Finance & Controlling

SAP FI-AA User Guide: Depreciation Run

Depreciation is an accounting concept that measures and spreads the cost associated with the using up of an asset over its useful life, which means the normal wear and tear of the asset. In SAP depreciation run is executed at the end of each month. Depreciation Keys attached in the asset master automatically control the calculation and planning of depreciation in the system or you can manually post using a special posting transaction (Planning Manual Depreciation). In both cases, planned depreciation from Asset Accounting must be periodically posted to the corresponding asset and expense accounts of the General Ledger.

Following list of transactions are covered in this document:

  • Depreciation Run – AFAB
  • Depreciation Log – AFBP
  • Manual Deprecation – ABMA
  • Miscellaneous transactions – ABSO

Read more

SAP FI-AA User Guide: Asset Retirement

This manual covers steps required for the removal of an asset or part of an asset from the asset portfolio in SAP Finance-Asset Accounting. The removal of an asset (or part of an asset) is posted from a bookkeeping perspective as an asset retirement. In SAP Asset Accounting, the removal of an asset by sale, as well as any resulting revenue, can be posted in a single step. At the same time, you can choose to post to Accounts Receivable (through integration with Financial Accounting) or to a reconciliation account.

Following list of transactions are covered in this document:

  • Retirement with Customer – F-92
  • Asset Sale without Customer – ABAON
  • Asset retirement by scrapping – ABAVN
  • Subsequent Revenue – ABNE
  • Subsequent cost – ABNK

Read more

SAP FI Business Blueprint Sample with AS-IS & TO-BE Details

This document provides business Blueprint Document instructions for Finance module of SAP with following details:

  • Enterprise Structure of Company
  • Business requirements as given by the Company Key Users
  • Suggestions by consultants wherever mySAP ERP are found to be useful to Company’s business functionality
  • To-Be Process on mySAP ERP system suggested by Consultants
  • Comments whether the requirement can be realized on the mySAP ERP system or not.
  • Gaps which are at different stages of exploration

Read more

Account Determination Configuration Guide in SAP ECC 6

Account determinations in SAP, also referred to as automatic account assignments, are pre-assigned G/L accounts used in specific business transactions. For practical purposes, account determinations automatically generate FI line items (for transactions originating in FI) or entire FI documents (for transactions originating outside FI). In posting FI documents, account determinations provide consistency, ease of entry, and accuracy.

In this document author covers configuration of account determinations in SAP using transaction codes in detail.

Read more

SAP FI-GL Business Blueprint Sample Document

The SAP Financial Accounting (FI) Business Blueprint document details the design and structure of an SAP FI implementation. It serves as a strategic guide that outlines the company’s existing processes (AS-IS), the intended SAP processes (TO-BE), and the blueprint for achieving the desired state. This document is crucial for the project managers, business process owners, and key users to understand and navigate the transition to SAP FI. It provides a clear roadmap for the delivery of the SAP project, bridging the gap between current operations and optimized SAP workflows.

Read more

Basics of Cost Element Accounting in SAP CO for Newbies

Cost Element Accounting helps to track revenues and costs in SAP Cost Accounting System. A cost element corresponds to a cost-relevant item in the chart of accounts.

This presentation provides basics of Cost Center Accounting in SAP for beginners.

  • Cost Element Accounting: Definition, Purpose and Structure
  • Cost Element vs GL Accounting
  • Primary Cost Elements Categories
  • Secondary Cost Elements Categories
  • Cost Elements Group
  • Process Flow Diagram of Creating Cost Elements (Primary and Secondary)
  • Frequently Used Transactions in Cost Element Accounting

Read more

Beginner’s Manual to Asset Accounting in SAP FI

After reading this step by step SAP FI-AA document, you will be able to

  1. Organization structure
    • Define a chart of depreciation
    • Assign a chart of accounts and a chart of depreciation to a company code
    • Describe how Asset Accounting is integrated with Cost Accounting
    • Name asset classes
    • Assign asset classes to assets
    • Define which depreciation areas post their values to the general ledger
  2. Master data
    • Structure assets by creating asset classes
    • Create and change master data in Asset Accounting
    • Process mass changes using a work list
  3. Asset Transactions
    • Post integrated and non-integrated asset acquisitions in the system
    • Post integrated and non-integrated asset retirements in the system
    • Represent intra company and intercompany asset transfers in the system
    • Represent assets under construction in the system
    • Represent unplanned depreciation in the system
  4. Periodic processing
    • Define depreciation areas
    • Describe how a depreciation term is used in different depreciation areas
    • Control the calculation of depreciation
    • Analyze depreciation values
    • Initiate the depreciation posting run
    • Explain the tasks of the fiscal year change and year end closing
  5. Information system /Reporting
    • Choose and execute the various Asset accounting reports
    • Set up variable sorting and totaling for Asset reporting
    • Create the Asset history sheet and structure it to meet your needs
    • Generate a depreciation forecast
    • Simulate depreciation for Assets

Read more

Step by Step Guide to Month End Closing Process in SAP

This document covers the following key points for the month end closing process in SAP:

  • The end of each period is characterized by a series of activities which includes opening of a new accounting period and closing of the current period
  • The Period-End Closing process is divided into four phases: Pre-closing Check/Readiness, Data Collection Closing, Reconciliation and Adjustment and Final Close
  • The G/L, AP and AR clearing is automated. Manual processing will only be conducted for exception items that cannot be reconciled
  • The reconciliation and adjustment phase is used to reconcile account entries across financial siloes and adjust financial postings as necessary
  • The Month End Closing process is considered complete when the posting periods across FI, FM and CO have been locked

Read more