1) Chart of depreciation are usually country specific and defined independently of the other organizational unit. A chart of depreciation can be used by all company code of a particular country.
2) Assets can be managed in parallel upto 99 deprecation areas; a depreciation area is always assigned to only one chart of organization.
3) Chart of depreciation contains different depreciation keys and different depreciation areas.
4) Chart of depreciation cannot be created directly one can create own chart of depreciation by copying it from others.
5) Chart of depreciation will be assigned to company code.
6) The assignment of company code to chart of account is independent from its assignment to a chart of depreciation. This means that several company codes can use the same chart of depreciation although they have different chart of depreciation.
7) The account assignment is controlled by means of the assets class in assets accounting, we have to specify an account determination in each assets class. In this account determination we will specify the G/L account in which automatic posting place for different transaction.
8) Assignment of assets to company code, we have to enter a company code , when we create a assets . This ensures that each asset is always uniquely assigned to a company code.
9) If we enable business area balance sheet at the time of G/L maintainance , then we need to assign assets to business area.
10) The plant has no assets account relevance, but it can be used for as a short and selection criteria for report. Plant can be a asset in assets master data.
11) Assets in assets accounting is assigned to exactly one cost center in its master maintains.
12) The cost center assignment of fixed assets can be set at beginning of a specific day. If this
date change over the course of time, the system distribute depreciation and interest according to the appropriate period to the different cost center, where by costs are always allocated to the cost center valid at the end of the depreciation period.
13) A cost center can also be assigned to a business area as a assets can. In assets master maintaince , therefore the system ensures that the business area of the cost center matches the business area of the assets.
14) Assets can be assigned to profit center indirectly by means of the cost center.
15) If assets are assigned to more then one cost center, then cost can be distributed by using a distribution cost center.
16) Assets can be structure at the several level in the system
a. Balance sheet level
b. Classification level
c. Assets related level
17) We can assign any number of chart of depreciation to each class of assets.
18) We can create screen layout control at assets class level, that carries certain values for assets master.
19) Creation of assets master is a customizing activity. Account determination is the most important function of the assets class. Several assets class may use same account determination key.
20) Changes in the master data in the assets class only have a affect on assets created after the changes made. The system doesn’t automatically carry out the changes for assets that already exist. For this purpose we should use the mass change procedure.
21) Assets class controls various important information of assets master.
a. Account determination
b. Depreciation terms
c. Screen layout
d. Field attributes
e. No assignment.
22) Deactivation of depreciation area can be done at assets class level or assets level.
23) Assets under construction can be managed in the system as individual master record just as we do completed assets. We can also use collective management of several assets under construction on one master record. we can distribute to the proper assets when the assets under construction completed by using either
a. Line item settlement
b. Simple transfer of other assets master record.
24) While setting deprecation areas at company code level , we are setting of values for low value assets.
25) Low value assets can be managed either 1. Individual Check, Individual management 2. Quantity check, collective management.
26) There are two different method of handling of lease assets.
1. Capitalize the lease assets and charge depreciation as on ordinary assets.
2. Treat period payment payment as rent and charge to P & L account.
27) If an asset consists of several component assets, it may make sense to monitor the individual sub assets separately. For complex assets, there is often a need for uniform depreciation of the assets in the book depreciation and tax depreciation areas. Whereas for cost accounting purpose the sub assets should be depreciated separately.
28) Reasons for managing component assets as sub numbers
a. The development values for component assets are separate for each sub numbers.
b. The sub number can have different cost accounting assignment.
c. The assets can be divided along technical line.
d. Investment support can be represented as negative sub numbers.
e. If it is necessary to manage subsequent acquisition separately in order to be able to monitor their depreciation and book value separately. we must manage this acquisition on independent sub numbers.
29) By means of screen layout control for the assets class , we can specify whether the depreciation term van be maintained at the sub numbers level.
30) The currency in the master deprecation area has to be identical to the local currency in the company code. we can manage other depreciation areas in the currency we like.
31) It is recommended that we should define all the depreciation areas we might need before the production start up of the system. However if a special need arises , it is possible to define a new depreciation area after production startup and add assets to this depreciation area.
32) we can also delete depreciation area . The depreciation area we want to delete must meet the following requirement.
a. It can n’t be the master area 01
b. There can be no assets value in the depreciation area.
c. The area can not be a reference area for another area, if it is a reference area , we should change the definition of the area that are dependent on the depreciation area we want to delete.
d. The area cannot be used in the calculation formula for derived depreciation area , if it is used in a calculation formula we need to change the calculation formula for the derived depreciation area.
33) When we post with account assignment to an assets , the system determines the G/L account that is posted based on four things the chart of account valid in the company code , the chart of depreciation , the depreciation area that is to be posted, the account allocation key and the transaction type.
34) If we use assets accounting in congestion with cost accounting and / or FI general ledger the following additional account assignment are possible , depending on the business transaction to be posted
a. Business area
b. Cost center/ internal order
c. Profit center
d. Fund center.
35) If some one has entered additional account assignment for both an order and a cost center at the same time , the order take precedence. How ever the order does not take precedence is it a stastical order , the the account assignment to both stastical order and cost center is possible.
36) Assets accounting use the same fiscal year variant as in the general ledger , If there are special circumstances however we can use different fiscal year version in each company.
37) It is only possible to enter one cost center in the master record. The only way to distribute depreciation and interest to different cost centers is to use settlement with in cost accounting. The cost center in the master record then serves the function of a distribution cost center. The disadvantage of this approach is that report shows only the distribution cost center and not the cost center that are actually debited.
38) It is possible to enter an activity type in the assets master record along with the cost center when a activity type is entered all the debits that have account assignment to the cost center are also posted automatically to the activity as well.
39) we can specify that the posting values from one depreciation area are updated automatically online to general ledger accounts. we can updates other depreciation areas to the general ledger using periodic processing.
40) Depreciation key contains all control data for calculation of planned annual depreciation. we can enter a depreciation key in each depreciation area in the assets master record.
41) we can enter a screen layout rule in one of the two places, either in the part of the assets
class valid in the entire client or in the part of the assets class valid for the chart of depreciation.
42) If some one has entered additional account assignment for both an order and a cost center at same time , the order take precedence that is there is no account assignment to the cost center. How ever the order does not take precedence if it is a statistical order. If the order is
statistical , then account assignment to both statistical order and the cost center is possible.
43) The depreciation key contains all control data for the calculation of planned annual depreciation. You can enter a depreciation key in each depreciation area in the assets master.
44) The system uses calculation methods for the calculation of depreciation methods to depreciation keys. The calculation methods provide the parameters for depreciation calculation program.
45) The assets main no. has 12 alphanumeric characters. Number assignment is controlled by the assets class. we specify the number range for an assets class in the assets class. In this way we ensure that number assignment in uniform for the assets class. we can choose between external and internal number assignment by specifying a correspondingly defined number range. Several assets class can use same number range.
46) The field status is control by two things.
(1) fields status group attached to accounts group.
(2) field status attached to posting keys.
47) Depreciation key contain calculation method for depreciation calculation and parameter that controls
a. Ordinary depreciation
b. Special depreciation
c. Scrap value
d. Calculation of interest.
We can enter separate depreciation key for each depreciation areas.
48) Calculation Method: Calculation method determines how depreciation will be calculated. Calculation methods are assigned to deprecation keys. The calculation methods may be dependent to COD or may be independent.
e. Independent calculation method to COD
i. Base method
f. Dependent calculation method.
i. Declining balance method
ii. Maximum amount method.
iii. Multi level method
iv. Period control Method.
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