Interview Questions.

Q1. How Do You Set Up Depreciation Area Postings To Fi From Fiaa?

You want to outline how the numerous depreciation regions want to submit to FI-GL.

It can be any person of the following eventualities:

Post depreciation thru ‘periodic processing.’

 Post each the APC (Acquisition and Production Costs) and depreciation via periodic processing.

Post the APC in ‘real time’ however depreciation via periodic processing.

 No values are published.

However, you want to make sure that at the least one depreciation region is configured to put up values robotically to the FI-GL. Normally, this depreciation place can be 01 (ebook depreciation). For the relaxation of the depreciation regions, it is able to be configured that they derive their values from this location and the difference consequently calculated is mechanically published to FI-GL. There can also be situations wherein you could outline depreciation regions just for reporting functions, and these regions need not submit to the GL.

Q2. Is It Possible To Create Asset Classes Automatically?

The prerequisites for automatic asset elegance creation consist of:

Company Code must be assigned to a chart of depreciation

Depreciation regions have already been described

GL account number isn't always extra than eight digits (otherwise you want to assign the instructions manually)

Also observe that you can need to maintain the GL account for ‘gathered depreciation’ manually. The system continues the essential account assignment best in regards to the depreciation area 01 (ebook depreciation). If you want extra areas, you can need to do that manually inside the IMG.

Q3. What Is Depreciation Key?

A key for calculating depreciation amounts.There is a right away hyperlink between asset and employer code.Which we link among the depreciation key and grasp report.

Q4. How Many Depreciation Areas Can Be Defined For A Company Code ?

Depreciation regions aren't defined for corporation codes alternatively depreciation regions are described for a chart of depreciation, A most f 99 depreciation regions may be maintained for a Chart of Depreciation.

Q5. What Do You Mean By Depreciation Area?

Methods of calculation of depreciation. An location displaying a valuation of constant assets for a specific reason. For instance Book depreciation, Income Tax Depreciation, Costing depreciation.

Q6. What Are The Types Of Depreciation Methods?

Base method

Decline cost method

Maximum approach

Multi level approach

Period manage technique.

Q7. What Is An Asset Class Catalog?

An ‘Asset Class Catalog’ contains all the asset training in an enterprise and is therefore valid across the Client. Since an asset magnificence is legitimate across the Client, most of the characteristics of the asset elegance are described on the Client level; however, there are positive traits (which includes the depreciation key, for instance), which may be described on the chart of depreciation stage.

Q8. Is It Possible To Create An Asset Class Automatically?

Yes, There are two methods

Create an asset magnificence on the subject of an present asset magnificence

Generate an asset elegance thru the asset elegance transaction code(ANKL).

Q9. What Is Group Asset In Sap? When You Will Use This?

A ‘Group Asset’ in SAP is almost like a regular asset except that it is able to have (any quantity of) sub-assets denoted via Asset Sub numbers. The idea of institution asset turns into important while you want to carry out depreciation at a set level, for a few special functions which includes tax reporting. Remember that SAP’s manner of depreciation is continually at the character asset stage. Hence, to manipulate on the organization level, you need the organization asset.

Once you make a decision to have institution belongings, you also want to have ‘unique depreciation regions’ intended for institution assets; you may now not be able depreciate a collection asset using a ordinary depreciation location. Unlike Complex Assets, you can delete a group asset only when all of the associated sub numbers have been marked for deletion.

Q10. What Is Asset Super Number In Sap?

The concept of ‘Asset Super Number,’ in FI-AA, is used best for reporting functions. Here, you'll assign a number of individual assets to a single asset wide variety. By using this technique, you may be capable of see all of the associated belongings with the asset wonderful range as a unmarried asset (for example, brake meeting line) or as man or woman belongings (as an example, machinery, device inside the brake meeting line).

The concept of ‘Asset Super Number,’ in FI-AA, is used only for reporting functions. Here, you will assign a number of man or woman belongings to a single asset range. By the use of this system, you'll be capable of see all the related property with the asset first-rate range as a single asset (for instance, brake assembly line) or as individual assets (as an instance, equipment, device inside the brake meeting line).

Q11. Explain Asset Accounting?

The Asset Accounting (FI-AA) sub module in SAP manages a enterprise’s fixed assets, right from acquisition to retirement/scrapping. All accounting transactions regarding depreciation, coverage, and so forth., of belongings are looked after via this module, and all of the accounting records from this module flows to FI-GL on a real-time basis.

You could be capable of directly submit (the goods receipt (GR), invoice receipt (IR), or any withdrawal from a warehouse to a hard and fast asset) from MM or PP to FI-AA. The integration with FI-AR enables in direct posting of income to the customer account. Similarly, integration with FI-AP allows in posting an asset at once to FI-AA and the applicable vendor account in instances where the purchase isn't routed via the MM module. You may capitalize the preservation activities to an asset the usage of settlements via the PM module. FI-AA and

FI-GL has actual-time integration where all the transactions consisting of asset acquisition, retirement, switch, and so forth., are recorded concurrently in each the modules. However, batch processing is required to switch the depreciation values, interest, and so on., to the FI module.

The FI-AA and CO integration enables in:

Assigning an asset to any hobby kind. Internal Orders act as a two-way link to the FI-AA:

They assist to gather and skip at the capital expenditure to assets,

they collect the depreciation/interest from FI-AA to controlling gadgets. (Note that when there's a situation where the asset master document contains an inner order and a fee middle, the depreciation is continually posted to the inner order and now not to the cost center.)

The depreciation and the hobby are exceeded directly to the price/earnings centers.

Q12. Define Depreciation Areas?

Fixed belongings are valued otherwise for distinctive functions (enterprise, prison, and so on.). SAP manages those distinctive valuations by using ‘Depreciation Areas.’ There are various depreciation areas together with book depreciation, tax depreciation, and depreciation for price-accounting functions, and so on.

A depreciation location makes a decision how and for what motive an asset is evaluated. The depreciation vicinity may be ‘real’ or a ‘derived one.’ You may additionally want to apply numerous depreciation areas for a unmarried asset relying at the valuation and reporting requirements. The depreciation areas are denoted by a 2-man or woman code inside the device. The depreciation areas comprise the depreciation terms that are required to be entered in the asset grasp data or asset classes.

SAP comes introduced with many depreciation regions; but, the depreciation place 01—Book Depreciation is the main one.

The other depreciation areas are:

 Book depreciation in group foreign money

 Consolidated variations in local/organization currency

 Tax stability sheet depreciation

 Special tax depreciation

 Country-precise valuation (e.G., internet-worth tax or country calculation)

Values/depreciations that differ from depreciation vicinity 01 (as an example, fee-accounting motives)

 Derived depreciation location (the difference among e-book depreciation and usa-specific tax depreciation).

Q13. What Is Depreciation? Explain The Various Types?

Depreciation’ is the discount inside the book price of an asset due to its use over the years (‘decline in monetary usefulness’) or due to legal framework for taxation reporting. The depreciation is generally calculated considering the financial life of the asset, predicted fee of the asset at the end of its economic life (junk/ scrap fee), approach of depreciation calculation (directly line technique, declining stability, sum of 12 months digits, double declining, and so on.), and the described percent decline within the fee of the asset every 12 months (20%, or 15%, and so on).

The depreciation can either be planned or unplanned. Planned depreciation is one that brings down the price of the asset after each deliberate length; say each month, until the asset cost is completely depreciated over its life length. With this technique, you'll realize what the cost of the asset at any factor of time in its lively lifestyles. On the contrary, unplanned depreciation is a unexpected happening of an event or prevalence not foreseen (there can be a unexpected get away of a fireplace destructive an asset, which forces you to depreciate absolutely as it's miles not useful economically) resulting in a everlasting discount of the value of the asset.

In SAP, you will stumble upon three styles of depreciation:

Ordinary depreciation, that is nothing but ‘deliberate depreciation.’

Special depreciation, that's over and above ‘ordinary depreciation,’ used typically for taxation functions.

Unplanned depreciation, that's the result of decreasing the asset value due to thesudden occurrence of sure occasions.

Q14. What Is Asset Class?

The Asset class is the main criteria for classifying property. Every asset need to be assigned to anybody elegance.The asset magnificence is nothing but a group of asset. For example of Asset lessons are Plant & Machinery, Furniture & Fixtures, Computer and so forth.

Q15. How Do You Create An Asset Accounting Company Code?

Define the Company Code in FI configuration, and assign a chart of accounts to this Company Code.

Assign a chart of depreciation to this Company Code in FI-AA configuration.

Add essential records for the Company Code for use in FI-AA, and your ‘asset accounting Company Code’ is now ready for use.

Q16. What Is Sap Asset Accounting

Asset Accounting Overview. Purpose. The Asset Accounting (FI-AA) element is used for dealing with and supervising fixed belongings with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, presenting specific statistics on transactions related to fixed assets.

Q17. What Are The Segments In Asset Master ?

Master statistics section and Depreciation section.

Q18. What Is An Asset Value Date?

The ‘Asset Value Date’ is the begin date of depreciation for the asset. The ‘planned depreciation’ is calculated by means of the gadget based totally in this depreciation start date and the chosen ‘depreciation term’ for that asset. Be cautious with the posting date and asset value date. Both dates want to be in the same monetary year.

Q19. What Is A Lean Implementation In Fi-aa?

A ‘Lean Implementation’ is the scaled-down version of the normal FI-AA configuration in IMG, with minimum configuration required to permit asset accounting. This is suitable for small agencies the usage of the same old functionalities of asset accounting, and also in conditions wherein the Asset Catalog isn't that huge.

You must not opt for lean implementation if:

You need greater than Depreciation Areas

You need to Depreciate In Foreign Currencies as nicely

You have Group Assets

You need to define your personal Depreciation Keys/Transaction Types/ Reports

You need a Group Consolidation

Q20. Explain Complex Assets And Asset Sub Numbers?

A ‘Complex Asset’ in SAP is made of many master records every of that's denoted via an ‘Asset Sub range.’ It is prudent to apply asset sub numbers if:

You need to manipulate the ‘next acquisitions’ one by one from the preliminary one (as an example, your initial acquisition was a PC, and you're including a printer later).

You need to control the numerous elements of an asset one after the other even on the time of ‘initial acquisition’ (as an instance, an preliminary buy of a PC where you create separate asset grasp information for the monitor, CPU, and so on.).

You need to divide the belongings based totally on positive technical features (keyboard, mouse,and many others.).

When you control a complicated asset, the gadget allows you to evaluate the asset in all feasible ways together with:

For a unmarried sub range

For all sub numbers

For pick out sub numbers

Q21. What Are The Kinds Of Assets In Sap ?

An asset can be a Simple Asset or Complex Asset. Depending at the requirement, assets are maintained with Asset Main Numbers and Asset Sub numbers. A complex asset includes many Sub-Assets; every of them identified using an asset sub range. You can also use the idea Group Asset in SAP.

Q22. What Is The Difference Between Coa And Cod?

The chart of Accounts is the index of G/L debts.The Chart of Account may be international,u . S . A . Unique or industry particular primarily based at the want of commercial enterprise. The COD is the index of depreciation regions.The COD is handiest united states unique.

Q23. How Many Ways Can You Create The Asset Master Record ?

With connection with an asset

Using the wide variety functionality for similar assets.

Through an asset elegance(AS01).

Q24. What Is Account Determination ?

One of the maximum critical functions of the Asset elegance to be establish the relationship among the Asset master document and the corresponding debts within the standard ledger in Financial accounting. This connection is created by the account willpower secret is asset class.

Q25. What Is Chart Of Depreciation ?

The Chart of Depreciation is a list of Depreciation  Areas arranges in step with commercial enterprise and criminal requirement.

Chart of Depreciation is used as a way to control numerous felony requirements for the depreciation and valuation of assets. Each organization code is allocated to 1 chart of depreciation.