Fixed Asset – Basic Setup and Configuration
I would like to share the details on the required configuration set up and the fixed asset life cycle along with the different types of transactions that are available for the fixed assets in SAP Business Bydesign.
Pre-requisite Configuration elements needed for the fixed assets
- Accounting Principle
- Capitalization Threshold for fixed assets
- Depreciation Method
- Account Determination group
- valuation view
- Product categories for fixed asset
- Asset class
- Set of books
Accounting Principle :
in order to start the fixed asset configuration, first configuration required is the activation of the accounting Principle. This would mean adding a required country in scope and selecting the related question to activate accounting Principle.
This Scoping question should be listed at :
Navigate to step 4 – Question of guided activity for edit Project scope for the implementation project after adding a new country to the scop in step 1 – Country/Region and Type of Business.
Expand : Financial and Management accounting –> General ledger and select Accounting Principle Node in the scoping Elements section.
Note : For non-localized country this Navigation may vary based on the selection of the anchor node in the BAC element of the SDK Solution)
Here you should see available Accounting Principle based on the scoped countries.
You must enable the accounting principle for the country by selecting flag available in In Scope for respective question.
Finish the remaining steps ( additional Scoping question activation / deactivation as required).
Capitalization Threshold for fixed assets :
Once the Accounting Principle is activated, you should also be able to maintain the capitalization threshold in the Business configuration activity : Capitalization Threshold for Fixed Assets
This configuration will determine if system would create asset or a Low value asset or treat it as expense based on the threshold values maintained here.
Depreciation Method :
Next business configuration activity will be : Depreciation Methods
Here based on the country added to the scope, Depreciation methods would be made available. if you need a new depreciation method, you can also create them.
important to check here is that the depreciation methods required for company in the system are assigned to the accounting Principles that we activated. if the standard delivered depreciation method is not added to the accounting Principle, you must add newly scoped accounting principle to the depreciation method or if you have created custom Depreciation methods, you would need to assign them to accounting principle so that it can be used during fixed asset creation.
Account Determination group and Assignment of GL :
Business configuration activity : Charts of Accounts, Financial Reporting Structures, Account Determination –> Edit Account Determination Groups
Expand Fixed asset –> Groups for fixed assets in the ledgers section and create required Account determination groups.
Also om the Same business configuration activity : Open the Fixed asset Sub ledger and maintain GL accounts related to the Account Determination groups.
Valuation view :
open Business configuration activity : Fixed Assets Valuation View
For SAP localized country, based on the activation of accounting Principle, valuation views are pre-delivered here.
If you need, you can create additional valuation view and assign them to Required Accounting Principle and/or review the settings maintained for the valuation view regards to sequence of calculation and rounding rules.
For non-localized country : Copy the existing valuation view and create the required valuation view. Assign the newly created valuation view to related accounting Principle.
Product categories for fixed asset :
Create / Define the product categories for Fixed asset. if possible create the separate product categories to avoid confusions and wrong GL determinations during fixed asset transaction postings.
Asset class :
Open Business configuration activity : Fixed Asset Classes
here you can modify or create the new asset class as required under edit asset class link.
for each asset class, you need to maintain the account Determination group and Default valuation view settings.
Based on the asset class assigned to the Fixed asset, system would derive the related GL Accounts ( Historical Cost / Acquisition , Depreciation / Accumulated Depreciation, Revenue / Loss from Sale/Scrap.) using mapped Account Determination group.
in the Asset Class Determination link, you can maintain the rules to determine the correct asset class based on the Product categories defined.
Set of books :
when you create the set of books, you are also required to select accounting Principle.
valuation view are derived automatically based on its assignment to accounting principle.
If All the above configuration / Scoping is performed correctly, you should be able to use the Fixed asset functionality in SAP Business ByDesign.
I hope this will provide you all the details that are required to configure the system to use Fixed asset.
Feel free to provide your inputs / Suggestions.