Fixed Assets

After completing this topic, you will be able to explain the process of managing fixed asset items and recognize key terms in the Fixed Assets solution.

Here are some key points to take away:

1. The main definition in the Asset Master Data is the Asset Class which includes the association to the other definitions for Depreciation Area, Account Determination and Depreciation Type.
2. The asset master data record is activated when a user purchases a fixed asset using an A/P invoice. The A/P invoice automatically generates the Capitalization document. A user also has the option to generate the Capitalization document directly.
3. Depreciation is used to write off the cost of an asset over its useful life. Depreciation is included as a company expense.
4. The Depreciation Run option carries out all depreciation planned up to a specified date and updates the asset master data value with the actual depreciation.
5. A fixed asset is retired by an A/R invoice if you are selling the asset, or by a Retirement document if there is no customer involved. The A/R Invoice automatically generates a Retirement document which sets the net book value of the asset to zero.
6. The Asset History Sheet displays all posted asset transactions in a fiscal year and the assets for each balance sheet account.

You can also download the document here for your records.