Group Assets 

Use

In the FI-AA component, the calculation and posting of depreciation generally takes place at the level of the individual asset. The system is fundamentally conceived so that depreciation is calculated for each main number or sub-number. To meet certain tax reporting requirements (such as ADR in the United States), which require depreciation at a higher level than the individual asset (for example, all assets in a given class in a given vintage year).

Features

Therefore, the R/3 FI-AA component enables you to define group assets for depreciation, in addition to depreciation at the individual asset level. These group assets make it possible to group together a number of assets for the calculation and posting of depreciation.

Group Assets per Vintage Year

Master Data Maintenance (Group Asset)

A group asset is represented in the system by a separate master record. The structure of this master record corresponds to the structure of the normal asset master record. You can determine the structure of this master record using screen layout control, just as you do for normal master records. Just the same as a normal asset, a group asset can have any number of sub-numbers. In this way it is possible, for example, to collect all the acquisitions for one year in a single sub-number master record at the level of the group asset.

There is a separate master data transaction for creating group assets (Asset ® Create ® Group asset). This transaction corresponds to the transaction for creating normal assets. However, there are certain special considerations to keep in mind for master data maintenance of group assets:

Group assets have to be assigned to an asset class, just as normal assets do. You use an indicator in the asset class to specify that the class can be used only for group assets.

Assignment of an Asset to a Group Asset

You can assign an asset to a group asset by specific depreciation areas. For this purpose, there is a special field in the asset master record (in the detail display of each depreciation area). You enter the number of the group asset in this field. Once this entry is made, the system calculates and posts the depreciation for this depreciation area only at the level of the group asset. In this way, you can also assign one asset to different group assets in different depreciation areas.

Graphic: Assignment to Group Asset by Depreciation Area

Only assets that have the same positive/negative sign for their net book value can be assigned to the same group asset (that is, either all of the assets in the group have positive net book value, or all of the assets in the group have negative book value). It is not possible to have assets with negative net book value and assets with positive net book value belonging to the same group asset.

Substitution

You can use substitution to assist in making the assignment to group assets, just as you can use substitution for other master data fields (see Validation and Substitution). This method makes it possible to automate the assignment to a group asset. For example, you can have the assignment be a default based on the asset class or on specific evaluation groups.

Checks and Results of Assignment

An assignment to a group asset is only possible as long as the asset is not capitalized (the asset is inactive). Once an assignment has been made and the asset is capitalized, you can only change the assignment by a complete transfer of the asset to a new asset. Another result of the assignment to a group asset is that the depreciation terms in assigned depreciation areas can no longer be changed at the asset level. They can only be changed at the level of the group asset.

When you assign an asset to a group asset, the system checks if the asset has, at the minimum, all the depreciation areas that the group asset has. If it does not, the assignment is rejected. As a result of the assignment, the asset adopts the account allocation of the group asset. This method ensures that all the assets in a group asset post to the same general ledger accounts.

Legacy Data Transfer

When you transfer legacy asset data, normal assets and group assets have to be transferred separately. The group asset and the assignment to its asset master records are not created automatically. Therefore, there is no consistency check between the values of the group asset and the values of the individual assets.

Posting

When you post to an asset belonging to a group asset, the system duplicates all the line items that are created (such as, acquisitions) on the group asset as well. This duplication takes place according to whether depreciation area is assigned to the group asset. Direct posting of transactions to a group asset is generally not possible.

Graphic: Acquisition to a Group Asset

You should note the following special considerations with the different transaction categories:

There are no special considerations here. The system posts acquisitions to the individual asset and duplicates the line items online to the group asset it belongs to.

Gain/loss from asset retirements and transfers requires special handling. You can make specifications for this in FI-AA Customizing for the retirement transaction types, per depreciation area (Determine treatment of asset retirement).

– Retirement with gain/loss

– Gain/loss handled on liabilities side

– Gain handled on liabilities side

For more information, see Posting Gain/Loss.

When you retire a group asset, the system does not calculate proportional value adjustments in exactly the same way as for the retirement of a single asset. The calculation is to some extent less exact because it can be based on overall figures. As a result, there can be small differences between individual assets and the group asset.

You can specify for intracompany transfers whether you want to transfer APC only, or also accumulated depreciation. You make this specification in the transaction type definition for each depreciation area. In this way, it is possible to transfer only APC (without depreciation) when making a transfer within a group asset.

Transfers between assets from different group assets are only possible if the assets were acquired in the same fiscal year. In addition, the same restrictions apply to these transfers as to transfers between assets that do not belong to a group asset.

When transferring acquisitions from prior years between group assets, make sure that you use a transaction type for the acquisition that allows the takeover of the historical depreciation start date (FI-AA Customizing: Indicator in the definition of the transaction type).

Write-ups and manual depreciation have to be posted directly to group assets, just as automatically calculated value adjustments do.

Reports

The FI-AA standard reports identify group assets. The assets that belong to a group asset are not shown at first. In this way, double reporting is avoided. Using the function Break down grp. asset in the list display of the report, it is possible to see the assets that make up a group asset.

Required System Settings

If you choose to use group assets, make the following settings in the system:

If you have carried out a release upgrade from Release 2.1 or 2.2 and want to use the functions of group assets, you first have to execute report RAXPRA04 (transaction SE38).