Asset entry with expense GL

[Former Member]

Hi All,

How to make an entry with asset account debit or credit and any expense GL debit or credit.

I was struck here and good answers are appreciated.

Regards,

Srinivas.

[former_member193511 · Accepted solution]

Hi Srinivas,

For asset acquisition with a vendor, F-90 will be used with posting key 70 to make a debit entry to an asset and on the offsetting account posting key 31 will be used to credit a vendor account.

Alternatively for asset acquisition without an invoice / a vendor, ABZON (asset acquisition with automatic offsetting entry) will be used, SAP create an entry with posting key 70 debit asset and normally credit a clearing account xxxxxx (set up in AO90 customizing) with posting key 50 automatically. This clearing account can then be used for offesetting against an expense account posted in vendor invoice earlier should there be a need.

As for crediting asset, posting key 75 should be used in a similar way you post an external acquisition using F-90.

Kind regards,

John Chin

[Former Member · Accepted solution]

Hi Chinks,

thanks for your reply. But it won't fulfill my requirements.

The purpose of adjusting an asset against an expense is :

As per accounting standard 11, we have to make provision for foreign fluctuation.

suppose on 1.12.2010 asset purchased from A : 5000 USD @ 45

Then on 31.03.2011 the rate is for 1 USD 45.50

So there is a loss of 0.50*5000= 2500

for this we are creating a provision entry as

asset account dr 2500

to A a/c 2500

This is my doubt how to make this entry

Moreover one more scenario is there as

suppose i made a wrong entry as

forex fluctuation account dr

to A A/C

So in this case i want to do a rectification entry as

Asset account dr

to forex fluctuation account

so that ultimately i will get my result.

Please suggest how to overcome the situation.

Thanks and Regards,

Srinivas

[ajaycwa1981 · Accepted solution]

Hi Srini

I dont think this is a valid Business requirement... Till how many times will you change the asset capitalization value like this, if the invoice is pending for say, 6 months

The right process is to revaluate the Vendor Open items... When you make the final payment to vendor and the realized exchange gain/loss can be capitalized to asset... But certainly, its not right to capitalize the unrealized gain/loss

However, if you still wanna do it, use ABSO T code... 100 Tr Type for Dr to asset and 101 for Cr to asset

You can specify any P&L acc as off seting acct

br, Ajay M

[Former Member · Accepted solution]

Hi Ajay,

Thanks for your valuable input.It solved my issue.

Regards,

Srinibas.

[former_member433617]

70 debit from asset sub-ledger transaction

75 credit from asset sub-ledger transaction

40 debit from FICO transaction

50 debit from FICO transaction

Not sure understanding your question. Regards