Asset Accounting with SAP S/4HANA

Stoil Jotev

• Publisher: SAP PRESS
• Year: 2020
• Print ISBN: 9781493219407
• eBook ISBN: 9781493219414
• Edition: 1
• Topic: Computer Science
• Subtopic: Computer Science General
• Index: Computer Science

Asset accounting setup is mandatory in SAP S/4HANA—so get the details you need to get it up and running! Walk through the configuration that underpins all of asset accounting, starting with organizational structures and master data. From there, master key tasks for asset acquisition and retirement, depreciation, year-end close, reporting, and more. Finally, see how to migrate your legacy asset data from SAP ERP to SAP S/4HANA. Covering both SAP GUI and SAP Fiori, this guide has it all!

1 Organizational Structures

This chapter explains how to organize your fixed asset structures in an SAP S/4HANA system. We’ll explain the main organizational objects relevant to financial accounting, and relevant to fixed assets specifically, and show you how these objects are integrated. Using best practice examples, we’ll teach you how to define the optimal structure for your organization.

Asset accounting is tightly integrated with the other process areas in financial accounting and is based on the financial accounting organizational structure. On top of the financial accounting organizational structure, asset accounting adds several unique organizational structures such as the chart of depreciation, depreciation areas, and asset classes.

Properly setting up your organizational structure is the core foundation for asset accounting in SAP S/4HANA and a prerequisite for correctly representing your assets in your business processes. Therefore, in this chapter, we’ll explain in detail the configuration steps for setting up the organizational structure and share best practices to guide you through fulfilling the business needs of your organization.

We’ll start by defining company codes, which represent the legal entities of your organization being represented in the system. A company code is the main organizational object in financial accounting.

Then, we’ll set up a chart of depreciation, which defines the valuation for your fixed assets. You’ll learn best practices in setting up charts of depreciation relative to company codes and the legal structure of your organization.

Later in this chapter, we’ll configure depreciation areas for a chart of depreciation. Depreciation areas define various valuation principles under which fixed assets must be valuated.

We’ll conclude this chapter with a definition of asset classes, which classify assets into groups. You’ll learn best practices in structuring asset classes based on your business requirements.

1.1 Company Codes

A company code is the main organizational unit in financial accounting. All business transactions that post in financial accounting are posted with a company code. In this section, we’ll teach you how a company code fits into the overall organizational structure of SAP S/4HANA. Then, you’ll learn how to define and configure new company codes.

1.1.1 Company Codes in the Organizational Structure

In most cases, a company code is used to represent a legally independent unit within an organization. But sometimes a company code could represent a dependent commercial entity. For example, a company code could be used for an office in foreign country that is not set up as a legal entity in that country. However, this office fulfills its reporting needs in the local currency and according to local accounting and tax frameworks.

The company code is the organizational object for which the full set of financial statements are produced to satisfy both the external reporting requirements and internal reporting requirements. Therefore, defining your company codes carefully so they correctly represent the legal structure of your organization is important.

In this book, we’ll use example...

Table of contents

• Dear Reader
• Notes on Usage
• Table of Contents
•   Preface
•   Introduction
• 1   Organizational Structures
• 2   Master Data
• 3   Asset Valuation
• 4   Business Transactions
• 5   Periodic Processing
• 6   Asset Reporting
• 7   Migrating Asset Data
• A   Obsolete and New Transaction Codes and Tables in SAP S/4HANA
• B   The Author
• Index
• Service Pages
• Legal Notes