Depreciation is a month end process. Every month end, depreciation run is executed which performs depreciation of fixed asset and corresponding accounting document for depreciation is posted.
What parameters need to be maintained for depreciation calculation?
For calculation of depreciation amount, system needs
— Portion of APC (Acquisition & Production cost) which is yet to be depreciated
— Useful life
— Depreciation key
Now let’s understand what steps need to be executed to post depreciation in sap.
Depreciation run is executed using T code: AFAB
Planned depreciation:
Every month end, planned depreciation is posted.
Planned depreciation cannot be executed for specific asset. Planned depreciation run is always carried out for all the asset of the company code. If a single asset has error then planned depreciation will fail leading and no asset will get depreciated.
Next month depreciation cannot be executed until & unless depreciation for all previous periods is complete.
Repeat depreciation:
When depreciation is executed successfully but some asset transactions were posted after depreciation run. Since these asset transactions were posted after depreciation run hence these transactions were not included in depreciation amount calculation.
It often happens that depreciation was executed on last day of month but user posted some asset transaction after depreciation run. Hence depreciation already posted for the period needs to be corrected.
In order to post delta depreciation (depreciation to be posted – depreciation which were already posted), depreciation run is executed in repeat mode.
Restart depreciation:
If depreciation is not complete due to some reason like power failure, depreciation program forcefully stopped system crash etc. Then deprecation run can be executed in restart mode so that depreciation can be completed successfully.
Unplanned depreciation:
In case of occurrence of some unforeseen or unplanned event with an asset, unplanned depreciation needs to be posted to the particular asset. To handle such situations, sap has the functionality to post unplanned depreciation to specific asset.
Unplanned depreciation is posted to specific asset using T code: ABAA
But using ABAA will not generate any financial accounting document. Accounting document will get generated after month end depreciation run is performed.
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
- Document date vs Posting date vs Entry date vs Translation date. Explain
- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
- Everything about currency & exchange rate in sap.
- Foreign currency valuation in sap. Explain with example
- Retained earnings account helps in year end balance carry forward. Explain
- What is the significance of tolerance groups in sap?
- What parameters are maintained in GL master and how does it impact in document posting?
ACCOUNTS PAYABLE
- What is meant by accounts payable in sap?
- Understanding procure to pay (PTP) cycle and accounting document at each step.
- Understanding MM FI integration in very simple terms.
- Purchase order price determination in SAP. Explained in very simple words.
- House bank, Bank key, Account ID in SAP
- What configuration (FBZP) needed for executing F110 in sap ?
ACCOUNTS RECEIVABLE
- How sap overcomes challenges in accounts receivable process?
- What is customer reconciliation account?
- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
- What is lock box? How lockbox helps in collection from customers?
TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING