These are the steps that you need to do to create Asset Accounting (tested in 4.7 version) : 

Copy Reference Chart of Depreciation/ Depreciation Areas
Menu Path is: IMG> Finanacial Accounting> Asset Accounting> Organization Structures> Copy Reference Chart Of Depreciation/ Depreciation Areas,
- Double click on Copy Reference Chart Of Depreciation
- Click on Copy Icon and update it from ODE to your Chart Of Depreciation and change the description too. 

Assign Input tax Indicator for Non-Taxable Acquisitions:
IMG> Finanacial Accounting> Asset Accounting> Integrate With the General Ledger> Assign Input Tax Indicator for Non-Taxable Acquisition
- Save this. 

Assign Chart of Deprecaition to your Company Code :
If Co Code is not properly Done then it will give Problems but still save it. 

Specify Account Determination:
IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Specify Account Determination
- Make the GL Accounts for this and those GL accounts to be specified here,
Example for Land, Building, Plant & Machinery, Vehicles And Asset Under Construction then again
- Save it. 

Create Screen Layout Rules:
IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Create Screen Layout Rules:
- Here we copy the screen Layouts from the standard Co Code 1000
We will copy for each Asset Class like Land, Building, Plant & Machinery, Vehicles And Asset Under Construction,
- Now save it again. 

Define Number Range Interval:
IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Define Number Range Intervals
- Click On Intervals
- Click On Interval and update the following:
- For all the Five Asset Classes
- Save It. 

Now Define the Asset Classes:
IMG> Finanacial Accounting> Asset Accounting> Organization Structures>Asset Classes> Define Asset Classes
- Click on New Entries and fillout the Page in the blank space where Asset Class is given give the Asset Class GL number and in Description give the name in long and short form,
- Go to next level and give the Screen layout Rule number
- Give the number ranges 01 and in Status Of AuC click the first Radio button: No Auc Or Summary Management of Auc
and in History Status click Manage Historically and save it.
- Likewise Create for Building, Plant & Machinery and Vehicles and in case of Asset under Construction Update in Status of - Auc the second Radio Button: Line Item Settlement and
- Save it now. 

Integrate with General Ledger:
IMG> Financial Accounting> Asset Accounting> Integration with the General Legder> Define how Depreciation Areas Post to General Ledger
and then Assign the General Ledger Accounts 

IMG> Financial Accounting> Asset Accounting> Integration with the General Legder> Assign G/L Accounts
and then Specify Document Type AF and specify intervals

  1 Monthly
  3 Quaterly Posting
  6 Semi- Annually
12 Annually.

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