1. Define a transaction type.

During the life of an asset there are a number of changes that affect the value of the asset. The FI-AA System recognizes a wide range of business transactions. Transaction types make it possible to handle all of the necessary postings appropriately.

2. It is possible that an asset acquisition is posted in two steps or in two different departments? How do the two entries clear?

When the asset acquisition is posted in two steps or two different departments, you normally post to a clearing account. Use a general ledger account with open item management to guarantee that this account can be cleared. Either the FI department includes this clearing account in their periodic run of SAPF123 (Automatic clearing program) or the clearing account has to be cleared in an additional step (Menu path: Posting > Acquisition > External acquisition > Clearing offsetting entry).

3. What is the difference between non-valued and valued? Explain their implications on Asset Accounting.

For non-valued, the goods receipt takes place before the invoice receipt and the values are not yet posted to Asset Accounting. The line items are created and the values are updated instead at the time of the invoice receipt. However, the system uses the date of the goods receipt as the capitalization date. At time of invoice receipt the asset is capitalized, line items are created, and the value fields are updated.

For valued, the goods receipt takes place before the invoice receipt and the values are posted directly to Asset Accounting. The asset is capitalized, line items are created, and the value fields in the asset are updated. When the invoice is received later, there may be differences between the invoice amount and the amount posted at the time of goods receipt. In this case, the corresponding adjustment postings are made to the asset.

4. There are certain pieces of information automatically set in the asset master record at time of acquisition. What are they?

The following information is automatically set in the asset master record at the time of the first acquisition posting:

Date of capitalization Posting date of original acquisition Acquisition period Depreciation start date per depreciation area.

5. Most asset transfers are described as either inter-company or intra-company. What is the difference?

Inter-company transfer indicates a transfer between company codes. This transfer creates a new record at the target company and posts the values according to the posting method selected.

Intra-company transfer indicates a transfer within one company. Reasons for such a transfer include: The asset has changed location. As a result, you have to change organizational allocations (i.e., asset class, business area) in the master record that cannot otherwise be changed. The asset needs to split. Therefore, a portion of the original asset will be transferred to a new asset. The asset under construction needs to transfer its costs to a real (depreciable) asset.

6. Define transfer variant.

The transfer variant specifies: The method according to which the transferred asset is valued in the receiving company code

 The transaction types (retirement/acquisition) that are used for the transfer

Your specification of the transfer variant can be dependent on the following: The type of relationship between the company codes involved (legally dependent/independent) The cross-system depreciation area

7. For assets that the company produces itself, why are there two phases relevant to Asset Accounting? What are they?

The two phases relevant to Asset Accounting for assets produced in house are the under construction phase and the useful life phase. The assets have to be shown in two different balance sheet items during these two phases. Therefore, they have to be managed using a different object or asset master record for the under-construction phase and for the completed asset. The transfer from underconstruction phase to completed asset is referred to as capitalization of the asset under construction.

8. True or False? Using the Asset Accounting module, it is no longer necessary or possible to manually plan depreciation.

False. In addition to the automatic calculation of depreciation using depreciation keys, you can also plan manual depreciation for individual assets in the FI-AA system.

Master data 1. Describe the function of depreciation areas.

Depreciation area 01, which can be set up as the book depreciation, can make automatic postings to the general ledger. Other depreciation areas may get their values from depreciation area 01 but calculate and post different depreciation values to the general ledger. Other depreciation areas can be set up to show: country specific valuation (i.e., tax depreciation); values/depreciations that differ from depreciation area 01 (i.e., cost-accounting reasons); consolidated versions in local/group currency, book depreciation in group currency; and the difference between book, 01, and country-specific tax depreciation (derived depreciation area).

2. What information (sections) are included in the asset class?

An asset class consists of three main sections:

A header, containing control parameters for master data maintenance and account determination, A master data section with default values for administrative data in the asset master record, A valuation section with control parameters for valuation and depreciation terms.

3. Describe the function of an asset class.

The most important function of an asset class is to establish the connection between the asset master records and the relevant accounts in the general ledger. The account determination in the asset class determines the posting top the general ledger accounts. Several asset classes can use the same account determination assuming the asset classes use the same chart of accounts and post to the same general ledger accounts.

4. If the company code is in implementation status and assets exist in an asset class with no transactions, you can delete and add new asset classes.

[True] or False

When the company code is in implementation status:

No assets have been created in an existing asset class; this class is deleted and generated again There are assets in an existing asset class (but no transactions) - Delete all asset classes and their assets and generate them again or

- Only add new asset classes. Transactions exist for the assets: you can only add new asset classes

If the company code is in production status: the system creates only asset classes that were not yet created. Exiting classes remain unchanged.

6. Define maintenance level. What are the possible maintenance levels?

Maintenance level defines the level (asset class, main asset number, sub-number) at which a field in an asset master record is to be maintained. Maintenance level definition is part of the screen layout rule.

If, for example, you define the maintenance level main asset number for a field, then the field will be filled with a default value from the asset class. However you will be able to change the field when maintaining master data at the asset main number level.

The three maintenance levels are:

Asset class Asset main number Asset sub-number

7. What significance is depreciation key 0000?

Depreciation key 0000 is a SAP delivered key that ensures depreciation and interest is not calculated and posted. This key can be used for the assets under construction, however, special tax depreciation and investment support are possible even on assets under construction.

8. What are the options for creating and asset master record?

The two options for creating an asset master record are:

Use the asset class, to which the asset will belong, to provide default values. The asset class then supplies the most important control parameters in the asset master record. Use an existing asset as a reference for creating the new asset master record (possibly the reference asset has default values that are more suitable than those in the asset class).

9. Why might assets be divided up using sub-numbers?

A complex fixed asset can be represented in the system using several master records, that is, subnumbers. Assets may be divided using sub-numbers if:

Managing the values for subsequent acquisitions in following years (i.e., buildings) separately Managing the values for individual parts of assets separately, Dividing the asset according to various technical aspects.

10. Define work lists.

Work lists are used for mass retirements, mass changes and work on incomplete assets. There are three steps in using work lists:

Select the objects (assets) to be changed Assign the task to be performed on the objects Release the work list and process the Workflow

Organizational structure 1. What is the Asset Accounting sub-module?

The Asset Accounting sub-module manages a companys fixed assets. Within the Financial Accounting system, FI-AA serves as a sub-ledger to the General Ledger, providing detailed information on assetrelated transactions.

2. Define the chart of depreciation.

The chart of depreciation contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a given country or economic area. The chart of depreciation is a catalog of country-specific depreciation areas structured to meet the various business needs.

Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation.

3. What is the difference between the chart of accounts and chart of depreciation?

The chart of accounts can be global, country specific and industry specifics based on the needs of the business. The chart of depreciation is only country specific. The charts are independent of each other.

4. How is Asset Accounting integrated with Cost Accounting (CO)?

Postings to depreciation can be made through a cost object such as a cost center or internal order. Also, an asset can be assigned to a cost center, internal order, activity type, or a maintenance order.

5. What is an asset class?

This is the main criterion for classifying assets by business and legal requirements. The asset class, created at the client level, consists of a master data and depreciation area section. Each asset master record must be allocated to one asset class.

6. Define depreciation area.

A depreciation area shows the valuation of assets for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, and cost accounting values. Old asset data transfer 1. Base on quantity, what are the three methods of old asset data transfer? In what status does the company code have to be so that the transfer is possible?

1) small quantity 2) large quantity -

Create old asset manually (dialog transaction) Batch-input procedure (RAALTD01) Direct data import (RAALTD11)

3) very large quantity

The company code must be set up to the status for old assets data takeover when no posting is possible.

2. True or False? With the old assets data transfer through any of the three methods, appropriate G/L accounts in Financial Accounting are updated.

False. Balance reconciliation with the relevant G/L accounts must take place separately. G/L personnel can input these via FI or AA personnel can input them via the transfer balance screen in AA With up-todate accounts in the already productive FI there is no need to update them.

3. What are the two possibilities for the transfer date.

 At the end of the last closed fiscal year In the fiscal year following the last closed fiscal year

4. What data is transferred at the year-end transfer and the sub-annual transfer?

Year-end transfer and transfer during fiscal year: Master data Cumulative values as of the end of the last closed fiscal year

Sub-annual transfer (if the transfer date after the closed fiscal year) Master data Cumulative values as of the end of the last closed fiscal year Depreciation and asset transactions posted in the current year (transfer parameters)

5. Explain the two methods of transferring the depreciation posted in the current year.

Transferring the depreciation posted in the current fiscal year up to the point of transfer- it is necessary to specify the last posted depreciation period In the legacy system for each depreciation area for every asset company code. Posting the total depreciation for the current fiscal year up until the transfer date after the old data transfer it is done in AA by performing a posting run for unplanned depreciation.

6. Which activities should be done before the production start-up? Give a brief description of each of them.

 Check consistency major components configured, i.e. chart of depreciation, company codes, depreciation areas, asset classes, asset G/L accounts, AA customizing Reset company code test application data can be deleted (asset master records and transactions of AA) but only of the company code has a test status. Customizing settings are not deleted. Reset posted depreciation this function is performed when errors occurred during testing the depreciation posting run and it is necessary to return to the original status (includes depreciation data of an old assets data transfer). Manual adjustments in the relevant G/L expense and depreciation accounts need to be performed. The reset is possible only for a company code in a test status. Set/reset reconciliation accounts The G/L accounts relevant for AA are defined as reconciliation accounts by a report changing their master records. After the transfer date these accounts can no longer be directly posted to. Transfer balances Balances to the G/L accounts, which have been defined as reconciliation accounts, are transferred. (old data at fiscal year end) Activate company code This function terminates the production startup. Information system 1. True or False? The Asset Accounting Information System is a hierarchical structure containing standard reports creating a report tree that cannot be changed.

False. The standard reports provided by SAP can be copied and modified. Branches can be added or removed from a report tree.

2. What is the asset value display used for?

Asset value display offers extensive possibilities for planned as well as already posted asset values. For example, it is possible to compare results from different depreciation areas, simulate asset values over time, view posted transactions, and execute reports.

3. Describe simulation in the context of AA and simulation versions.

Simulation in the AA context is an experimental change to parameters affecting the valuation of assets. It can apply to a single asset, the entire asset portfolio, or a test depreciation area.

Simulation versions allow you to simulate a change in depreciation method (depreciation key and useful life) for asset value/depreciation reports and this way to forecast asset depreciation.

4. Describe the asset history sheet.

The asset history sheet is the most important and most comprehensive year-end report or intermediate report. It displays the various stages of a fixed assets history from the opening balance through the closing balance including any acquisitions, retirements or accumulated depreciation. SAP supplies country-specific versions of the sheet. It is often a required appendix to the balance sheet.

5. What is a sort version, and what is the maximum number of sort levels in a sort version?

The sort version defines the formation of groups and totals in an asset report. All fields of the asset master record can be used as group and/or sort criteria for defining of a sort version. It consists of a maximum of 5 sort levels determined via fields. Periodic processing 1. What is periodic processing, and what is it used for in Asset Accounting?

Periodic processing comprises the tasks that must be performed at periodic intervals. Since only the values from one depreciation area can be automatically posted online in Financial Accounting, the changes to asset values (transactions) from other areas with automatic postings have to be posted periodically to the appropriate reconciliation accounts.

2. What is the role of a depreciation area in handling different types of valuation? Why do we need to handle different types of valuation?

By using various depreciation areas that differ from each other in

kinds of depreciation (ordinary, special, unplanned depreciation) depreciation terms (depreciation method, useful life) base values for depreciation calculation (APC, replacement value)

It is possible to perform different valuation and meet the calculation needs for specific purposes (e.g., balance sheet, cost accounting or taxes).

3. The system supports three direct types of depreciation. What are they? Define them.

Ordinary depreciation is the planned reduction in asset value due to normal wear and tear. Therefore, the calculation of depreciation should be based on the normal expected useful life. Special depreciation represents depreciation that is solely based on tax regulations. In general, this form of depreciation allows depreciation by percentage within a tax concession period without taking into account the actual wear and tear of the asset. Unplanned depreciation is concerned with unusual circumstances, such as damage to the asset that leads to a permanent reduction in its value.

4. True or False? Depreciation is calculated by solely using the depreciation keys, which are defined at the chart of depreciation level and available in all company codes.

False. The depreciation keys are defined at the chart of depreciation level. Therefore, they are available in all company codes. SAP supplies depreciation keys for every chart of depreciation. The system calculates depreciation using depreciation keys and internal calculation keys.

5. What is a depreciation key and internal calculation key?

Depreciation key is used for calculating depreciation amounts. It controls automatic calculation of planned depreciation, interest and maximum percentage for manual depreciation.

Internal calculation key makes up a part of the depreciation key and it defines a method, base value and rate of percentage for depreciation, changeover rules (for declining depreciation), treatment of depreciation after useful life and period control for transactions.

6. Define derived depreciation area.

A derived depreciation area is calculated from two or more real areas using a calculation formula. You can use derived depreciation areas, for example, to calculate special reserves as the difference between tax and book depreciation. The book value rule in a derived depreciation area is checked each time a posting is made or depreciation is changed in the corresponding real area.

7. True or False? Generally, the system determines the depreciation start date from the asset value date of the first acquisition posting.

True.

8. True or False? If the definition of the depreciation key or depreciation terms is changed depreciation values are recalculated automatically. Only if the depreciation terms change values are recalculated

False.

9. When imputed interest is calculated, how does the system post this expense to the CO (Cost Accounting) module?

For cost accounting, you might have to calculate imputed interest on the capital tied up in assets. The system posts interest simultaneously during the periodic depreciation posting run. It posts to the accounts that are entered in the relevant account determination for each depreciation area. Furthermore, an additional account assignment can be made to the cost center or the internal order entered in each asset master record (same for depreciation).

10. What does the system use to calculate the replacement values, and what are the two ways of calculating the current replacement value?

Index series entered in the asset or in the asset class.

The two ways of calculating the current replacement value are historical (current year: acquisition year) and normal (current year: previous year).

11. True or False? The depreciation posting program automatically updates the asset values and G/L accounts. The program generates a batch-input session for the update of the G/L accounts.

False.

12.

True or False? Replacement value of an asset can be determined by using an index series.

True. The indexed replacement values component makes it possible to calculate replacement values for assets, and to use replacement values as the basis for calculating depreciation. You determine the replacement value using index series. You enter the index series in the asset or in the asset class.

13. True or False? When the depreciation posting program (RABUCH00) is run, the system posts individual documents for the different depreciation types.

False. The depreciation posting program RABUCH00 updates the assets values and generates a batchinput session for the update of the general ledger. The posting session also posts the different depreciation types, interest and revaluation, in addition to the writing-off and allocation of special reserves. The system does not create individual documents, only summarized posting documents (per business area per account determination).

14. For automatic depreciation postings, should the document type be assigned an external or internal number range?

For each company code a document type must be defined for posting depreciation. The depreciation program should only use a document type that is limited to being used for batch input. In this way, unintentional use of the document type can be prevented. It is also essential that the document type is assigned a number range with an external number assignment. The depreciation program can then assign the document numbers itself. If the numbers are assigned in this way, the depreciation posting program can keep a check on posting to Financial Accounting. If errors occur, this numbering also makes it possible to make corrections.

15. Explain the difference between the methods for distributing forecasted depreciation to the posting periods.

The smoothing method distributes depreciation evenly to the periods from the current depreciation period to the end of the fiscal year (regardless of the value date of the transaction).

With the catch-up method, the depreciation on the transaction (from the start of capitalization up to the current period) is posted as a lump sum. The depreciation posting program, posts this amount in the posting period, in which the value date of the transaction lies. Fiscal year change Run The fiscal year change program which would open new annual value fields for each asset. i e next year

The earliest you can start this program is in the last posting period of the current year. You have to run the fiscal year change program for your whole company code. You can only process a fiscal year change in a subsequent year if the previous year has already been closed for business. Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons.