Depreciation Adjustment

Hi Experts,
When 2010, We uploaded 1 asset with useful life 3 years, then we change it into 2 year in 2011.
Example : Acquisition Value : 3600
Useful Life : 3 years = 36 month
Depreciation per Month = 100
After Changing
Useful Life : 2 years = 24 month
Depreciation per month should be : 150
Remaining of Depreciation of 2010 need to be adjusted : 50*12 = 600
In System, Planned Depreciation now : 125
We hope remaining of 2010's depreciation(600) is posted in first period of 2011, so the depreciation in next period(Feb-onwards) will be run normally with amount : 150, not 125.
But the system is spreading the depreciation to remaining of useful life of Asset.
We have tried to :
1. Un-tick the smoothing method in Asset (OAYR)
2. Trying to run unplanned depreciation with amount = remaining of 2010's remaining, but the depreciation in Period 2 onwards of 2011 still same with amount before unplanned depreciation.
Kindly need you help for above issue.
Thanks

Hi
It seems you have closed the FY 2010 in Asset Accounting... Is that so??
1. If FY 2010 is Open in AA and you have un-ticked the SMOOTHING in OAYR - Then the delta dep of 2010 (600) should get posted in 01/2011...
2. In AFAMS (Multi Level Method) - Your Base should be 24 and you should have "Rem Useful Life" ticked..
3. Refer note SAP Note 50761 - Unplanned and regular depreciation... This explains that Unplanned dep does not affect the Dep Values in the current fiscal year.... Thats the reason an un-planned dep is not yielding the desired values in your case....
If you wish Unplanned dep to affect the Dep Values, use write up instead of Unplanned Depreciation...
For write up, you can use ABSO - Tr Types ranging from 700 to 732 as per your need
br, Ajay M

Similar Messages

Monthly Depreciation Adjustment

Hi,
I had posted a thread earlier regarding Depreciation adjustment Adjustment of Unplanned Depreciation in future periods.
I have posted accelerated depreciation for FY 2013. Now starting from FY 2014, I have run the Depreciation for all assets including the asset for which accelerated depreciation is posted.
I am trying to post a Journal Entry to reduce the depreciation charged against the asset by posting
40 (Posting Key)-----Accumulated Depreciation -----Dr
50 (Posting Key)-----Depreciation A/C -------------------Cr.
But manual entry is not affecting the asset net value which should be increased after posting this journal entry.
Also, I am trying to post Asset Write-Up through ABZU after depreciation run, but I am seeing that the system is charging additional Depreciation instead of decreasing the Depreciation amount.
Kindly suggest how to overcome this situation.

nabin,
"Iam trying to post a Journal Entry to reduce the depreciation charged against the asset by posting"
- You are posting journal entry, this means that you want to adjust the GL as the posting is not correct. So I guess the asset values are correct but not matching in the GL accounts that is why you are posting journal entry?
"But manual entry is not affecting the asset net value which should be increased after posting this journal entry"
- Manual entry only affects the ledger and not the asset. If you want your posting refelect as well in the asset, post an asset transaction.
You need to clarify the problem:
1. Why are you posting entries on GL?
2. Are you posting entries on GL only or both GL and asset?
3. Are GL and asset balances tally?
4. Is your asset balance correct?
Thanks!
Jhero

Issue in Depreciation Adjustment while Asset Transfer

Hi,
We have some old legacy assets which is capitalized in 2010 and depreciating for the last 4 years, These old assets contain the value of several different assets and the usefull life of the old asset is 50 years, Now we need to segregate these old asset to different new assets , my process contains
1) Creating new assets with different asset class with different usefull life
2) Transfer the respective value from the main asset to the new assets
3) Adjustment of depreciation already posted.
Here i am facing some issues regarding the asset transfer , anybody suggest which is the best way to transfer the asset acquisition value to new assets ?
when i am using ABUMN to transfer the values , system posting depreciation value adjustment which is the alredy posted depreciation for the past 4 years with the usefull life as 50 years. Is there any methode to adjust these value ?
If i am posting Asset transfer with F-02 (with negative posting) , system will transfer the net book value and start the depreiation calculation based on the usefull life of the new asset. Here system is not considering the depreciation already posted.
Is it possible to make changes in the system where assets will consider the depreciation start date as 2010 (old asset depreciation start date), If i am manually changing the depreciation start date then system is calculating the depreciation start date as 1st period of the current year (because previous years are alredy closed),
instead of 5 years usefull life ,system depreciated the values with 50 years, i need to adjust the posted depreciation and when i create a new asset with usefull life of 5 years i need to manage the asset as already 4 years usefull life is expired.
Is there any solution ?
Regards
San

Hi Ajay,
Case : We have an asset 1000, which contains a value of $ 100000, it was capitalizes in 2010 with usefull life of 50 years and past 4 years depreciating with 50 years usefull life, This is a legacy asset and contains the value of so mny different assets.
Now we need to create different assetd with different asset class and contains different usefull life, We need to transfer the value from Asset 1000 to these new created assets, here my concern is about the depreciation already posted to the asset 1000,
Assume my new assets value is $ 20000, i can transfer the value from asset 1000 to my new created asset. but here depreciation should be a problem because last 4 years depreciation is calculated as 20000 @ 50 years , but actual usefull life was 5 years.
Is there any methode to adjust the already posted depreciation.
Regards
San

No Depreciation adjustment after posting of credit note.

Hi SAP Guru's,
I have an issue regarding the posting of Credit notes in the current fiscal year for Assets capitalized in the previous year.
An invoice has been posted twice in the system with transaction F-90 in 2008. For this reason, two Assets has been created in the system and now we want to create a credit note for one in 2009.
What have I done in the system:
- I have changed the depreciation area's to allow all values for the Acquisition value.
- I have posted a write up for the depreciation that took place in 2008 with transaction type 721.
- And I have posted a credit note (F-90) with transaction type 160 in 2009.
What happened:
First the system generated the error message: AA660 "Transaction in area 01 contradicts the net book value rule"
I think this should not be the case, but I've have then allowed all value for the Net book value in all relevant area's and then the system allows the posting to take place.
The problem is now, that I have a negative Net Book value and this is because the depreciated value in 2009 are not corrected automatically. I would expect SAP to post (planned a next depr. run) with a debet posting (AW01N) which correct the depreciation in 2009 also. this would lead to a zero Net book value. Have I missed something & can you help me solve this issue?
Thank you in advance for your help. Kind regards,
Clyde

Hi,
You have capitalised two assets for the same invoice and would like to cancel the second asset---right?
Simple way of handling this issue is...
First scrap your second asset with transaction ABAVN in 2009 with posting date 01.04.2009. (according to FY start date)
By posting the retirement entry, system will post the NBV of that asset as on FY start date to LOSS account (P&L account)
The amount which is posted to the above loss account would be total of Acquisition value + Dep posted for FY 2008.
Then pass a manual JV to adjust the Acquisition value with vendor invoice, which was wrongly posted, and adjust the Dep posted in FY 2008 with depreciation P&L GL account.
And dep posted in 2009 will be automatically adjusted in the next dep posting run.
This will resolves the issue without doing any additional configs and credit memos.
Hope you got my point.
Thanks,
Srinu

Depreciation Adjustment While Asset Transfer

Hi,
We have some old legacy assets which is capitalized in 2010 and depreciating for the last 4 years, These old assets contain the value of several different assets and the usefull life of the old asset is 50 years, Now we need to segregate these old asset to different new assets , my process contains
1) Creating new assets with different asset class with different usefull life
2) Transfer the respective value from the main asset to the new assets
3) Adjustment of depreciation already posted.
Here i am facing some issues regarding the asset transfer , anybody suggest which is the best way to transfer the asset acquisition value to new assets ?
when i am using ABUMN to transfer the values , system posting depreciation value adjustment which is the alredy posted depreciation for the past 4 years with the usefull life as 50 years. Is there any methode to adjust these value ?
If i am posting Asset transfer with F-02 (with negative posting) , system will transfer the net book value and start the depreiation calculation based on the usefull life of the new asset. Here system is not considering the depreciation already posted.
Is it possible to make changes in the system where assets will consider the depreciation start date as 2010 (old asset depreciation start date), If i am manually changing the depreciation start date then system is calculating the depreciation start date as 1st period of the current year (because previous years are alredy closed),
instead of 5 years usefull life ,system depreciated the values with 50 years, i need to adjust the posted depreciation and when i create a new asset with usefull life of 5 years i need to manage the asset as already 4 years usefull life is expired.
Is there any solution ?
Regards
San

Hi Ajay,
Case : We have an asset 1000, which contains a value of $ 100000, it was capitalizes in 2010 with usefull life of 50 years and past 4 years depreciating with 50 years usefull life, This is a legacy asset and contains the value of so mny different assets.
Now we need to create different assetd with different asset class and contains different usefull life, We need to transfer the value from Asset 1000 to these new created assets, here my concern is about the depreciation already posted to the asset 1000,
Assume my new assets value is $ 20000, i can transfer the value from asset 1000 to my new created asset. but here depreciation should be a problem because last 4 years depreciation is calculated as 20000 @ 50 years , but actual usefull life was 5 years.
Is there any methode to adjust the already posted depreciation.
Regards
San

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.

FIXED ASSET Note 113711 - FA ISR Depreciation Adjust. & IMPAC Balance Aver

Hi Gurus, I have a question about this note referent at Fixed Asset , in the next topic:
After release upgrade the import has to be repeated for the new
release.
Please take the transport from SAPSERVx, path:
~ftp/specific/latinamerica/MX/note.0113711
Directory note.0113711 contains the following transports files:
- For Rel. 3.0F and 3.1 please transport:
R900246.LD3 (data)
D900246.LD3 (cofile)
which will create the next objects:
DEVC ZAA Development class
DOMA ZINDE Domain for INPC value
DTEL ZINDE Data element for INPC value
FUGR ZINP Function group for table maintenance
PROG ZAAUFW01 MAIN PROGRAM
PROG ZXANLU04 Include with calculation logic
TABL ZINPC Table for INPC values
I don't understand the sentence :
"Please take the transport from SAPSERVx, path:
~ftp/specific/latinamerica/MX/note.0113711"
I don't know how connect at this server for download files .LD3.
that request the note 113711.
Thanks for the help.

Thanks for your answer Sreenivas, I have a doubt :
The first part of the note refered at release 3.0 and 4.0.
I have worked the version 5.0, and in the Note 113711 there is a paragraph that says:
"If you want to transport the INPCs values into the ZINPC table, please
AFTER having transported the previous files, transport files:
R900248.LD3
K900248.LD3
which contains the INPCs values since 1950.
- For Rel. 4.0B and after, please transport:
R900040.LD1
K900040.LD1
In rel. 4.0B and after, the program uses the INMA indexes tables. There is no need to create a table ZINPC anymore to maintain the INPCs values.
The Index that the program uses is the general one defined in the Inflation Method for the company code for FI. It uses the definive values of it."
My question is if I have download the files *.LD3 for release subsequent at 4.0 because I actually have worked version 5.0 of SAP R/3.
Thanks for your answer.

Adjust the depreciation amount in posted period

Hi Experts,
I've changed one of my asset depreciation key from 20% to 10% straight line method. The changes is done in period 6. I have run AFAR for this changes.
Let say my planned depreciation was 1000 (for 20% dep. key) and now the new depreciation would be 500 (for 10% dep key). I would like the depreciation to be recalculate in period 1 (i.e 1000 minus 500) and distribute the amount evenly throughout the period (period 1 to 6). Is it possible?
I've run AFAB in planned mode and the changes (lump sum) will only take places on next period (period 7). When i execute AFAB in restart mode (period 1), the error says restart is not possible for period 1.
Appreciate your advise.

Hi Nana,
Have a look also at KBA 1534331 - RAPOST2000 - How to post 'planned depreciation' for
subsequent posting or depreciation change in same period
This knowledge base article describes the situation how the system will pick up the depreciation adjustment when a change in depreciation terms (e.g. change of depreciation key) has been made.
As Mukthar is pointing out, if you have run depreciation already (ordinary planned depreciation run in AFAB), and afterwards you make a change, you can start a repeat run for that very same period again and it will adjust the value equally to all periods going forward.
You find in this KBA also an attachment which outlines an example.
I hope this helps further in understanding how depreciation is adjusted after a change of depreciation terms.
Best regards,
Brigitte

Depreciating assets as on particular date

Hello All
We have some assets whose depreciation method has to be changed in such a way that these assets fully depreciate by 31-Dec-2008 irrespective of their date placed in service.
Currently these assets have been assigned SLM of 25%.
How do I do so?
Regards
Rohan

Rohan,
Although the requirement sounds simple, it is infact quite a complicated requirement.
The first question that I would ask is, what is the volume of assets that you need to make this update for? If you are looking at a high volume of assets your requirement cannot be achieved without customization.
If you are looking at a low volume then each asset would require having it's life adjusted, so that it meets the 31st December 2008 full depreciation that you require. This can be done either via the Books form or the Mass Changes Form (The latter can be used if the selection criteria can be used to identify assets of interest, without affecting assets that should not be changed.)
The other problem that you face is how to deal with depreciation adjustment that will occur when the life is adjusted. The prudent measure would be to expense it in the period that it is realized, however as this will result in a one-off hit to the P&L not many folk would like to take that step.
The alternative would be amortize the resulting adjustment between the current date and the required end date.
Regards,
Logan 3

About Depreciation Run

Hi,
All SAP Experts,
I want to know the complete process of Depreciation run.
I would highly oblige to you all for helping me out.
Thanks,
Jainendra

Hi Jainendra,
The following are the steps required to be performed during Depreciation run, depending on which industry you are.
1. Maintain Unit of Production(UOP) Figures (Txn Code: S_ALR_87009161)
2. Re-calculate Depreciation for UOP first in "Test Mode" and then in "Production Mode"(if there is a need for it). (Use Txn Code: AFAR).
3. Perform Manual Depreciation Adjustments(if needed). That is, Post unplanned depreciation. (Use Txn Code: ABAA)
4. Review the depreciation adjustment posted. (Use Txn Code: AW01N)
5. Perform Miscellaneous Adjustments(If required). That is, Post depreciation adjustment. (Use Txn Code: ABSO).
6. Review the depreciation adjustment posted. (Use Txn Code: AW01N).
7. Post manual depreciation(if required). (Use Txn Code: ABMA)
8. Review the depreciation adjustment posted. (Use Txn Code: AW01N).
9. Run depreciation first in 'Test mode' and then in 'Production Mode'. (Use Txn Code: AFAB).
10. Process Batch Session generated. (Use Txn Code: SM35).
11. Run Asset Reports to review your postings.
 - Review Asset Explorer report. Use Txn Code: AW01N
 - Review Asset Balance Report. Use Txn Code: S_ALR_87011963
 - Review Asset History Sheet. Use Txn Code: S_ALR_87011990
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob

Depreciation Problem after asset transfer

Hi All,
During our month end, our user did the asset transfer within the same company code. When he runs the Depreciation through AFAB, the new asset is not showing any depreciation for current month, where as Old asset has some balance. I checked the new asset and in the Depreciation area, the Dep. start date is showing as 05/02/08. We changed the date to 03/02/2008 through AS02, but still it is not showing up any depreciation. I do have following questions.
1. Can we transfer asset before depreciation run or run the depreciation first and then do the transfer. In our case we already transfered, so how do we fix it.
2. I wonder how it is getting the Odep. start date as 05/04/08. Is it defined some where in Depreciation key/
3. Can we run depreciation excluding that new asset. If so, how it can be done
Please let me know if anyone has come across this, and how to solve this.
This is an urgent.
Thanks
Kris

Hi Muriel,
I am very sure you did not do it correctly. Now, this is the step to follow:
1. First adjust the APC value to what it should be using transaction code ABSO. Once you're sure that your Acquisition Value is correct, the next thing to do is
2. To execute transaction AFAB(Depreciation Run) in "Test Mode". This would give you the depreciation that would be posted by the system asset by asset. This are under three main headings namely: "Planned", "Posted" & "To Post".
Depending on your depreciation method, the "Planned" figure gives the total amount the system would post for the financial year whilst the "Posted" figure gives you what has been posted up to date and the "To Post" figure gives you what would be charged to the P&L when you run AFAB in Production mode.
Your Net Book Value(NBV) at the end of the depreciation run for say November 2006 would be NBV = APC - (Posted + To Post)
If Posted + To Post (i.e. Accummulated Depreciation) is more or less than what you expect it to be from you manual calculation, you then need to adjust the figure upward or downward depending on the situation at hand. That is when you now need to
3. Perform Manual Depreciation Adjustment using either transaction code ABAA or ABMA.
You can then use AW01N to view the asset. You would be able to see the different postings made. Do not forget to run AFAB in production mode. If not, no depreciation value would be posted and your report would still be wrong.
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob
Message was edited by:
Jacob Taiwo
Message was edited by:
Jacob Taiwo

ASKB functionality

Dear Seniors,
What is the functionality of ASKB. How exactly it picks the figures for the line items.
As per my knowledge, ASKB posts the difference in Depreciation posting of two different books are posted. Let's say for example, difference in Depreciation adjustment entries between INGAAP and USGAAP willl be posted to INGAAP books.
But, in our case, one entry is posted to Clearing Revenue GL also. How this GLs are picked and what is the reason for picking clearing revenue GL?
Thanks and Regards
KVKR

Hi,
The basic issue is, when we run ASKB, Clearing revenue GL should not be hit. But, in one of the cases it is happening like that. I would like to know the scenarios when the clearing revenue GL is hit, while doing ASKB.
I would like to give an example, how ASKB works. (This is a real case from the production system )
Descriptions of the GLs involved in the transactions are given below -
573102     -   Loss from disposal - machinery/equipment
573103     -   Profit from disposal - machinery/equipment
573104     -   Clearing revenue for assets sales-Mach & Eqpt (Cr)
21400001     -   Plant and machinery - General
21400016     -   Vehicles
21450015     -   Accum Depreciation- Vehicles
When we sell assets the following documents will get posted in both IN and US GAAP books
Vehicles
     573102         Dr   667410.27
     573104         Dr   133332
     21400016         Cr   1821380
     21450015         Dr   1020637.73
573102         Dr 180872
     573103         Cr 40449
     573104         Dr 283628
     21400001        Cr    424051
Entries should have been
in US GAAP
GL             Debit         Credit
573102         667410.27
573104         133332
21400016                  1821380
21450015         1020637.73
573102         180872
573103                  40449
573104         283628
21400001                  424051
in IN GAAP
   GL          Debit              Credit
573102         816313
573104         133332
21400016                   1863059
21450015         913414
573102
573103                     283628
573104         283628
21400001          0
So, ASKB posts the following entry
*only in IN GAAP          *
GL        Debit              Credit
573102                    275147.12
573103
573104
21400016                    41679
21450015                    107224.88
21400001         424051
Now, the doubt is the above example is a peculiar case, where, even the Gross Block values in IN GAAP and US GAAP books are different. Even in this case, while doing ASKB, Clearing revenue GL is not coming.
But, in one of the cases of our organization, when we run ASKB for a particular month, system is showing 7 million figure in Clearing revenue GL. What could be the reason for this?
According to my understanding, Clearing revenue GL should not be hit at all.
Plz advise.
Regards

Reduce the depretiation amount.

hi all,
i have an asset and it's depretiation is higher than i want so i want to reduce it. deptretiation in 31.12.2010 is 1.494.591,48 but i want this asset depretiation in 31.12.2010 1.486.378,40.But i want this update happen just in one ledger. we have 0l and UF ledger we want this reduction in just UF ledger we have depretiation are 25 which is just for uf ledger.

You post adjustment to your depreciation doing Manual appreciation. You can create an asset trasnaction type with transaction type group 80 "Manual appreciation of replacement val." or gorup 89 "New valuation w/ depreciation adjustment". And limit the posting to depreciation 25.
NOTE: In OADB, deprecaition 25 must used GL indicator that posts to APC, if not no Accounting Document will be created in this posting, Target ledger group also is UF.
If the depreciation is not yet posted or planned only, try to change the depreciation key with correct one so the system will calculate depreciation automatically.
Thanks!
Jhero

Treatment to reverse asset from external acquisiton that already run deprec

Dear Gurus,
One asset is the user want to reverse 3XXXXX. The asset from external asset acquisition with ttype 100. My question is how treatment for this problem. The asset already run deprecition. If the user receive will it make problem to accounting treatment?
Here the posting to the asset 3010161 from financial accounting document
1 31 1000009239 ADXXXXXXXXXXXX                            34,222.00
2 70 2034101    000003010114 0000                                 4,264.24
3 70 2034101    000003010160 0000                                   820.28
4 70 2034101    000003010161 0000                                   820.28
Can the user using Journal or reverse the aset document?
Edited by: Muzaidi Marjuki on Dec 29, 2010 3:08 AM

Hi,
An asset posting can be reversed using transaction AB08.
For the already posted depreciation an adjustment posting posted when reversing. Once running the depreciation program the depreciation adjustment will be posted also.
Kind regards,
Brigitte

How can I add value to asset without extending life? Help!

My team and I are working on a new straight-line depreciation key. During testing we've found that if we add value to an asset in the year after acquisition, there is a depreciation adjustment in the month after the asset becomes fully depreciated. We can't have this happen becuase it has already been identified as a Sarbanes-Oxley remediation item. How do we eliminate this adjustment after the asset becomes fully depreciated?

Thank you so much for your response Bernhard! Forgive me if I sound obtuse, I am an accountant and not a techincal expert. What you described sounds like the method we are moving away from. The method calculates based on remaining value over remaining life, but we've seen huge adjustments made at the end of the placed-in-service year, followed by a sharp decrease in depreciation amounts in subsequent years. This is not acceptable because our corporate policy requires straight-line depreciation.
If I am not interpreting your response correctly, please let me know.
I'm wondering if "smoothing" would eliminate the adjustment in the period after the asset fully depreciates. Your thoughts on this are welcome!
Regards,
Laurie

Depreciation Adjustment

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