Depreciate an asset in US GAAP (as it is a cost in US GAAP)

We have an asset that needs to be capitalized in local GAAP but it needs to be depreciated in full in US GAAP. The reason being it is considered a cost in US GAAP and asset in local GAAP. While creating the asset, user did not enter useful life as "0" in US GAAP for the asset. Depreciation for last 3 periods is already posted.
In this case, what would be the best approach to correct this scenario.
We tried changing the useful life of the asset in US GAAP to "0" but, the system is throwing an error message "Make required entry".
Is there any alternative approach that should be followed ?
Thanks !

Hi Somya
There are 2 ways you could have handled this
1. Enter useful life as 0 Yrs and 1 month.. With a dep key based on useful life, the entire asset gets depreciated in the 1st month itself..
You can change the useful life now in a way that only 1 month remains.. Example - If you maintained useful life as 1 year, change it to 4 months now (3 months already over).. With this, entire NBV will get charged off as depreciation in the next AFAB run
2. You can use depreciation key with Base Method 0017: Immediate Depreciation...
With this, the entire asset APC value in Dep Area for US GAAP gets charged off to Depreciation
Br. Ajay M

Similar Messages

Depreciate the assets in the depreciation area 15 (taxes) only

I need continue with the obsolete asset depreciation, so, I need those assets are not depreciated on areas 01, 02, 03, just need depreciate in area 15(taxes) for report purposes only,
we tried to lock the depreciation on 01, 02 and 03 areas by changing the depreciation key to 0000,
and it worked.. but dont know how depreciate the area 15....because when the AFAB is run, the asset doesnt appear there...we could made the depreciation on area 15 in a manual way only
in other words
I have already setup area 15 for taxes only with no update to G/L. I also set my asset with 0000 dep key for areas 01 and 03 and LINI to area 15. But when I run AFAB, I was expecting to see my asset depreciating for area 15 only, but it didn't show up in the output list. do you know how can I depreciate only area 15 (taxes) ? Is there a place to set AFAB transaction to consider area 15 in the depreciation? ...

I have already setup area 15 for taxes only with no update to G/L.
If you have disabled your depr area to post it to GL how can you expect to see it in AFAB run. This looks like a notional area for Tax depreciation. Why dont you run Tax depreciation report and get your depreciation values from there... Check your business scenario if Area 15 is suppose to post to GL or not and configure accordingly.

Unable to Depreciate the asset

Hi,
I am unable to run the depreciate. I got "*Only period 000 can be posted in the repeat run"* error when I try to run the depreciation.
Please advice.
Thank you,
Regards,

Hi,
To check the last depreciation period posted up to for a particular Company Code use T code "SE16" and Table name "T093D". From the selection screen, enter the Company Code and click the Execute button. Verify the period in the "Posted up to" column.
Thanks,
Chad

Asset Deperciation amount is not getting updated in cost acccount?

Dear all,
Created an asset and assigned that to a cost center and maintained dep. key for both book of accounts and cost account, then I run the dep. its getting posted to FI but at the same time when i check S_ALR_87010175 i am not getting the cost center report.
please help
Regards
Raziq

Hi Raziq,
first let me mark a conclusion to be sure that i have understood you question.
You run the S_ALR_87010175 and don't see the particular asset X?
Please run the S_ALR_87010175 only with company code.
Can you see it now?
Could you check this with oter reports, for example RAGITT*, AW01N?
regards Bernhard

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Hello friends,
I have maintained the Cutover Value Key at 5 % and maintained the same in Depreication Key
What is happening the system is depreciating an asset up to 95%
This is correct.
But what is required is that,
For few asset which is having Depreciation key i want
to depreciate an asset value up to 100 % without
making any changing in particular Depreication Key.
Please help.
Thanks
Cross-post

Hi,
You can copy that depreciation key to a new one and can remove the cutover key from the new depreciation key.
Change the asset master you wanted to have the new depreciation key.
Regards,
Gaurav

WHAT IS THE DIFFRENCE BET WENN PLANNED DEPRECIATION AND UNPLANNED DEPRECIAT

WHAT IS THE DIFFERENCE BETWEEN PLANNED DEPRECIATION AND UNPLANNED DEPRECIATION

Hi
Usually depreciatio is planned for all the assets from the date of purchase of the asset based on cost of asset, useful life of asset, scrap value , etc.
In Planned depreciation we depreciate the asset as per our planned figures for the entire life of the asset
where as in unplanned depreciation, depreciation is not as per our planned figures, it may vary due to fire, theft, partial damage, etc.
Here not only the depreciation amount but also the useful life of the asset will be effected.
Assign points if useful

Error in Asset Depreciation

Hello
I am trying to depreciate an asset a/c but I am getting the below mentioned error.
Account 'Acc.dep. accnt.for ordinary depreciation' could not be found for area 01
Message no. AU133
Diagnosis
When creating the accounting document, the system could not find account 'Acc.dep. accnt.for ordinary depreciation' in depreciation area 01 for company code 2727.
Procedure
Enter this account in the account determination for Asset Accounting.
Please Help.
Thanks
Venu.

Dear,
Check Following threads. They may be useful.
Error AU133 Account 'Contra account: Acquisition value' could not be found
Error AU133 received while posting asset transfer
Account 'Acquisition:Acquis. could not be found for area 01 AU133
Regards
Saurabh

Updating fully depreciated assets during creation of subsequent depreciation area

I am subsequently adding multiple depreciation areas in SAP. The system has been live for many years with a legacy system handling the depreciation for the tax books via dual maintenance. I have been able to bring in the new areas via AFBN without issue except for one thing. Many of these assets are fully depreciated in Book01 in SAP but they have remaining tax life. The problem is when the asset is fully depreciated and I assign it cost or try to make a change in the depreciation area tab it automatically fully depreciates those values.
Has anyone ran into this before? What options are there to provide a solution?
To recap; Want to add tax book values to assets already live in SAP. Issue is assets already fully depreciated. Any adjustment to keys and UL on them results in a calculation but regardless it fully depreciates whatever that amount will be.
Many thanks,
Jack

Hi Jack,
I suppose, there are some settings somewhere, which do not allow the asset to have values.
Presumption:
1) AFAMA - Base method -Treatment of end of life: In the depreciation key: there is not "dep. after pland. life end" allowed
2) In OADB there are wrong settings (perhaps no positive acquisition values allowed)
3) Perhaps this is constitutional area and in OADB there is rule for the derived area which is broken.
Best regards Bernhard

How to write-ups in Asset accounting?

Let me give a senario first:
asset APC : 10000 $
capitalized and APC date: 2000/01/01 (YYYY/MM/DD)
old depreciation method: straight-line, 10% rate, useful life is 10 years.
Now suppose the time is 2002/01/01, company changes the asset useful life to 5 years, in the aim of completely depreciate the asset 3 years later, the problem is the net value of that asset is 8000 $ by the old depreciation method.
new depreciation method: straight-line, 20% rate, useful life is 5 years.
To make the new method possible, the net value of that asset should be 6000 $ now, which means I need to manually post the 2000 $( 8000-6000) as write-ups. I define a new depreciation area and a new transaction type( write-up for new method) in the system, but when I execute T-code ABZU, two messages pop up, one is that " you can not post write-ups " , another is " Contact your administrator (table error) ", detail information below:
1.You cannot post write-ups
Message no. AA402
Diagnosis
None of the areas to be posted in accordance with the transaction type entered manages one of the depreciation types entered or cumulative values.
Procedure
Check the transaction type.

2
Contact your system administrator (table error)
Message no. AA380
Diagnosis
Inconsistency between the specifications for transaction type 700 and for the depreciation areas in chart of depreciation SHDE.
Depreciation area 32 is defined (in Customizing), so that it is required to take over values from area 01. However, one of these ares cannot be posted to, due to the specifications in transaction type 700. This combination is not allowed.
Procedure
In Asset Customizing, maintain the specifications in transaction type 700 for the depreciation areas that can be posted using this transaction.
I want to know whether using write-ups to deal with this business senario is right or not ? And if it's the right way , how to solve the aforementioned problems and make it happen?
Thanks in advance and points will be awarded to those who give the leads.

Hi,
I am having the same error which you have posted, please let me know if you have any sujections.
I have this error when i try to post write-up in ABZU
You cannot post write-ups
Message no. AA402
Diagnosis
None of the areas to be posted in accordance with the transaction type entered manages one of the depreciation types entered or cumulative values.
Procedure
Check the transaction type.
So please help me in solving this. Thanks in advance

Asset full depreciation

Hi All,
When trying to fully depreciate an asset, no documentes were posted. We have changed the depreciation key to GWG and are going to post it in November book. Earlier this asset had a depreciation key which was based on UOP values. So now after changing the depreciation key to GWG and running the same in AFAB, no documents were posted.
Can someone please help me understand what I am missing here...
Thanks and highly appreciate your time and help.
Regards,
Hari Dharen

Hi Hari,
Normally it is not allowed to make a acquisition after the capitalization, if "Acquisition in year of capitalization only" = u201Cyesu201D except you post with a previous-year acquisition transaction. Now you have posted with another depr. Key and after that you changed the depr. Keyu2026u2026..
there are different reasons possible.
Following parameters have to be checked:
-     the capitalization date of the asset?
-     the useful life
-     treatment after end of useful life ( Dep. After planed life end, dep. Below zero)
-     Dep. Method: immediate depreciation
If a asset should be fully depreciated you can make a unplanned depreciation.
If the asset should be fully depreciated after end of useful life, we normally make a second phase like in depr. Key LINR.
Regards Bernhard

Asset cannot be depreciated

Hi all, I have problem with asset depreciation.
Here is the case :
I run AFAB for period 7 in test run mode and I ticked the list assets in further option.
I got a warning messages :
Message no. AAPO509
Diagnosis
Errors in planned depreciation were found for asset XXXXX 0 with asset text "Asset A".
When I look in AFAB list asset, I cannot find that asset.
Then I look in AS03 for the asset.
This is the information about the asset:
Asset class : Low value asset
Asset capitalized date : 20.05.2011
Odep start : 01.05.2011
Asset depreciation key : GWG
I am so curios so I tested in client 200, I make 2 asset, one is in low value asset class and the other is in office and equipment asset class. The acquisition date for both asset in 05.05.2011.
When I run AFAB, I got warning message again but only for the low value asset. I ignore it and continue with the depreciation until period 12. In period 12 I got no warning message.
I check the AW01N the low value asset depreciation is posted on period 12.
My question is:
1. Is it possible that low value asset only can be depreciated in period 12?
2.If it is yes, then the problem is my client want to depreciate the asset in the month of the acquisition date, how can I do that?
Please help, your suggestion will be very helpful for me.
Thanks..

Hi,
It is not mandatory for depreciation of low value asset only in period 12. I enclosed below solution to similar issue faced by you.
SYST: No ANLZ found for ANLC error for IDES Depreciation Run
Kind regards,
John Chin

Multiple assets depreciation using T.Code ABAA

Hi Gurus
Using the T.code ABAA, we can depreciate one asset at a time. one of my user wants to depreciate multiple assets using this t.code to reduce the his process time. is it possible? if it is possible how we can do it.
Please suggest

Hi Behnhard
thanks for the reply
could u please explain the step by step process how to record using SHDB as it will help me to understand and explain to my user.
< Don't use SMS Language. Read forum rules. Thread locked. >

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

How to exclude an asset from depreciation

At end of audit for March 2014, a part of an asset was reduced and charged as a period cost. Financial year was opened to post this transaction and was closed after it was posted. It was posted in an asset class which depreciates at 20%. The client does not want to depreciate that asset as that was posted on the last day of the year. I have two questions regarding this transaction: 1. Is there any way to exclude only a part of an asset transaction? Per my knowledge, as it is a part of an asset class, removing depreciation key is not a possible solution. 2. Should they post depreciation in repeat run as depreciation for 11 periods is already posted?

Hi Pravin,
It is complicated now. Please share your system release and are you using new or old depreciation method. (Is EA-FIN Active)
If i were you, In test system i will try to post a document with reversal value, in current period with current posting date, but try change the "Asset value date" in line item field, using AB02.
Than check if system is reconsidering the asset depreciation amount for whole year in current period. (execute AFAR, on specific asset and check if change happens)
I hope that shall work.
Than you can make the required adjustments in appropriate periods per audit concerns in P& L or B/S accounts.
Pankaj Bansal

Asset History Sheet Discrepancy

We just started using SAP and part of our implementation was to make asset additions and depreciate those assets. Instead of using the planned depreciation and doing depreciation runs we just did a manual depreciation to get SAP to match to our records. However, when we look at the Asset History Sheet it is pulling the unposted depreciation that was plan and adding to that the manual depreciation. Is there any way to fix this?

Please check these threads:
Re: Automatic Calculation of Depreciation on Fixed Asset
Re: Posting FA Acquisition for a previous year on a new fiscal year

Depreciate an asset in US GAAP (as it is a cost in US GAAP)

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