies ...... 177 4.2 Assets Under Construction ...... 179 4.2.1 Configuring Assets Under Construction ...... 179 3 Asset Valuation 117 4.2.2 Capitalization of Assets Under Construction ...... 183 4.2.3 Assets Under Construction with Investment Management ...... 187 3.1 Parallel Valuation ...... 117 4.2.4 Assets Under Construction with Project System ...... 190 3.1.1 Accounting Principles ...... 118 4.3 Transfers ...... 193 3.1.2 Configuring Multiple Valuation ...... 119 4.3.1 Configuring Transfers ...... 193 3.2 Currencies in Asset Accounting ...... 122 4.3.2 Transferring Assets within a Company Code ...... 198 3.2.1 Currency Types ...... 123 4.3.3 Intercompany Asset Transfers ...... 201 3.2.2 Depreciation Area Currency Settings ...... 126 4.4 Retirement ...... 203 3.3 Real-Time Integration with the General Ledger ...... 129 4.4.1 Configuring Asset Retirement ...... 203 3.3.1 General Ledger Posting Control ...... 130 4.4.2 Asset Sales with a Customer ...... 206 3.3.2 Technical Clearing Account for Integrated Asset Acquisition ...... 131 4.4.3 Asset Sales without a Customer ...... 209 3.3.3 Alternative Document Type for Integrated Asset Acquisition ...... 133 4.4.4 Asset Retirement by Scrapping ...... 211 3.3.4 Specifying the Posting Key for Asset Posting ...... 134 4.5 Manual Value Corrections ...... 213 3.3.5 Assigning an Input Tax Indicator for Non-Taxable Acquisitions ...... 136 4.5.1 Configuring Manual Asset Value Corrections ...... 213 3.3.6 Posting of Depreciation in the General Ledger ...... 136 4.5.2 Write-Ups ...... 214 3.4 Additional Valuation Settings ...... 141 4.5.3 Write-Downs ...... 215 3.4.1 Defining a Depreciation Area for Quantity Update ...... 141 4.5.4 Manual Depreciation ...... 217 3.4.2 Defining the Transfer of APC Values ...... 142 4.5.5 Unplanned Depreciation ...... 218 3.4.3 Defining the Transfer of Depreciation Terms ...... 142 4.6 Summary ...... 219

10 11 Contents Contents

5 Periodic Processing 221 7 Migrating Asset Data 291

5.1 Depreciation ...... 221 7.1 Migration Process in SAP S/4HANA ...... 291 5.1.1 Configuring Depreciation ...... 222 7.1.1 Migration Checks and Prerequisites ...... 292 5.1.2 Executing Depreciation Runs ...... 236 7.1.2 Migration Tools ...... 296 5.1.3 Displaying Logs ...... 241 7.1.3 Migration Execution ...... 307 5.1.4 Analyzing Errors ...... 242 7.2 Migrating Fixed Asset Data ...... 308 5.2 Revaluation ...... 243 7.2.1 Configuration Activities Prior to Migration ...... 309 5.2.1 Configuring Revaluation ...... 244 7.2.2 Performing Manual Migration ...... 311 5.2.2 Posting a Revaluation Run ...... 247 7.2.3 Automated Migration Process ...... 318 5.2.3 Inflation ...... 248 7.3 Summary ...... 320 5.3 Year-End Closing ...... 251 5.4 Summary ...... 251 Appendices 323

6Asset Reporting 253 A Obsolete and New Transaction Codes and Tables in SAP S/4HANA ...... 323 B The Author ...... 329 6.1 Asset Overview ...... 253 6.1.1 Asset Explorer ...... 253 6.1.2 Asset Accounting Overview App ...... 258 Index ...... 331 6.2 Asset Balances ...... 262 6.2.1 SAP GUI Report ...... 262 6.2.2 Asset Balances App ...... 265 6.3 Asset History Sheet ...... 267 6.3.1 Configuration ...... 267 6.3.2 SAP GUI Report ...... 271 6.3.3 Asset History Sheet App ...... 274 6.4 Asset Transactions ...... 279 6.4.1 SAP GUI Report ...... 279 6.4.2 Asset Transactions App ...... 283 6.5 Display Asset Master Worklist App ...... 285 6.6 Depreciation Lists App ...... 287 6.7 Summary ...... 289

12 13 Index

A Asset balances ...... 260, 262 by asset number ...... 263 Accelerated depreciation method ...... 28, 221 selection screen ...... 263 Account assignment ...... 154 Asset Balances app ...... 265 Account determination ...... 58, 66, 81, 84, 93, chart view ...... 266 156, 204, 224 table view ...... 265 create ...... 58, 82 Asset classes ...... 55, 91 definition ...... 81 chart of depreciation-dependent ...... 69 naming convention ...... 60 configure ...... 58 Accounting principles ...... 50, 118, 172 country-specific requirements ...... 68 configure ...... 118 create ...... 64, 180 create new ...... 119 depreciation areas ...... 143 ledger groups ...... 121 low-value assets ...... 146 ledgers ...... 125 number range ...... 70 Accumulated ordinary depreciation ...... 226 samples ...... 57 Acquisition account assignments ...... 158 standard ...... 65 Acquisition and production costs structure ...... 56 (APC) ...... 45, 49, 85, 158 with history ...... 67 post values ...... 128 Asset explorer ...... 253 transfer values ...... 53 select asset ...... 254 Acquisition transfers ...... 195 structure ...... 254 Acquisitions ...... 151 Asset group number ...... 103 affiliated companies ...... 177 Asset hierarchy ...... 90 automatic offsetting entries ...... 171 Asset history sheet ...... 267 configure ...... 152 configuration ...... 267 posting vendor invoice ...... 161 execute ...... 272 with vendor ...... 159 group ...... 155 ACRS/MACRS ...... 46 output ...... 272 Affiliated company ...... 177 positions ...... 269 Alternative document types ...... 133 run report ...... 271 company codes ...... 133 SAP-provided versions ...... 267 APC values ...... 142 settings ...... 267 transfer ...... 142 version ...... 271 Asset accounting ...... 27 Asset History Sheet app ...... 274 new concept ...... 27 chart and table views ...... 278 SAP Fiori apps ...... 113 key figures ...... 274 tables ...... 29 selection screen ...... 276 view ...... 168 Asset line item ...... 166, 316 Asset Accounting Overview app ...... 258 Asset master record ...... 90, 257, 304 chart view ...... 260 create ...... 159 results ...... 260 logical field groups ...... 76 selection screen ...... 259 tabs ...... 92

331 Index Index

Asset master record (Cont.) B Company codes (Cont.) Depreciation areas (Cont.) user fields ...... 106 name ...... 35 low-value assets ...... 148 Asset master worklist ...... 260 Balance sheet accounts ...... 85, 88, 204, 226 settings ...... 35 map accounting principle ...... 50 Asset numbers ...... 91, 145 Base area ...... 246 settlement profile ...... 182 number ...... 47 Asset posting ...... 134 Base calculation methods ...... 228 status ...... 309 parallel currencies ...... 128 Asset retirement ...... 203 Baseline date ...... 165 Contra accounts ...... 86, 158 quality update ...... 141 configure ...... 203 Business areas ...... 94 Controlling areas ...... 35 remove ...... 51 scrapping ...... 211 Business transactions ...... 151 Cost centers ...... 78, 95 settings ...... 45 Asset sale ...... 86, 206 Country of origin ...... 97 special depreciation ...... 222 line item ...... 206 C Credit control area ...... 39 transfered depreciation terms ...... 143 with customer ...... 206 Cross-company code asset number type ...... 53 without customer ...... 209 Calculation method ...... 228 assignments ...... 70 unplanned depreciation ...... 222, 223 Asset super numbers ...... 96, 109 assign ...... 235 Cross-system depreciation area ...... 49 value maintenance ...... 49 assign ...... 110 Capitalization ...... 92, 99 Currencies ...... 122, 162 Depreciation below zero ...... 88 configure ...... 109 Capitalization date ...... 313, 314 depreciation area ...... 126 Depreciation document type ...... 138 Asset transaction types ...... 152, 164 Capitalize fixed asset ...... 154 Currency types ...... 123, 125 Depreciation keys ...... 80, 145, 228 code ...... 154 Capitalized assets ...... 260 create ...... 124 configure ...... 234 consolidation ...... 155 reporting ...... 285 define ...... 123 SAP-provided ...... 234 define ...... 152, 270 Changeover year ...... 155 review ...... 124 Depreciation Lists app ...... 287 external asset ...... 153 Chart of accounts ...... 38, 156 Customer invoice ...... 209 Depreciation parameters ...... 288 standard ...... 152 select ...... 84 Depreciation runs ...... 236 Asset transactions ...... 261, 279 Chart of depreciation ...... 39, 128, 130, 156, D analyze errors ...... 242 Asset Transactions app ...... 283 224, 294 background jobs ...... 241 results ...... 284 assign to company code ...... 55 Data Definition Language (DDL) views ...... 325 display logs ...... 241 selection screen ...... 284 company codes ...... 41 Data migration ...... 291 execute ...... 236 Asset transfers ...... 193 configure ...... 40 DDL SQL views ...... 325 limitations ...... 237 accounting principle ...... 199 copy ...... 40 Declining-balance methods ...... 230 print parameters ...... 239 configure ...... 193 copy log ...... 42 Depreciation ...... 28, 221, 255, 287 start time ...... 239 intercompany ...... 196, 201 depreciation area settings ...... 45 configure ...... 222 testing ...... 238 partial ...... 200, 202 description ...... 43 end treatment ...... 230 Depreciation terms ...... 54, 98, 313 transfer amount ...... 200 initial screen ...... 41 percentage rate ...... 230 default ...... 144 within company code ...... 198 SAP reference ...... 42 posting rules ...... 139 transfer ...... 142 Asset valuation ...... 117 set ...... 83 types ...... 230 Depreciation totals ...... 236 settings ...... 141 Classification key ...... 97 Depreciation accounts ...... 87, 224 Derived depreciation areas ...... 49 Asset values ...... 254 Clearing accounts ...... 86, 158, 205 Depreciation areas ...... 28, 44, 87, 98, 130, 140, Display Asset Master Worklist app ...... 111, 285 Assets under construction ...... 66, 179 Company codes ...... 32, 124, 133, 136 156, 172, 205, 246, 257 active assets ...... 112 asset class ...... 181 asset transfers ...... 198 accounting principle ...... 48 initial screen ...... 112 capitalization ...... 183 chart of depreciation ...... 55 assign accounts ...... 85 results screen ...... 285 configure ...... 179 controlling area ...... 34 assignments ...... 226 select asset fields ...... 113 distribution rules ...... 184 copy ...... 34 change currency ...... 127 selection screen ...... 285 investment management ...... 187 create ...... 34 create ...... 47 Distribution rules ...... 184 line items ...... 184 define ...... 32 currency settings ...... 126 enter ...... 185 project system ...... 190 general ledger accounts ...... 34 define ...... 46 Document numbers ...... 162, 174, 210 Automatic offsetting entries ...... 171 global parameters ...... 37 general ledger posting ...... 49 Document simulation ... 166, 173, 178, 187, 200 group assets ...... 103 in asset class ...... 143 Document types ...... 154 migration ...... 309 layout ...... 79 define ...... 137

332 333 Index Index

E I Logical field groups ...... 79 Migration (Cont.) Loss account ...... 205 with Excel ...... 297 Evaluation group fields ...... 96 IFRS ...... 28, 44, 118 Loss from asset sale ...... 88 Multi-level methods ...... 231 Evaluation groups ...... 108 Index series ...... 244 Low-value assets ...... 146 Multiple assets ...... 74, 101 Expense accounts ...... 88 Index values ...... 244 company code ...... 146 Multiple valuation ...... 119 Expense sheet accounts ...... 226 Inflation ...... 248 maximum amount ...... 146 Multiple valuation principles ...... 28 Inflation indexes ...... 248 F In-memory database ...... 22 M N Input tax indicator ...... 136 Field groups ...... 77 Integrated asset acquisition ...... 131, 133 Maintenance level ...... 78, 80 Net book value ...... 197 name ...... 77 Internal orders ...... 95 Manual depreciation ...... 217 Net value ...... 154 Field mapping rule ...... 306 Inventory numbers ...... 93 Manual value corrections ...... 213 Net worth tax ...... 97 Field status variant ...... 39 Investment management ...... 182, 187 configure ...... 213 New asset accounting Fiscal year ...... 251 Investment measure ...... 181 Master data ...... 73, 92 activate ...... 295 Fiscal year variant ...... 39, 125 Investment order ...... 187 time-dependent ...... 160 prerequisites ...... 295 Fixed assets ...... 28, 91 Maximum amount methods ...... 231 Non-taxable acquisitions ...... 136 deactivate ...... 194 K Migration ...... 291 Number ranges ...... 62, 89 Function module BAPI_FIXEDASSET_ accumuated depreciation ...... 315 already-defined ...... 89 OVRTAKE_CREATE ...... 318 Key figure groups ...... 274 acquisition costs ...... 315 create ...... 62, 90 define ...... 283 automated process ...... 318 intervals ...... 61, 89 G Key figures charts of depreciation ...... 294 status ...... 64 assigned business transactions ...... 276 checks ...... 292 transport ...... 62 General ledger ...... 51, 129 check assignment ...... 283 create object ...... 299 account assignment ...... 155 define ...... 274 cumulative values ...... 302 O accounts for acquisitions ...... 155 SAP-provided ...... 274 date ...... 309 depreciation areas ...... 130, 225 document type ...... 309 Obsolete tables and transactions ...... 323 document ...... 167 L execution ...... 307 Offsetting account ...... 172, 226, 310 posting control ...... 130 field mapping ...... 304 Online analytical processing (OLAP) ...... 22 posting depreciation ...... 136 Leading ledger ...... 119 fixed assets data ...... 308 Online transactional processing (OLTP) ...... 22 real-time integration ...... 29 Leading valuation principle ...... 28 fixed assets objects ...... 299 Order settlement ...... 190 view ...... 169 Leasing ...... 97 legacy open items ...... 311 Ordinary depreciation ...... 222 General ledger accounts ...... 81 Ledger groups ...... 121 log ...... 294 Organizational structures ...... 31 assign ...... 82, 83 accounting principles ...... 122 manual ...... 311 chart of depreciation ...... 40 Gross value ...... 154 create ...... 121 mid-year ...... 315 company codes ...... 32 Group assets ...... 103 Ledgers ...... 119 object structure ...... 300 asset classes ...... 103 company codes ...... 124 object template ...... 299 P create ...... 104 configure ...... 120 offsetting account ...... 310 structure ...... 104 create new ...... 120 posted document ...... 316 Parallel currencies ...... 127 Group company ...... 38 currency types ...... 124 prerequisites ...... 292 depreciation area ...... 128 Legacy asset ...... 313 prior configuration ...... 309 Parallel valuation ...... 117 H Legacy asset data ...... 318 resolve errors ...... 293 Partial retirement ...... 211 Legacy data ...... 302 source fields ...... 302 Payment block ...... 165 History Sheet app ...... 276 Legacy System Migration Workbench structure mapping ...... 304 Payment terms ...... 164 History sheet groups ...... 269 (LSMW) ...... 297 target structures ...... 302 Period control methods ...... 233 assignment ...... 270 Local GAAP ...... 50, 118 tools ...... 296 calendar assignments ...... 233 define ...... 270 ledger ...... 170 user-defined object ...... 298 Periodic processing ...... 221

334 335 Index Index

Planned depreciation ...... 255 SAP S/4HANA migration cockpit ...... 292, Transaction (Cont.) Transaction types ...... 194, 311 Planned values ...... 255 296, 318 ABMA ...... 217 debit ...... 196 Post-capitalization ...... 94 SAP S/4HANA migration object modeler .... 298 ABT1N ...... 201 default ...... 213 Posted document ...... 167 Scrapping ...... 211 ABUMN ...... 198 Transfer variants ...... 197 Posted values ...... 255 Screen layout ...... 60, 66, 73 ABZON ...... 171 Posting date ...... 162 asset master data ...... 74 ABZP ...... 177 U Posting key ...... 134, 135, 163 definition ...... 74 ABZU ...... 214 configure ...... 135 depreciation areas ...... 79 AFAB ...... 236 Universal Journal ...... 29, 175 Posting log ...... 241 depreciation-specific ...... 68 AFBP ...... 241 Unplanned depreciation ...... 87, 214, 218, 222 Posting period ...... 162, 172 field control ...... 76 AIBU ...... 185 assign accounts ...... 227 Posting period variant ...... 39, 125 naming convention ...... 61 AJAB ...... 251 US GAAP ...... 28, 44, 118, 153 Posting rules ...... 139 per asset class ...... 75 AJRW ...... 251 Useful life ...... 80 monthly ...... 140 rules ...... 60, 74 AO90 ...... 82 in years ...... 146 Program FAA_DEPRECIATION_POST ...... 240 Settlement profile ...... 182 AR29N ...... 247 User fields ...... 106 Project system ...... 182, 190 assign ...... 182 AS01 ...... 159 eight-character ...... 107 Settlement rules ...... 188, 192 AS02 ...... 110 four-character ...... 106 Q Simulation ...... 315 AS11 ...... 99 Sort versions ...... 280 AS91 ...... 312, 314 V Quantity updates ...... 141 create ...... 281 ASKB ...... 29 select ...... 281 AW01N ...... 254 Valuation frameworks ...... 44, 117 R Special depreciation ...... 87, 222 CJ11 ...... 191 Variant configuration ...... 198 accounts ...... 227 CJ88 ...... 192 Vendor invoice ...... 161 Random access memory (RAM) ...... 22 Special general ledger indicator ...... 164 EC01 ...... 33 document ...... 168 Receiving asset ...... 188 Special Purpose Ledger (SPL) ...... 27 F-90 ...... 161 Reporting ...... 253 Straight-line depreciation ...... 28, 221, 235 F-92 ...... 206 W asset balances ...... 262 Subnumbers ...... 79, 99, 145 FB03 ...... 167, 175, 211 asset transactions ...... 280 create ...... 99 KO01 ...... 187 Work breakdown structure (WBS) ...... 181 Retirement posting ...... 94 depreciation data ...... 101 KO88 ...... 190 element ...... 190, 191 Revaluation ...... 243 LTMC ...... 296 Write-downs ...... 215 area ...... 246 T LTMOM ...... 298 values ...... 216 configure ...... 244 OBY6 ...... 37 Write-ups ...... 214, 226 measures ...... 245, 248 Table data browser ...... 175 SE16N ...... 175, 317 run ...... 247 Tables ...... 323 SE37 ...... 318 Y Takeover values ...... 320 SE38 ...... 292 S Tax codes ...... 136 SM37 ...... 240, 243 Year-end closing ...... 251 Taxes ...... 164 SAP Fiori ...... 25 Technical clearing accounts ...... 131, 168 library ...... 26 define ...... 131 SAP Fiori launchpad ...... 111, 285 different for field control ...... 132 SAP GUI ...... 26 Traditional database storage ...... 23 SAP HANA database ...... 21 Transaction ...... 26, 323 column store ...... 22 ABAA ...... 218 SAP S/4HANA ...... 24 ABAON ...... 209 releases ...... 24 ABAVN ...... 211 SAP S/4HANA Cloud ...... 24 ABAW ...... 216 SAP S/4HANA Finance ...... 21, 293 ABLDT ...... 314, 320

336 337 First-hand knowledge.

Stoil Jotev is an SAP S/4HANA FI/CO solution architect with more than 20 years of consulting, implementation, training, and project management experience. He is an accomplished digital transformation leader in finance. Stoil has delivered many complex SAP financials projects in the United States and Europe in various business sectors, such as manufacturing, pharmaceuticals, chemicals, medical de- vices, financial services, fast-moving consumer goods (FMCG), IT, public sector, automotive parts, commodity trading, and retail.

Stoil Jotev Asset Accounting with SAP S/4HANA 337 Pages, 2020, $89.95 We hope you have enjoyed this reading sample. You may recommend ISBN 978-1-4932-1940-7 or pass it on to others, but only in its entirety, including all pages. This reading sample and all its parts are protected by copyright law. All usa- www.sap-press.com/5028 ge and exploitation rights are reserved by the author and the publisher.