Accounting of fixed assets (FI-AA)

Asset Management

Efficient management of components of fixed assets is enabled by a dedicated module in the SAP ERP system. Thanks to its integration with Financial Accounting, Controlling and Logistics systems, companies have the possibility of both controlling and using assets.

The Fixed Assets Module gives access to all information - from quantitative and valuable state through depreciation data to the internal or external users data.

Accounting of fixed assets (FI-AA)

In the Sub ledger of the General Ledger the Fixed Asset Management FI-AA module there is a systemic evidence of fixed assets, which is divided into groups tailored to the client's needs. Among them there are for example: fixed assets according to their classification, intangible assets, as well as financial assets according to their position in the balance sheet.
Each element of fixed assets is created both in the group and in the business unit. Thanks to this, the customer can analyze data in the entire capital group or for selected units. Placing information about fixed assets in the Auxiliary Book allows you to keep a wide range of information in the system, in a master data record, which also has the functions of a directory. Several hundred boxes are available to users, including data on organizational assignment, settlement rules, insurance, leasing, property, supplier, valuation rules and many others. In addition, for complex fixed assets, the system allows the creation of so-called parent and child numbers. This in turn allows for a precise reflection of the structure of the fixed assets and possible separate management of its individual parts. .

The basic functions of the program:

  • Keeping records  - fixed assets, intangible assets and legal, low-value components of fixed assets, financial assets and investments;
  • Parallel valuation of fixed assets  for the purposes of: balance sheet, tax insurance, holding company (e.g. in a parallel currency), calculating;
  • Calculation and booking of fixed cost depreciation  in accordance with the Accounting Act, tax regulations and internal company regulations (the module is fully integrated with the management accounting system).

The integration of SAP ERP allows you to update financial reporting in real time. Economic processes in the field of logistics (e.g. receipt of material) immediately trigger postings (in accordance with the principles of commercial and tax law). The information is ready for processing right after it is posted.

Simple and convenient service

Using the system is easier thanks to the use of a number of mechanisms supporting data entry, and also by using predefined roles for users performing individual tasks (e.g. Independent Accountant of Fixed Assets, Accountant - Investment Settlements, Controller of Fixed Assets, etc.). Accesses are based on business scenarios with the possibility of defining roles, as well as creating or dividing groups.

Depreciation

In SAP ERP, you can calculate depreciation according to selected methods, i.e.:

  • linear from the initial value or with the distribution of other values;
  • degressive with / without rearranging;
  • degressive geometric and arithmetic;
  • degressive with / without rearranging;
  • natural;
  • manual - a type of contractual amortization in which amortization amounts are determined for individual periods;
  • special methods (e.g. interest rate in the preferential period).

Economic operations on components of fixed assets

Using the dedicated functions, users can perform the following operations:

  • revenues and expenses;
  • reclassifications;
  • depreciation (planned, manual, unplanned, special), cancellation of write-offs;
  • cancellation of write-offs;
  • transfer of reserves;
  • advance payment;
  • revaluation;
  • lease records.

The operations defined in SAP ERP use the posting machines, which significantly improve the daily work with the system and at the same time limit possible mistakes.

Mass changes

SAP ERP offers change functionality for a large number of components. In mass changes, we distinguish: making changes to the master data records (e.g. cost centers), liquidation and sale of components.
Additionally, by defining the substitution rules themselves, users have the option of creating additional mass changes. Their use allows for a significant reduction in time of the operation, because users do not have to perform multiple repetitions, separately on each component.

Simulations

  • for single, selected or all components;
  • in the selected period;
  • as reports;
  • including investments used for fixed assets settlement in the indicated period of time.

As a result, you can obtain the so-called simulation variants for analysis which include change of depreciation keys.
In addition, SAP ERP provides a transaction for displaying: posted, planned or used operations for a single component. In addition, users have access to the simulation of depreciation and / or component value under the influence of changes in depreciation parameters and / or the introduction of a business operation without posting.

Documents of changes

Full register of changes in data on fixed assets, with the possibility to review archived field values, including the date of changes and user data.

Valuation areas

They are aimed at parallel valuation of fixed assets for specific needs, including valuations of: balance sheet, tax, calculation, capital group in local currency or group.

The valuation area defines, among others:

  • value supported in a given area (initial value, ordinary depreciation, unplanned depreciation, special depreciation, interest fees, etc.);
  • parameters for updating values in a given area.

The system allows also for the creation of the so-called derived areas, and during configuration the user indicates which areas of value will be posted on accounts (General Ledger, Off-balance sheet), while others are designed for information purposes and will not be posted.

Revaluation

  • INDEX - the value is calculated on the basis of an index referring to previous years, usually used in calculation areas;
  • IN BALANCE - calculated on the basis of defined algorithms, which makes it possible to prepare any desired overestimation method.

Stocktaking

SAP ERP in the module of Durable Property Management provides the possibility of printing inventory sheets according to the arrangement defined by the so-called sorting key. Information contained in the sheets is determined during configuration and may contain, among others, references to documentation, data of the contractor using the fixed asset, barcode of the inventory number. It is also possible to generate a file in a format adapted to the requirements of the device supporting the barcode reader.
The system enables conducting a full periodical, fragmentary or simplified inventory - in the basic data record there is the date of the last inventory and a field intended for marking the components that should be included in the next inventory.

Reporting

SAP ERP is an extremely broad reporting tool. In addition to standard reports, there are many ways to define your own reports, as well as the so-called ad-hoc inquiries that allow you to perform complex analysis. The reporting system is integrated with MS Excel.

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Corresponding products

SID IFRS 16

Get ready for changes. Implement the new reporting standard as part of the SAP application. With SID IFRS 16, you can minimize possible risks and reduce costs.

More >

Consulting

Full range of analyses (e.g. security, efficiency or data architecture analyses), migrations and recommendations / optimization within the scope of SAP license - explore the potential of SID Consulting package.

More >

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