Asset Master Data: Excerpt from New Fixed Asset Accounting in SAP S/4HANA

Excerpt from New Fixed Asset Accounting in SAP S/4HANA by Kees van Westerop.

Using SAP Asset Accounting correctly starts with creating asset master data correctly. Although this sounds very simple, in reality it is quite a complex task.

This is because Asset Accounting must fulfil all kinds of different requirements simultaneously.

Requirements can be:

• Reporting: It must be possible to report according to accounting principles such as IFRS, local GAAP, tax, and group reporting. This must all be possible simultaneously.
• Type of assets: A distinction must be made between different types of assets—low-value assets, leased assets, machinery, buildings, etc. Furthermore, reporting should be possible for each type of asset.
• Depreciation: Several methods for calculating depreciation may be required. The depreciation method depends on the accounting principles applied: for example, straight-line depreciation, declining balance, percentage of useful life, etc.
• Posting of depreciation: Depreciation must be posted according to the applicable accounting principles using the correct general ledger accounts and calculation of the amounts.
• Integration with other SAP modules: Asset Accounting can be integrated in other SAP modules, such as Project System (PS), Investment Management (IM), Internal Orders (IO), Plant Maintenance (PM), and Cost Accounting (CO).
• To make data migration as simple as possible.

There can be many more requirements that need to be taken into consideration when setting up Asset Accounting.

Therefore, before setting up asset master data, it is important to understand how you can control all your requirements and what tools enable you to do so. This starts with familiarizing yourself with the SAP terminology.

In this chapter, we will discuss everything you need to understand when creating and maintaining asset master data.

Keep reading in New Fixed Asset Accounting in SAP S/4HANA.

Explore SAP Fixed Asset Accounting module functionality in SAP S/4HANA. Review the complete lifecycle of an asset — from acquisition and construction to retirement. Identify the differences between “classic” Asset Accounting and the new SAP S/4HANA Asset Accounting. Review organizational setup requirements and learn how to classify assets according to fiscal and company requirements. Clarify how asset-related transactions are posted in the general ledger. Delve into asset master data, including the organizational structure, integration with the general ledger, and the creation and maintenance of asset master data. Identify how to disinvest assets and adjust their values. Find out what options are available for asset depreciation. Learn how to calculate depreciation, how to post in the ledgers according to accounting principles, and how G/L accounts are determined for the postings. Dive into asset reporting functionality, including key tools, as well as depreciation simulation to predict future depreciation costs. Look at migration requirements and considerations. By using practical examples, tips, and SAP Fiori screenshots, this book:

Describes SAP Fixed Asset Accounting functionality in SAP S/4HANA with SAP Fiori examples

• Explores the complete lifecycle of an asset in SAP
• Identifies differences between classic Fixed Asset Accounting and the new SAP S/4HANA Fixed Asset Accounting
• Examines how Fixed Asset Accounting is integrated with other SAP modules

Author Kees van Westerop has been working as an SAP Financials consultant for more than 30 years, for the last 12 years as an independent consultant.

He has an MSc degree in mathematics, a degree in financial accounting and several SAP certificates.

Kees has worked on many global SAP projects in Europe, USA, and Asia. These projects covered various industry segments, such as chemicals, electronics, consumer goods, and pharmaceuticals.