Asset Accounting (FI-AA) is the sub-ledger for fixed assets โ buildings, machinery, vehicles โ tracking each one from acquisition through depreciation to retirement.
Asset classes
The asset class is the primary way assets are categorised, and the first thing chosen when creating an asset master. Settings on the class become the defaults for the new asset.
| What the asset class determines | Detail |
|---|---|
| Account determination | Which G/L accounts carry acquisition cost, accumulated depreciation and depreciation expense |
| Number range | The range asset numbers are drawn from |
| Default depreciation key | The method normally used for that class |
| Default useful life | Typically the statutory life |
| Screen layout | Which fields are mandatory on the asset master |
Assets under construction and low-value assets get their own classes. A low-value asset class can be configured to expense the whole cost on acquisition.
Depreciation areas
The concept that makes FI-AA click is the depreciation area: several parallel valuations of the same asset, each serving a different purpose.
Consider an asset depreciated straight-line over ten years for accounting purposes but declining-balance over eight years for tax. One asset needs two calculations. SAP runs both at once, in area 01 (book) and area 15 (tax).
| Area | Purpose | Posts to the G/L? |
|---|---|---|
| 01 | Book depreciation under local GAAP | Yes, in real time |
| 15 | Tax reporting | No โ held statistically |
| 30 | Group reporting (IFRS) | Yes, to a separate ledger |
Not every area posts to the general ledger. A tax area commonly just calculates, feeding the figures used to prepare returns.
Depreciation keys
A depreciation key defines how the charge is calculated: straight-line or declining balance, when depreciation starts, and how any residual value is treated, assembled from underlying calculation methods.
Key and useful life together produce the periodic charge. Useful life is held per depreciation area on the asset master, so book and tax can differ.
The lifecycle
| Stage | Code | What it does |
|---|---|---|
| Create the asset master | AS01 | Assign an asset number under a chosen class |
| Acquire from a vendor | F-90 | Post the vendor invoice and capitalise in one document |
| Acquire without a vendor | ABZON | Capitalise against a specified offsetting account |
| Settle assets under construction | AIAB / AIBU | Transfer to the completed asset |
| Run depreciation | AFAB | Post the periodic charge in bulk |
| Retire by scrapping | ABAVN | Write the asset off with no proceeds |
| Retire by sale | F-92 | Process as a sale to a customer |
| Inspect an asset | AW01N | Asset Explorer โ planned and posted values |
What the depreciation run actually does
AFAB does not create one document per asset. It summarises by account determination, so even a large asset register produces a manageable number of accounting documents.
It is a mandatory monthly step. Skipping a period means the charge is either caught up in the next run or produces an error, so it belongs in the fixed closing schedule.