Functions of the Asset Class
Asset classes are the most important means of structuring fixed assets. You can define an unlimited number of asset classes in the system. You use the asset classes to structure your assets according to the requirements of your enterprise. Asset classes apply in all company codes. The asset class catalog, therefore, is relevant in all company codes in a client. The preceding is also true when the company codes have different charts of depreciation and therefore different depreciation areas.
You define asset classes in Customizing for Asset Accounting. Choose Organizational Structures ® Asset Classes.
You also assign a chart of depreciation to an asset class in Customizing. Choose Valuation® Determine Depreciation Areas in the Asset Class.
To generate asset classes that correspond to your G/L accounts, choose Organizational Structures ® Asset Classes ® Generate Asset Classes from G/L Accounts in Customizing for Asset Accounting.
Depending on the functions you want the asset class to have, consider the following when creating asset classes:
- The asset class provides default values to all asset master records in the class. In this way, the asset class functions as a sample master record, and makes it possible to create new asset master records simply and without errors.
- The screen layout, tab layout and the field characteristics (required/optional/suppressed) of the asset master record can be set for the asset class.
- The assignment of asset numbers can be controlled by the asset class.
- The asset class is a selection criteria in all standard reports in Asset Accounting. In addition, you can also request sorting and totaling by class-specific characteristics.
It is particularly useful to use the asset class to provide default values for valuation parameters (depreciation key, and so on). Therefore, define at least as many asset classes as you have assets with different valuation parameters.
One of the most important functions of the asset class is to establish the connection between the asset master records and the corresponding accounts in the general ledger in Financial Accounting. This connection is created by the account determination key in the asset class (refer toAccount Determination
Structure of the Asset Class
An asset class consists of three main sections:
- A header with the control parameters for master data maintenance and account determination
- A master data section with default values for the administrative data in the asset master record
- A valuation section with control parameters for valuation and default depreciation terms for each depreciation area
Structure of the Asset Class
You can assign any number of charts of depreciation to each asset class. In this way, you can have country-specific depreciation terms for each combination of asset class and chart of depreciation. And these depreciation terms are the default values in the given chart of depreciation.
The control parameters and the master data section of the asset class are always valid for all company codes within a client. However, it is also possible to specify that certain general master data is dependent on the chart of depreciation, and to use it also to provide default data.
You should create reasonable default values in the asset class for control and valuation parameters in the asset master record. The most important fields of the asset master record are also found in the asset class (general master data as well as valuation data). You can define the screen layout control, so that these fields can no longer be changed at the master record level (refer toScreen Layout and Maintenance Level).
You need to enter defaults for administrative details (such as insurance information) only once for each asset class, and therefore uniformly for all company codes and charts of depreciation. The following master data can, however, also be entered separately in the asset class for each chart of depreciation:
- Screen layout and account determination
- Evaluation groups (4 characters)
- Insurance type and insurance index series
- Property classification key
Creating the Asset Class
Creating the asset class is a Customizing activity. Account determination is the most important function of the asset class. There is a function in the system, therefore, for generating an asset class to correspond to each APC general ledger account. The system generates these asset classes automatically, in a one-to-one relationship to the accounts (see Prerequisites above).
Note that several asset classes can use the same account determination key. Therefore, you can copy the asset classes that were generated by the system. The asset class, as a result, can provide a more detailed classification of assets than the asset G/L accounts. You need to assign the asset class key yourself for asset classes that you copy. There is no internal number assignment of the asset class key. It can be alphanumeric and up to 8 characters long. When you use the system to automatically generate asset classes, the system uses the APC account number as the account key.
After the system creates the asset class, only the account key and the control portion of the asset class are created at first. You maintain the default values for the asset class in further Customizing steps (for example, by choosing Special Valuation® Insurance). You maintain the depreciation terms (such as the depreciation key) under Valuation.
- Changes to master data in the asset class only have an affect on assets created after the change was made. The system does not automatically carry out the changes for assets that already existed. For this purpose, you should use the mass change procedure (refer to Mass Change).
- When you create an asset in an asset class, the chart of depreciation of the asset company code has to be assigned to the asset class.