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Former Member

asset accounting entries

Hi friends

What are the GL Entries that occur in Asset Accounting?

Sales of asset purchase of asset, scraping of asset, Deprecation posting, transfer of an asset.

What are the deprecation areas that are taken into consideration for Indian implementation and how there are treated in asset accounting?

Thanks in advance.

Regards

Raj

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    author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 08:28 AM

    Hi

    purchase of asset

    Asset A/C (70) Dr

    To vendor (31) Cr

    Sales of asset

    Customer A/C (01) Dr

    Asset Sale A/C (50) Cr

    Acc. Dep. on Asset (70) Dr

    Asset A/C (75) Cr

    Asset Sale A/C (40) Dr

    Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr

    Deprecation posting

    Depreciation A/C Dr

    To Acc. Dep A/C Cr

    scraping of asset

    Asset A/C (75) Cr

    Acc. Dep A/C (70) Dr

    Loss due to Scrapping A/C (40) Dr

    transfer of an asset

    ABUMN----->Asset transfer within Company Code

    70 Asset debited in NEW Business Area

    75 Asset credited in OLD Business Area

    70 Acc. Dep debited in OLD Business Area

    75 Acc. Dep credited in NEW Business Area

    ABT1N------>InterCompany Asset Transfer

    OLD Company Code 75 OLD Business Area Asset A/C Credit

    OLD Company Code 70 OLD Business Area Acc. Dep Debit

    OLD Company Code 40 OLD Business Area Asset sale A/C Debit

    NEW Company Code 70 NEW Business Area Asset A/C Debit

    NEW Company Code 50 NEW Business Area InterCompanyClearing Credit

    Regards

    Venkat

    Edited by: Venkat Dara on Dec 18, 2008 9:30 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 07:05 AM

    Please see the entries:

    Accounting entry for sale of Asset to customers:

    Customer Account Dr

    Asset Sale Cr

    Accumulated Depreciation Dr

    Loss on Sale (if applicable) Dr

    Asset Sale account Dr

    Asset account Cr

    Profit on sale (if applicable) Cr

    Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable)

    Accounting entry for sale without a customer:

    Accumulated Depreciation Dr

    Loss on Sale (if applicable) Dr

    Asset Sale account Dr

    Asset account Cr

    Profit on sale (if applicable) Cr

    Accounting entry for scrap

    Accumulated Depreciation Dr

    Loss on Sale of Assets Dr

    Asset account Cr

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 07:06 AM

    In the context of Indian accounting, you can define two depreciation areas : Book Depreciation & Tax depreciation. Book depreciation is allowed to post directly and tax depreciation you can calculate periodically for information/reporting purposes.

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