Book depreciation in sap fico

How to configure depreciation key in sap your finance book. Discover sap s4hana finance and legacy solutions here. This is multiplied with the falling net book value of the fixed asset. The main difference is depreciation has to decrease from the asset and the asset shown at net value. Book and tax depreciation refer to the processes used to account for depreciable assets, while intangible valuation is a process used to account for intangible. Mar 29, 2014 under the tab of treatment of end of depreciation you specify the treatment at the end of the life of asset or when net book value becomes zero. Sap fico depreciation area learn sap fico in simple and easy steps from basic to advanced concepts with clear examples including introduction, sub components, company, company code, assign company code to company, business area, consolidated business area, assign business area to consolidated business area, functional area, financial management area, assign company code to financial. In this step you assign different values in combination of asset class, cod and depreciation areas. Andrew okungbowa is an accountant and a certified sap fi professional with many. An asset may fall in value as its economic usefulness declines. Copy reference chart of depreciation depreciation areas. Depreciation 01 is the leading depreciation area area 01 is the book depreciation. Get working, get certified, and get busy with our books.

With this guide to sap s4hana finances innovations, uncover the fundamental changes that can transform your finance more about the book. As per the requirement of my client, they need to book depreciatioon for first month as half mnth depreciation and normal for rest of the period. Sap fico consultant resume example san jose, california. Sap fico training fi accounting sap press books and ebooks.

Here one can read and download complete hand book guide on sap fico module for beginners learners nn satyan which includes accounts payables, asap methodology, accounts receivables, asset accounting, cost element accounting, profitability analysis etc. Straight line method of depreciation calculation in sap fi. Fico ebites anything you could possibly want to know about sap fico, from introductory ebooks to howto guides. Fi and co is the core centre module of the sap erp system.

Participants will learn something about organizational structures in asset accounting and fi, as fiaa is a subledger of fi. This method involves applying the depreciation rate on the net book value nbv of asset. These include transactions like acquisition of fixed assets, sale of fixed assets, in house development of assets, settlement of wip, and accounting for. Tagged asset class, book depreciation, chart of depreciation, consolidated depreciation, depreciation area in sap, sap aa, sap asset accounting, t096, tax depreciation 1 comment follow blog via email enter your email address to follow this blog. From my point of view, it is better to make a full sap fico configuration from a to z and then to dive into the details. Define depreciation area 1 book depreciation area and 30 depreciation area. Special depreciation, which is over and above ordinary depreciation, used normally for taxation purposes.

How to create chart of depreciation in sap asset accounting. Unlike most books that only provide questions and answers for certification or interview preparation, this book covers fifty common business situations related to erp financialsfico and provides practical solutions for them. In this fico configuration activity we are able to define depreciation areas for a chart of depreciation. Depreciation areas that are not used can still be activated at a later point in time after the production startup. We have configured in the sap fi gl configuration book a. You can post planned depreciation to there respective general ledger accounts by executing transaction code afab or following path. Question asset accounting ordinary depreciation greater than. Sap fico complete end user training real time project.

It often happens that business has omitted to book apc values of fixed. Apr 30, 20 the depreciation key settings determines how the system behaviour may vary in each case. Sprofinancial accounting newasset accountingvaluationdepreciation areasdefine depreciation areas. If you continue browsing the site, you agree to the use of cookies on this website. As a rule, the system automatically determines the planned depreciation for the current fiscal year by means of the depreciation keys entered in the master record. If you install sap s4hana finance but keep running your accounting practices as before, youll be missing out. Sap asset accoungting training depreciation book value. You can set it for the asset class as active or inactive.

Asset accounting configuration in sap erp a stepbystep. To define a declining balance method in sap you enter the transaction code afamd or path. Book depreciation, special tax depreciation and derived depreciation are already defined in the system. If you need to specifically set the amount of depreciation, the system offers a manual unplanned depreciation forecasting option. In this way, you will start to understand much faster what you will see in the advanced books. These books will get you working, get you certified, and get you busy. Spro financial accounting asset accounting depreciation valuation method depreciation key calculation method define declining balance method you can define the maximum and minimum percentage. Also, book depreciation is supposed to roughly approximate the actual usage of fixed assets, while tax depreciation methods are essentially. Asset accounting module of sap calculates the depreciation on assets based on the configuration done for depreciation key. Is it possible to reverse depreciation after posting in asset.

Just select 0, area do not post for depreciation area 2. Sap fico module is very robust and covers almost all business process encountered in various industries. Depreciation is the reduction in the book value of an asset due to its use over. This setting is required for posting the revaluation amount. Are you an sap fico user or consultant who needs training in the daily tasks of the sap fi module. Sap fico is a module used for financial reporting both externally and internally. This uptodate quick reference guides the reader through the most popular sap module.

Sap has the flexibility of calculating depreciation with the help of depreciation key. In this book, noted expert andrew okungbowa explains sap asset accounting fiaa in saperp, including its associated business benefits, and guides you through the considerable complexities of saperp configuration. Sap fico training fi accounting sap press books and. In sap, you will come across three types of depreciation. Is it possible to reverse depreciation after posting in. 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. How to define depreciation area for sap asset accounting. Mar 29, 2014 you can perform depreciation run to there respective general ledger accounts through sap path. Are you looking to configure sap fico or just refreshing your memory on certain steps. The main difference between sap fico and s4 hana finance is the technology used in them.

Ordinary depreciation greater than accumulated depreciation fiaa. Period control method depreciation key depreciation key 1052014 sap fico trainingasset accounting calculating depreciation values 1052014 sap fico trainingasset accounting example. For mathematical reasons, the net book value will never reach zero using this method. Mar 20, 2020 define depreciation areas in asset accounting sap fico. After depreciation run, which depreciated amount wold be captured by the cost center assigned in asset master. Example of calculating straight line method of depreciation. Oct 12, 2010 basic configuration settings for implementing asset accounting in sap 6. The asset accounting module in sap is one where the accounting pertaining to fixed assets is done. Chart of depreciation contains all the depreciation areas in sap.

These include transactions like acquisition of fixed assets, sale of fixed assets, inhouse development of assets, settlement of wip, and accounting for depreciation on fixed assets and so on. This course focuses on managing fiaa master data and on the handling of the various business processes in fiaa. Sap fico is the finance and cost controlling module in sap erp where fi stands for financial accounting and co stands for controlling. Sap fico transactions and exercises are intended for sap beginners and sap experts, with the goal that they can execute and configure the sap fico erp modules. Basic configuration settings for implementing asset. Valuation for book depreciation sap ag 1999 year depreciation j net book valueh 1 9000 2 8000 3 7000 4 6000 5 5000 6 4000 7. Sap delivers standard declining balance methods for use. Unfortunately for india it has not provided any chart of depreciation. Apr 28, 2009 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. This video includes chart of depreciation, account determination, screen layouts,asset class, asset master,submaster and depreciation. Sap has delivered some standard keys for calculating depreciation under this method. Fico configuration sap bpc and fico consultant blog. Here one can read and download complete hand book guide on sap fico module for beginners learners nn satyan which includes accounts payables, asap methodology, accounts receivables, asset accounting, cost element accounting, profitability analysis etc content. It includes material on sap erp financials, sap fico, and sap r3.

Sap fico works on the ecc model, while sap s4hana finance simple finance is based on the in memory hana database which works on cloud technology. The asset accounting fiaa sub module in sap manages a. Asset accounting in sap fico step by step guide skillstek. Specify rounding for net book value andor depreciation path. Difference between depreciation, accumulated depreciation. In a nutshell, it is an assets gradual fall in book value.

Financial accounting new asset accounting valuation depreciation areas define depreciation areas. Spro select sap reference img financial accounting asset accounting valuation amount specification company codedepreciation area specify rounding for net book value andor depreciation. Sap fi asset configuration it training and application. Sap fico overview presentation slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Asset accounting configuration in saperp is a timely, practical, and stepbystep illustrative guide to demystifying the complexities involved in sap asset configuration. Define depreciation areas in asset accounting sap fico. This document will show you how to configure it step by step and explain some of the business processes around it. Definition of book depreciation book depreciation is the amount recorded in the companys general ledger accounts and reported on the companys financial. A depreciation area in sap fico asset accounting contains the parameters you require to value an asset. Net book value may 12, 2016 here i have given process flow for sap asset accounting.

Specify rounding of net book value andor depreciation. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. Sap new asset accounting interview questions zarantech. Whether it will be book depreciation, cost accounting depreciation or both. Sap has provided chart of depreciation for various countries. Using selection from asset accounting configuration in sap erp. It enables you to manage the rule of valuation of assets.

Here you will find basic tutorials for configuration sap fico. Sap menu accounting financial accounting fixed assets periodic processing depreciation run afab execute. Unlike most books that only provide questions and answers for certification or interview preparation, this book covers fifty common business situations related to erp financials fico and provides practical solutions for them. You change over to straightline or complete depreciation under these conditions. This blog is meant to be a forum for sap fico professionals all over the world to share knowledge and experience, as well as to provide timely suggestions and solutions for the work related issues.

May 30, 2017 in this article we shall go through the explanation of how and what debit credit entries are posted to the system in sap for ap, ar, assets, product costing and in bank communication management. Basic configuration settings for implementing asset accounting in sap 6. Definition of book depreciation book depreciation is the amount recorded in the companys general ledger accounts and reported on the companys financial statements. Afamp maintain period control methods spro img financial accounting new asset accounting depreciation valuation methods depreciation key calculation methods maintain period control methods it is one of the most relevant method to keep control on the calculation of depreciation. It manages fixed assets data of an organization by way of asset master. This depreciation is based on the matching principle of accounting. A newly activated depreciation area can take over values from another depreciation area.

What is the difference between book depreciation and tax. Fi for end users not sure how sap fi works for end users. In the same way we will specify ledger group x1 for depreciation area 30. Configuring the chart of depreciation, depreciation areas for book depreciation, provided functional assistance in the development of ricefwreports, interfaces, conversions, extensions, forms and workflow developed functional specifications for interfaces from legacy to sap. Sap can post the apc transactions of one depreciation area to the general ledger online automatically. Hand book on sap fico module for beginners learners nn. Difference between sap fico and s4 hana finance skillstek.

Dec 21, 2009 this uptodate quick reference guides the reader through the most popular sap module. For the rest, transactions to the general ledger can be posted automatically using periodic processing. How to copy reference chart of depreciation depreciation areas, specify description chart of accounts, copydelete depreciation areas in sap fi. Dec, 2018 the step by step guide to configuring fico. Straight line method is the simplest method available and its a method of calculating depreciation of an asset which assumes the asset will lose. Straight line method slm this is the simple method of depreciation. Sap fico works on the ecc model, while sap s4hana finance simple finance is based on the inmemory hana database which works on cloud technology. Where in case of accumulated depreciation, asset shown at book value and seperate account for acc. Difference between depreciation, accumulated depreciation and apc. Several asset classes can use same ac account determination key if they use the same chart of account and they post to the same gl account. Example of book depreciation lets assume that equipment used i.

If for any reason you do not have the values for accumulated depreciation in your legacy system, but have instead, the net book values may be through a valuation process then, the net book value may be entered instead, during the asset takeover value entry. Depreciation calculation methods sap library asset. You can only use ledgers that are assigned to application figlf. Sep 11, 20 depreciation method used straight line written down value method treatment of the depreciation at the end of planned useful life of asset or when the net book value of asset is zero explained in detail later in other related transactions. Ordinary depreciation, which is nothing but planned depreciation. Decliningbalance depreciation depreciation areas, specify description chart of accounts, copydelete depreciation areas in sap fi. Top 10 sap fico asset accounting interview questions sap. Hand book on sap fico module for beginners learners nn satya. Importantly, you may use more than one depreciation area to represent different asset valuations. The depreciation calculation method is the most important characteristic of the base method. It is one of the very important and widely implemented modules in sap. In this article we shall go through the explanation of how and what debit credit entries are posted to the system in sap for ap, ar, assets, product costing and in.

Different methods of depreciation calculation sap blogs. You can perform depreciation run to there respective general ledger accounts through sap path. In this method, depreciation of the asset is done at a constant rate. Asset accounting module in sap is a very important module. Under the tab of treatment of end of depreciation you specify the treatment at the end of the life of asset or when net book value becomes zero. Apr 24, 20 tagged asset class, book depreciation, chart of depreciation, consolidated depreciation, depreciation area in sap, sap aa, sap asset accounting, t096, tax depreciation 1 comment follow blog via email enter your email address to follow this blog and receive notifications of new posts by email. In this method, depreciation of the asset is done at a. The depreciation calculation method makes it possible to carry out the numerous different types of depreciation calculation in the system. Is it possible to reverse depreciation after posting in asset accounting. While defining you must define one depreciation area as valuation for trade bal. In the book depreciation area, go to other posting settings. Are you looking to configure sap fico or just refreshing your memory on certain steps this document will show you how to configure it step by step and explain some of the business processes around it. If you want it to work for your company code then it has to be assigned to your company code.