Asset is which deals with standard Fixed Assets and gives
report on fixed assets generated by system.From
capitalization date, we must start calculating depreciation.
It is a subsidiary ledger. We use the term, Chart of
Depreciation. Depreciation areas are of 3 types 1. Book
depreciation ( according to Company Law) , 2 tax
Depreciation & 3. Cost based Depreciation. Depreciation
rates vary from shift to Shift 24 Hours – 3 shifts or 8
hours – one shift.
Depreciation Methods are of 2 types .
1. Straight Line method
2. Decline Balance method
Rules for Asset Accounting
1. Sub Asset master is to be created with reference to main
2. Main Asset is to be created with reference to Asset class
3. In Asset class, we assign Account Determination
4. For Account Determination, we assign the account, based
upon the transactions like purchase, sale, scrap, loss,
profit, depreciation ans accumulated depreciation.
The Asset Accounting (FI-AA) component is used for managing
and supervising fixed assets with the SAP R/3 System. In
SAP R/3 Financial Accounting, it serves as a subsidiary
ledger to the FI General Ledger, providing detailed
information on transactions involving fixed assets.
What is asset accounting with reference to SAP alone needs
to be explained. What is given is, besides general
explanation, some components of assets accounting wrt SAP
is given.For example, FI Company code is independent and
needs to be correlated to FI-AA module. It is unque.Unless
the Chart of depreciation is assigned to our Company
code,it is not automatically posted to our company.Assets
accounting has , thus same general features but in
different module as FI-AA.Unique.
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