Intercompany Asset Transfers in fico

Purpose

Asset transfers involve the transfer of an asset between two companies (company codes) of the same corporate group. An intercompany transfer within a corporate group may be due to:

· A change of physical location that requires the asset to be assigned to a new company code.

· A change to the organizational structure of the corporate group that requires the existing assignment of the asset to be changed.

In both of these cases, you can not change the assignment of the asset to the company code through master record maintenance. For each asset that is to be transferred, you require a new asset master record (or an existing one for partial transfers) in the receiving company code. You can retain the identity of the asset using the inventory number in the asset master record.

The system provides you with a method that allows you to automate these activities to a large extent. With this method, the transfer is posted only on the sender company code. The posting in the target company code is executed automatically by the system. If a new asset needs to be created in the target company code, you can specify the asset class and other important master data in the relevant dialog box.

In this IDES process, you execute four transfers between company code 1000 and company code 2000, each with a different transfer variant.

You can find more information about this process under.

You can find the data for this process under .

Process Flow

1. You first
Create Four Asset Master Records, one for each transfer variant.
2. To capitalize these asset master records, you
Post the Acquisition to a Clearing Account.
3. 1. Variant:
Transfer the Asset "Gross".
4. 2. Variant:
Transfer the Asset "Net".
5. 3. Variant:
Transfer the Asset Manually With Gains.
6. 4. Variant:
Transfer the Asset Manually With Losses.
7. To check the effects of these transfers, you can
Display the Asset Explorer.

Enhancements to Asset Accounting when Using Parallel Currencies in FI

If you are using, or intend to use, parallel currencies in Financial Accounting (FI) additional Customizing settings are required for Asset Accounting (FI-AA). For example, you may want to use transfer prices.

The following Customizing changes are required:

• You need to create depreciation areas that have the same currency and currency type as the parallel currency in the relevant company code.
• The new depreciation areas must be capitalized in the asset classes, and
• The new depreciation areas must be added to the existing assets.

You can find more information about this process under

Process Flow

You can find the data for this process under

1. You first create depreciation areas 33 (book depreciation per trade law in group currency, concern valuation) and 34 (book depreciation per trade law in group currency, profit center valuation). The same depreciation parameters and acquisition values apply for both depreciation areas, as used in 01 (book depreciation per trade law ). However, you require currency type 31 for DA 33 and currency type 32 for DA 34. To do this, you
Define New Depreciation Areas.
2. For DA 51 you require two additional depreciation areas with identical depreciation parameters and acquisition values. Repeat the first step. Choose area 51 as the DA, then replace the entries for DA 33 with those of DA 53, and the entries for DA 34 with those of DA 54.
3. When you create the new depreciation areas, these are added to all asset classes. However, they are not capitalized at this stage. You now
Capitalize the Depreciation Areas in the Asset Classes.
4. To use the new depreciation areas with the old assets, you
Add New Depreciation Areas to the Existing Assets. This is executed automatically for all assets.

Mass Changes / Mass Retirements in fico

Purpose

Asset Accounting provides you with three possibilities for mass processing. Mass changes to master records, mass retirements, and the mass transfer of assets.

The changes you make to the master records are automatically processed to a large extent. You first define the change rules, then you select the relevant assets, and finally you execute the changes. This method could be used, for example:

• If changes are made to cost center planning and the cost center assignments of the affected assets need to be changed.
• During period-end closing, when the depreciation parameters need to be changed.
• Following legacy data transfer, when fields are to be filled with values that could not be transferred from the legacy system.
• Changes made at the asset class level only apply to newly created assets. Therefore, any changes made at asset class level must also be carried out for all existing assets.

You use a work list to select the assets required for the mass retirement. When you generate a work list, you need to specify whether the retirement is to be made with or without revenues.

You can find more information about this process under

Process Flow

You can find the data for this process under

1. To define the rules for the mass changes to the master record using the substitution technique, you
Define the Change Rule.
2. You then include the assets to be processed in a worklist. To do this, you
Create a Worklist.
3. To process the assets according to the chosen method, you
Release the Worklist. Mass changes are made to the master records, and during mass retirements, the system automatically generates retirement postings.

what is the Reasons For Archiving Financial Accounting Data in sap

What is financial archiving? Where it is used? Why? Where is it configured in IMG?

There are both technical and legal reasons for archiving Financial Accounting data.

Archiving:
1) Reduces storage and runtime problems caused by the constant growth of transaction data.
2) Makes master data easier to manage and to keep up to date.
3) Enables data to be accessed at a later date.

You can archive data no longer required in the online system using certain standard functions. This data is then stored in archive files and deleted from the online system. For legal and commercial reasons, it is important that you are able to access archived data files online again, and the reloading function allows you to do this.

Data must meet certain conditions before it can be archived. Some of these controls are already defined in the system, for instance the fact that you cannot archive documents that contain open items. Certain other controls are user-defined.
Every archiving function can be accessed from archive management (SARA).

To reach archive management, choose:
Tools --> Administration --> Archiving or from the Accounting --> Financial Accounting --> General Ledger, Accounts
Receivable, Accounts Payable or Banks menus --> Periodic processing Archiving .

When you access archive management from these menus, the archiving object is defaulted by the system in the field Object name. Otherwise you must enter the name of the archiving object manually.

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SAP Exam Resource - Define Account Groups OBD2

Q). In the FI module in SAP, where can a user maintain the screen field for a customer master record?

Answer:

In the IMG i.e. implementation guide in SAP, which can be reached via T-Code SPRO, the following menu path should be followed by the user to reach the Screen field for Customer master record.

Financial Accounting >> Accounts Receivable and Accounts Payable >> Customer Accounts >> Master Records >> Preparations for creating customer master records >> Define account groups with screen layouts.

The menu path mentioned above will lead to user to the transaction where screen filed for customer master record can be maintained. As a very easy alternative to the same the same can be viewed via transaction code [OBD2].

In SAP, it becomes easy if one knows the transaction code, so that any Transaction can be easily reached via the T-Code i.e. shortpath.

SAP R3 Data Entry Techniques Tips

There are various forms, menus which users can access in SAP to make data entry. Entry can be of master data or transactional data. For making a data entry in SAP R/3 the user needs to have authorization in SAP. Without proper access authorization in SAP, a user may not be able to enter data. The manner is which postings are done can also be controlled through this technique. At the time of data entry also, SAP performs several edit and validation checks over the data to ensure that it is complete and accurate. These edit and validation checks are available through configurable controls in SAP.
To explain SAP data entry techniques more simply, below, certain examples are given as to how the user data entry in SAP can be controlled.

1. User can be restricted from posting to a particular account.
2. Users can be restricted to post only to accounts belonging to a specific company code.
3. Users in SAPR3 can be confined to a business area but not to specific company codes.
4. A user can be confined to a cost center or a cost object also in SAP.

To test FI/CO posting controls and your accounting knowledge

Question : Can you post a document to a closed period?

Answer : Yes

Question : How do you do that in SAP?

Answer : Just reopen the closed period

Question : Isn't that against the accounting principles?

Answer : Not at all. As long as you document a proper reason for the auditing.

The chairman of a Co. wants to link each of his four company codes to three dunning areas and two credit control areas. Can this be done? Why or why n

Technically, an individual company code can only be assigned to one credit control area; however, a list of allowable credit control areas may be created. A company code can have multiple dunning areas.

What is a credit control area? Describe its relationship to company codes?

A credit control area (CCA) is used to set and control credit limits for customers. They include one or more company codes. There can only be one CCA per company code. Customers in several company codes can exist under several CCA's. As part of credit management, an individual customer's credit limit is set based on an individual credit control area or across several credit control areas.

Can you report on business areas across companies? If so, explain how this is accomplished conceptually in the system.

Yes, because BA's are defined independent of company codes. They can be added to the detail of a line item in a document, thus enabling the system to keep track of business area information for reporting and controlling purposes.

Discuss three benefits of the SAP organizational structure

It gives flexibility to reflect complex organizational structures

It helps to consider future changes in the organizational structure

It is clearly defined into logistical (sales, purchasing) and financial views (cost accounting, financial accounting).

Explain the relationship between company code, business areas and financial statements

A Company Code represents an independent legal entity that is required by law to issue financial statements (Balance Sheet and P&L Statement). Business Areas are defined independently of Company Codes and can be shared across Company Codes. Internal Balance Sheets and P&L Statements can be generated by Business Area though they are not required.

What is the highest hierarchy level in SAP? Define this term and explain how it is used in the SAP system

The Client is the highest level in the SAP organizational structure. Anything specified for a Client applies to all Company Codes that are attached to that Client. Clients have a one-to-many relationship with Company Codes. Clients are generally not reported on with balance sheet and P&L's, the company codes are the legal entities and serve for this purpose. However, clients can be reported on as part of consolidation or extended G/L.

Define the major organizational hierarchy elements within the Financial Accounting module and explain the relationship between each of them.

The hierarchy, from the highest organizational unit to the lowest, is the Client, Chart of Accounts (COA), Company Code and the optional Business Areas (BA). Two other optional areas include the Dunning Area and the Credit Control Area (CCA). Credit Control Areas come above the Company Code, and Dunning Areas come below the Company Code. There is only one Client and its values are the same across all Company Codes that are attached to it. Every Company Code is a legal independent entity. Business Areas can be shared among Company Codes (many-to-many relationship) and they are used for internal reporting purposes. Each Company Code is assigned a COA. The COA may be the same for multiple Company Codes, but each Company Code may only use one COA.

Explain the relationship between posting keys and accounts

Each posting key is linked to a specific account type and determines if the entry to that account will be a debit or credit entry.

Discuss all aspects of the posting key. Explain what it is, how it is used in the system, and any special properties that can be defined for it.

The posting key:
	Defines the type of account (e.g., Customer, Vendor, G/L account, Material, Asset) Determines whether the entry is a debit or credit Indicates special properties (e.g. Reversal Posting Key, Special G/L transaction, etc.) Data entry screen for the line item via the field status group

What is a document type? Discuss its various uses in the system

A document type is a 2-character alphanumeric key that is used to identify documents. It distinguishes between business transactions (e.g., SA - G/L postings, DR - customer invoice), controls the account types posted to (D - customer, K - Vendor, S - G/L account, A - Assets, M - Materials), assigns document numbers and is used as a sort criteria.

Discuss the various sections of a SAP document and give an example of the data stored in each section.

Document header - posting date, document number, document type, currency, document date, document header text. Line items - Minimum of two line items and at most 999, consisting of posting key, account number, amount, and other account assignments.

What is the document principle?

The document principle requires that one FI document is created for every business transaction. Each document receives a unique number. It is a 1:1 relationship