Skip to Content
Technical Articles
Author's profile photo Hitesh Agrawal

Asset Investment Support Process


This blog post will explain the End to End process for Posting, Depreciation & Write off (normal/Extraordinary) of Asset Investment Support Measure.

In some countries the Government provides grants under certain circumstances for investments made. Grant may be received by Consumer/Other authorities toward Capital Expenditure for the Project.

This Investment Support is treated either as a reduction of the acquisition and production costs of the asset, or as a value adjustment on the liabilities side of the balance sheet.

These investment support amounts are normally displayed and depreciated separately from the Asset Acquisition Costs. Separate Depreciation Area is created for posting the Grant & depreciation on it. Acquisition cost will be untouched in Main Dep. Area. This is called as Adjustment on Liabilities side.

If Separate Dep. area is not created, then grant is reduced from Acquisition cost. This is called as Support managed on Asset Side. In this method, system doesn’t support automatic assistance for certain transaction like retirement of Asset during retention period.

So Best Practice is to create Separate Dep. Area & post the grant in that area. SAP supplied the Dep. Area 51 in standard for this purpose but any other Area can be created as well by copying the existing one.



Following is the configuration for Dep. Area:


Activate this Dep. Area on each Asset Class level in OAYZ wherever is required.



Investment Measure to be created with following configuration:

Asset Accounting > Special Valuations > Investment Support


If Support Area is different than Book Depreciation Area, system automatically consider this as Liability side adjustment.

Maximum amount or % (of APC) can be defined for Grant Value.

Retention period derive the time period during which the asset with this investment support cannot be sold. System gives the error, if sold before that. This message can be converted into warning.

If Asset is sold before this period, system generate the repayment posting, according to specification given in ‘Repayment type for Premature Retirement’

There are options available under Investment Measure like Default values, time dependent data etc., can be used as per Client’s requirement.



GL Accounts are to be assigned against Dep. Area in AO88



Last node of Configuration is, Transaction Type creation in AO83:


These are created automatically when the Investment Support Measure Key is created, it is not possible to create new ones nor deletion of existing one.

System create the Transaction Type from I, J & K and then two character of Investment Measure Key.

I* Used for Posting the Grant
J* Posting the retirement & deactivate the Asset
K* Posting the Grant against Prior year acquisition (post capitalization)

If you want to create any New TT, use TCode – AO73_INV

Here new TT can be created by copying the existing TT & only Debit/Credit characteristic can be changed.



Asset Investment Support measure to be made optional on Asset Master data layout.



In case of India IT Depreciation, all Transaction Types are to be assigned against Transaction Group ‘Investment Support’



Asset Eligibility:

In AS01/AS02, Investment Key is maintained in the asset master record in Allocation Tab. Entering this key also activate/visible the required Depreciation Area for the Asset.

Appropriate Dep. Key will have to be assigned against this Dep. Area.

You can manage an indefinite number of support measures for each asset. However, if you manage more than one support measure for an asset, each one must be managed in a separate Depreciation Area.



Postings & Accounting:

Once the Acquisition is posted to Asset with the full amount of APC including Grant, value is updated in Book Depreciation Area.

Now Grant will be posted through Transaction ABIF.

Transaction Type I* will be used to post the same. Make this TT default against Investment Support process.

Following Accounting will be posted:

Grant Receivable A/c – BS Type Debit
Grant Received – Asset Recon A/c Credit


Grant receivable Account can be given at the time of transaction in Offsetting Account field, otherwise will be picked from AO88 config.

Now Book Dep. area has the Positive value of Acquisition & Inv.Support area has the Grant value in Credit side.

Grant will be amortized based on Dep. Key given against Inv.Support Dep. Area.

This way, you can clearly identify the Acquisition Value & Grant Value with Depreciation on both.



When Depreciation is run for these Assets (AFAB), following Accounting will be posted in Inv. Support Dep. Area in addition to Book Depreciation posting:

Grant Received – Asset Recon A/c Debit
Gain from Depreciation of Grant A/c – PL type Credit


In nutshell, PL will be debited with the absolute amount of Depreciation after deducting the benefit of Depreciation on Grant portion.

At the end of Asset Life, full Grant will be transferred to P&L.



If Asset is retired/scrapped in the retention period of Grant, then following accounting would be posted:

Asset Recon Main A/c Credit Full Acquisition Value
Accumulated Depreciation A/c Debit Depreciation till date
Loss on Asset Disposal A/c Debit Difference between about two
Grant Received – Asset Recon A/c Debit Full Grant amount (A)
Grant Received – Asset Recon A/c Credit Depreciation on Grant till date (B)
Grand refund payable A/c – BS Type Credit Full Grant – Proportional adjustment* (C)
Gain on Grant on refund A/c – PL Type Credit/Debit (A)   – (B) – (C)


*Proportional Adjustment is calculated based on configuration of ‘Repayment Type for Premature Retirement’ under Investment measure key.

First of all, Full Grant will be divided by retention period, in case of Proportional by Monthly, this value will be multiplied by Months till retirement dated & reduced from Grant value.

In case of yearly, this will be multiplied by Year till retirement date.

In case of Paid back completely, no adjustment is made & full grant is reversed.

In case of Amount entered by user option, no Grant will be refunded & full gain is posted with Net Grant.



If Asset is retired/scrapped after retention period, entry will be posted like ‘Amount entered by user’ scenario.



If any Extraordinary write-off to be posted, use TCode – ABSO & Transaction Type J*. Following Accounting entry will be posted:

Grant Received – Asset Recon A/c Debit
Gain from Depreciation of Grant A/c – PL type Credit


There may be other transaction as well like Augmentation, Normal Retirement, Grant of prior year acquisition etc.

After getting the exact requirement from Client, specific Transaction type can be configured & used for posting.




After reading the blog post, this process can be understood very easily & implemented quickly without any challenge.

Configuration & Accounting are described in detail.

This type of activity is very frequent in Electricity distribution companies where Consumer contribution is involved for Capital projects.


Hope you found this blog post useful, thanks for reading!!




Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Ravi Yadav
      Ravi Yadav

      Thanks Hitesh for sharing the process. Very concise, and useful article.

      Author's profile photo Xiaodong Li
      Xiaodong Li

      Hi Hitesch,

      thanks for sharing this knowledge with us.

      can you confirm that this process also works the same under S/4 HANA 1809?

      As per OSS Note 2270388, The integrated posting of investment support on assets using FI transactions is no longer supported. Instead, use transaction ABIFL, and post the customer transaction against a clearing account.

      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author


      There is no change in S4 HANA.

      Once you access the ABIF, System will automatically take you to ABIFL & there Accounting Principle & Dep. Area field will be available for restrict the posting for particular Dep. Area as given in New Asset Accounting for all Transactions.

      All other processes/accounting/configs are same as ECC.



      Author's profile photo leonardo francisco
      leonardo francisco


      I need to understant where i definy the depreciation account as i understand this can be done but for me in transaction AO90 this area don´t appear.

      Best Regards


      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author


      You will not see this Area in AO90.

      I have already mentioned that GLs can be attached in AO88.




      Author's profile photo leonardo francisco
      leonardo francisco

      Hi Hitesh

      I understand this but when i execute afab for this area appear error message because don´t have depreciation account, in AO88 i don´t have place to put this information

      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author

      Dep. Accounts will be given in AO88 in Revenue Account section.


      Author's profile photo Siddhivinayak KHANOLKAR
      Siddhivinayak KHANOLKAR

      Hi Hitesh

      Your blog on Investment support measurement is really worth. Thanks for the same.

      Currently i am doing implementation s4Hana for one organisation.

      Example I have bought one asset in Jan 2019  (10000 Euro) & there is Investment support provided by France Govt (10000 Euro)

      Now I want to retire the same Asset. Which transaction to be used  ?

      Do I need to use ABSO ?  which transaction type to be used for the same ? The system has created (automatically JI2)

      Can I Make a retirement thru ABAON ?

      I am getting error of Inconsistent Currency information if I try to post ABAON for retirement


      Please suggest suitable solution

      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author


      You will use ABAON for retirement of Asset.

      System will automatically adjust the Gain/Loss on Investment Support part.

      Not aware of Currency inconsistent error.


      Author's profile photo Henrik Qvarnstrøm
      Henrik Qvarnstrøm

      Hi Hitesh,

      Thanks for the explaination in your blog.

      I am currently migrating Assets with Investment support with postings only in Depreciation area 51 (and 61 in this system). I am moving the assets from one company to another.

      I have tried with ABT1N but it is not working. Do you have any ideas regarding this issue?

      As mentioned there is not postings in other depreciation areas than 51.

      I have tried with AO9. But in the Takeover values screen, there is no Investment support and the Cumm.acquis.val is greyed out.




      Author's profile photo Prap Stan
      Prap Stan

      Dear Hitesh,

      I would like to ask you about the below GL accounts.

      (i) Regarding the Repayment of Investment Support account:

      I suppose the creation of this account will be, as below:

      G/L account type: B/S account

      Group account No: other property plant and equipment

      Account Group: g/L accounts(general)

      Field status group:  YB01-General (with text & assignment)


      (ii) Regarding the creation of Expense: Repayment of Invest.Support account,  will be created as appearing below:

      G/L account type: Primary Costs or Revenue

      Group account No: Other expenses

      Account Group: Income statement accounts

      Field status group: YB64-Other cost accounts (obligatory text)


      Are the above descriptions the correct ones for setting up above accounts in the system?


      Best Regards


      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author

      It is correct Prap.

      Author's profile photo Prap Stan
      Prap Stan

      Please let me correct, regarding the 1st account will be under Group account No: Other payables,   which I suppose will also be correct..

      Author's profile photo Prap Stan
      Prap Stan

      Dear Hitesh,

      As per your above instructions I have created the depreciation area 51 but I am receiving below error message:

      Parallel crcy area (crcy type 30) missing for area 51 ch. of deprec. 1010

      Message no. ACC_AA116



      Author's profile photo Hitesh Agrawal
      Hitesh Agrawal
      Blog Post Author

      Since you are using the Group Currency as well, you will have to define Group Currency Dep. Area as well for every Dep. Area.

      Dep. Area will be created Accounting principle + Currency combination.


      Author's profile photo Prap Stan
      Prap Stan

      One more question please.

      I can see that you have created depreciation 51 as per IFRS (leading ledger in your case) , I suppose I can use also local GAAP instead. Right?

      Author's profile photo Yeon-Il Kim
      Yeon-Il Kim

      Hi  Hitesh!!

      Thank you for your  posting!!

      I'd like to ask something about img setting about investment  support.

      I have to setting asset investment support process  and I am setting it up by refering to other

      company system.

      I found something strange in other company system.
      Investment depreciation area is '41'. 
      In tcode AO88 there is no depreciation area is displayed.
      and  in tcode ao90  there is depreciation area 41 is displayed  and account  is assigned.
      Grant Received – Asset Recon A/c Debit
      Gain from Depreciation of Grant A/c – PL type Credit


      I confirmed that depreciation also occurred normally.

      Is it possible  to set like that?  I wonder how they could set like that.


      When i set new company  in tcode ao90  depreciation area 41 is not displayed

      and  In tcode  AO88  there is depreciation 41 is displayed and i can set account  there.


      There is no  problem in our new setting but I wonder how it happened in above company.


      Thank you very much in advance. ^^







      Author's profile photo Jasmit Singh Sarna
      Jasmit Singh Sarna

      Hi Yeon-II Kim,

      May i know you saw this on which version of SAP S4 Hana? And also if you were able to find the reason behind this observation of yours as i have also seen something like this happen in S4 1809 .

      In my case the IM area appears in AO88 for a Canada company code but not for a US company code . For US company code the area appears in AO90.


      Jasmit Sarna


      Author's profile photo Nurlan Karimli
      Nurlan Karimli


      Thanks for useful information. Please clarify below point:

      I am running CJ8A (Retirement-Investment Measure Asset Class) t-code and the system gets loss account. When I change account in AO88, then the retirement account is changed in AO90 too. Could you please clarify where i should make account changes from regarding CJ8A?

      Kind regards,

      Nurlan K

      Author's profile photo Katrina Cheng
      Katrina Cheng

      Hi there - extremely useful, thank you!

      Quick clarification. If we have parallel ledgers (e.g. group, local and tax) and multiple currencies, do we need to create an investment support Depreciation Area PER ledger/currency combination?

      Also since only one area can post in real-time per accounting principle, how do we handle this? We already have one area posting in real-time.

      Author's profile photo HARSHA CHANDE

      Thank you for sharing these details in precise way.