Additional Account Assignment 

Use

If you use Asset Accounting integrated with Controlling (CO) or General Ledger Accounting (FI-GL), the following additional account assignments are possible, depending on the business transaction to be posted:

·        Business area

·        Cost Center/Internal Order

·        Real estate object

·        WBS element

·        Profit center/segment

·        Funds center/financial budget item (see Budget Monitoring Using Statistical Orders or WBS Elements)

¡        For more information on account assignment objects in Fund Accounting, see Fund Accounting.

¡        For information on functional areas, see Cost-of-Sales Accounting.

Features

Business Area

All changes to APC can also be automatically posted at the business area level. There is one prerequisite, however. The company code has to be set up to create business area balance sheets. The system then determines the business area that is to be posted for each posting. The system makes this determination based on the business area entered in the asset master record, and transfers this information to Financial Accounting for the automatic posting.

Cost Center/Internal Order

You can make account assignment of the following business transactions (postings to G/L accounts) to the cost center entered in the asset master record or to the internal order entered in the asset master record:

·        Loss due to scrapping

·        Gain/loss due to asset retirements

·        Clearing/expense from repayment of an investment support measure (as a result of asset retirement)

·        Revenue from post-capitalization

·        Revenue from write-ups (all depreciation types)

·        Changes to APC can also be updated statistically.

For an overview of the account assignment of revenue/expense from certain Asset Accounting business transactions to CO objects, see Graphic: Account Assignment to CO.

The prerequisites for this additional account assignment to CO are:

·        A cost center or internal order has to be entered in the asset master data of the asset (in the section for time-dependent data).

·        The field status variant of the company code/asset accounts has to allow account assignment to cost center/internal order as an optional entry. (In Customizing for Financial Accounting (New), choose Financial Accounting Basic Settings (New) → Ledgers → Fields → Define Field Status Variants.)

·        In Customizing for Asset Accountingfor account assignment, you have to allow the update of the account assignment object. It is possible to make this setting per company code, depreciation area, transaction type and type of posting (APC or depreciation).

·        The G/L account has to have been set up as a cost element in CO.

If you enter additional account assignment for both an order and a cost center at the same time (expecting account assignment to both), the order takes precedence. There is no account assignment to the cost center. However, the order does not take precedence if it is a statistical order. If the order is statistical, then account assignment to both the statistical order and the cost center is possible.

Profit Center/Segment

When Profit Center Accounting is also active, the system also makes additional account assignment of the above business transactions to profit centers. The system determines the profit center to be posted by means of the cost center, the order or the real estate object specified in the asset master record. Further prerequisites for account assignment to a profit center are:

·        The field status variant of the reconciliation accounts in Financial Accounting has to allow for additional account assignment to profit centers. In Customizing for Financial Accounting (New), choose Financial Accounting Basic Settings (New) → Ledgers → Fields → Define Field Status Variants.

·        The profit center is derived from other account assignment objects. Therefore, the field status of these objects is not allowed to be suppressed.

·        The profit center can only be derived from objects to which account assignment is also made. You make settings for this in Customizing of additional account assignment. In Customizing for Asset Accounting, choose Integration with the General Ledger ®  Additional Account Assignment Objects. Here you can make differing settings, particularly for each different depreciation area and different account assignment types (such as APC, depreciation).

·        The account assignment object, from which the profit center is to be derived, has to be assigned itself to a profit center.

When posting depreciation, you want the profit center, derived from the cost center, to also be posted in depreciation area 01. However, you do not want account assignment to the cost center itself.

For this to be able to happen: The field status of the account involved cannot be suppressed (hidden) for additional account assignment to profit center and cost center. In addition, depreciation area 01 has to allow account assignment of depreciation to cost centers for the transaction type that is used.

·        If the profit center is derived, then you can in turn derive a segment from it. You can also derive the segment, based on your specific requirements, from all existing CO objects using a BAdI.

Account Assignment of Depreciation and Interest

Depreciation and interest can be posted to all CO objects listed above. The depreciation posting program makes account assignment to the account assignment objects that are entered in the asset master record.

You make settings for the additional account assignment objects in Customizing by depreciation area. In Customizing for Asset Accounting, choose Integration with the General Ledger ®  Additional Account Assignment Objects.

You can also post depreciation and interest to cost centers if you are using cost accounting that applies across company codes. This means that the company code of the asset does not necessarily have to be the same as the company code of the cost center (see Assignment to Cost Center).

Distribution of Depreciation and Interest

It is only possible to enter one cost center in the asset master record. You distribute depreciation and interest to different cost centers using settlement within Controlling (CO). The cost center in the asset master record then serves the function of a distribution cost center.

The disadvantage of this approach is that reports show only the distribution cost center, and not the cost centers that are actually debited. Also, you need to create a separate cost center for the distribution. A different approach is to follow this procedure:

·        Determine the cost center that you want to be shown in asset reports as the cost center of the asset. Enter this cost center in the asset master record.

·        Enter an internal order in the asset master record. The system then posts to this order when it posts depreciation. The system does not post to the cost center.

·        Settle the internal order to the cost centers that you want to debit.

Account Assignment to Activity Type

It is possible to enter an activity type in the asset master record along with the cost center. When an activity type is entered, all debits that have account assignment to the cost center are also posted automatically to the activity type as well. The only prerequisite is that you set up Customizing for Controlling so that account assignment of actual postings is made to activity types.