• Fixed assets are not held for resale but for the production, supply, rental or
administrative purposes. Assets that held for resale must be accounted for as
inventory rather than fixed asset. So for example, if a company is in the business of
selling cars, it must not account for cars held for resale as fixed assets but instead
as inventory assets. However, any vehicles other than those held for the purpose
of resale may be classified as fixed assets such as delivery trucks and employee
cars.
Fixed Assets
• What are classified as Tangible fixed assets
– Land and Buildings (both Freehold and Leasehold)
– Plant & Machinery
– Motor Vehicles
– Computer and Office Equipment
• What are classified as Intangible fixed assets
– Goodwill
– Websites
– Trademarks
– Patents
Definition of Depreciation / Amortisation
• General Ledger (G/L) Accounts for accumulated depreciation held in Chart of Accounts (COA)
• The above accounts need to be created as balance sheet items and are held in the Assets
Category
• Annual/Periodic depreciation charge General Ledger accounts in Profit and Loss section of
COA and held in the Depreciation Category or Overhead Expenses
• The accounts for the depreciation charge in the period need to be created in COA
• Acquisition of Asset
– DR – G/L Account for Fixed Asset Cost (A0010)
– CR – G/L Account for Bank/Cash or Vendor (A0011)
• Copy As [BAGB]
• Click [New Entries]
• Rename Financial Statement Version as ‘Financial Statement version for Company IRAJ’
• Enter maintain Language field as ‘EN’ (English)
• [Enter]
• [Save]
• Go back to Step 6 and re-assign new Financial statement version to Company Code
SAP Detailed Configuration – Step 8
• Path: IMG >Financial Accounting (FA)> Asset Accounting (AA)> Master Data> Screen
Layout> Create Screen for Asset master Data
• Create a new entry in table as in Step 8 & 9 (copy from a similar class or pre-defined SAP
• Copy as from previous screen
• [Enter]
• [Save]
SAP Detailed Configuration – Step 11
• Path: IMG >Financial Accounting (FA)> Asset Accounting (AA)> Organisational Structure>
Asset Classes> Specify the account determination
• http://www.accaglobal.com/uk/en/technical-
activities/technical-resources-search/2013/january/uk-
accounting-standards.html
• https://www.frc.org.uk/Our-Work/Codes-
Standards/Accounting-and-Reporting-Policy/Standards-in-
Issue/FRS-15-Tangible-Fixed-Assets.aspx
Thank You
Presented by
Iraj Idafar