Fixed assets are generally not considered to be a liquid form of assets unlike current assets. Examples of common types of fixed assets include buildings, land, furniture and fixtures, machines and vehicles.
The term 'Fixed Asset' is generally used to describe tangible fixed assets. This means that they have a physical substance unlike intangible assets which have no physical existence such as copyright and trademarks. Assets that held for resale must be accounted for as inventory rather than fixed asset. So for example, if a company is in the business of selling cars, it must not account for cars held for resale as fixed assets but instead as inventory assets.
However, any vehicles other than those held for the purpose of resale may be classified as fixed assets such as delivery trucks and employee cars. Open navigation menu. Close suggestions Search Search.
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Madhu Nemalikanti. Views Total views. Actions Shares. No notes for slide. Overview of Fixed Assets 5 2. Specify description of chart of depreciation 10 b. Assign input tax indicator for non taxable acquisition 17 4. Assign Chart of Depreciation to Company Code 20 5. Specify Account Determination 22 6. Create Screen Layout Rules 24 7. Define Number Range Intervals 27 8. Define Asset Classes 32 9. Specify Document Types for posting of Depreciation 45 Specify Posting Keys for asset postings 47 Specify Intervals and Posting Rules 49 Determine Depreciation area in the Asset Class 51 Create Asset 56 External Acquisition with Vendor 60 Asset Explorer 65 Run Depreciation 68 Asset Explorer 75 Retirement with Customer 80 Asset Explorer 85 External Acquisition with Vendor 93 Distribution Asset Explorer Overview of Law-Value Asset AUC without line item settlement Assets under construction in this asset class are managed without the option of line-item final settlement to receiver assets or cost centers.
As a result:. Only complete transfers or simple partial transfers are possible in other words, you can only transfer either prior-year acquisitions or current-year acquisitions in one given posting transaction. You can only transfer to one target asset per posting transaction. You have to enter the amount of the transfer manually. There is no connection to the original asset under construction in the capitalized asset.
Therefore, there is no exact proof of origin for the original postings. Assets under construction in this asset class are managed with the option for final line item settlement to receiving assets or cost centers. On the capitalized asset, you can then see the relationship between the capitalized asset and original postings to the asset under construction - you can accurately identify the origin of the postings.
Assets under construction in this asset class to be created solely for capital investment measures internal orders or projects.
The assets in this class can not then be directly created and posted in Asset Accounting. The assets can only be processed by means of an order or WBS element, to which they are assigned. Choosing the depreciation key ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet.
The component IM Investment Management is available for managing more extensive asset investments from a controlling-oriented perspective. Overview: Depreciation Areas You will generally need values for fixed assets for various business and legal purposes for example, for book depreciation, cost-accounting depreciation and so on.
There is no set relationship defined in the system between the chart of accounts and chart of depreciation. Company codes in Financial Accounting are assigned to a chart of depreciation refer following slide. 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. Some information in the asset master record can be managed as time-dependent data. This is of particular significance for cost accounting assignments for example, cost center, order, project. Types of asset retirement 1. Retirement with revenue - selling of an asset either at a market price, net book value or other settlement price 2. Retirement without revenue writing off an asset which is no longer productive or has no residual value.
Ordinary Depreciation: planned reduction in asset value due to normal wear and tear. Special Depreciation: depreciation that is solely based on tax regulations.
Unplanned Depreciation: depreciation resulting from unusual circumstances, such as damage to the asset, that lead to a permanent reduction in its value.
Depreciation Key The depreciation areas are identified in the system by a two-character numeric key. You make this specification in the asset classes, and can define it directly in the given asset master record. The system allows you to define an almost indefinite number of depreciation areas. This feature enables you to handle a large number of different types of valuation in parallel. You define the required depreciation keys per chart of depreciation.
Elements of the Depreciation Calculation Depreciation is calculated according to the depreciation key in the asset master. The most important influences on the calculation of depreciation are: The value date of the document. It is used to set the depreciation start date in the asset. The depreciation key. The depreciation calculation method is the most important feature of the internal calculation key.
It is used to carry out the different types of depreciation calculation. Transfers Assets can be transferred within a company code or across companies within the Group. Assets can be transferred in full or partially. Controlling object assignment can be changed as can asset class.
Inter-company transfers between companies in SAP Eg. From one company to another. Year-end closing 1. Depreciation posting run - Check: Can the year-end closing be carried out?
The fiscal year change program opens new annual value fields for each asset.
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