SAP FICO Interview Questions and Answers - 12

251. Is it Possible to Create ‘Asset Classes’ Automatically?

One of the benefits of lean implementation configuration is the ability to create asset classes

automatically from the asset GL accounts. This tool selects only necessary system settings so

that the asset classes are created automatically in a very short time. During the process of

creation, the system allows you to delete all the existing objects (i.e., asset classes, number

ranges, account allocations, field selections, etc.) before creating the new ones.

The prerequisites for automatic asset class creation include:

􀂃 Company Code must be assigned to a chart of depreciation

􀂃 Depreciation areas have already been defined

􀂃 GL account number is not more than 8 digits (otherwise you need to assign the classes

manually)

Also note that you may need to maintain the GL account for ‘accumulated depreciation’ manually.

The system maintains the necessary account assignment only with regard to the depreciation

area 01 (book depreciation). If you need more areas, you may need to do that manually in the

IMG.

252. What is an ‘Asset Value Date’?

The ‘Asset Value Date’ is the start date of depreciation for the asset. The ‘planned depreciation’

is calculated by the system based on this depreciation start date and the selected ‘depreciation

term’ for that asset. Be careful with the posting date and asset value date. Both dates need to be

in the same fiscal year.

253. What is an ‘Asset Master’?

An ‘Asset Master’ can be created by copying an existing asset in the same Company Code or

another Company Code; it can also be created from scratch when it is done for the first time.

Again, while creating the master, SAP allows you to create multiple assets in one step, provided

all such assets are similar (having the same asset class and all belonging to the same Company

Code).

From Release 4.5, the transaction codes for creating an asset master have been changed to the

AS series instead of the earlier AT series (for example, create asset is code AS01 (AT01 before),

change asset is AS02 (AT02 before), and so on. If you are more comfortable with the creation of

assets using the conventional screen than with the ‘tab’ feature available now in the AS

transaction series, you can do so, but you cannot find these transactions under ‘ASMN’!

Each asset master contains the necessary information to calculate the depreciation:

􀂃 Capitalization date/acquisition period

􀂃 Depreciation areas relevant for the asset

􀂃 Depreciation key

􀂃 Useful life/expired useful life

􀂃 Change over year, if any

􀂃 Scrap value, if any

􀂃 Start date of (ordinary depreciation)

254. Explain the Two Ways used to Create ‘Asset Masters.’

􀂃 Copy an existing asset as a reference for creating the new one.

􀂃 From an existing asset class create a new asset so that this asset class provides the

default control parameters for the new asset.

255. Is it Possible to Create Multiple Assets in a Single Transaction?

SAP enables you to create multiple (but similar) assets in one transaction. What you need to

know is that all these assets should belong to the same asset class and the same Company

Code. Enter the number of assets you need to create in the ‘Number of similar assets’ field.

After creating the assets, you will be able to change the individual descriptions/inventory numbers

when you are about to save the master records. When you save the master records, the system

assigns a range of asset numbers.

Figure 62: Create multiple assets

T Code AS01

The only drawback of using this method of creating assets in bulk is that you will not be able to

create long text for any of these assets.

256. What is the ‘Time-dependent Data’ in an Asset Master?

All the cost accounting assignment-related data such as cost center, internal orders or investment

projects, etc., need to be maintained as ‘Time-dependent Data’ in asset masters. Additionally,

the information related to asset shut-down and shift operation also needs to be maintained as

time dependent. SAP maintains all the time-dependent data for the entire life span of the assets.

257. Explain ‘Asset Acquisition.’

‘Asset Acquisition’ can be through any one of the following three routes:

1. External Acquisition through Purchase

External acquisition of assets will be primarily from vendors, who are either your business

partners or third parties. It can also be from your affiliated companies (use Transaction

Code: ABZP). The external asset acquisition can be done several ways:

i. The asset can be posted in the MM module.

ii. The asset can be created in FI-AA with automatic clearing of the offsetting entry

(Transaction Code: ABZON). This can be achieved either of the following ways:

a. The posting is made initially in FI-AP and the clearing account cleared

when the posting is made to the asset (FI-AA).

b. Post the asset with the automatic offsetting entry (FI-AA) and then clear

the clearing account through a credit posting by an incoming invoice (FI-AP).

iii. When not integrated with FI-AP, you may acquire the asset in FI-AA with an

automatic offsetting entry without referencing a Purchase Requisition (PR). This

kind of acquisition is necessary when:

c. You have not yet received the invoice or

d. When the invoice has already been posted in FI-AP

iv. When integrated with FI-AP, acquire the asset in FI-AA using an incoming

invoice but without a reference to a Purchase Order (PO).

2. In-house Production/Acquisition

In-house Asset Acquisition is primarily the capitalization of goods/services produced by

your company. The costs associated with the complete or partial production of the

goods/services from within the company needs to be capitalized into separate asset(s).

Usually, the capitalization is done as follows:

i. Create an order/project (in Investment Management) to capture the production

costs associated with the goods/services produced in-house.

ii. Settle the order/project to an AuC (Asst under Construction).

iii. Distribute/Settle the AuC so created into new asset(s). You will be using the

Transaction Type 110 for asset acquisition from in-house production.

3. Subsequent Acquisition

When the asset/vendor accounts are posted, the system updates the corresponding GL

accounts (FI-AP and FI-AA) through relevant account determinations. SAP uses various

kinds of ‘transaction types’ to distinguish the different transactions. During acquisition the

system makes the following entries in the asset master data:

􀂃 Date of initial acquisition/period and year of acquisition.

􀂃 Capitalization date of the asset.

􀂃 Start date for ordinary depreciation (the start date is determined from the asset

value date/period/year of acquisition).

􀂃 Vendor is automatically entered in the ‘origin.’

258. What are Automatically Set in the Asset Masters During ‘Initial

Acquisition’?

􀂃 Date of capitalization

􀂃 Acquisition period

􀂃 Posting date of original acquisition

􀂃 Depreciation start date (per depreciation area)

259. Why it is Necessary to ‘Block’ an Asset Master Record?

In case you decide that you do not want to post any more acquisitions to an existing asset, then it

is necessary for you to set the Block Indicator in the asset master record. This is usually the

case with AuC, where after the capitalization you no longer want any further additions to the asset.

The block indicator prevents only further postings but not transfers or retirements or depreciation;

even after an asset is blocked, you can continue to depreciate it as in the case of other assets.

260. How do you ‘Delete’ an Asset Master?

You can ‘Delete an Asset Master’ record from the system only when there are no transactions

posted to it. The system will not allow you to delete the master record if there are transactions

against the asset, even if you reverse all the previous transactions pertaining to the asset and

bring down the asset value to zero. However, unlike FI-AR, FI-AP, or FI-GL where archiving is a

prerequisite to delete the master records, you may delete the asset master records without

archiving. When deleted, the system also deletes the asset number.

261. What is an ‘(Asset) Transaction Type’ in FI-AA?

‘Transaction Types’ in FI-AA identify the nature of an asset transaction (acquisition or transfer or

retirement) to specify what is updated, among (a) Depreciation area, (b) Value field, and (c) Asset

accounts (in B/S).

Figure 63: (Asset) Transaction types

The following are some of the common transaction types used:

􀂃 100 Asset Acquisition—Purchase

􀂃 110 Asset Acquisition—In-house Production

􀂃 200 Asset Retirement—Without revenue

􀂃 210 Asset Retirement—With revenue

The transaction type is extensively used in most asset reports, including the asset history sheet,

to display the various asset transactions differentiated by the transaction types. SAP comes with

numerous transaction types, which will take care of almost all your requirements. However,

should there be a specific case, you may also create your own transaction type.

Every transaction type is grouped into a Transaction Type Group (for example, 10 ->

Acquisition), which characterizes the various transaction types (for example, transaction types

100 and 110) within that group. The system makes it possible to limit the transaction type groups

that are associated with certain asset classes.

262. Explain ‘Assets under Construction’ (AuC) in SAP.

The goods and/or services produced, in-house, can be capitalized into asset(s). But, there are

two distinct phases during this process:

1. Construction phase (AuC)

2. Utilization phase (useful or economic life phase)

It then becomes necessary to show the assets under these two phases in two different balance

sheet items:

The ‘construction phase’ is one in which you start producing or assembling the asset but it is not

yet ready for economic utilization. SAP categorizes these kinds of assets into a special asset

class called ‘Assets under Construction’ (AuC).

The AuC is managed through a separate asset class with a separate asset GL account. SAP

allows posting ‘down payments’ to AuC. It is also possible to enter credit memos for AuC even

after its complete capitalization, provided you are managing this asset class and allowing

negative APC (Acquisition and Production Costs). The IM (Investment Management) module

helps to manage internal orders/projects for AuC. It is necessary to use the depreciation key

‘0000’ to ensure that you are not calculating any depreciation for AuC. But you can continue to

have special tax depreciation and investment support even on these assets.

263. How do You Capitalize AuC in SAP?

An ‘Asset under Construction’ can be managed in two ways as far as the asset master is

concerned:

􀂃 As a ‘normal’ asset.

􀂃 As an asset with ‘line item management.’

Later on, the AuC is capitalized and transferred to regular asset(s) by ‘distribution’/‘settlement.’

While doing so, the system, with the help of different transaction types, segregates the

transactions relating to the current year with that of the previous years. The capitalization can be:

1. Lump sum capitalization.

2. With line item settlement (when capitalized using line item settlement, it is not necessary

to settle all the line items and 100% in a particular line item).

In the case of integration with SAP-IM (Investment Management), capital investments can be

managed as an AuC by:

􀂃 Collecting the production costs associated with an order/project.

􀂃 Settling the collected costs to an AuC.

􀂃 Capitalizing the AuC into new assets by distribution/settlement.

T Code AIAB , AIBU

264. What do You mean by ‘Low Value Assets’?

SAP uses the term ‘Low Value Assets’ to denote assets that will be depreciated in the year of

purchase or in the period of acquisition. This categorization usually follows the statutory

requirements of the country of the Company Code, wherein you define a monetary limit and

consider all those assets falling below the value, say $1,000, as low value assets. You have the

flexibility of managing these assets either on an individual (individual check) basis or a collective

basis (quantity check).

SAP uses a special depreciation key called LVA, and the expected useful life of such an asset is

considered to be one period (month).

265. Explain ‘Asset Transfer’ in SAP.

There are two types of ‘Asset Transfers,’ namely:

1. Inter-company asset transfer

2. Intra-company asset transfer

Inter-company Asset Transfer is between Company Codes, resulting in the creation of the new

asset in the target Company Code (the receiving one). The transaction posts the values per the

‘posting method’ selected during the transfer. In doing so the system:

􀂃 Retires the asset in the source/sending Company Code by asset retirement.

􀂃 Posts acquisition in the new/target Company Code by asset acquisition, and creates the

new asset in the target Company Code.

􀂃 Posts inter-company profit/loss arising from the transfer.

􀂃 Updates FI-GL automatically.

An inter-company asset transfer is usually necessitated when there is a need for physically

changing the location from one company to the other or there is an organization restructuring and

the new asset is to be attached to the new Company Code. You may use the standard Transfer

Variants supplied by SAP. The selection of a suitable transfer variant will be based on the legal

relationship among the Company Codes and the methods chosen for transferring the asset

values.

Inter-company asset transfers can be handled:

􀂃 Individually using the normal transaction for a single asset.

􀂃 For a number of assets using the ‘mass transfer.’

If you need to transfer assets cross-system, you need to use ALE functionality.

Intra-company Asset Transfer is the transfer of an asset within the same Company Code. This

would be necessitated by:

􀂃 Change in the asset class or business area, etc.

􀂃 Settlement of an AuC to a new asset.

􀂃 Transfer of stock materials into an asset (by posting a GI to an order through MM or

settlement of a production order to an asset).

􀂃 Splitting an existing asset into one or more new assets.

T Code ABUMN