Asset Accounting with SAP S4HANA (Stoil Jotev) (z-library.sk, 1lib.sk, z-lib.sk)

SAP PRESS is a joint initiative of SAP and Rheinwerk Publishing. The know-how offered by SAP specialists combined with the expertise of Rheinwerk Publishing offers the reader expert books in the field. SAP PRESS features first-hand information and expert advice, and provides useful skills for professional decision-making. SAP PRESS offers a variety of books on technical and business-related topics for the SAP user. For further information, please visit our website: http://www.sap-press.com. Tritschler, Walz, Rupp, Mucka Financial Accounting with SAP S/4HANA: Business User Guide 2020, 604 pages, hardcover and e-book www.sap-press.com/4938 Paul Ovigele Material Ledger in SAP S/4HANA: Functionality and Configuration 2019, 540 pages, hardcover and e-book www.sap-press.com/4857 Stoil Jotev Configuring SAP S/4HANA Finance 2019, 756 pages, hardcover and e-book www.sap-press.com/4857 Anup Maheshwari Implementing SAP S/4HANA Finance (2nd Edition) 2018, 570 pages, hardcover and e-book www.sap-press.com/4525

Stoil Jotev Asset Accounting with SAP S/4HANA®

Dear Reader, We’ve all heard that it’s not nice to have favorites, but sometimes it can be hard to resist. Stoil first became an author with us last year, publishing Configuring SAP S/4HANA Finance in the summer of 2019. At 756 pages, it was a huge undertaking for a first-time author, but Stoil never wavered in his commitment to the project. He delivered every chapter on schedule, and when the page count initially came in short, worked with me to add additional detail throughout. We even managed to publish a month earlier than planned! As we started his second book on a more specialized topic, Stoil remained steadfast. Despite new work commitments and increases in travel, he found the time to finish the book two months early, allowing us get it out to readers like you that much more quickly! Throughout both projects, his quality of his work remained incredibly high, and it was a genuine delight for me to edit his work and shepherd it through the pub- lishing process. What did you think about Asset Accounting with SAP S/4HANA? Your comments and suggestions are the most useful tools to help us make our books the best they can be. Please feel free to contact me and share any praise or criticism you may have. Thank you for purchasing a book from SAP PRESS! Meagan White Editor, SAP PRESS meaganw@rheinwerk-publishing.com www.sap-press.com Rheinwerk Publishing • Boston, MA

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Imprint This e-book is a publication many contributed to, specifically: Editor Meagan White Acquisitions Editor Emily Nicholls Copyeditor Yvette Chin Cover Design Graham Geary Photo Credit Shutterstock.com/1441376222/© Balazs Toth Production E-Book Hannah Lane Typesetting E-Book SatzPro, Krefeld (Germany) We hope that you liked this e-book. Please share your feedback with us and read the Service Pages to find out how to contact us. The Library of Congress has cataloged the printed edition as follows: LCCN: 2020933005 ISBN 978-1-4932-1940-7 (print) ISBN 978-1-4932-1941-4 (e-book) ISBN 978-1-4932-1942-1 (print and e-book) © 2020 by Rheinwerk Publishing, Inc., Boston (MA) 1st edition 2020

I would like to thank my wonderful family for their love and continuous support, which made possible the completion of this book.

Contents Preface ..................................................................................................................................................... 15 Introduction .......................................................................................................................................... 21 1 Organizational Structures 31 1.1 Company Codes .................................................................................................................... 32 1.1.1 Company Codes in the Organizational Structure ...................................... 32 1.1.2 Defining Company Codes .................................................................................. 32 1.1.3 Company Code Settings ..................................................................................... 35 1.2 Charts of Depreciation ...................................................................................................... 39 1.2.1 Charts of Depreciation in the Organizational Structure ......................... 40 1.2.2 Configuring the Chart of Depreciation ......................................................... 40 1.3 Depreciation Areas .............................................................................................................. 44 1.3.1 Portraying Valuation Frameworks .................................................................. 44 1.3.2 Depreciation Area Settings ............................................................................... 45 1.4 Asset Classes .......................................................................................................................... 55 1.4.1 Structuring Asset Classes ................................................................................... 56 1.4.2 Configuring Asset Classes ................................................................................. 58 1.5 Summary ................................................................................................................................. 71 2 Master Data 73 2.1 Screen Layouts ...................................................................................................................... 73 2.1.1 Screen Layout Definition .................................................................................... 74 2.1.2 Field Control ........................................................................................................... 76 2.1.3 Layout for Depreciation Areas .......................................................................... 79 2.2 Account Determination .................................................................................................... 81 2.2.1 Account Determination Definition ................................................................. 81 2.2.2 Assigning General Ledger Accounts ............................................................... 829

Contents2.3 Number Ranges .................................................................................................................... 89 2.4 Asset Hierarchy .................................................................................................................... 90 2.4.1 Asset Numbers ...................................................................................................... 91 2.4.2 Asset Subnumbers ............................................................................................... 99 2.4.3 Asset Group Numbers ........................................................................................ 103 2.5 User Fields in Asset Master Records ........................................................................... 106 2.5.1 Four-Character User Fields ................................................................................ 106 2.5.2 Eight-Character User Fields .............................................................................. 107 2.6 Asset Super Numbers ........................................................................................................ 109 2.7 Display Asset Master Worklist App ............................................................................. 111 2.8 Summary ................................................................................................................................. 115 3 Asset Valuation 117 3.1 Parallel Valuation ............................................................................................................... 117 3.1.1 Accounting Principles ......................................................................................... 118 3.1.2 Configuring Multiple Valuation ...................................................................... 119 3.2 Currencies in Asset Accounting .................................................................................... 122 3.2.1 Currency Types ...................................................................................................... 123 3.2.2 Depreciation Area Currency Settings ............................................................ 126 3.3 Real-Time Integration with the General Ledger ................................................... 129 3.3.1 General Ledger Posting Control ...................................................................... 130 3.3.2 Technical Clearing Account for Integrated Asset Acquisition .............. 131 3.3.3 Alternative Document Type for Integrated Asset Acquisition .............. 133 3.3.4 Specifying the Posting Key for Asset Posting ............................................. 134 3.3.5 Assigning an Input Tax Indicator for Non-Taxable Acquisitions ......... 136 3.3.6 Posting of Depreciation in the General Ledger .......................................... 136 3.4 Additional Valuation Settings ....................................................................................... 141 3.4.1 Defining a Depreciation Area for Quantity Update ................................. 141 3.4.2 Defining the Transfer of APC Values ............................................................. 142 3.4.3 Defining the Transfer of Depreciation Terms ............................................ 14210

Contents3.4.4 Determining Depreciation Areas in the Asset Class ................................. 143 3.4.5 Maximum Amount for Low-Value Assets .................................................... 146 3.5 Summary ................................................................................................................................. 148 4 Business Transactions 151 4.1 Acquisitions ............................................................................................................................ 151 4.1.1 Configuring Acquisitions ................................................................................... 152 4.1.2 Acquisitions with a Vendor ............................................................................... 159 4.1.3 Acquisitions with Automatic Offsetting Entries ........................................ 171 4.1.4 Acquisitions from Affiliated Companies ...................................................... 177 4.2 Assets Under Construction .............................................................................................. 179 4.2.1 Configuring Assets Under Construction ....................................................... 179 4.2.2 Capitalization of Assets Under Construction .............................................. 183 4.2.3 Assets Under Construction with Investment Management .................. 187 4.2.4 Assets Under Construction with Project System ....................................... 190 4.3 Transfers .................................................................................................................................. 193 4.3.1 Configuring Transfers ......................................................................................... 193 4.3.2 Transferring Assets within a Company Code .............................................. 198 4.3.3 Intercompany Asset Transfers ......................................................................... 201 4.4 Retirement .............................................................................................................................. 203 4.4.1 Configuring Asset Retirement .......................................................................... 203 4.4.2 Asset Sales with a Customer ............................................................................ 206 4.4.3 Asset Sales without a Customer ...................................................................... 209 4.4.4 Asset Retirement by Scrapping ........................................................................ 211 4.5 Manual Value Corrections ............................................................................................... 213 4.5.1 Configuring Manual Asset Value Corrections ............................................. 213 4.5.2 Write-Ups ................................................................................................................ 214 4.5.3 Write-Downs .......................................................................................................... 215 4.5.4 Manual Depreciation .......................................................................................... 217 4.5.5 Unplanned Depreciation .................................................................................... 218 4.6 Summary ................................................................................................................................. 21911

Contents5 Periodic Processing 221 5.1 Depreciation .......................................................................................................................... 221 5.1.1 Configuring Depreciation .................................................................................. 222 5.1.2 Executing Depreciation Runs ........................................................................... 236 5.1.3 Displaying Logs ..................................................................................................... 241 5.1.4 Analyzing Errors .................................................................................................... 242 5.2 Revaluation ............................................................................................................................ 243 5.2.1 Configuring Revaluation ................................................................................... 244 5.2.2 Posting a Revaluation Run ................................................................................ 247 5.2.3 Inflation ................................................................................................................... 248 5.3 Year-End Closing .................................................................................................................. 251 5.4 Summary ................................................................................................................................. 251 6 Asset Reporting 253 6.1 Asset Overview .................................................................................................................... 253 6.1.1 Asset Explorer ........................................................................................................ 253 6.1.2 Asset Accounting Overview App ..................................................................... 258 6.2 Asset Balances ...................................................................................................................... 262 6.2.1 SAP GUI Report ...................................................................................................... 262 6.2.2 Asset Balances App .............................................................................................. 265 6.3 Asset History Sheet ............................................................................................................ 267 6.3.1 Configuration ........................................................................................................ 267 6.3.2 SAP GUI Report ...................................................................................................... 271 6.3.3 Asset History Sheet App .................................................................................... 274 6.4 Asset Transactions .............................................................................................................. 279 6.4.1 SAP GUI Report ...................................................................................................... 279 6.4.2 Asset Transactions App ...................................................................................... 283 6.5 Display Asset Master Worklist App ............................................................................. 285 6.6 Depreciation Lists App ...................................................................................................... 287 6.7 Summary ................................................................................................................................. 28912

Contents7 Migrating Asset Data 291 7.1 Migration Process in SAP S/4HANA ............................................................................ 291 7.1.1 Migration Checks and Prerequisites .............................................................. 292 7.1.2 Migration Tools ..................................................................................................... 296 7.1.3 Migration Execution ............................................................................................ 307 7.2 Migrating Fixed Asset Data ............................................................................................. 308 7.2.1 Configuration Activities Prior to Migration ................................................. 309 7.2.2 Performing Manual Migration ......................................................................... 311 7.2.3 Automated Migration Process ......................................................................... 318 7.3 Summary ................................................................................................................................. 320 Appendices 323 A Obsolete and New Transaction Codes and Tables in SAP S/4HANA ............ 323 B The Author .............................................................................................................................. 329 Index ........................................................................................................................................................ 331 Service Pages .....................................................................................................................................  I Legal Notes .........................................................................................................................................  I13

0Preface Asset accounting represents a fundamental part of all accounting processes. Asset accounting records and reports fixed asset transactions and valuates fixed assets. Fixed assets are assets used over the long term and have special accounting and val- uation requirements, since their costs typically are recognized over the course of the asset’s useful life, as opposed to being recognized immediately, which would be the case, for example, when purchasing inventory or stationery supplies. This distinction leads to an additional level of complexity and added responsibility for organizations that manage fixed assets. SAP S/4HANA is the latest-generation enterprise resource planning (ERP) system, which has taken the business world by storm by revolutionizing how enterprise data is being managed. The financial process area of SAP S/4HANA has been fundamen- tally improved, and in particular, asset accounting has benefited greatly from the new state-of-the-art SAP HANA database. In fact, for SAP S/4HANA, SAP completely redesigned its asset accounting solution, which we’ll refer to as the new asset accounting. Objective of This Book Asset Accounting with SAP S/4HANA is the ultimate guide on asset accounting in SAP S/4HANA. The objective of this book is to provide a comprehensive guide both to cus- tomizing and to using asset accounting in SAP S/4HANA. This book should benefit both SAP consultants and finance users. The objective of this book is to provide inte- grated content as we walk you through all asset accounting processes. We’ll explain how you can identify and confirm your business requirements, configure the rele- vant functionalities, and functionally use them in your day-to-day business opera- tions. If this is your first book on SAP S/4HANA Finance, we hope this book also helps you jumpstart your SAP S/4HANA journey. We aim to provide concise but nevertheless robust knowledge on how the SAP HANA database works; how it benefits financial processes, in particular asset accounting processes; and how the new asset account- ing can help you streamline your fixed asset processes.15

PrefaceThis book is a combination of a technical guide describing how to configure all rele- vant processes and reporting requirements in asset accounting and a process manual describing how to effectively use SAP S/4HANA to manage your fixed assets. There- fore, we have the ambitious goal of being equally interesting and beneficial for both technical experts and financial professionals. In this book, we’ll use the latest and greatest SAP S/4HANA 1909 system. You’ll learn how to use both the traditional SAP GUI (graphical user interface) interface and the latest asset accounting SAP Fiori apps. SAP Fiori provides a beautiful, user-friendly, web-based interface. Many asset accounting apps are already available, thus enabling you to run day-to-day operations and to generate asset reports using this powerful new technology. This book also aims to share our enormous experience in asset accounting garnered from many projects delivered in the last twenty years. You’ll benefit from best prac- tices derived from projects in various industries as they pertain to asset accounting. You’ll learn how to properly organize fixed asset master data, how to prove various asset business transactions, how to valuate assets based on multiple valuation frame- works, and how to get the most out of the powerful asset reporting capabilities that SAP S/4HANA offers. Asset accounting is a process area that relates to virtually every organization that is implementing or using SAP S/4HANA. Companies of every size—small, medium, and large—need to manage fixed assets. Valuation and reporting requirements in asset accounting could be paramount especially in businesses spread around the world, in multiple regions. Therefore, we felt compelled to provide a comprehensive guide on asset accounting in SAP S/4HANA to help organizations of all sizes and in all indus- tries manage their asset accounting processes. Therefore, this book aims to be a blend of technical guide and business process text- book, which will hopefully serve as your ultimate resource for your exciting journey into the fascinating world of asset accounting in SAP S/4HANA! Note This book is not the only book on SAP S/4HANA Finance. We also offer a comprehen- sive configuration book called Configuring SAP S/4HANA Finance, available from SAP PRESS at https://www.sap-press.com/4857.16

Target AudienceConfiguring SAP S/4HANA Finance covers the setup of all finance process areas, including asset accounting. However, asset accounting is so complex and important that it deserves a book in its own right—the one you hold in your hands now! Target Audience The target audience for this book includes various categories of professionals. We hope this book will equally benefit SAP consultants, SAP project managers, finance managers, asset accounting business process owners, and asset accounting users. Even beginners in the SAP world should find a lot of useful information to jumpstart their SAP careers, either as users or as consultants. Beginner readers will gain funda- mental business process knowledge in asset accounting. We’ll cover the whole configuration process in SAP S/4HANA asset accounting; there- fore, this book should be invaluable help for senior and junior asset accounting con- sultants alike. For consultants that are just starting out with asset accounting, this book will reveal the secrets of asset accounting in SAP S/4HANA and will guide you through every step of the way in implementing asset accounting. Senior consultants who already have a few asset accounting projects in SAP ERP under their belt should also find this book beneficial for learning the differences between new asset account- ing in SAP S/4HANA and the traditional classic asset accounting in SAP ERP. These more experienced consultants will also learn about great advancements in the SAP HANA technology and how these advancements benefit the asset accounting pro- cesses. We’ll also provide you with a list of obsolete and new transaction codes in SAP S/4HANA that pertain to asset accounting. This resource should be a useful cross-ref- erence for asset consultants, especially those coming from an SAP ERP background. We hope this book will also be invaluable not only during implementation, but also during production to support asset accounting processes. In this book, we’ll acquaint you with typical problems and issues that you may encounter in asset accounting and recommend best practices for resolving them. Another major target audience for this book consists of asset accounting business process owners and users of the system. Many SAP books on the market focus either on the technical side of implementing specific SAP process areas or on the functional side of using these solutions. This book provides unique blend of both approaches, as not only will we teach you how to configure and support the new asset accounting in SAP S/4HANA but also how to use all asset accounting processes in your day-to-day17

Prefacebusiness operations. Asset accounting business process owners and users will learn how to manage asset master data, how to properly record asset processes, and how to execute and analyze various asset reports. We’ll show you both traditional SAP GUI transactions and reports and the newly available asset accounting SAP Fiori apps. After reading this book, even beginner asset users should feel fairly confident about how to perform their asset accounting functions in SAP S/4HANA. Asset users in SAP S/4HANA will need a good understanding of the myriad of functions in asset accounting, which we’ll explain in detail throughout this book, including maintain- ing master data; posting asset business transactions (such as acquisitions, retire- ments, and transfers); and performing various period-end closing activities, such as depreciation and revaluation. This book also targets middle and high-level management interested in asset accounting and the powerful asset reporting capabilities of SAP S/4HANA. Without a doubt, asset accounting is extremely important, as these processes provide vital information about the assets of the enterprise. Management should be constantly informed about the current state of the assets of the company, especially since some of these assets could represent huge portions of the value held by your company. SAP S/4HANA features tools to provide this data in an effective way. By learning the capa- bilities of asset accounting in SAP S/4HANA, managers will have an invaluable advan- tage and be able to stay ahead of the challenges in today’s highly competitive business environment. Especially with the new and beautiful SAP Fiori interface, managers can access state-of-the-art reporting capabilities at their fingertips on any device—desktop or mobile. This book will teach you how to utilize these capabilities in the most effective way. Finally, this book’s target audience includes project managers in SAP S/4HANA implementations. Implementing SAP S/4HANA is a complex undertaking. Project managers must be strong from a technical point of view and must understand the functionalities being implemented. Asset accounting is one of the most important financial process areas. As such, project managers will hopefully find this book useful, as they will learn to handle complexity in the fixed assets area and learn how to avoid typical project pitfalls. We’ll also teach you the typical tasks that must be performed to implement asset accounting and how these tasks fit into the overall SAP S/4HANA implementation project plan. Thus, project managers will be able to properly assess the required effort for implementing asset accounting and can set realistic expecta- tions among asset consultants and users involved in the project. Special attention18

Structure of This Bookwill be dedicated to the migration of fixed asset data. We’ll discuss in detail, in Chapter 7, how to properly manage the migration of fixed asset data into SAP S/4HANA, which is an area of particular importance for project managers. Structure of This Book In this book, we’ll teach you how to configure and use asset accounting in SAP S/4HANA. The book is organized into the following chapters:  Introduction We’ll start with an introduction to SAP S/4HANA in which you’ll learn how the SAP HANA database works, how SAP S/4HANA was developed, and what SAP Fiori is. You’ll also learn how the new asset accounting differs from the classic asset accounting in SAP ERP and how it supports multiple valuation principles and real- time integration with the general ledger.  Chapter 1: Organizational Structures In this chapter, you’ll learn how to set up the organizational structures of asset accounting including the company code, the chart of depreciation, and deprecia- tion areas. We’ll also configure some example asset classes.  Chapter 2: Master Data In this chapter, you’ll learn how to configure asset master data including account determinations, screen layout rules, and number ranges. Then, you’ll build an asset master data hierarchy using asset super numbers, group numbers, main numbers, and subnumbers. You’ll also learn how to set up user fields in asset mas- ter records.  Chapter 3: Asset Valuation In this chapter, we’ll explain in detail how to value fixed assets according to multi- ple valuation frameworks. You’ll learn how to set up accounting principles and ledgers and how to configure asset accounting’s real-time integration with the general ledger.  Chapter 4: Business Transactions This chapter is the most extensive chapter in our book. We’ll teach you how to con- figure and use every business process available in asset accounting, such as acqui- sitions, transfers, retirements, and manual value corrections.19

Preface Chapter 5: Periodic Processing In asset accounting, periodic processes are executed as part of the period-end and year-end closing. You’ll learn how to conduct asset depreciation, revaluation, and year-end closing.  Chapter 6: Asset Reporting In this chapter, you’ll learn how to use the extensive and powerful asset account- ing information system. We’ll examine asset overview and balance reports as well as history sheet and asset transactions reports. We’ll teach you how to use both SAP GUI and SAP Fiori reports.  Chapter 7: Migrating Asset Data This chapter will teach you how to migrate your legacy asset data into SAP S/4HANA. You’ll learn the various checks and tools that SAP S/4HANA provides to facilitate the migration process. You’ll learn the configuration activities required in the migration process. We’ll examine how the SAP S/4HANA migration cockpit and the SAP S/4HANA migration object modeler work. We’ll also demonstrate both manual and automated migration processes.  Appendix A: Obsolete and New Transaction Codes and Tables in SAP S/4HANA In the appendix, we’ll provide a list of the obsolete and new transaction codes and tables. Without further ado, let’s start our SAP S/4HANA asset accounting journey!20