Creating new Asset Classes

Objective

After completing this lesson, you will be able to configure a new asset class and assign account determinations

New Asset Class

Kevin stands on the edge of taking the next exciting step — creating the new asset class. He hesitates, uncertainty rising. Not wanting to risk an error, Kevin decides to reach out to Maxine once more.

Maxine explains that an asset class consists of two components:

Definition and Settings
Make Valuation View-Dependent Settings for Asset Class

She therefore advised him to first define the asset class and then maintain the default values for depreciation.

The figure shows the process of defining an asset class, especially asset class 2000. It consists of two main sections: Definition and Settings and Make Valuation View-Dependent Settings for Asset Class. The Definition and Settings section contains parameters such as company code, number range number, external sub number, master data layout, and account determination. The section Make Valuation View-Dependent Settings for Asset Class contains, for example, parameters such as useful life and depreciation key. These settings for the asset class can be configured differently for each valuation view.

With Maxine's guidance, Kevin successfully lands on the 'Define Asset Class' SSCUI step. However, he quickly encounters the next obstacle. He wonders; should he opt for creating a new entry, or would it be more beneficial to duplicate an existing asset class?

Let’s see what Maxine tells him.

How to Configure a New Asset Class

Maxine helps Kevin create the asset class for special machines and assign the new account determination.

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Asset Valuation View

Maxine assists Kevin to inspect the new asset class's valuation view settings. When it comes to the special machinery depreciation (depreciation area 1, company code 1010), local Generally Accepted Accounting Principles (GAAP) plan for a useful life of 10 years, while International Financial Reporting Standards (IFRS) stipulate a span of 5 years.

How to Configure Valuation View-Dependent Settings

Maxine helps Kevin to correctly enter the useful life of the asset classes.

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Post an Acquisition to a Special Machine

Kevin tests the settings in the quality assurance system.

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Key Takeaways

By selecting the ledger or the depreciation areas can post asset transactions to selected depreciation areas.
If there is no ledger, depreciation area is selected. The transaction always transfers to all ledgers assigned to the company code or depreciation areas.
Posting with a vendor is always for all ledgers.
Only those areas that can have a capitalized asset should be managed in the asset master record.

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