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Function documentationIntegration

 

The integration of Asset Accounting with other Financial Accounting application components provides you with the following functions in Asset Accounting:

  • You can post asset acquisitions and retirements that are integrated with Accounts Payable and Accounts Receivable.

  • You can make account assignment of down payments to assets when you post down payments in Financial Accounting.

  • You can post depreciation from Asset Accounting to the appropriate general ledger accounts.

You can also make account assignment to fixed assets from the following application components for the business transactions listed below:

Features

Materials Management
Purchase Requisition - Outline Agreement - Purchase Order (MM)

If you post to an asset when entering a purchase requisition or an outline agreement, the system checks, with reference to the planned delivery date, whether the fixed asset actually exists and whether you can post to it. The same checks are carried out if you post to a fixed asset when entering a purchase order. Moreover, the system ensures that you do not exceed the upper limit for low-value assets. You can still change the asset, for which account assignment is to be performed, until receipt of the first goods or invoice for a purchase order.

Note Note

If you want to make account assignment to assets when creating purchase orders, purchase requisitions and outline agreements, the account entered in Financial Accounting for acquisition and production costs must be assigned to a field status group that allows entries in the field groups Asset Number/Subnumber, Transaction Type, and Quantity/Material Number.

End of the note.
Goods Receipt (MM)

Depending on the purchase order, you can post the goods receipt for a purchase order as valuated or non-valuated. When the goods receipt is valuated, the system capitalizes the invoiced value of the goods (based on the purchase order) to the fixed asset. Non-valuated goods receipt is posted against a clearing account.

Note Note

In commercial law, the start-up date of a fixed asset normally determines the start of capitalization. The start-up takes place, for the majority of fixed assets, directly after the physical goods receipt. In most cases, therefore, you should post valuated goods receipts.

End of the note.
Invoice Receipt (MM)

It makes a difference whether invoice receipt takes place before or after goods receipt.

  • If the invoice receipt is first, the invoice amount (minus taxes and, if applicable, cash discount) is capitalized to the asset.

  • If the invoice receipt is second, the difference between the invoice amount (without tax and cash discount) and the posted invoiced value of goods is capitalized, providing the goods receipt was valuated. For invoice receipt after a non-valuated goods receipt, the total invoice amount (minus tax and cash discount) is capitalized.

You determine whether cash discount should already be deducted at the invoice receipt by means of the document type you select.

Material Reservation - Material Withdrawal (MM)

If you have account assignment to an asset while making a material reservation, the system checks whether the asset actually exists. Material withdrawal with account assignment to an asset results in capitalization of the purchase or production costs of the material to the fixed asset. When creating a material withdrawal document, you can refer to a material reservation, if there is one.

Maintenance
Settlement of Maintenance Orders (PM/PP)

You can enter fixed assets as the receivers for the settlement of maintenance orders. In this way, you can settle maintenance activities that require capitalization to assets. The system proposes the asset that is assigned to the given equipment or functional location as the settlement receiver.

In addition to maintenance orders, you can settle internal orders to fixed assets.

Note Note

For more information, see Settlement of Investment Measures.

End of the note.
Primary Cost Planning (CO-OM-CCA)

You can determine planned depreciation and interest on a periodic basis for primary cost planning related to cost centers. Using a special report, you can transfer this depreciation and interest to primary cost planning in the Controlling (CO) component.

Note Note

For more information, see Primary Cost Planning.

End of the note.