The SAP asset accounting component handles fixed asset accounting transactions of a business. Individual fixed asset is treated in the system as subsidiary ledger. Each asset is link to a general ledger reconciliation account. All postings to each individual asset are posted automatically to the reconciliation account.  The following steps (processes) are necessary for period-end in Asset Accounting component of SAP:

A. Completeness of all transactions in Asset Accounting

• All fixed asset transactions must be recorded and stored in your SAP system. Transactions could be aquisitions, retirements, transfers (intercompany and intracompany). Afterwhich, the depreciation posting run should be run to post depreciation of fixed assets for the period.

B. Carry out depreciation posting run – test mode

• After ensuring the completeness of asset transactions in your system, execute the depreciation posting run. To ensure that depreciation could be executed successfully, activate the test run. Examine the error log to determine if there are errors if depreciation is carried out.

C. Carry out depreciation posting run - final mode 

• Carry out final depreciation posting run if there are no errors found in test mode run. Otherwise, if there are errors you should resolve the errors before carrying out final run. During final run, the neccesary and corresponding depreciation are posted to depreciation expense and accumulated depreciation of the respective assets.  

D. Review depreciation posting transactions

• After carrying out the final depreciation posting run, review the posted depreciation values. Standard asset reports are available in the system, ensure that correct depreciation values are posted properly.

E. Perform Fiscal Year Change (AJRW)

• It is a requirement in SAP system that a fiscal year change should be carried out before an asset business transactions can be posted in the system in a new fiscal year. During posting of asset to a new fiscal year, an error is occured if fiscal year change is not carried out. The fiscal year change must be carried out as background processing due to performance reason.
• The last month of the old fiscal year is the earliest time to carry out the fiscal year change. You can have a maximum of 2 fiscal years open for posting at one time. So you can not carry out fiscal year change if the fiscal year preceding the old fiscal year is not yet closed.

F. Year-end closing (AJAB)

• From an accounting view, you can close the fiscal year for one or more company codes. The year-end closing in Asset Accounting must be carried out before the year-end closing in General Ledger Accounting. Once the fiscal year is closed, you can no longer post or change posted values in Asset Accounting e.g. recalculate depreciation. Take note that the year-end closing program must be carried out as background processing due to performance reason.