Fixed Asset Reconciliations in SAP using BEST

Fixed asset reconciliation in SAP is an important exercise that most organisations undertake each month alongside other subledger activities.

Although the specific reconciliation process varies between organisations, a common objective is to ensure that fixed asset general ledger balances agree with the corresponding balances in the SAP Asset Accounting subledger.

SAP provides standard transactions for completing this GL-to-subledger reconciliation. However, many organisations still perform an additional manual check each month to confirm that the general ledger and asset subledger agree.

BEST Balance Sheet Recons provides a dedicated process for managing fixed asset reconciliations directly within SAP.

What Is Unique About BEST Fixed Asset Reconciliations in SAP?

The level at which fixed assets are reconciled can be tailored to an organisation’s specific requirements.

For example, all fixed asset accounts can be grouped together so that the combined net book value across all asset classes is managed within one reconciliation. Alternatively, asset classes can be grouped while the reconciliation is completed at segment balance level.

BEST Balance Sheet Recons supports both approaches, allowing the reconciliation structure to reflect the organisation’s reporting and control requirements.

Current-period transactions can also be categorised according to one of four standard SAP asset transaction classifications, based on the relevant master data setting:

• Asset transaction type
• Transaction type group
• Consolidation transaction type
• Asset history sheet grouping

This provides an asset-history-style categorisation of the current month’s transactions directly within the GL reconciliation, helping preparers and reviewers understand the movements making up the account balance.

How Can Fixed Asset Balances Be Reconciled to the Asset Subledger?

During the approval of a fixed asset reconciliation, users at the relevant approval level can perform the following actions to confirm that the GL balance agrees with the SAP Asset Accounting subledger:

• Use a comparable balance check to validate the SAP GL balance against an entered fixed asset register balance.
• Attach the fixed asset register report directly from the SAP spool to the BEST reconciliation.
• Use an appropriate reconciliation reason code or long-text explanation to record the steps completed to validate the balance.

These actions can be made compulsory through the applicable approval strategy. This helps ensure that the required evidence and validation steps are completed before the reconciliation can be approved.

The approver can review the supporting reports, explanations and actions from within the reconciliation without needing to run additional reports separately.

All attachments, explanations and approval actions are retained as part of the reconciliation audit trail for subsequent control checks and audits.

Find out how BEST Balance Sheet Recons supports fixed asset and other balance sheet reconciliations in SAP.