Asset Master Data Upload | SAP FICO | Financial Modules | The Financial Statement Closing Tcodes | LSMW

1. If the change of the field can be put into an algorithm (e.g., enter XYZ as a super number for all assets in class 1234), you can use a mass change rule. You first define the mass change rule in the same way as you would define an asset substitution (IF something, THEN something else), then you go into the mass change transaction, select the right assets, the proper change rule ... and hit Execute.

2. Very often, it is easier to prepare the data in Excel and use transaction AS02 for the upload. Here, I can recommend transaction LSMW - you simulate (and record) the AS02 transaction on one fixed asset master, then follow all the steps proposed by the system (define fixed values, variables, etc.) and finally upload the Excel (.csv). System will automatically generate a batch input for all assets. It may take some time for you if you do it for the first time, but it is the best way if you would otherwise need to define complex algorithms.

So - use option 1 if you have a simple algorithm for many assets, and option 2 if "each case is different" or if you feel more comfortable in Excel than ABAP. Option 2 is simple, but of course takes some time to generate the upload and then run the batch sessions (while option 1 changes everything instantly in a matter of seconds).

Here are the details:

I. To use mass change:

1. First, define a mass change rule in transaction OA02 (Accounting - Financial accounting - Fixed assets - Environment - Mass change rule). For each company code, you can define one rule (or a sequence of them). However, all of them will always be executed at the same time. Therefore, if you need to define different rules for different assets, you will have to do this repeatedly. Technically, this is done in the same way as AA substititution.

2. Once the rule is defined, you need to select assets for mass change. Go to transaction AR01 (Accounting - Financial accounting - Fixed assets - Environment - Worklist - Generate). Enter selection criteria like on any standard AA report, and run Execute. I cannot simulate this now on my system (we do not have AA), but it should ask what you want to do (mass change, mass retirement, etc.) and ask for a name of the worklist (write anything - e.g., Super number change). The system will show you a list of selected assets in a report format. Check it and make sure that it is correct. You may add or remove single assets from this (now cannot tell you how, but it is possible). If you are happy with the list, save it.

3. The last step is execution of the change. Go to transaction AR31 (same path as above), execute the report and if you are happy with the list (same as in step 2), press Save. System will show you a log of change (what went through, which errors occured). You are done.

II. LSMW
LSMW is a transaction, which will let you mass upload almost any other transaction (FB01, FD01, AS91, etc.). You do it in the following way:
1. Enter into transaction LSMW (no menu path), possibly in a development / test system
2. First, define a project, subproject and object (relatively formal task).
3. On the horizontal menu, go to Goto -> Recordings. Click on "Create recording".
4. Enter the name and description of recording (freely definable).
5. I cannot simulate this now in my system, but SAP will ask you about transaction code (AS02) and will take you into the AS02 transaction. In this step, do the change manually. Make sure you "touch" (change / write something) in all fields which you want to update.
6. Once you are done, save the recording and return on the start page of LSMW. Click "Execute".
7. You will see a list of tasks. Do them one by one. They should be relatively simple (and I cannot help you with them). Important is step 3 (maintain source fields) - here you define the columns of your excel (csv) file in the particular order. In step 5 (field mapping and conversion rule), you assign file columns to SAP fields (note that you will see only those fields which you "touched" during recording). You need to go through all the steps. In the end, you get (and run) a batch session.
8. If you did this in a development system, transport the LSMW object (menu Extras - Export project, Extras - Import project). You have to do it via file, not via standard transports of configuration (it is perhaps more simple).

Make sure you test it first in development or quality system!

Fiscal Year Variant

Assuming that you are newly implemention with go live date of Sept 1st 2006 and Fiscal year January - December, what will be the best way?
Would it be better to define a Shortened Fiscal year for Sept-Dec 2006 and then regular Fiscal years OR Define a full Fiscal year for the entire 2006 and future FYs

Normally, the best way is to keep it simple and leave the first year "normal" (12 + 4 months starting January). You convert old data as of August 31 (unless the client requests opening balance as of December 31, 2005 and then monthly movements - I have experienced both options) and then start normal bookings in month 9 on September 1.

We never tried shortened fiscal year in this context and it is surely not needed here. It just adds complexity.

If we create the normal Jan-Dec Fiscal Year for 2006 also, how will we handle the assets when we go live in Oct 2006? Do we load the book value at that time or we load the book value for January 2006 and depreciate in the system for January to September

The ordinary way is to load fixed assets which exist on September 30 (if you go live with AA module on October 1) with trans. AS91.
- First, you need to set in configuration that the last closed fiscal year for legacy data upload is 31.12.2005 and the last period for depreciation will be 9/2006. (Do it in IMG: Financial accounting - Asset accounting - Asset data transfer - Parameters for data transfer - Date specifications)

Within trans. AS91, you enter the following values:
- acquisition value and accummulated depreciation as of 01 January 2006
- all asset movements (acquisitions, retirements, but not ordinary depreciations) between January 1 and September 30 with their respective dates
- already posted depreciation in 2006 until September 30

Then you enter GL movements per month (either you temporarily change the asset reconciliation accounts for direct booking with trans. OAMK, then book with FB01 and finally reset with OAK5, or you book there directly with trans. OASV). This way, your asset accounts (acquisition value and accummulated depreciation) are the same as asset module as of September 30.

You can also let the system recalculate the depreciation from the beginning of the year, but then you may end up with a different value as of September 30 than your legacy system calculated. So, I would not recommend it unless there is no reliable source data. 

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Process Fixed Asset Depreciation | Forecast | Financial Modules | FICO SAP

Every asset transaction immediately causes a change of the forecasted depreciation. However, it does not immediately cause an update of the depreciation and value adjustment accounts for the balance sheet and profit and loss statements. The planned depreciation is posted to the general ledger when you run the periodic depreciation posting run. This posting run uses a batch input session to post the planned depreciation for each posting level for each individual asset as a lump sum amount.

The calculation and scheduling of depreciation, interest and revaluation are automatically controlled by keys in the system, or you can control them manually using a special posting transaction. In both cases, planned depreciation from Asset Accounting must be periodically posted to the corresponding asset and expense accounts of the general ledger. You carry out this posting using a batch input session. In addition to the various depreciation types, interest and revaluation, this batch input session also posts the allocation and writing off of special reserves.

When the system posts depreciation, it creates collective documents. It does not create separate documents for each asset.

Depreciation Posting Run is done via transaction code 'AFAB'.

The program creates batch input sessions for posting depreciation and interest to the G/L accounts in Financial Accounting and/or to Controlling.

Fields Description :-

Company code  : Your Company Code

Fiscal Year   : Your fiscal year

Posting period : Your depreciation period

Reason for posting run (choose one)

Planned posting run  : X (default)

List assets : (tick if you want to see the detail)

Test run : (tick if you run in test mode else untick for production run)

Main asset number : (you can specify certain asset number if you click repeat run or test run)

Note :
Click the execute button if this is a test run.
Click the menu bar -> Program -> Execute in background if this is a production run.

You should get this message :
Background job was scheduled for program RABUCH00 and print out the output.

Release and Process the Batch Input Session in transaction code 'SM35'.

Process Session RABUCH00
X - Display errors only
Additional functions
X - Dynpro standard size

Click the Process button

If there is error, the system will pop up the error message.

Correct the error and recreate the session in transaction 'AFBD'.

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Difference Between Primary and Secondary Cost Element | Travel Expense | Booking | Examples | Operational Costs

Explain the difference between primary and secondary cost element? With an example.

Primary cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow...

Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO. These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...

General - Cost Element
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Basically, cost element are carriers of costs.

Primary Cost Element
--------------------------------
When cost element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Cost element(Primary). A question may arise as to whether all GL accounts are cost element, it again depends upon the business requirement, where COPA is active then revenue account (GL) are also cost elements, where COPA is not active then revenue account (GL) should not be made as an cost element.

Example....
Again cost of goods sold particularly in VAX (make to stock) is not an cost element, where the same COGS in VAY (make to order) is a cost element. Price Difference account should not be made as cost element.

Entry while booking expenses
Travel Expenses A/c - with Cost Centre Dr. Rs.YY
(will be a GL A/c and cost element) - entries flows to CO thru FI
To Cash A/c Cr. Rs.YY

Secondary Cost Element
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When cost element carries cost with in CO, then they are called secondary cost element.

Example.... - Take Product Costing
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On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any.

The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries.

Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order).

In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be

Operational Cost - Activity (Production Order) Dr Rs.XX
To Operational Cost - Activity (Cost Centre) Cr Rs.XX
The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly.

In CO the production order and cost centre are co object including but not limited to.

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Requires an Assignment to a CO Object | Diagnosis |

The first time Account 820290 was only created in FI as a primary expense. After that this account was created in CO too as a secondary expense and any posting will appear an error: Account 820290 requires an assignment to a CO object

Question : How to correct this account back to FI only and not to appear in co?

Note :
Account 820290 requires an assignment to a CO object
Message no. KI 235

Diagnosis
You have not defined a CO account assignment for an account that is relevant to cost accounting.

System Response
Account 820290 is defined as a cost element.
This means that you must always specify a CO account assignment.

Procedure
Enter one of the following CO account assignments

Order
Cost center / cost center/ activity type
Sales order item (for a project or cost relevant)
Project / WBS element
Cost object (Process manufacturing)
Network/ Network activities
Business process
Profitability segment
Real estate object
The posting row affected is 000, account 820290.


First, if G/L account was created in FI, you can only create primary cost element in CO.

Secondary cost element can only be created if no account exists in FI.

Second, if you created the primary or secondary cost element in CO, you have to assign CO account assignment.

You can delete cost element in CO (KO04) if dependent objects found.

Third, when you create cost element in CO, documents would be also created in ‘Cost center accounting’ and ‘Profit center accounting’ when posing in FI. If no cost element exists in CO, no related documents would be created in CCA and PCA.

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Difference between Cost Centers and Internal Orders

A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center).

An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline.

Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup.

An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers.

When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.

It is important to understand the difference between a settlement and an assessment cycle. An assessment cycle distributes costs from one cost center to various other cost centers. You cannot assess from a cost center to an internal order nor visa versa. Assessment cycles are only between cost centers.

Settlements are used for orders. In the setup of each order is a "settlement rule". In this settlement rule you tell the system to which cost centers the cost in the order must be settled.
Typically, you will execute the following procedure at month-ends:
1. Settle all orders - this will settle all costs on orders to cost centers.
2. Run assessment cycles - Now that you have al costs against cost centers from your orders, you can start distributing costs between cost centers with assessments.

Costs are posted to an order. When you process a purchase order you post to the internal order and not to a cost center. The same applies to journals in FI. You will post the costs to the order and not to a cost center. You will then settle the order on month-ends to post to the relevant cost centers. It is very important to settle these orders otherwise FI and CO will not
balance on your system.

Internal orders can also be used as "statistical" orders. This is also specified in the setup of the order. You do not have to settle statistical orders. When posting costs, you will post to the cost center and the order simultaneously. Both have to be specified when posting journals or purchase orders against statistical orders.

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Inventory Accounting Entries

Inventory Accounting Entries
For Example: during Goods Receipt

Stock Account - Dr
G/R I/R Account - Cr
Freight Clearing account - Cr
Other expenses payable - Cr

During Invoice Verification

G/R I/R Account - Dr
Vendor - Cr

When the Goods are issued to the Production Order the following transactions takes place:

Consumption of Raw Materials - Dr
Stock A/c - Cr

When the Goods are received from the Production Order the following transactions takes place:

Inventory A/c - Dr
Cost of Goods Produced - Cr
Price difference - Dr/Cr
(depending on the difference between standard cost and actual cost)

When the Goods are dispatched to customer through delivery the following transactions takes place:

Cost of Goods Sold - Dr
Inventory A/c - Cr

When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place:

Repairs and Maintenance - Dr
Inventory A/c - Cr

When the Goods are stock transferred from one plant to another, the following transactions takes place:

Stock A/c - Dr (Receiving location)
Stock A/c - Cr (Sending location)
Price difference - Dr/Cr
(due to any difference between the standard costs between the two locations)

When the stocks are revalued, the following transactions takes place:

Stock A/c - Dr/Cr
Inventory Revaluation A/c - Cr / Dr

When the Work in Progress is calculated the following transaction takes place:

Work in Progress A/c - Dr
Change WIP A/c - Cr

Physical verification /shortages and excesses : Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.

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