Asset useful life change

Hi,
I have asset with useful life 10 years. Expired useful life 5.3 years.
I am trying to change useful life to 5.6 years so that i can depreciate asset fully in coming 3 periods. Net book value should be ZERO after 3 months, and in Asset explorer also planned depreciation should be shown for 3 periods.
if i enter 5.6 years in useful life, the depreciation is calculating for 5.6 years and in planned also showing for 5.6 yrs instead of for 3 periods.
Below are the depreciation key parameters:Depreciation key 1st phase from the start of depreciation
Base method 0007 Ordinary depreciation from useful life
period control 007 01/06/02/02
Multilev.meth. 045 APC, any life
Chnge. method 5 change over after end of the useful life
Please help
Thanks
Hari

Hi,
1) Please see in AW01N in Parameters the following indicators:
Useful life 010 / 000
Exp. usefl life 005 / 003
Remaining life 004 / 007
If you change the Useful life is should be:
Useful life 005 / 006
Exp. usefl life 005 / 003
Remaining life 000 / 003
2) The depreciation will be corrected as a result of changing useful life.
How it is corrected?
It depends on your setting sin OAYR (smoothing or catch-Up). Please see following threat:
Smoothing- explaination.
3) You have created a change over method:
"5 Changeover after end of the useful life"
So, the depreciation changes into second phase:
Of you make the second phase similar to depr. key DG20 or DG30, the asset will be fully depreciated, after end of useful life.
But: the change over can only happen after end of a fiscal year.
Regards Bernhard

Similar Messages

Decimal places are not permitted for asset useful life

Dear SAP experts,
I need to post a new net book value on a new depreciation area 50 for fixed assets. The new deprecation for depreciation area 50 will start in July 2011 on all existing (also fully depreciated or to be disposed) assets with a different useful life unlike the book deprecation for depreciation area 01. The depreciation method for depreciation area 50 is straight line.
I have a requirement to assign the new useful life for the depreciation area 50 which may contain decimals, for example 5.5 years. Basically, I need to depreciate the asset for the remaining 6 months of 2011 and the entire 2012 to 2016.
SAP does not allow decimals on asset useful life (Decimal places are not permitted, Message no. 00011).
Have you come accross a similar situation? How can that be managed via depreciation methods and keys?
Please advise.
Thank you in advance,
Inna

Hi Inna,
You can define your useful life of 5.5 years for the depreciation area 50 as follows:
Useful life : 5
period : 6
here, useful life(5) represents 5 years and period(6) as 6 months which gives you 5.5 years starting depreciation from Depreciation calculation start date.
Kind Regards,
Mehul

Changing Fixed Assets useful life according IAS rules

Hi all,
According to the new IAS rules (International Accounting Standards) when an asset's useful life (currently with straight line depreciation) is changed we have to distribute the "net book value" (remaining depreciation to be posted) between all the remaining months in the same proportion.
Currently, SAP standard calculates the depreciation as the difference between the posted depreciation throughout the previous months and the amount that should have been depreciated with the new useful life, and it assigns this calculated amount in the current month when the useful life is changed.
We have checked that the remaining depreciation to be posted can be distributed equally over the remaining periods of the fiscal year by marking the "smoothing" flag through transaction OAYR per company code, but we need this amount to be distributed over all the remaining periods for the new useful life (not only over the current fiscal year).
Please find below an example to try to clarify my query:
A fixed asset with str.line depreciation has the following values:
Acquisition value: 12000 eur
Useful life: 3 years
Depreciation per year: 4000 eur.
The asset starts to depreciate on 01.01.2008 and its useful life is
changed to 2 years on 01.07.2008. On that moment the net book value is
10000 eur.
SAP adjusts the difference between the amount that should have been
depreciated with the new useful life (3.000 eur) and the real amount
posted (2.000 eur) = 1.000 eur depending on the "smoothing" flag:
1. If the flag is not marked: SAP assigns 1.500 eur (500 eur (6.000/12)
+ 1.000 eur from the difference) on 01.07.2008
2. If the flag is marked: SAP distributes the difference between the
remaining periods of the current year (from July to December) and it
assigns 666,66 eur per month (500 eur + 166,66, obtained from 1.000
eur/6 months).
But we need the same depreciation amount distributed over the remaining
months: 10.000 eur/18 months = 555,55 eur/month.
Has anyone come through the same problem before?
The only solution I can think of is transferring the asset values to a new one. Or maybe a user exit.
Any feedback will be much appreciated.
Thank you very much in advance. Best regards

Hi Markus,
Sorry to come back to you regarding this question. Unfortunately we are not still on 6.0 so we can't take advantage of the new functionality.
I am now trying to make an asset transfer through transaction ABUMN but the new asset is taking into account the capitalisation value of the original asset rather than the net book value that we would need the system to consider to calculate the new depreciation values.
Do you know if there is a way to solve this?
Thanks a lot. Best regards

Asset Useful Life issue

Hi SAP Gurus,
For Asset class Lease hold Impr I changed the useful life from 10 years to 15 years in OAYZ, when I test it, the system is off course calculating right amount for 15 years($1000/15=$66.67)(LINR- st line) but in Asset explorer in Comparisons Tab Ord.Dep it is only displaying amounts for 10years(Upto 2020) and from 2021 to 2025 no amount at all and the total amount =$705.56.
Can you please advise how to fix this issue, so that user can see the Ord dep amount for all 15years and APC = Ord Dep balances to zero
Thanks in advance
Madhu

Hi,
This could be usual behaviour of AW01N.
Can you check how S_ALR_87012936 - Depreciation on Capitalized Assets (Depreciation Simulation) report looks like ?
Best Regards,
Madhu

FIXED ASSETS - USEFUL LIFE

Hi,
I´m modifying the useful life of some fixed assets and don´t have problems since it makes the amortization assessed since they are and it me re-calculates those who even remain.
The problem is that they request that, in first foreseen, amortization does not load the difference that exists between the aortas and that correspondent with the new useful life. There is way of doing that it first amortization goes out without the adjustment?
Thanks in advance.-

Hi Markus,
Sorry to come back to you regarding this question. Unfortunately we are not still on 6.0 so we can't take advantage of the new functionality.
I am now trying to make an asset transfer through transaction ABUMN but the new asset is taking into account the capitalisation value of the original asset rather than the net book value that we would need the system to consider to calculate the new depreciation values.
Do you know if there is a way to solve this?
Thanks a lot. Best regards

Change in Useful life of asset in mid year, but the previous posted depreciation should not be changed

Dear Experts,
I have a requirement in one of my client, We need to extend the useful life of asset in mid of an asset fiscal year and the depreciation which was posted in the previous should not be changed.
Requirement:
Useful life of asset is to be extended after completing depreciation for 4 years and in-between the current asset fiscal year. Provided the present asset value has to be taken as the new book value of the asset and the depreciation posted henceforth to be posted based on the new asset value till the remaining useful life.
Previously posted depreciation should be unchanged.
Analysis:
1.      The fiscal Year followed - October to September.
2.      The useful life of asset will be changed, and the depreciated value posted till 31/mar 2014 will have the old depreciation value ( based on the original acquisition value)
3.      The Depreciation key used in of type LINR (linear), depreciation value will be calculated based on the Book value till the asset value becomes ZERO at the end of useful life of the asset.
4.      We can change the useful life of the asset at the end of a Asset fiscal year say FY- 2014, if this is done the existing configuration will take the Book value of the asset at the end of the Fiscal as the asset value and the new depreciation will be calculated based on the new useful life of the asset. The asset value will become ZERO at the end of the newly changed Useful Life.
5.      But the requirement is that the useful life of the asset will be changed exactly half way in between existing Asset fiscal (i.e., 31/03/2014), if this is done system will change the depreciation value based on the new useful life ( since the Dep Key is LINR), but the depreciation value will change from the fiscal start say October 2013 to September 2014 ), which will not satisfy the requirement of the client. Since the depreciation which is already posted from October 2013 to March 2014 should not be changed.
Note:
1. We are not willing to retire the asset and create a new asset with the remaining book value as asset value and start depreciation.
Kindly let me know if the requirement can be fulfilled without retiring the asset.

Dear All,
This requirement has been completed.
1. I created New Multi level valuation method with base 26 ( Net book value w/o Revaluation ).
2. New depreciation key was created and the above method was assigned to it. I never changed the Base method.
3. new interval was created in the depreciation area, with this created dep key and extended the useful life of the asset. The depreciation was calculated according to the requirement.
Originally the asset had useful life of 5 Years, I changed the asset useful life to 8 years now with new Depreciation key 2001.
Depreciation was already posted to the asset till 04- 2013 for an amount of 148.27 SAR.
Net Book value carried forward to 2013 = 1575.56 SAR
Depreciation already posted till 4th period =   148.27 SAR
Current Net book value after useful life extension           = 1427.29 SAR .
Now the new depreciation key 2001 with Multilevel method 201, will take this Net-book value as Asset value and will depreciate along the useful life of the asset till it becomes zero.
Planned depreciation of 2013 ( remaining 6 months) = 166.24 SAR
Planned depreciation of 2014 = 225.96 SAR
Planned depreciation of 2015 = 225.96 SAR
Planned depreciation of 2016 = 225.96 SAR
Planned depreciation of 2017 = 225.96 SAR
Planned depreciation of 2018 = 225.96 SAR
Planned depreciation of 2019 = 131.25 SAR
Total      = 1427.29 SAR ( the Asset value becomes zero at the end of its remaining useful life.
The previously posted depreciation from 01.01.2013 to 30.04.2013 was untouched.

Asset to get the assets in which useful life was chnged.

Which Asset table will capture the changes made to the asset useful life in the asset master data.I mean i should be able to get assets in which the useful life was changed in any speciied period.

Hi,
change documents you can see as follows:
Go tto asset master datta (AS03 or AW01N) - Environment - change document.
regards Bernhard

Carryover of Expected Useful Life for an Asset

When I create an asset in our system, in the first year carryover the system is not creating a count of 1 year and 2 months. Instead I receive 14 months in asset useful life. This example is based off an asset created on 11/1/10 with a carry forward to 2011. Anybody know why this is happening?

Thanks for your reply. My question is not to get a list of assets which are fully depreciating this year. I want to know the end of useful life for certain assets that I will select. What you told, would show the assets expiring this year.
Let me know if I am missing something.
Keyur

Function module to read the expired useful life of asset

Hi,
Is there a function module to read the expired useful life of asset. We are using the depriciation start date to calculate the expired useful life of asset, but the fiscal year shift and matching the calendar year with fiscal is causing the logic to give a month difference between the calculated value and the value in the asset.
Please let me know if there is a Function module or BAPI for getting the values. Kindly provide example for the function module call too.
Regards,
Prabaharan.G

Hi,
Check the following function modules.
AISC_CALC_EXPIRED_USEFUL_LIFE.
Check the following link it might be of some help to you.
Re: asset useful life
Regards,
Ram.

Asset Legacy depreciation adjustment within useful life

Asset depreciation is being calculated on the useful life of the asset.
I am using replacement value (03) as the base value of calculating depreciation, when i am transferring legacy data of the asset, if there is a difference in the accumulated depreciation the system does not adjust it within the useful life of the asset.
If i check the indicator calculate depreciation after useful it will write off the asset completely but not in the assets useful life.
In case of new assets it is adjusting within the useful life of the asset, but not for legacy assets.
Is the system behaving correctly?
Regards.

Well there is depreciation after end of useful life. But i have selected to post depreciation after usfeul life. My question is that the system should adjust the depreciation within the useful life and not extend its useful life.
It is adjusting it for new assets created but not for legacy assets.

Useful Life in Assets

Dear Experts,
What is the useful life we should enter when we migrated the asset from Legacy system to a new SAP Environment?
The useful life should be as per the legacy system or should it be the remaining useful life?
Thank you.

Hi,
Please refer to this thread:
Assets Useful Life and Period
Best Regards, Lawrence

Depreciation continues after the use life ending

Hi Experts,
My customer have begun July, 2007 acquisition with the depreciation from the
same month, and this asset use life is 3-years.
It should end use life in June of 2010 but at the monthly depreciation,
the depreciation continues until August.
I have suggested the customer to change the base method to 0016,
from JPS7 in phase 2, but it contradicts with the note 1057539.
Could you please give me some suggestion?

Hi Bernhard Kirchner ,
according to the note 1057539，
the Dep. after plnd.life end is choosed by "Yes",
and the Dep. method is choosed by u201Ccountry specificu201D
when I　ｃｈａｎｇｅ　ｔｈｅ　＂Dep. after plnd.life end ＂ｔｏ　＂ＮＯ＂
ｔｈｅ　ｄｅｐｒｅｃｉａｔｉｏｎ　ｃａｎ　ｂｅ　endｅｄ　 use life in June of 2010 ，
ｂｕｔ　ｔｈｅ　ｐｒｏｂｌｅｍ　ｉｓ　ｔｈａｔ　ｔｈｅ　ＮＢＶ　ｉｓ　ｎｏｔ　ｓｔｏｐｐｅｄ　ｂｙ　ｍｅｍｏ　ｖａｌｕｅ，
ｂｕｔ　ｓｔｏｐｐｅｄ　ｂｙ　ｔｈｅ　ａｍｏｕｎｔ　ｏｆ　Ｊｕｌｙ＋August．
ｆｏｒ　ｅｘａｍｐｌｅ：
Dep. after plnd.life end 　＝　ＹＥＳ　（ｍｅｍｏ　ｖａｌｕｅ＝１）
Ｐｅｒ　Ｏｒｄ．ｄｅｐ．
１　　　６００
２　　　６００
３　　　６００
４　　　６００
５　　　６００
６　　　６００
７　　　６００
８　　　６００
Dep. after plnd.life end 　＝　ＮＯ　（ｍｅｍｏ　ｖａｌｕｅ＝１）
Ｐｅｒ　Ｏｒｄ．ｄｅｐ．
１　　　６００
２　　　６００
３　　　６００
４　　　６００
５　　　６００
６　　　６００
７　　　０
８　　　０
ｗｅ　ｗａｎｔ　ｔｏ　ａｎｓｗｅｒ　ａｓ　ｂｅｌｏｗ：
Dep. after plnd.life end 　＝　ＮＯ　（ｍｅｍｏ　ｖａｌｕｅ＝１）
Ｐｅｒ　Ｏｒｄ．ｄｅｐ．
１　　　８００
２　　　８００
３　　　８００
４　　　８００
５　　　８００
６　　　８００
７　　　０
８　　　０
ｃｏｕｌｄ　ｐｌｅａｓｅ　ｈｅｌｐ　ｍｅ　ｆｕｒｔｈｅｒ？

Useful life

Hi gurus
when i am creating an asset , useful life of an asset is the compulsory field coming and also it is asking for more than the minimum life specified . i want to remove this requirement . how to do this plz suggest .
thanks

hi
they are already optional .
The error is :
'The useful life 005 is shorter in years than the minimum useful life 020 that is specified for this asset class.'
where to check the specified useful life ?

HOW TO CHANGE THE USEFUL LIFE FOR MORE ASSETS AT A TIME FOR ASSET CLASS

Hi All,
Asset which is under Asset Class Support system-B700. Here every thing is ok but the problem in USE FULL LIFE which is come by default. It must be 4 instead of 5.   So can any body help me out from this how to change the Useful life in that Asset class. In that Asset Class we have the morethan 200 Assets. It was happend in Prdocution system so now the problem is where i can change the useful life for the asset class either in DEV or PRD.
       Also i want to know the information of How these assets are Uploaded into the system (Lsmw or etc). this is very urgent for me.
Thanks in Advance,
Regards,
Siva.

Hi Ashok,
     Can i know the reason how it was happend. i mean instead of 4 years the system showing is 5yesrs any reason is there behind that.
Thanks in Advance.

Changing useful life of assets during asset to asset transfer

Hi All,
We need to transfer some assets to new assets changing its useful life. Below is my scenario.
Old Asset "A" has an useful life of 5 years and depreciation start date is 01.01.2006. Where this asset would be fully depreciated by the end of year 2011. The depreciation runs have been completed for November 2009.
Before using transaction ABUMN, I created a new asset "B" in a different asset class with the exact details of the old asset ONLY changing the useful life to 3 Years. (even the dep start date is 01.01.2006 - same as the old asset)
In Tcode ABUMN, I entered the old asset, doc date as 30.11.2009, posting date as 30.11.2009 and asset value date as 30.11.2009. Transfer variant 4 is been used in this case. The transaction went through successfully. The main idea behind this process was to depreciate the entire new asset "B" by the end of 2009, which should be the case as if 01.01.2006 is the dep start date with useful life of 3 years.
But this is not happenning. The entire depreciation is not been shown under plannned values for DEC 2009. Only a small value is shown. I need this asset to be fully depreciated by 31.12.2009 in variably absorbing the enire balance depreciation for the month of Dec 2009.
Please help me resolve this asap or please suggest me a different way of doing this if I am not doing it the right way.
Thanks & Regards,
Maleeq

Hi Kishore,
I need to change the asset class as well and thats why I need to to do the asset to asset transfer.
Thanks,
Maleeq

Asset useful life change

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