Consider an example, asset BIKE is purchased for with useful life 10 year. Asset is to be depreciated using straight line depreciation method. Below accounting document for depreciation of asset will be posted every month in account books.
CR Accumulated depreciation account This accounting document gets posted automatically in sap once depreciation run is performed in sap. Depreciation run is performed every month end in sap using T code AFAB which we will cover in detail at later stage.
As of now, the question is how system calculates depreciation amount and from where system picks GL account for depreciation account and accumulated depreciation account. There can be various other depreciation methods but in our example we have taken straight line depreciation or linear depreciation. Hence depreciation amount calculation depends upon APC acquisition and production costuseful life and depreciation method.
Total cost which is paid to get the asset. Asset is either produced in-house or purchased externally or may include a mix of both. Whatever is the total cost incurred to get the asset is referred as APC, it may include vendor bill amount, freight cost, custom charges, installation cost etc. Life over which asset is supposed to be used. At the end of useful life asset is supposed to be left with zero value or scrap value. Hence different accounting principle may suggest different useful life for the same asset as per their respective accounting priniciples.
Depreciation key is basically method of depreciation. There can be various method of depreciation like linear depreciation, declining balance method, maximum amount method, multilevel method etc.
An asset is depreciated using suitable depreciation method or in other words an asset is assigned suitable depreciation key. There are many transactions done with asset. Depreciation is just one of the transactions. Whenever any transaction is performed with asset, corresponding accounting document gets generated automatically.
Sap picks GL account for posting accounting document by using account key. Account key holds the information about which GL account is to be picked for what transaction.
Assets which have common characteristics like same useful life, same method of depreciation and uses same GL account for posting accounting document are said to belong to same asset class. Hence asset class is grouping of assets which have same common characteristics. You may have different machines: Machine 1, Machine 2, Machine 3, Machine 4 etc.
You may have purchased each asset at different prices hence each asset may have different APC value. Assets with common characteristics belong to same asset class. What is the use of asset class in asset accounting? Asset of similar nature are created under same class. Asset inherits below properties from asset class under which asset is created:. Useful life is maintained in asset class.
When asset is created, useful life of asset is inherited from asset class.If you have an answer for this question, then please use the Your Answer form at the bottom of the page instead. If you have a different answer for this question, then please use the Your Answer form at the bottom of the page instead. Attachments: Up to 10 attachments including images can be used with a maximum of 1.
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This question has been deleted. This question has been undeleted. Former Member. Posted on Mar 21, at AM Views. Dear freinds pls tell me what is a t code for display asset class in 4. Add a comment.
Comment on This Question Help to improve this question by adding a comment. Related questions. Sort by: Votes Newest Oldest. Best Answer. This answer has been deleted. This answer has been undeleted. Posted on Mar 21, at PM. Hi, try OAOA. Regards Aravind. Help to improve this answer by adding a comment.
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Use Fixed Assets Transfer or Asset Class Transfer
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Share a link to this question. You must be Logged in to submit an answer. Enter your answer. Submit your Answer.Do you know the difference of usage between the transaction types? This article will give you some instruction. Then transfer the value from source asset to target asset. If you use a certain type of asset in multiple locations, it may be necessary to maintain different master data records for this asset.
Transferring the asset enables you to create and store different master records for an asset, and you do not need to create a completely new asset in the system.
For an asset under construction, it is often necessary to reflect the asset at the end of the year in the asset history sheet. To achieve this, as well as monitor the construction progress, you may need to create a specific asset class for this asset.
After the construction is completed and the asset is ready to be used, you can move the asset to a designated asset class. It would be very good if you provided a numeric example, screen shotsso we can see the before and after.
The system has a mechanism to avoid double depreciation, on target and source, in same period. Which manifests with that system message error. Ivy Zhang. Posted on May 2, 2 minute read. Follow RSS feed Like. Create different asset master records for the same asset If you use a certain type of asset in multiple locations, it may be necessary to maintain different master data records for this asset.
Therefore you have to make sure the Depreciation Convention settings for Transfer in Depreciation Type will not cause no duplicated depreciation for the same period. If the target asset is a new asset, the target asset will be capitalized with APC as the transferred value.
The posted depreciation for the source asset will be transferred to the target asset at the proportion of the transferred value. Asset Class Transfer Applicable business scenario Change the asset class when an asset construction has been completed.
When the asset can be put into its intended use, user creates a new asset class with proper depreciation type and account determination and post Asset Class Transfer document to transfer the asset to the new asset class. After the asset class transfer, the asset is capitalized again and system calculates the planned depreciation for it according to the transfer date and the depreciation type in the new asset class. Alert Moderator. Assigned tags. Related Blog Posts. Related Questions.
You must be Logged on to comment or reply to a post. Jose Antonio Castillo. October 1, at pm. Like 0. November 12, at am. March 16, at pm. Link Text. Open link in a new tab.We usually call it as a subsidiary ledger of FI.
In addition, SAP has designed Asset accounting to manage the entire lifecycle of fixed assets. It starts with purchasing to retirement or scrapping. Thus, using this we can calculate the depreciation of assets, automatically and manually, both. This includes initial and subsequent acquisition, retirement, transfer and scrapping.
A chart of depreciation is a list of depreciation areas that we arrange according to the business and legal requirements of a country.
This we do together with country-specific rules for asset valuation. However, it differs when you have company codes in different countries with varying legal and statutory requirements. In that case, you use a separate country-specific chart of depreciation.
SAP provides with a number of the country-specific standard cost of depreciation. Instead, you should use them as the reference chart of Depreciation to create your own chart of depreciation. Further, you may also maintain target ledger group Leading or Non-Leading to which a particular depreciation area should post.
To change or denote a depreciation area as real or derived, copy the entry and select or deselect the Real checkbox. Simple Asset: A simple asset is represented by the main asset number and does not have any sub-asset. Complex Asset: While a complex asset is denoted by the main asset number that contains one or more sub-asset. We represent it with asset sub-numbers. Account Determination creates a link between the asset classes and the GL accounts.
It controls field settings of Asset Master Data. An asset class is a classification parameter. Thus, we use it to categorize assets into categories. This includes building, plant and machinery, electrical equipment, vehicles, furniture and fittings. Asset Class helps to make structure asset based on business and legal requirements.
It further enables you to classify them for accounting purpose. Thus, it allows you to make a single account assignment for several asset classes.SAP Asset accounting Complete Configuration Part 1
Each asset class has the control parameters and default values for general master data and depreciation terms. Hence, you need to assign each asset to an asset class. Certainly, an asset class should have control parameters for the master data content and calculating depreciation, insurance etc. Transaction code — OAOA. AUC is a special type of tangible asset.
It is normally shown as a separate item in a balance sheet. That is to say, you need a separate asset class to represent such an asset. Please note, you can manage AUC collectively in a single master record or as individual items with separate master records.In SAP, Asset classes are used to classify the fixed assets in the asset accounting according to the asset types.
Each asset master data must be allocated to one asset class, for e. Building, Vehicles, Furniture, Machines, etc.
Asset classes are defined at SAP client level and contain key control parameters such as number assignment for asset, account determination and screen layout rules. Transaction code : — OAOA. Step 2: — On change view asset classes overview screen, click on new entries button for creation of new asset classes in SAP. After maintaining all the required details, click on save button and save the configured details.
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How to Create Asset Classes in SAP | What is an Asset Class
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Define posting period variant PPV. Assign variants to company code in SAP. Open and closing posting period variants. Define field status variant and field status groups in FICO. Assign company code to field status variant.If you bet one hundred dollars and win you would be paid six hundred dollars, or 6 x 100. Of course if you lose any of those bets you would lose the dollar, or two dollars, or three dollars, or one hundred dollars.
One drawback of expressing the uncertainty of this possible event as odds for is that to regain the probability requires a calculation. The natural way to interpret odds for (without calculating anything) is as the ratio of events to non-events in the long run.
A simple example is that the (statistical) odds for rolling six with a fair die (one of a pair of dice) are 1 to 5. This is because, if one rolls the die many times, and keeps a tally of the results, one expects 1 six event for every 5 times the die does not show six.
For example, if we roll the fair die 600 times, we would very much expect something in the neighborhood of 100 sixes, and 500 of the other five possible outcomes. That is a ratio of 100 to 500, or simply 1 to 5. To express the (statistical) odds against, the order of the pair is reversed. Hence the odds against rolling a six with a fair die are 5 to 1. The gambling and statistical uses of odds are closely interlinked. If a bet is a fair one, then the odds offered to the gamblers will perfectly reflect relative probabilities.
The profit and the expense exactly offset one another and so there is no advantage to gambling over the long run. If the odds being offered to the gamblers do not correspond to probability in this way then one of the parties to the bet has an advantage over the other. Casinos, for example, offer odds that place themselves at an advantage, which is how they guarantee themselves a profit and survive as businesses.
The fairness of a particular gamble is more clear in a game involving relatively pure chance, such as the ping-pong ball method used in state lotteries in the United States.
It is much harder to judge the fairness of the odds offered in a wager on a sporting event such as a football match. The language of odds such as "ten to one" for intuitively estimated risks is found in the sixteenth century, well before the development of mathematical probability.
Odds are expressed in the form X to Y, where X and Y are numbers. Usually, the word "to" is replaced by a symbol for ease of use. This is conventionally either a slash or hyphen, although a colon is sometimes seen. When the probability that the event will not happen is greater than the probability that it will, then the odds are "against" that event happening.
Odds of 6 to 1, for example, are therefore sometimes said to be "6 to 1 against". To a gambler, "odds against" means that the amount he or she will win is greater than the amount staked. It means that the event is more likely to happen than not. This is sometimes expressed with the smaller number first (1 to 2) but more often using the word "on" ("2 to 1 on") meaning that the event is twice as likely to happen as not. Note that the gambler who bets at "odds on" and wins will still be in profit, as his stake will be returned.
In common parlance, this is a "50-50 chance". Guessing heads or tails on a coin toss is the classic example of an event that has even odds. In gambling, it is commonly referred to as "even money" or simply "evens" (1 to 1, or 2 for 1). The term "better than evens" (or "worse than evens") varies in meaning depending on context. Looked at from the perspective of a gambler rather than a statistician, "better than evens" means "odds against". So, it is "better than evens" from the gambler's perspective because it pays out more than one-for-one.
If an event is more likely to occur than an even chance, then the odds will be "worse than evens", and the bookmaker will pay out less than one-for-one. In statistics, odds are an expression of relative probabilities, generally quoted as the odds in favor. The odds (in favor) of an event or a proposition is the ratio of the probability that the event will happen to the probability that the event will not happen.
Mathematically, this is a Bernoulli trial, as it has exactly two outcomes. For example, the odds that a randomly chosen day of the week is a weekend are two to five (2:5), as days of the week form a sample space of seven outcomes, and the event occurs for two of the outcomes (Saturday and Sunday), and not for the other five.Gallo an has been involved in advertising for nearly three decades. Paskalis is Chairman of the Board of the North American Mobile Marketing Association a board member of the Media Ratings Council.
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