About Asset Accounting Terms

http://financial-dictionary.thefreedictionary.com/ http://financial-dictionary.thefreedictionary.com/Depreciation

Accounts Payable - AP
Any money that a company owes its suppliers for goods and services. Accounts payable is recorded on a company's balance sheet as a short-term (current) liability. Notes: Essentially, this represents debt a company must settle within one year. Examples are unpaid phone bills and other utilities.

Accounts Receivable - AR
Money that customers (individuals or corporations) owe a company in exchange for its goods or services. Accounts receivable usually come in the form of operating lines of credit, and are usually due within a relatively short time period, ranging from a few days or weeks up to one year. Notes: If a company has receivables, it means it has made the sale but has yet to collect the money from the purchaser. Most companies operate by allowing some portion of their sales to be on credit. These sales are usually to frequent customers, who are invoiced periodically, allowing them to avoid the hassle of physically making payments as each transaction occurs. If you look at the balance sheet of a public company, you will usually see accounts receivable recorded as an asset, since it represents a legal obligation for the customer to remit cash for its debts. Conversely, when a company owes debts to its suppliers or other parties, these are known as accounts payable.

Page: 1 of 14

File: 130458542.doc

About Asset Accounting Terms

asset
Definition Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, and retained earnings. From an accounting perspective, assets are divided into the following categories: current assets (cash and other liquid items), long-term assets (real estate, plant, equipment), prepaid and deferred assets (expenditures for future costs such as insurance, rent, interest), and intangible assets (trademarks, patents, copyrights, goodwill).

fixed asset
Definition A long-term, tangible asset held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, and furniture. also called plant.

Fixed Assets
DEFINITION: An accounting term that describes tangible property used in the operation of a business such as buildings, machinery, fixtures, furniture and equipment. It does not include items normally consumed in the course of business operation or production.

"Assets "
Definition:
Assets are any property owned by a person or business. Tangible assets include money, land, buildings, investments, inventory, cars, trucks, boats, or other valuables. Intangibles such as goodwill are also considered to be assets. Capital Assets, also known as Fixed Assets, are those assets such as land, buildings, and equipment acquired to carry on the business of a company with a life exceeding one year. In financial records these Fixed Assets are usually expressed as the cost of the asset minus depreciation. Current Assets are items such as cash, inventory, and accounts receivable that are currently cash or expected to be turned into cash within one year. Asset Turnover may be used as a broad measure of asset efficiency. It's calculated by dividing sales revenue by the total assets.

Common Misspellings: Assetts, Asets. Examples: A trademark is an example of an intangible Fixed Asset.

Fixed Asset
A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time. Notes: Buildings, real estate, equipment and furniture are good examples of fixed assets. Fixed assets are sometimes collectively referred to as 'plant'.

Page: 2 of 14

File: 130458542.doc

About Asset Accounting Terms

Generally intangible long-term assets, such as trademarks and patents, are not categorized as fixed assets but more specifically referred to as 'fixed intangible assets'.

Amortization
1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time. Similar to depreciation, it is a method of measuring the consumption of the value of long-term assets like equipment or buildings. Notes: Think of amortization (the deduction of capital expenses) as a way to claim the decrease in value on your car every year. If you bought your car new for $20,000 and after the first year it is worth $17,000, theoretically you could amortize the $3,000 for tax and financial purposes.

Asset
1. A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item representing what a firm owns. Notes: 1. Assets are bought to increase the value of a firm or benefit the firm's operations. You can think of an asset as something that can generate cash flow, regardless of whether it's a company's manufacturing equipment or an individual's rental apartment. 2. In the context of accounting, assets are either current or fixed (non-current). Current means that the asset will be consumed within one year. Generally this includes things like cash, accounts receivable and inventory. Fixed assets are those that are expected to keep on providing benefit for more than one year, such as equipment, buildings, real estate, etc.

Alternative Assets
A term referring to non-traditional assets with potential economic value. Notes: Examples of alternative assets include art and antiques, precious metals, fine wines, rare stamps and coins, and other collectibles such as sports cards.

Non-Financial Asset
An asset with a physical value such as land, property, or some type of object. Notes: Unlike financial assets such as stocks and bonds, which are intangible, non-financial assets are physical and have values based upon their physical properties.

Financial Asset
An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets. Notes: Unlike land and property--which are tangible, physical assets--financial assets do not necessarily have physical worth.

Intangible Asset
An asset that is not physical in nature. Notes:
Page: 3 of 14 File: 130458542.doc

About Asset Accounting Terms

Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets.

Tangible Asset
An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. For example, a well-known brand name can be very valuable to a company. On the other hand, if you produce a product solely for a trademark, at some point you need to have "real" physical assets to produce it.

Net Tangible Assets

Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". Notes: To calculate a companies net asset value on a per bond, or per share of preferred or common stock, divide the net tangible assets figure by the number of bonds, shares of preferred stock, or shares of common stock.

Book Value
1. The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation. 2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities. Notes: Book value is the accounting value of a firm. It has two main uses: 1) It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated. 2) By being compared to the company's market value, the book value can indicate whether a stock is under or over-priced. In the U.K., Book Value is known as "Net Asset Value."

Balance Sheet
A company's financial statement that reports the assets, liabilities and net worth at a specific time. Notes: You will notice that assets = liabilities + shareholders' equity. This equation is true for all balance sheets. If the balance sheet is "consolidated" it just means that the company is a corporate group rather than a single company.

Clean Balance Sheet

Refers to a company whose balance sheet has very little or no debt. Notes: A company is told to "clean up" its balance sheet if they are exposed to large amounts of debt.

Debt
Page: 4 of 14 File: 130458542.doc

About Asset Accounting Terms

An amount of money borrowed and owed by one party to another. Notes: Bonds, loans and commercial paper are all examples of debt.

Net Receivables
A company's accounts receivable (money owed to the company) minus bad debts. Notes: If a company estimates that 2% of its sales are never going to be paid, then net receivables equals 98% (100% - 2%) of the accounts receivable.

Receivables Turnover Ratio

An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. Receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. Formula:

Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales. Notes: By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit not earning interest for the firm.

Income Statement
A financial report that - by summarizing revenues and expenses, and showing the net profit or loss in a specified accounting period - depicts a business entity's financial performance due to operations as well as other activities rendering gains or losses. Also known as the "profit and loss statement" or "statement of revenue and expense". Notes: The income statement is the most analyzed portion of the financial statements. It displays how well the company can assure success for both itself and its shareholders through the earnings from operations.

Annual Report
A corporation's annual statement of financial operations. Annual reports include a balance sheet, income statement, auditor's report, and a description of the company's operations. Notes: This is usually a sleek, colorful, high gloss publication. Make sure to look beyond the marketing and dig into the numbers. This is the best way to discover the direction of the company. The 10-K is the version of the annual report which gets submitted to the SEC. It contains more detailed financial information.

Cash Flow

Page: 5 of 14

File: 130458542.doc

About Asset Accounting Terms

The amount of cash a company generates and uses during a period, calculated by adding non-cash charges (such as depreciation) to the net income after taxes. Cash flow can be used as an indication of a company's financial strength. Notes: Cash flow is crucial to companies, having ample cash on hand will ensure that creditors, employees, and others can be paid on time.

Profit and Loss Statement - P&L

The portion of a company's financial statements that summarizes revenues and expenses during a specific period of time. This statement provides investors with information on the ability of a company to generate revenue and manage costs and is a measure of financial performance. Notes: Also known as a "statement of profit and loss," "income statement," or "income and expense statement."

Profit
The same as net income: total earnings less expenses. Notes: In other words, profit is the money a business makes after accounting for all the expenses. Profit is the goal of every company.

Expenses
1. Money spent by a firm to continue its ongoing operations. 2. Money spent or costs incurred that are deductible and reduce your taxable income. Notes: Expenses are the opposite of income. Costs that are not deductible are called "capital expenditures" and they must be depreciated or amortized instead.

Revenue
1. The dollar amount of sales during a specific period, including discounts and returned merchandise. It is the "top line" figure from which costs are subtracted to determine net income. 2. When evaluating stocks, revenue growth serves as an indication of a company's health. Notes: Sometimes acquisitions and divestitures will skew revenue growth figures. Also known as REVs.

Cost of Goods Sold - COGS

A figure reflecting the cost of the product or good that a company sells to generate revenue, appearing on the income statement as an expense unto itself. Also referred to as "cost of sales." Notes: It is essentially a cost of doing business, such as the amount paid to purchase raw materials in order to manufacture them into finished goods. For example, if a $10 widget costs $6 to make, then your COGS is $6 per widget.

Net Income - NI
An individual's or company's total earnings, calculated by revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses. Often referred to as "the bottom line".
Page: 6 of 14 File: 130458542.doc

About Asset Accounting Terms

Notes: In the U.K., net income is known as "profit attributable to shareholders".

Gross Income
1. An individual's total personal income before taking taxes or deductions into account. 2. A company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit". Notes: 1. Your gross income is how much you make before taxes. It is the figure people are looking for when they ask how much you gross a month. 2. This is an important number when analyzing a company, it indicates how efficiently management uses labor and supplies in the production process. Keep in mind that gross income varies significantly from industry to industry.

Income
Money received by a person or organization because of effort (work) or from return on investments. Notes: This is the general term for all the money that ends up in your hands.

Operating Income
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.

Revenue Per Employee

An important ratio that looks at a company's sales in relation to the number of employees they have. It is calculated as:

Notes: This ratio is most useful when compared against other companies in the same industry. Ideally, a company wants the highest revenue per employee possible, as it denotes higher productivity.

Depreciation
1. An expense recorded to reduce the value of a long-term tangible asset. Since it is a non-cash expense, it increases free cash flow while decreasing reported earnings. 2. A decrease in the value of a particular currency relative to other currencies. Notes: 1. Depreciation is used in accounting to try and match the expense of an asset to the income that the asset helps the company earn. For example, if a company bought a piece of equipment for $1 million and expected it would have a useful life of 10 years, it would be depreciated over the 10 years. Every accounting year the company would expense $100,000 (assuming straight line depreciation), and this would be matched with the money that the equipment helps to make each year.

Page: 7 of 14

File: 130458542.doc

About Asset Accounting Terms

2. Examples of currency depreciation are the infamous Russian rouble crisis, where the rouble lost 25% of its value in one day.

Depreciation
The concept of depreciation is really pretty simple. For example, lets say you purchase a truck for your business. The truck loses value the minute you drive it out of the dealership. The truck is considered an operational asset in running your business. Each year that you own the truck, it loses some value, until the truck finally stops running and has no value to the business. Measuring the loss in value of an asset is known as depreciation. Depreciation is considered an expense and is listed in an income statement under expenses. In addition to vehicles that may be used in your business, you can depreciate office furniture, office equipment, any buildings you own, and machinery you use to manufacture products. Land is not considered an expense, nor can it be depreciated. Land does not wear out like vehicles or equipment. To find the annual depreciation cost for your assets, you need to know the initial cost of the assets. You also need to determine how many years you think the assets will retain some value for your business. In the case of the truck, it may only have a useful life of ten years before it wears out and loses all value.

Straight-line depreciation
Straight-line depreciation is considered to be the most common method of depreciating assets. To compute the amount of annual depreciation expense using the straight-line method requires two numbers: the initial cost of the asset and its estimated useful life. For example, you purchase a truck for $20,000 and expect it to have use in your business for ten years. Using the straight-line method for determining depreciation, you would divide the initial cost of the truck by its useful life. The $20,000 becomes a depreciation expense that is reported on your income statement under operation expenses at the end of each year. For tax purposes, some accountants prefer to use other methods of accelerating depreciation in order to record larger amounts of depreciation in the early years of the asset to reduce tax bills as soon as possible. You need, additionally, to check the regulations published by the federal Internal Revenue Service and various state revenue authorities for any specific rules regarding depreciation and methods of calculating depreciation for various types of assets.

income
Definition 1 For corporations, revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Income is the reason corporations exist, and are often the single most important determinant of a stock's price. Income is important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative income as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called earnings. Definition 2 For individuals, money earned through employment and investments.

Page: 8 of 14

File: 130458542.doc

About Asset Accounting Terms

income
Definition 1 For corporations, revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Income is the reason corporations exist, and are often the single most important determinant of a stock's price. Income is important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative income as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called earnings. Definition 2 For individuals, money earned through employment and investments.

income
Definition 1 For corporations, revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Income is the reason corporations exist, and are often the single most important determinant of a stock's price. Income is important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative income as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called earnings. Definition 2 For individuals, money earned through employment and investments.

Configuration of SAP Asset Accounting Capital Lease

This is configuration for 4.6c functionality. For more information and screenshots, you are welcome to contact me at avernon@hns.com.

Steps
General
1. 2. 3. 4. Enable Interest Calculation in depreciation area (Transaction code OABZ) Assign accounts for Interest calculation (Transaction code AO98) Set Post Interest Flag (Transaction code OAYR) Activate LEAS depreciation key (Transaction code AFAMA)

Asset Class
1. 2. Data 3. 4. 5. 6. 7. 8. 9. AO21 Set Up Screen Layouts SPRO - FI - Asset Accounting - Master Data - Screen Layout - Define Screen Layout for Master This step enables the use of field selection other than your existing asset classes - optional Copy Existing Asset Class to Lease Class SPRO - FI - Asset Accounting - Organizational Structures - Asset Classes - Define Asset Classes Copy and update Screen Layout Update Depreciation Areas transaction code OAYZ Drill down into new asset class, then change default depreciation key to LEAS If default depreciation key is not available, go to depreciation screen layout - transaction code

Page: 9 of 14

File: 130458542.doc

About Asset Accounting Terms

10. 11. Drill down into screen layout seen in previous step On FG 01 line, check 'Class'. Return to OAYZ to assign key.

Examples
asset transfer abumn

Conclusion
The functionality in 4.6c is quite good, but limited. You can only enter one payment amount, which is fixed across the life of the lease. Also, the calculation (based on the current book value) of the principal vs. interest components of the monthly payment is fixed, and the reporting is limited. However, it does set up the payments in AP automatically for the vendor. This enables payments to go out as part of the monthly check run without manual intervention each month, so can be a big time-saver. It also gets the depreciation/amortization and interest on the books within the ERP system, which was a big plus for my company.

Open a new depreciation area in SAP R/3 4.6c (FI-AA)

Introduction
This is a guide to opening a post-Production new depreciation area in SAP r/3 4.6c. The steps outlined are based on SAP Help.

Steps
Assign Financial Statement Version to company code and deprecation area t-code OAYN Make Depreciation Key default available for change by Screen Layout t-code AO21 o Drill into screen layout rule, then check Asset class to maintain at the asset class level Assign Tax book to Asset Classes t-code OAYZ o Activate the new depreciation area in the existing asset classes you have as need be. Uncheck the deactivate box and then enter any default depreciation terms and screen layout for the depreciation area in the asset class. These values are proposed when creating the asset and can be overwritten if need be. You must go into each asset class that you want the depreciation area activated in and uncheck the deactivated box. The default depreciation terms are not required. o Be sure to activate on the AUC asset class, so APC values can flow from investment measures (WBS or Internal Orders) to the fixed asset. Change name of tax book (optional) t-code OADB Specify the depreciation area type - type of depreciation area (i.e. trade balance sheet) - t-code OADC Specify rules for value takeover - t-code OABC o Determine how the depreciation area is to get their APC values. They get their values from another book (book X) (most of the time, it comes from book 01). Then determine if new book is to be identical to book X (with NO CHANGES allowed). Book X being the depreciation area the new book is taking the values from. Specify depreciation area applicability for transactions o menu path: Asset Accounting (Lean Implementation) - Depreciation Areas - Specify Allowed Depreciation Types for Depreciation Areas o Make tax book applicable for all activities used by book 01 Set Transfer of Depreciation Terms t-code OABD

Page: 10 of 14

File: 130458542.doc

About Asset Accounting Terms

(Deselecting Ident (for identical) here allows different depreciation schedules to book 10 vs. book 01) o You do the same thing for the depreciation terms and the rules of takeover, and you also determine if you want the new book to be the identical to book x (with NO CHANGES allowed). Again, book X being the depreciation area new book is taking the values from. If you have more than one Tax book, it is advisable to have the second Tax book take over values from the first so that Tax only adjustments flow automatically to both books. Create Tax Adjustment Transaction Type(s) for new book o Copy 100 to Z transaction type t-code AO73 o Restrict to Book 10 t-code OAYA Determine if you want that depreciation area to calculate ordinary depreciation - t-code OABN Same thing with Special Depreciation - t-code OABS Determine order of ordinary and special depreciation calculation - t-code AOBK Assign accounts for special depreciation if depreciation area will post and have any - t-code A094 Determine Unplanned Depreciation - t-code OABU Assign accounts for Unplanned Depreciation if necessary - t-code A095 o

Italic textReview other depreciation settings in configItalic text Post-Production: Activate on existing asset base t-code AFBN (program RAFABNEW) o Once the depreciation area is configured to your specifications. You will then need to run a program in the environment. This program is the program that inserts the depreciation area into your existing assets that are already active in your system. It does not insert the depreciation area into assets that have already been deactivated (retired). o The program can create the depreciation area with or without values depending on the setting you choose when you run the program, and according to the configuration settings made in OABC (as for what values it will take). You can also copy the depreciation keys from the existing depreciation area into the new depreciation area. o If you need to open the new depreciation area on existing AuC assets, you will need to run an SAP-supplied alternate program. Create and run a Z program based on SAP note 317806. It is possible that the settlement from an existing WBS to the final fixed asset will not post to the new depreciation area unless this step is taken.

Examples
For screenshots, feel free to contact Tony Vernon (founding author of this entry) at avernon@hns.com.

Conclusion
This was set up for Tax purposes to enable different depreciation schedules from book 01.

Set up percentage-based depreciation key in FI-AA

Introduction
This HOWTO describes how to set up a new depreciation key that is based on percentages per year of depreciation.

Page: 11 of 14

File: 130458542.doc

About Asset Accounting Terms

[Edit section] [Edit section]

Steps Create new multi-level method

1. Execute transaction AFAMS 2. Click on 'New entries' button 3. Assign 3-letter code (suggestion, use Z code to distinguish from SAP standard), enter description 4. Enter validity start - for most entries, will be from ordinary depreciation start date 5. Do not choose 'Dep. by fisc. year' unless periods are assigned by day in config (highlight field and click F1 Help for more information) 6. Double-click on 'levels' on the left portion of screen 7. Click 'New entries' 8. For year enter '9999' (this enables a start year of any year) 9. For first year depreciation, enter 1 in Years column, can also have periods in Per column 10. Choose base value - typically 01 (acquisition value), but requirements can differ 11. Enter percentage. Percentage can have up to 4 decimal places. 12. Enter following years on next lines. If multiple years have the same percentage, enter the highest number. Example: 1st three years are the same, enter '3' in the Years column for the first entry. [Edit section]

Create depreciation key

1. Execute transaction code AFAMA 2. Determine similar depreciation key (LINA will work in most cases) 3. Copy this key using copy icon next to 'New entries' button 4. Double-click on Assignment of calculation methods to review settings 5. Substitute new multi-level method for existing method 6. Review other methods and period control, and other steps 7. To ensure complete depreciation regardless of rounding errors, add calculation method at end 1. Click on New entries button 2. Enter DepType 'Ordinary Depreciation', Phase 'Changeover after end of useful life', Base method 0017, Decl balance method 001, prd control 007, Multilevel method 045, Multiple shift 'Increase in deprec., no increase in exp. useful life" 8. Arrow back and change changeover method on previous method to 5 'Changeover after end of the useful life'

[Edit section]

Examples

In one case we were creating an accelerated version of MACRS 5 year. This required a new multilevel method. Since the depreciation amount for the first 6 months was different from the following year, I created two new multilevel methods. I set the 'validity start' on the second method to 'from changeover year, and in the depreciation key set the change method to 7 'Changeover when net book value percent less or same as x%' and then entered the appropriate percentage in the next column. These are the resulting calculation methods: Dep./int. Phase Base metho Decl.-bal. Prd cont Multilev.m Chnge. met Changeover Ord.depreciation1 0012 001 004 Z04 7 40.0 Ord.depreciation2 0012 001 001 Z4A 5 Ord.depreciation3 0017 001 007 045

Page: 12 of 14

File: 130458542.doc

About Asset Accounting Terms

[Edit section]

Conclusion

This entry discusses the percentage method, but doesn't go into the other methods and period control issues associated with depreciation keys. Research these as well while configuring any new keys, and test thoroughly before moving to Production. Be sure to review the SAP Help found at http://help.sap.com/saphelp_erp2005/helpdata/en/4f/71dd78448011d189f00000e81ddfac/frameset.htm Please feel free to contact Tony Vernon at avernon@hns.com (founding author of this entry) with questions.

Top matches for 3lettercode, aa, acct, acquisitionvalue, arrowback Jobs 1. Business Intelligence Specialist Needed Community Content 1. Data Mining 101 - How the humble sort can detect errors and uncover fraud - Part 2 2. Business Intelligence Specialist Needed 3. Re: Unplanned Depreciation

Unplanned Depreciation
Unplanned Depreciation is used when you want to depreciate MORE than what is planned for the YEAR. Further, you can post unplanned depreciation only to the extent of Planned NBV at the end of the year. The unplanned depreciation will be posted automatically when you execute the depreciation run for the month. No separate action is required. You should be able to see the unplanned depreciation posted separately in the logs.

PCA Planning configuration

Introduction
This entry describes how to configure PCA Planning. The transactions listed are for cost/revenue planning. SAP divides PCA planning into cost/revenue, balance sheet, and statistical key figure planning. They share functionality, with exception of the plan layouts. [Edit section]

Steps

Import standard planning layouts - transaction code 7KEJ Maintain planning layout - transaction code 7KEA for costs/revenue. This is a Report Painter layout. Maintain Planner Profile - Transaction code KP34PC o Copy layout (probably want to copy 8A-411 Profit Centers/Account Group) into Z layout o Drill down into Profit Center Accounting - Layouts for PCA - Default Parameters o Choose Integrated Excel o Double-click, and enter default parameters, then click on Overview (mountain icon) o Click 'Save File Description' icon o Save Excel Layout o Click on Generic File, enter in all CAPS a .txt name for the files that will be uploaded, with an asterisk (example PLANNING*.TXT) o Choose File - Save as to save the Excel template to be used later to upload spreadsheet plan data Set up Plan Version - menu path SPRO - Profit Center Accounting - Planning - Basic Settings for Planning - Plan Versions - Maintain Plan Versions

Page: 13 of 14

File: 130458542.doc

About Asset Accounting Terms

[Edit section]

Using Planning

Transaction 7KE1 allows for manual cost/revenue planning. Choose Planning - Set Planner Profile, choosing the planning profile defined in Customizing. Click the diskette icon 'User Master Record' if this is the main type of planning to be done by the user. Enter in desired profit center and account parameters, then execute. Enter values, then click diskette icon in SAP menu bar to save. If the user does not already have a template for spreadsheet upload, choose File -- Save as from the Excel menu.

Transaction 7KEX allows for spreadsheet upload of plans. First update the spreadsheet. Remove the totals line at the bottom of the sheet. You may have to unprotect the sheet to work with it. Then, enter your amounts. Save the sheet as a text, tab delimited file. You can import either a single file, or multiple files in a folder. If you choose the folder option, SAP will pull in all files with the naming convention in the folder. For example, if the planning is configured as above, PLANNING1.TXT, PLANNING2.TXT, and PLANNING3.TXT would all be imported. change the decimal notation field to 1,234,567.89. Execute. SAP will indicate the status of the upload.

Page: 14 of 14

File: 130458542.doc