Working with Fixed Assets –
Retirement and Monitoring
SAP Business One, Version 9.3
PUBLIC
▪ Welcome to the Retirement and Monitoring topic.
1
Objectives
At the end of this course, you will be able to:
▪ Retire a fixed asset
▪ Use reports and the Asset Master Data form to monitor a fixed
asset’s value.
Note!
▪ You need to make decisions about legal and industry
requirements together with the client accountant.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
At the end of this course, you will be able to retire a fixed asset and use reports and the
Asset Master Data form to monitor a fixed asset’s value.
Note!
You need to make decisions about legal and industry requirements together with the client
accountant.
Business Example
▪ OEC Computers utilizes a small fleet of delivery trucks.
▪ After purchasing the trucks, they defined them as fixed
assets in SAP Business One.
▪ In order to present the updated trucks’ value
in the company financial reports, they need
to document the transactions affecting the OEC Computers
vehicles’ value during their useful life.
▪ Retire a fixed asset by an A/R invoice or by
the Retirement document if there is no
customer involved. OEC Computers
Use reports and the Asset Master Data form to
monitor a fixed asset’s value.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
• OEC Computers utilizes a small fleet of delivery trucks.
• After purchasing the trucks, they defined them as fixed assets in SAP Business One.
• In order to present the updated trucks’ value in the company financial reports, they need
to document the transactions affecting the vehicles’ value during their useful life.
• You are a consultant implementing fixed assets and you show them the Fixed Assets
functionality and working process in SAP Business One.
• Retire a fixed asset by an A/R invoice or by the Retirement document if there is no
customer involved.
• Use reports and the Asset Master Data form to monitor a fixed asset’s value.
Fixed Assets Retirement
A/R Invoice Retirement
Debit Credit Debit Credit
Customer 2000 Revenue 2000
Clearing Account
Revenue 2000 Asset Balance 2000
Clearing Account Sheet Account
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
• Retirement is the removal of an asset or part of an asset from the asset portfolio.
• There are two ways to retire a fixed asset: by A/R invoice if you are selling the asset or by
a Retirement document if there is no customer involved and you need to write off the
fixed asset.
• In case the company sells the asset at the end of its useful life (or before), the user can
retire the item using an A/R invoice.
• If you use the A/R Invoice option, make sure you define the Assets Master Data as a
Sales Item.
• The A/R Invoice automatically generates a Retirement document.
• A Retirement document can be issued directly in case a customer is not involved and you
need to write off the fixed asset.
• After the asset is fully retired:
─ Its value in the asset balance sheet account, in the fixed assets sub ledger, is
registered as zero.
─ The asset master data status changes to Inactive.
─ The Net Book Value of the Asset Master Data is set to zero.
• Note, that in the Retirement document there is an option for a partial retirement. In this
case, the asset will hold the remaining value until the end of the item useful life.
4
Fixed Assets Retirement
A/R Invoice Retirement
Debit Credit Debit Credit
Customer 2000 Revenue 2000
Clearing Account
Revenue 2000 Asset Balance 2000
Clearing Account Sheet Account
Note!
Depending on the business scenario and the system
definitions, different accounts will be involved in the journal
entry attached to the Retirement document.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
• Note! Depending on the business scenario and the system definitions, different accounts
will be involved in the journal entry attached to the Retirement document.
• Remember that in the Depreciation Area in the Posting of Retirement field you choose
between Gross and Net.
• This definition will apply in a Retirement document of scrapping type (as oppose to Sales
type). The system will always treat scrapping as loss. In Gross the system uses the
default expense gross account. And in Net the system uses the default expense net
account.
• In addition, it depends on the Posting of Depreciation option you choose (that is Direct or
Indirect Posting).
5
Asset Depreciation Forecast Report and the Asset Master Data
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
▪ During the process, we monitor the fixed asset value using reports and the Asset Master
Data.
▪ To issue the fixed assets reports go to Financials Fixed Assets Fixed Assets
Reports.
• As we said before, depreciation is used to write off the cost of an asset over its useful
lifetime.
• It represents the reduction in the book value of an asset for both tax and accounting
purposes and will be included within the company expenses.
• The system predicts the yearly expected depreciation rate according to the Asset Master
Data definitions.
• You can view this information in the Asset Depreciation Forecast Report. You run the
report for each depreciation area.
• The depreciation information is presented for each asset and is grouped by a fiscal year.
• If the selected fiscal year does not yet exist, fixed asset forecasts will be based on the last
fiscal period defined in SAP Business One. In the display, forecast fiscal years are
marked with an asterisk sign.
• In addition, you can view the depreciation information of a specific fixed asset in the Asset
Maser Data window under the Depreciation sub-tab.
• The data is presented according to the selected Depreciation Area and the selected
Fiscal year.
• Once you choose a depreciation area and a fiscal year in the corresponding fields, the
information area present the numbers according to this selection.
6
Asset History Sheet
Fixed Assets Sub Ledger
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
• The Asset History Sheet is the most important supplement to the balance sheet from the
fixed assets point of view.
• The report can be issued for all fixed assets.
• It displays all posted asset transactions in a fiscal year and presents the assets for each
Balance Sheet account.
• When issuing the report, you can choose one balance sheet account or you can leave
this selection empty to display the data for all asset balance sheet accounts. Same for
asset class.
• You can issue the Asset History Sheet and the Asset Depreciation Forecast Report for
one depreciation area each time.
• Remember that you can also issue the report for a non-posting to GL depreciation area to
check the fixed assets value according to this area.
• In our example, you could issue the report for the IFRS area which holds a different
depreciation method and hence will display different values.
• The balance sheet account selection will be ignored when issuing the report to a non-
posting to G/L depreciation area.
• The report can be displayed according to a financial report template.
• Go to Financials Financial Report Templates to define the fixed asset template for
the Asset History Sheet.
• You can also export the report results to MS Excel.
7
Asset Status Report
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
• The Asset Status Report presents an overview on all fixed asset master records for a
selected fiscal year.
8
Asset Transaction Report
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9
• The asset transaction report provides you with a list of transactions relevant to an asset.
• Use the Transaction Type button to specify the transactions you wish to see in the report.
9
Asset Master Data - Values Tab
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10
• Another place for fixed asset monitoring is the Values sub-tab under the Fixed Assets tab
in the Asset Master Data.
• Here, you can monitor the change in value of an asset over the course of one year.
• In the presented example, you can see the values expected for the truck asset in the
current year according to the GAAP depreciation area.
10
Summary
Here are some key points to take away:
▪ Retirement is the removal of an asset or part of an asset from the asset portfolio.
▪ After the asset is fully retired, its value in the asset balance sheet account, in the fixed assets
sub ledger, is registered as zero. The asset master data status changes to Inactive. The Net
Book Value of the Asset Master Data is set to zero.
▪ There are two ways to retire a fixed asset: by A/R invoice if you are selling the asset or by a
Retirement document if there is no customer involved.
▪ If you use the A/R Invoice option, make sure you define the Assets Master Data as a Sales
Item.
▪ The A/R Invoice automatically generates a Retirement document.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11
• Here are some key points to take away:
• Retirement is the removal of an asset or part of an asset from the asset portfolio.
• After the asset is fully retired, its value in the asset balance sheet account, in the fixed
assets sub ledger, is registered as zero. The asset master data status changes to
Inactive. The Net Book Value of the Asset Master Data is set to zero.
• There are two ways to retire a fixed asset: by A/R invoice if you are selling the asset or by
a Retirement document if there is no customer involved and you need to write off the
fixed asset.
• If you use the A/R Invoice option, make sure you define the Assets Master Data as a
Sales Item.
• The A/R Invoice automatically generates a Retirement document.
Summary – cont.
• We monitor the fixed asset value using reports and the Asset Master Data.
• You can view the yearly expected depreciation in the Asset Depreciation Forecast Report.
• You can also view the depreciation information in the Asset Maser Data window under the
Depreciation sub-tab.
• The Asset History Sheet is the most important supplement to the balance sheet from the fixed
assets point of view. The report displays all posted asset transactions in a fiscal year and
presents the assets for each Balance Sheet account.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12
• During the process, we monitor the fixed asset value using reports and the Asset Master
Data.
• The system predicts the yearly expected depreciation rate according to the Asset Master
Data definitions. You can view this information in the Asset Depreciation Forecast Report.
• You can also view the depreciation information of a specific fixed asset in the Asset
Maser Data window under the Depreciation sub-tab.
• The Asset History Sheet is the most important supplement to the balance sheet from the
fixed assets point of view.
• The report displays all posted asset transactions in a fiscal year and presents the assets
for each Balance Sheet account.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components
of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated
companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and
platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information
in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company)
in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.
See [Link] for additional trademark information and notices.
14
