Investment promotion

Public or other subsidies for investments are often reported and managed by recognizing a special item in the balance sheet.
The reversal of the special item leads to income, which is offset by the expenses from the depreciation of the asset. This has the least impact on the income statement per year.

If you want to use investment support, you need the license for asset accounting.
You can then activate investment support under Master data > Set up asset accounting.

Proceed as follows:
When a subsidy amount is received, it is usually posted to a special revenue account. If the use for the investment subsidy (i.e. acquisition of fixed assets) has been determined, transfer the (partial) amount of the subsidy to a liability account (SKR03 e.g. 0949 "Special items for subsidies and assets").

The liability account is addressed in the depreciation run. You must assign the depreciation accounts in the master data. Instead of the expense accounts, however, use revenue accounts (SKR03, a class 2 account).

You can now create the first subsidy pot via subsidy pot management and then allocate subsidy amounts from this subsidy pot to the purchased fixed assets.

The profit-increasing release of the subsidy amount takes place automatically in the normal depreciation run and thus reduces the burden on earnings due to the depreciation expense.