Top 25 Sap Asset Accounting Interview Questions You Must Prepare 19.May.2024

You need to define how the various depreciation areas need to post to FI-GL.

It can be any one of the following scenarios:

Post depreciation through ‘periodic processing.’

 Post both the APC (Acquisition and Production Costs) and depreciation through periodic processing.

Post the APC in ‘real time’ but depreciation through periodic processing.

 No values are posted.

However, you need to ensure that at least one depreciation area is configured to post values automatically to the FI-GL. Normally, this depreciation area will be 01 (book depreciation). For the rest of the depreciation areas, it may be configured that they derive their values from this area and the difference thus calculated is automatically posted to FI-GL. There may also be situations where you may define depreciation areas just for reporting purposes, and these areas need not post to the GL.

The prerequisites for automatic asset class creation include:

  • Company Code must be assigned to a chart of depreciation
  • Depreciation areas have already been defined
  • GL account number is not more than 8 digits (otherwise you need to assign the classes manually)

Also note that you may need to maintain the GL account for ‘accumulated depreciation’ manually. The system maintains the necessary account assignment only with regard to the depreciation area 01 (book depreciation). If you need more areas, you may need to do that manually in the IMG.

A key for calculating depreciation amounts.There is a direct link between asset and company code.Which we link between the depreciation key and master record.

Depreciation areas are not defined for company codes rather depreciation areas are defined for a chart of depreciation, A maximum f 99 depreciation areas can be maintained for a Chart of Depreciation.

Methods of calculation of depreciation. An area showing a valuation of fixed assets for a particular purpose. For example Book depreciation, Income Tax Depreciation, Costing depreciation.

  • Base method
  • Decline value method
  • Maximum method
  • Multi level method
  • Period control method.

An ‘Asset Class Catalog’ contains all the asset classes in an enterprise and is therefore valid across the Client. Since an asset class is valid across the Client, most of the characteristics of the asset class are defined at the Client level; however, there are certain characteristics (such as the depreciation key, for example), which can be defined at the chart of depreciation level.

Yes, There are two ways

  • Create an asset class with reference to an existing asset class
  • Generate an asset class through the asset class transaction code(ANKL).

A ‘Group Asset’ in SAP is almost like a normal asset except that it can have (any number of) sub-assets denoted by Asset Sub numbers. The concept of group asset becomes necessary when you need to carry out depreciation at a group level, for some special purposes such as tax reporting. Remember that SAP’s way of depreciation is always at the individual asset level. Hence, to manage at the group level, you need the group asset.

Once you decide to have group assets, you also need to have ‘special depreciation areas’ meant for group assets; you will not be able depreciate a group asset using a normal depreciation area. Unlike Complex Assets, you can delete a group asset only when all the associated sub numbers have been marked for deletion.

The concept of ‘Asset Super Number,’ in FI-AA, is used only for reporting purposes. Here, you will assign a number of individual assets to a single asset number. By using this methodology, you will be able to see all the associated assets with the asset super number as a single asset (for example, brake assembly line) or as individual assets (for example, machinery, equipment in the brake assembly line).

The concept of ‘Asset Super Number,’ in FI-AA, is used only for reporting purposes. Here, you will assign a number of individual assets to a single asset number. By using this methodology, you will be able to see all the associated assets with the asset super number as a single asset (for example, brake assembly line) or as individual assets (for example, machinery, equipment in the brake assembly line).

The Asset Accounting (FI-AA) sub module in SAP manages a company’s fixed assets, right from acquisition to retirement/scrapping. All accounting transactions relating to depreciation, insurance, etc., of assets are taken care of through this module, and all the accounting information from this module flows to FI-GL on a real-time basis.

You will be able to directly post (the goods receipt (GR), invoice receipt (IR), or any withdrawal from a warehouse to a fixed asset) from MM or PP to FI-AA. The integration with FI-AR helps in direct posting of sales to the customer account. Similarly, integration with FI-AP helps in posting an asset directly to FI-AA and the relevant vendor account in cases where the purchase is not routed through the MM module. You may capitalize the maintenance activities to an asset using settlements through the PM module. FI-AA and

FI-GL has real-time integration where all the transactions such as asset acquisition, retirement, transfer, etc., are recorded simultaneously in both the modules. However, batch processing is required to transfer the depreciation values, interest, etc., to the FI module.

The FI-AA and CO integration helps in:

  • Assigning an asset to any activity type. Internal Orders act as a two-way link to the FI-AA:
  1. They help to collect and pass on the capital expenditure to assets,
  2. they collect the depreciation/interest from FI-AA to controlling objects. (Note that when there is a situation where the asset master record contains an internal order and a cost center, the depreciation is always posted to the internal order and not to the cost center.)
  • The depreciation and the interest are passed on to the cost/profit centers.

Fixed assets are valued differently for different purposes (business, legal, etc.). SAP manages these different valuations by means of ‘Depreciation Areas.’ There are various depreciation areas such as book depreciation, tax depreciation, and depreciation for cost-accounting purposes, etc.

A depreciation area decides how and for what purpose an asset is evaluated. The depreciation area can be ‘real’ or a ‘derived one.’ You may need to use several depreciation areas for a single asset depending on the valuation and reporting requirements. The depreciation areas are denoted by a 2-character code in the system. The depreciation areas contain the depreciation terms that are required to be entered in the asset master records or asset classes.

SAP comes delivered with many depreciation areas; however, the depreciation area 01—Book Depreciation is the major one.

The other depreciation areas are:

  •  Book depreciation in group currency
  •  Consolidated versions in local/group currency
  •  Tax balance sheet depreciation
  •  Special tax depreciation
  •  Country-specific valuation (e.g., net-worth tax or state calculation)
  • Values/depreciations that differ from depreciation area 01 (for example, cost-accounting reasons)
  •  Derived depreciation area (the difference between book depreciation and country-specific tax depreciation).

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. 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 (junk/ scrap value), method of depreciation calculation (straight line method, declining balance, sum of year digits, double declining, etc.), and the defined percentage decline in the value of the asset every year (20%, or 15%, and so on).

The depreciation can either be planned or unplanned. Planned depreciation is one which brings down the value of the asset after every planned period; say every month, until the asset value is fully depreciated over its life period. With this method, you will know what the value of the asset at any point of time in its active life. On the contrary, unplanned depreciation is a sudden happening of an event or occurrence not foreseen (there could be a sudden break out of a fire damaging an asset, which forces you to depreciate fully as it is no longer useful economically) resulting in a permanent reduction of the value of the asset.

In SAP, you will come across three types of depreciation:

  • Ordinary depreciation, which is nothing but ‘planned depreciation.’
  • Special depreciation, which is over and above ‘ordinary depreciation,’ used normally for taxation purposes.
  • Unplanned depreciation, which is the result of reducing the asset value due to thesudden occurrence of certain events.

The Asset class is the main criteria for classifying assets. Every asset must be assigned to any one class.The asset class is nothing but a group of asset. For example of Asset classes are Plant & Machinery, Furniture & Fixtures, Computer etc.

Define the Company Code in FI configuration, and assign a chart of accounts to this Company Code.

Assign a chart of depreciation to this Company Code in FI-AA configuration.

Add necessary data for the Company Code for use in FI-AA, and your ‘asset accounting Company Code’ is now ready for use.

Asset Accounting Overview. Purpose. The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.

Master data segment and Depreciation segment.

The ‘Asset Value Date’ is the start date of depreciation for the asset. The ‘planned depreciation’ is calculated by the system based on this depreciation start date and the selected ‘depreciation term’ for that asset. Be careful with the posting date and asset value date. Both dates need to be in the same fiscal year.

A ‘Lean Implementation’ is the scaled-down version of the regular FI-AA configuration in IMG, with minimal configuration required to enable asset accounting. This is suitable for small companies using the standard functionalities of asset accounting, and also in situations where the Asset Catalog is not that large.

You should not opt for lean implementation if:

  • You need more than Depreciation Areas
  • You need to Depreciate In Foreign Currencies as well
  • You have Group Assets
  • You need to define your own Depreciation Keys/Transaction Types/ Reports
  • You need a Group Consolidation

A ‘Complex Asset’ in SAP is made up of many master records each of which is denoted by an ‘Asset Sub number.’ It is prudent to use asset sub numbers if:

You need to manage the ‘subsequent acquisitions’ separately from the initial one (for example, your initial acquisition was a PC, and you are adding a printer later).

You want to manage the various parts of an asset separately even at the time of ‘initial acquisition’ (for example, an initial purchase of a PC where you create separate asset master records for the monitor, CPU, etc.).

You need to divide the assets based on certain technical qualities (keyboard, mouse,etc.).

When you manage a complex asset, the system enables you to evaluate the asset in all possible ways such as:

  • For a single sub number
  • For all sub numbers
  • For select sub numbers

An asset can be a Simple Asset or Complex Asset. Depending on the requirement, assets are maintained with Asset Main Numbers and Asset Sub numbers. A complex asset consists of many Sub-Assets; each of them identified using an asset sub number. You may also use the concept Group Asset in SAP.

The chart of Accounts is the index of G/L accounts.The Chart of Account can be global,country specific or industry specific based on the need of business. The COD is the index of depreciation areas.The COD is only country specific.

  • With reference to an asset
  • Using the number functionality for similar assets.
  • Through an asset class(AS01).

One of the most important functions of the Asset class to be establish the connection between the Asset master record and the corresponding accounts in the general ledger in Financial accounting. This connection is created by the account determination key is asset class.

The Chart of Depreciation is a list of Depreciation  Areas arranges according to business and legal requirement.

Chart of Depreciation is used in order to manage various legal requirements for the depreciation and valuation of assets. Each company code is allocated to one chart of depreciation.