Asset Classes with reference to IFRS Compliance

[former_member182098]

Hi,

We have divided the asset classes into three categories.

For example,

Category 1 - Property Plant & Equipment

Category 2 - Infrastructure

Category 3 - Bridges 120 Years

- Highways 120 Years

- 40 Years DLG etc.

Now we have decided to Category 2 as asset classes.

However, the assets needs to be depreciated on Category 3 based their useful life.

How can this be mapped. Do I have to create category 3 items also as Asset Classes.

Any valuable replies will be highly appreciated.

Regards,

Ravi

[bettassoci · Accepted solution]

Hi Ravi,

Your asset class should be at the lowest level of your asset catalog.

There is no concept of parent to child relationship between asset classes...other than what you might build into the label.

To a standard SAP asset report, every asset class is a peer to the other.

If you are trying to determine how to group assets, you should answer for what purpose?

Is it for depreciation purposes, for calculating gain/loss on retirements, or simply for reporting.

If for depreciation grouping and retirements, you should consider the use of group assets.

If it is for reporting, you should consider sub-numbered assets or master data labels such as evaluation groups and/or super number.

Regards,

Kent Bettisworth

[Former Member]

Hello Ravi,

I do not know how you solve your situation. I have some finger tips on your scenario. You can create as many asset sub categories ( two or three level asset class - OAVA) unders asset class and assign them through the validation (OACV) . Then useful life of these asset sub category can be achieved from subsitution rule ( OACS).

If any body need further help on this, please revert back to me through this thread.

Regards,

Nabin

[Former Member]

Hi,

Hope you are trying sub classify your asset classes...am i right?

Please post the actual scenario to our understanding.

Thanks,

Srinu

[former_member182098]

Yes, you are right.

As explained in my original post, the asset classes are further broken down into different sub-asset classes based on different criterias such as number of years life expectency, type of asset etc. (These are category 3)

If you take a hierarchy,

Top level Asset Class

Second Level Asset Class (we are creating these as asset classes)

Third Level Asset Classes

I would like to know how the third level assets classes will be mapped ?

Please let me know if you need any further explanation.

Regards,

Ravi

[Former Member]

Hi Ravi,

the basis is the account assignment group for setting-up asset accounting.

When you create an asset class you assign it to a account assignment group.

Reasons to have more then 1 asset class by account assignment group is:

Different field status groups (field optional / requered)

Set-up default by asset class. (depreciation key use full live,.....)

large group of assets

....

In the asset it self you have 5 user fields you can define by you self and you can use them in all asset report. (selection / subtotals)

[Former Member]

Hi Ravi,

Please clarify one thing..

You are going to create, TOP LEVEL ASSET CLASS and SECOND LEVEL ASSET CLASS, in OAOA..

So according to me, how you can map the top AC with 2nd AC? (Both are identical only)

Anyway you can only maintain the depkeys at 1st level only.

In our case,, we have used evaluation group fields for further classification of our asset classes, but dep will be calculated on main asset class level only with the OAYZ config.

Since these evaluation group fields can be used for reporting purpose.

Or else you can try GROUP ASSET Functionality

Thanks,

Srinu

[former_member182098]

Hello,

Where is the account acccount assignment group while creating asset class?

Can you please detailed further the steps??

Regards,

Ravi

[Former Member]

SPRO

Asset Accounting / Organizational Structures / Asset Classes

Specify Account Determination (here you create the groups)

Define Asset Classes (here you assign the Account Determination group)

with TC AO90 you assign the G/L accounts

[Former Member]

Hi Paul,

In the path, which you have suggested is to create the account determination keys only. But there is no concept like account assignment groups....

With this how we can manage asset classes in a 3 level hiearcy?

Like First level asset class, seond level asset class, and third level asset class....

Yes, we can assign one account determination key to many asset classes, but we can manage the dep area settings at OAYZ will be at one asset class level onlyyyyyyyyyy...

Please correct me if i am wrong in this requiremnent..

Thanks,

Srinu