If you work with asset accounting (FI-AA) in SAP ERP, then you are familiar with the concept of making a change to the asset’s depreciation terms. Whether the change is to fix an incorrectly entered parameter or to reflect a change in accounting or tax treatment, you can change the depreciation terms by using transaction AS02. Other situations that often occur can trigger a different kind of asset adjustment. For example, impairments or revaluations are often posted as well as transactional depreciation adjustments. Before making any of these adjustments, I find it best to first post one of the entries to ensure that the changes to all the asset values are correct.

This is a good idea because an asset tracks different values than most all other forms of SAP master data. To make a comparison, if you change the payment terms on a vendor, the current balance is not immediately affected. Changing the cost center category or tax jurisdiction code on a cost center doesn’t affect the existing values on the cost center. Fixed asset records are different in that they are continuously calculating planned amounts, most notably planned annual depreciation. Making a change to an asset’s depreciation terms on the master record or posting transactional value adjustments trigger a recalculation of the asset’s planned values. 

Some of these changes are often done in both large volume and with significant dollar amounts. If they are done incorrectly, it can be difficult and time consuming to reverse the changes. In these situations, I always want to proof the solution and verify the effects on the asset and its depreciation calculation using the Asset Explorer. If the results are not acceptable, I can go back and tweak the solution and confirm the results again in the Asset Explorer.

To aid this type of exploratory process, SAP delivers a simulation tool that has been incorporated into the Asset Explorer. The benefit to using it is that it allows you to simulate both types of changes without immediately committing to the changes and updating the database. It provides a safety mechanism in that you can see the prospective effects of the changes you are making as if they were posted in real time. The tool is both convenient to access and easy to use.

I’ll cover two common scenarios that demonstrate the two ways to simulate changes and transactions to an asset record.

Simulating a Change in an Asset’s Depreciation Terms

In this first example, I’ll focus on simulating an alteration to the asset’s depreciation terms, such as changing the asset’s useful life.

To use the simulation function, use transaction AW01 or AW01N to access the Asset Explorer (Figure 1).

Figure 1

Activate the simulation tool

Once you’ve entered the company code and asset number, you can view the asset’s current values, important master data assignments, and planned values into future years. This particular asset is currently depreciating over four years, which yields an annual depreciation of $337.50. To activate the simulation tool, click the simulate icon highlighted in Figure 1 to bring up the screen shown in Figure 2.

Figure 2

The same screen after simulating

At this point, the changes to the screen are subtle and it may not be obvious that anything has happened. Note that the title of the screen has now changed to Asset Explorer Simulation and that the text on the Planned values tab has changed to Simulated Plan Vals. Corporate Book in LC (USD). When you see this change, you know that the values being displayed on the screen are being actively simulated and no longer read solely from the asset value tables. 

If you navigate to the Posted values or Comparisons tabs you’ll notice that the changes are also very minor (only changes to the description on the Posted values tab). The real use of the tool is obvious once you navigate to the Parameters tab (Figure 3).

Figure 3

Go to the Parameters tab

The Parameters tab displays the depreciation parameters that are relevant for the area that you highlighted. Like all the elements on the Asset Explorer, the fields are display only and purely informative. However, with the simulation tool active, you’ll see that most of the fields on the Parameters tab are now open for input. The available fields that you can change are:

• Dep. Key
• Useful life (year and periods)
• Index series
• Aging index
• Ord.dep.start date (start date for ordinary depreciation)
• Spec.depreciation (start date for special depreciation)
• Int.calc.start (start date for interest calculation)
• Changeover year (for use with accelerated keys)
• Scrap value
• Scrap Value %
• Inv. Support
• Var.Dep.Ptn (variable depreciation percentage)

In this example, I change the useful life of the asset from four years to three and then press Enter to simulate the value changes based on this change in the asset’s useful life (Figure 4).

Figure 4

Change the useful life to three years

If I navigate back to the Planned Values tab, I can immediately see the effects of the change in the asset’s life. The Asset Explorer now calculates an annual depreciation amount of $450.00 (Figure 5). 

Figure 5

The Asset Explorer with new simulated values

I could have made other changes such as the asset’s depreciation key or start date. These types of changes are common and can be done on each depreciation area uniquely. It is also possible to simulate a series of these changes at the same time. Once you leave the transaction or turn off the simulation tool by pressing the simulate icon again, the changes are flushed from memory and the Asset Explorer again displays the original values that are stored on the database.

Simulating an Asset Posting Transaction

In the second example, I need to post a partial retirement on an asset and I want to be sure that the depreciation to be retired along with the posting is the amount that I expect. 

Once you’ve activated the simulation function in the Asset Explorer, focus on the Transactions pane at the bottom of the screen. Notice that the text has changed to Simulation Transact. and that there is an additional icon that you can use to simulate transactions (Figure 6).

Figure 6

Transaction simulation icon added to the screen

Click this icon to simulate transactions such as the retirement posting shown in Figure 7.

Figure 7

Retirement posting

I can now simulate the posting of up to four types of transactions. To simulate the retirement, I click the Retrmt tab and enter the relevant information for that posting, such as the Trans. Type, Partial retrmt, Amount posted, and Revenue settings (Figure 8).

Figure 8

Enter relevant information in the Retrmt tab

To simulate the posting and view its effects on the asset, click the green check mark icon and the system returns you to the main Asset Explorer screen (Figure 9).

Figure 9

The Asset Explorer with simulated values

The partial retirement of $120 has generated a value adjustment of $25 and a loss of $95. The net book value for the asset at the end of the first year is now scheduled to be $922.50 instead of $900.

Also notice that the color of the simulated transaction is different from the other transaction that was recorded to the asset. The simulated posting affects the values displayed on both the Planned and Posted values tabs. It’s also possible to combine these two methods – to simulate both a master data change and a transactional posting – without creating any other performance issues. You can also simulate multiple asset postings.

Limitations

You should be aware of a few limitations:

• You can simulate time-dependent depreciation term changes but it requires that you first implement SAP Note 1398629
• It is not possible to perform simulation on group assets or their component assets
• An explicit asset record must be used for simulation. It is not possible to simulate when an asterisk (*) is entered in the subnumber field. 
• It is also not possible to simulate retirements or transfers on simulated acquisitions

Nathan Genez

Nathan Genez is an SAP FI/CO- and SAP BW-certified consultant who has worked with SAP ERP since 1996, with an emphasis on the capital accounting modules: PS, IM, and FI-AA. A former platinum consultant with SAP America, Inc., he has worked with SAP BW since release 1.2B. He is currently a managing partner at Serio Consulting in Houston, Texas.

You may contact the author at nathan.genez@serioconsulting.com.

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