ASSET PROCESS · PROCESS MAP
What is Acquire to Retire?
See how SAP plans, acquires, capitalizes, depreciates, maintains, transfers, and retires fixed assets.
Acquire to Retire flow
Select any stage to explore
How the process works
Acquire to Retire manages both sides of an asset throughout its useful life: the financial value recorded in Asset Accounting and the physical object used by operations. The process begins with an approved need, establishes a governed asset record, tracks value and condition while the asset is in service, and ends with a controlled transfer, sale, or scrapping.
- 01
Plan — How is capital investment approved?
Investment requests connect business justification, expected cost, timing, ownership, and approval before an asset is purchased or built.
Example: A plant requests a packaging machine and receives a controlled capital budget after financial review.
- 02
Acquire — How does an acquisition become a fixed asset?
Procurement or direct accounting posts acquisition value to an asset under construction or final asset master.
Example: The machine invoice capitalizes to an asset under construction while installation continues.
- 03
Depreciate — How does SAP calculate and post depreciation?
Depreciation spreads depreciable value across useful life according to accounting, tax, and management valuation rules.
Example: The productive machine begins straight-line book depreciation from its capitalization date.
- 04
Maintain — How are physical condition and financial value connected?
Maintenance plans, notifications, orders, costs, and technical history protect asset availability while Finance tracks carrying value.
Example: A preventive maintenance order records labor and parts against the packaging machine’s equipment record.
- 05
Retire — What happens when an asset leaves service?
Sale, scrapping, transfer, or partial retirement removes value, accumulated depreciation, and physical responsibility with an audit trail.
Example: A sold machine posts customer proceeds, removes book value, and records the resulting gain.
CONNECTED ASSET RECORD
One investment, two complementary views
The fixed-asset master answers who owns the value, where it is reported, and how it depreciates. Equipment and functional-location records answer where the physical object is installed, how it is maintained, and what has happened to it. Linking the records lets Finance and Operations work from the same lifecycle.
See how condition and value connectCONTROL POINTS
What keeps the asset lifecycle trustworthy?
Reliable A2R depends on authorization before spending, correct capitalization, synchronized financial and operational ownership, and documented disposal.
Approved purpose and budget
Business case, responsible owner, investment program, budget, and availability control establish why the asset may be acquired.
Explore investment planning → BEFORE DEPRECIATIONCorrect asset identity and value
Asset class, account determination, useful life, capitalization date, settlement, and supporting costs determine what reaches the balance sheet.
Explore asset acquisition → BEFORE CLOSUREControlled disposal
Approval, proceeds, retirement type, gain or loss, physical custody, and document retention must agree before the asset record is closed.
Explore asset retirement →FINANCE AND OPERATIONS
The same asset tells two stories
Acquisition cost, accumulated depreciation, net book value, accounting principle, cost assignment, and retirement result.
Technical identity, location, status, maintenance strategy, work history, condition, warranty, and responsible work center.
Transfers, upgrades, impairment indicators, shutdown, and disposal should update the relevant owners without breaking the audit trail.
Use the practitioner-supplied business process diagram in a full-size, focused view.
Choose the stage closest to your question. The pages are related references, not required lessons.