Please provide your valuable suggestions to improve this Blog. Activate the New General Ledger Accounting by a single click on the clock icon. If you then define your profit centers, you can enter an associated segment in the master record of a profit center. The segment is then derived from the assigned profit center during posting. You must designate one of your ledgers as the Leading Ledger.
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The accounting data is organized as: Fixed Assets OTP One time postings Mid-lease — With Financing Character A change process with financing character is one where the contract keeps going with some variation to its terms and conditions.
Under the lease restructuring process, the lease contract is restructured by applying changes to its terms and conditions. Some of the examples of restructuring can be: Change of interest rate Change of residual value and amount financed Change of contract term Any combination of the above When a contract is restructured in CRM, a new payment schedule is generated and consequently is new bill plan.
This step of the process should be used to close open balances on the contract line item. In case of operating leases, retire the asset at net book value and close the unamortized balance of FAS 91 into a clearing account. In case of a capital lease, the unamortized balances of principal, interest, residual value and FAS 91 amounts are closed into a clearing account.
RESC: This process line item makes way to accommodate the restructured contract terms with the new bill plan. This should set-off the clearing account balances to zero. Also when a customer changes location of the asset. Further, standard processes can be copied to create custom processes such as Payment Deferral etc.
Mid-lease — Without Financing Character A change process without financing character is a terminating change process. CONC — Charge Off This process is used to Charge off the balances on a contract when a customer is delinquent and it is not possible to recover any amount from him.
It is also not possible to recover the asset from the customer. This process is executed in a single step in ERP. In case of an operating lease, the Net Book Value of the asset is retired into a clearing account and charged off to a loss account by an accounting entry posted through one-time postings. In case of a capital lease, the unamortized balance of principal and residual value is closed into a clearing account and a sum of both charged off as a loss by an accounting entry posted through one-time postings.
Also the balances of unearned interest and interest receivable accounts are reversed. The charge off in this case would be a result of bankruptcy of the customer in which the asset could not be recovered from the customer. Accounting in this case would be similar to CONC process. It is possible to provide some variations in accounting treatment or account assignments in configuration. BANK — Bankruptcy with return This change process is used where the customer files for bankruptcy and returns the leased asset to the lessor.
In case of Operating lease, the net book value of the asset is retired into a clearing account. In case of Capital lease, the unamortized balance of principal and residual value are closed into a clearing account. The process should be configured to create an asset master and to posts an acquisition for an amount that will offset the balance value posted to clearing account in the prior process. The returned asset is now inventory and hence not depreciable. ETER — Early Termination This change process is used where the customer requests an early termination of the lease contract.
The accounting for this process is similar to BANK. It is possible to provide some variations in asset class posted, accounting treatment or account assignments in configuration. Early termination fees could be charged to the customer and posted to customer account by FI-CA route. REPO — Repossession of Assets In some cases where a customer becomes delinquent, the leased asset he holds is repossessed.
The repossession charges are incurred and charged to the customer. TERQ — Termination payoff quote In some lease contracts, the customer has an early buyout option and requests an early termination payoff quote. The process involves calculation of a payoff quote amount in CRM which is communicated to the customer. Upon receipt of payoff quote amount from the customer, the payoff quote is incepted in CRM which triggers posting of payoff quote invoice to the customer account in FI-CA.
This invoice posting is cleared against the payoff quote payment receipt. The payoff quote amount related to account balances on the contract are posted to a clearing account. In Lease accounting, this process is executed in a single step. In case of an operating lease, the net book value of the asset is retired into a clearing account.
It is possible to post termination fees, markup fees or any other charges included in the payoff quote to income accounts through one-time postings. End-lease options — Without financing character TERM — Termination with return This business event is the termination of a lease contract at the end of the lease term.
Customer returns the leased asset at the end of contract term. In such case, since the contract has approached the end of its term, there are no unamortized balances. The only value left on the contract is the residual value. In case of Capital lease, the residual value of the contract is closed into a clearing account. The value of the asset is the residual value that was posted to clearing account in the prior process.
The posting of returned asset relieves the balance in the clearing account to zero. End-lease options — With financing character CONT — Continuation At times the customer continues to enjoy the asset and also continues to pay the same monthly annuities after the end of contract term. In such cases, continuation change process is executed on the contract. There are no unamortized balances on the contract except the residual value.
A new contract line item is set up where the residual value on the prior line item is carried forward as value of the leased asset. A new payment plan is created to be accounted as periodic rent income.
RNEW — Renewal In some cases, the customer approaches to renew a lease contract at the end of the contract term. Renewal change process is used in such cases. Renewal of the contract bill plan is executed with the residual value on the contract applying a rate of interest and a renewal contract term. Remarketing Returned and repossessed assets are sometimes sold in open market.
In CRM, a Sales order is created and incepted to record the sale of the asset. The transaction retires the asset using the asset sale price as revenue.
Key Asset Accounting Configuration in S/4HANA
Additional content available in other SAP applications Not relevant Business function requiring activation in addition Not relevant This business function provides you with new functions for calculating depreciation. Integration The depreciation calculation program DCP is a back-end solution that does not require any special configuration. These BAdIs are similar to the user exits available in depreciation calculation up to now. Prerequisites If you activate Enterprise Extension EA-FIN, then the depreciation calculation program that was in the system is replaced with the new program. Features The functions of the new depreciation calculation program include the following: Period-Based Calculation The system uses the asset value date and the period control group of the transaction type group to determine the calculation period. The system assigns each transaction to a calculation period.
SAP Asset Accounting Configuration II
These include transactions like acquisition of fixed assets, sale of fixed assets, in-house development of assets, settlement of WIP, and accounting for depreciation on fixed assets and so on. A separate Asset Accounting Module is required for these transactions because there are some distinguishing characteristics of fixed assets as compared to normal General Ledger accounts. But they are subject to wear and tear, and to provide for this we need to depreciate them. The Asset Accounting Module enables such calculation of depreciation we can create depreciation keys where we give the rate of depreciation. Such feature is not there in the normal GL Accounting. Example : Land, Plant and Machinery etc. In the Asset Accounting Module, we can categorize individual fixed assets into asset classes, and thus we can meet this requirement.