Project Description

Video Transcript

Fixed asset management functionality is embedded in the court of the product. The solution is activated by going to company details in the administration module under system initialization basic initialization tab and enabling the fixed assets feature.

Required settings need to be configured prior to transact in fixed assets asset account determination help us define the GL accounts that will automatically get posted to the system when doing transactions for the fixed asset. If I go into administration setup financials fixed assets I can determination we can see that for the machinery group, we’d have selected all of these various accounts transactions such as capitalization depreciations and retirement. We’ll then be taking the required GL account from the setup the precision types allow us to set up a depreciation method such as a straight-line or declining method as well as a few other ones a calculation base such as monthly or yearly. We additionally can set up some defaults for in the remaining book value salvage value percentages and set up depreciation server start date defaults for acquisition subsequent, subsequent acquisitions, etc. by going into asset classes.

Here is we would define our various asset groups such as office equipment, Motor Vehicles machinery, etc. to name a few. Here is what I would link depreciation area such as GAAP or internal account determination.

Let’s say from machinery and the depreciation type if it’s straight line or decline method in a standard useful life for this particular asset class, it’s useful to know that asset classes can be assigned for multiple in various asset master data. In this case a CP business one lets us group our assets in various asset classes.

First let’s see how we can add a fixed asset to your simple business.

  1. The fixed assets module is located under financials fixed assets and we will open the asset master data window for any new fixed asset item you still need to define the master data for this fixed asset. So now let’s switch to the add mode and we’re going to assign an item code which can be automatically selected in a description for a fixed asset. We can now select the asset class machinery by moving to the fixed assets tab. And from the asset class setup we will select machinery and we can see the some defaults have already come through to our asset master data depreciation area. The standard useful life for all assets within this item set class and the depreciation type in this case is straight-line. This can be overwritten so we can update a useful life visits if it’s a little longer for this particular fixed asset. Let’s click add.
  2. Now I can move on to register in the purchasing invoice for the item in the system. So to do this we navigate to the purchasing module and select ap invoice, select a vendor, and a posting date. Let’s say of March this year and the item that I will purchase for a price of $3,600. We can now add the invoice to the system if we now go to the relationship map. For this purchase, an invoice by (right click) relationship map we can see that we have automatically added a capitalisation for this asset in the capitalisation window. We can see that this asset was capitalized with the date of the purchasing invoice and that he posted to the asset balance sheet account for machinery offsetting to the acquisition clearing account which the system uses as an interim account while adding both the invoice and the capitalization.
  3. Now let’s see the summary of this fixed asset. We can see that this fixed asset that has an acquisition and production costs of $3,600 and based on the depreciation expected for the year of 2018, the net book value at the end of the year should be $2,700. If we go to the depreciation tab we can see that hundred dollars is expected for the following months and that no depreciation has been posted yet.
  4. Now we can run a depreciation for this fixed asset by going to financials fixed assets and depreciation run. From here we can select a period for which we want to run the depreciation. In this case I want to run the depreciation for April of 2018 and preview. From here we can see that the system is expecting a depreciation of $100 for the month of April for this particular asset. Next click execute. The system warns us that there will be a depreciation run executed for the area of GAAP until the period of April 2018. Let’s click continue and if we now turn into the journal entry that was generated via depreciation run we can see that an expense was posted for depreciation machinery and also affected our accumulated depreciation for machinery as well. Similarly by going into the fixed asset master data window fixed assets tab depreciation tab we can see that there’s a depreciation posted for $100 for the month of April the rest of the month still showing the balance of zero since no depreciation runs have been executed for those periods.

SAP business one also makes it possible to purchase many fixed assets at once we will do this by using the virtual fixed asset function in a subpoena. For that, I will go to asset master data. We assigned an item code which can be automatically selected a description.  Under the next step we’ll select an asset class and before we have this asset master data we will click on the check box virtual item. Let’s add this item now. If we generate a purchase invoice for the virtual item added select a vendor a posting date let’s say of March this year and our equipment unit and we will be buying 10 units that we will be this double release tributing through the warehouse for a price of $1,000 each. Let’s click add.

Now if we open the relationship map for this ap invoice we can see that a capitalization has been generated and also the multiple asset master data is have been created. If we drill into equipment unit ma CHCO 0 and 0 we can see that 10 new master leaders have been added. Taking our virtual item fixed asset as a template to create the rest of these items if we go into every single one we can see that acquisition and production costs have been assigned based on the thousand dollars of unit price that we purchase them from although the APA voice shows us one row for the item.

This involves many items that have been created. We can look at them by going into the virtual fixed asset. Now going to the next record additionally as you saw when I clicked on virtual item you can enforce serial numbers in order to require a CPA to assign a serial number to these fixed assets that you will be assigning at time of entry on the AP invoice. A very useful tool that allows us to look at the status of our current assets in the system is by going into financials fixed assets fixed asset reports and clicking on the asset history sheet. From here we can see what has been depreciated for a particular asset classes throughout the year and what we expect our net book values to be at the end of the year.

Let’s say that I want to look at machinery period 2018 and I select from the first of the month until December 2018 and click OK and from here we can see that we can do a summary of the total capitalization for this particular asset class which we can see in this column for twenty-one thousand two hundred and twenty dollars. We can also look at depreciation values if we scroll all the way to the right-hand side and we can see that only 300 dollars have been depreciated for this particular asset class.

If I click expand I can then review each and single one asset master data that belongs to this particular asset class in this way. If I click all the way to the right I can look at capitalization numbers for each of the master data as well as what the depreciation has been run. For each and single one of them I have subtotals here to the bottom for total acquisition and production costs as well as deppreciation that’s taking place so far into the year and what I expect my net book value to be at the end of 2018. In summary, a SAP business one provides a very extensive solution for managing fixed assets as part of managing financials in the system.

Fixed assets is a tool that needs to be enabled as we mentioned under administration system initialization and company details once that is enabled in SAP will provide an additional module under the financials module called fixed assets. We can define acid master data’s, we can add capitalizations retirements, and run monthly depreciations — all of those that will be governed by the configurations that take place under administration setup. Financial fixed assets SAP Business one allows us to import previously transacted or active fixed assets by going into data import and using the import fixed asset master data from Excel tool when deploying the fixed assets mode functionality. And that concludes our fixed asset demonstration for today.