1  Tata consultancy services Asset Accounting( FI-AA)

2  Tata consultancy services Topics Depreciation Areas Chart of Depreciation Asset Classes Asset Master Records Transaction Type Depreciation Rates Integration with GL Integration with other modules Create a new asset Create a old asset FI Transactions in Asset Accounting Depreciation Run Information Systems

3  Tata consultancy services Depreciation Areas Used for calculating different values in parallel for each fixed asset for different purposes. The depreciation areas are identified by two-digit numeric keys –01 : Book Depreciation –15: Tax Depreciation Relevant Terms of depreciation are entered for Asset Class or at the time of Asset creation

4  Tata consultancy services Chart of Depreciation Assigned to a company code Consists of the Depreciation Areas Used for managing all rules of Assets for a country No relation to Chart of Accounts ( not to be confused)

5  Tata consultancy services Asset Classes

6  Tata consultancy services Asset Classes Account Determination –Asset Account –ADF Account Depreciation Terms –If not defined at Asset Level Screen Layout Control (Master Data) –What to enter/R-O-S Number Assignment Classification criteria

7  Tata consultancy services Asset Master Records Meets External accounting requirements Tracks Asset History with links to original documents Stores Values Helps in Integrated processing

8  Tata consultancy services Asset Master Records General information (description, quantity, etc.) Inventory Data (Physical inventory data, Account assignment ( Asset account) Posting information (capitalization date) Time-dependent assignments (cost centre, Location, Room) Information on real estate Information on the origins of the asset (Vendor, Manufacturer)

9  Tata consultancy services Asset Master Insurance data ( Company, Type etc.) Depreciation details ( Dep. Areas, Useful life)

1010  Tata consultancy services

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1212 Transaction Type Transactions that influence the Assets Acquisition and production costs of fixed assets. Acquisitions, retirements, transfer postings, post-capitalization. Down payments Manual depreciation Write-ups

1313  Tata consultancy services Transaction Type

1414  Tata consultancy services Depreciation Rates Depreciation Keys ( part of IMG) –Consist of Calculation Key –Scrap Value/Cut-off value –Other settings Calculation Keys ( part if IMG) –Consists of % –Calculation Method ( SLM/WDV) –Period working (Bi-M/ M/F/HY/Y) All customized keys start with ‘Z’ (ZBxx for Book Depreciation, ZIxx for Tax Depreciation)

1515  Tata consultancy services

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1717 Integration with GL Asset Class assigned to a GL account for acquisitions capturing Posting to an asset leads to 2 postings –Individual Asset Values get updated –Acquisition account gets updated Depreciation is posted to the Accumulated Depreciation Fund account –Individual Asset Values get updated –Accumulated Depreciation Fund and Depreciation Expense account gets updated

1818  Tata consultancy services Integration with GL Any expense postings ( to be capitalized) –Updates individual Asset values ( with History recording) –Updates Expense accounts –Updates Acquisition account Sale of an Asset updates the –Acquisition account –Depreciation Fund account –Profit/Loss from sale of Asset account

1919  Tata consultancy services Integration with other modules Integrated with CO for updated Cost centers for Depreciation Integrated with MM for –Vendor details capturing for purchases done and –PO details linking for Asset History Also Integrated with PP ( for in-house produced Assets ) and PM for capitalizing Asset Maintenance costs

2020  Tata consultancy services Create a new asset Path: –Accounting--> Financial Accounting--> Fixed Assets-->Asset--> Create Asset --> asset –Transaction code AS01 Enter Asset Class Enter other details Be careful about capitalization date –Depreciation is calculated from that date

2121  Tata consultancy services Create old Assets Transaction code AS91 Only Assets bought before 1999 can be created For other Assets use the Create new Asset route ( AS01)

2  Tata consultancy services FI Transactions in Asset Accounting All the Transactions on Assets can be done independent of other Modules Transaction code decides the nature of Transaction All Financial entries can be done in FI-AA Path: Accounting--> Financial Accounting--> Fixed Assets-->Postings Ex: Acquisition of Asset leads to an Liability increase in the Vendor account

2323  Tata consultancy services Depreciation Run M/Q/HY/Y ADF Depr Exp Cost Center ADF Depr Exp Indiv.Assets Cost Center Depreciation Program

2424  Tata consultancy services Depreciation Run Path: Accounting--> Financial Accounting--> Fixed Assets-->Periodic Processing-->Depreciation Run --> Execute Assign the period for which the Depreciation run has to be carried out A BDC is created Execute the BDC and the accounts get updated

2525  Tata consultancy services Information Systems Individual asset Asset portfolio Balance sheet explanations Explanations for P&L Cost Accounting Depreciation forecast Special valuation Preparations for closing Day-to-day activities Taxes History

2626  Tata consultancy services Buying an Asset Create an Asset Create an Internal Order Create PO J1ia - excise invoice GRN J1ib - updation of RG23C Goods issue J1ic - transfer values from material to internal order Invoice Verification Close Internal Order Post Payment Other Expenses Direct posting to an asset number ( Asset) Auto updation of values Each Transaction gets tracked