Depreciation of a addition

Dear Asset gurus,
How is it possible to setup the following:
When I purchase a new asset for 6000 USD. The asset starts to depreciate on monthly base let say 60 periods (5 yrs). Monthly depr. is 100 USD. After 6 months (nett book value is 5400USD) a new addition to the same assets occurs, value is 2700 USD. How can I arrange that these 2700 USD will depreciate in the 54 periods?
For us the depreciation should be (5400+2700)/54 = 150 USD monthly.
I already checked for transaction OAVH and OAVS. How can this problem be solved using the same asset instead of using 2 assets.
Thanks in advance.
Regards,
Jo

The changeover key and Phase in the depreciation key used should have your requirement configured.
So, pls check the configuration of your depreciaton key.
regards
Sridevi

Similar Messages

Depreciation posting for additional acquisitions..............

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Hi ,
i am strucked with posting of depreciation of an asset.
Plz any one can suggest solution for below scenario : --
Company code : ABC LTD.
Fiscal Year       : April,2008 to March,2009
Cost an Machinery : 1,20,000 , April 1st is Aquisition date.
Dep Method is Units of Production .
Depreciation for each month is 10,000 based on the formula.
        i executed depreciation of Machinery in the months of April,May,June also. (Depreciation amount for 3 months is 30,000 )
     in the month of 1st July , additional acquisitions posted.
the amount is rs 1,20,000. here the problem is :
the depreciation amount is showing 50,000 ,while iam executing depreciation run in the month of Jully,31st.
         depreciation for additional asset should be calculated from month of 1st jully onwards but its calculatin form the month of april onwards.
Thanks in advance,
Kiran

Hi Kiran,
this is the correct behaviour in the capitalization year. Please consider OSS notes 53166 and 92925, which contain an explanation of that behaviour and a workaround.
Regards,
Markus

Depreciation key for additions

Dear All,
We have a requirement with asset depreciation...
Client needs the depreciation to be calculated for the 6 months to be 17.5% and next 6 months to be 35%.
Current year 2009
Additions for this year (Plant-Asset Class)
First 183 days - Depreciation should calculate 17.5%
Second 182 days - Depreciation should calculate 35%
How this can be achived

Dear,
Dominic.
Could you please let me know that what shoule be the specifications for Base Method & Period Control Method ?
Please I need your help in this matter.
Period Control method
01 01 02 02 should be defined like this ?
And what should be base method ?
or I need to use Declinig Balance Method ?
Please help.
Regards ,
Pankaj.

Depreciation Calculation on Additions of Assets

Hi,
An asset has been capitalized on 31.03.2009 with 400000 (useful life is 10 years)
The depreciation is to be calculated from 01.04.2009 for each month i.e.,
400000/10 years / 12 months = 3333 (the system is calculating fine)
Now there is an addition (can you clarify which transaction code needs to be used if any additions are posted) on 30.06.2009 worth 200000
Now, the requirement is that the system should calculate the depreciation in the following way:
for first initial asset wold be
3333.33 x 12 months = 40,000 plus
the addition will be there only for 118 months (10 years x 12 months = 120 months - 2 months elapsed)
therefore 200000 / 118 months = 1695 per months, therefore 1695 x 10 months = 16949
Therefore, the total depreciation will be 40,0000 (initial) plus 16949 = total depreciation will be 56949
Please let me know how can this requirement can be achieved.
Currently the system is calculating 60,000 annual depreciation 6,00,000 / 10 years = 60,000
The depreciation key currently used is (straight line depreciation)
Base Line Method: 0011
Declining Balance Method: 001
Period Control :Z01 = 11/11/11/11
Multilevel Methods: ABC = Validity start 2 (One level is there Period 12, Base Value 24 and remaining life ticked)
Any valuable comments will be highly appreciated.
Regards,
Ravi

Note: 92925 has solved the issue.
Additional notes 165036 and 53166 helped.
Period control changed to 01/01/11/11
Valution date settings changed in
IMG ==> FI ==> Asset Accounting ==> Transactions ==> Specify How default asset value date is determined. (for acquisition changed to 05 - beginning of the month).
Hence closing the thread.
Regards,
Ravi

Depreciation for additions to start from the following month

Hi Gurus,
Have situation in depreciation posting, When acquisition happens depreciation has to start from next period on wards (Dep not to post in Acq period) this is working fine and good. (period control maintained as 11 for Acq)
In the same way it has to apply for Additions if any happens for existing Acquisitions. Period control set as next month 11 for additions, but system making the posting in acquisition period itself including catchup of previous periods from oredinary dep starting.
I want make the system to start depreciating dep from the following period rather than acquisition period for Additions and catcup dep also post in this from Ordinary depreciation start date .
Example of Issue:
Acquisitions:
Acquisition happend in Period-01, dep started from next period "02"
This working fine.
Addiotions:
Using the above example
Addition happend in period-05, Dep started from-05 including the catch up dep of periods; 02,03,04,05.
By right the depreciation posting has to starts in the following Perios 06, has to consider Catchup amounts also.
Any help on the above are appreciated most.
Points are available
Thanks in advance,
Vyas

Hi Milosavljevic,
On the above system behaviour is right, but we have to understand like below:
What ever posted the Depreciation amount in the acquissition month it belongs to accumilation depreciation of the addition of asset ( from ordinary dep start date to untill acquissition period).These happend bcoz of catchup, the real depreciation was started from the following month onwards..
Hope this understanding made me clear...
If u able to find any thing better pla keep share..
Others plz comment on this for better understanding.
Thanks,
Vyas

Ordinary Depreciation - FI-AA transaction type, ECCS transation type

HI FI-AA experts,
What FI-AA transaction type is used for normal/ordinary monthly depreciation? In addition, what ECCS transaction type is updated? Is this configurable? Is so where? Lots of questions.
Thanks in advance!
Bill

Hi,
no problem just a question. sounds like SAP does not generate an FI-AA transaction type during normal depreciation. So..what ECCS transaction type is update? I know in the other addit/retir...etc FI-AA transaction types you specify the ECCS transaction type during config. We need to know how this works for ordinary depreciation.
Thanks!
Bill

FA: What is Unplanned Depreciation ?

What is Unplanned Depreciation ? When and where is it used ?
Thanks

Hi,
Unplanned depreciation_
Unplanned depreciation is a feature used primarily to comply with special depreciation
accounting rules in Germany and the Netherlands. However, you also can use this
feature to handle unusual accounting situations in which you need to adjust the net
book value and accumulated depreciation amounts for an asset without affecting its
cost.
You can enter unplanned depreciation amounts by asset and book for any current
period during the useful life of an asset. You can enter unplanned depreciation for an
asset in both the corporate and/or tax books. When you enter unplanned depreciation,
Oracle Assets immediately updates the year-to-date and life-to-date depreciation, and
the net book value of the asset. You can change the depreciation method after entering
unplanned depreciation.
The unplanned depreciation expense you enter must not exceed the current net book
value (cost - salvage value - accumulated depreciation) of the asset. If necessary, you
can enter multiple unplanned depreciation amounts, both positive and negative, in a
single period, provided that the net amount does not exceed the current net book value
of the asset. Thus, it is possible to enter unplanned amounts that back out depreciation
taken in prior periods, including previously entered unplanned depreciation amounts.
When you enter unplanned depreciation expense, you can choose in which period to
begin amortization of the asset's remaining net book value. You can begin amortization
in the current or a subsequent period, or you can choose not to amortize the remaining
net book value. Note that if you do not amortize the unplanned depreciation or make
an amortized adjustment in a subsequent period, the asset will be fully reserved before
the end of the useful life. If you choose to amortize in a subsequent period, simply enter
an unplanned depreciation amount of zero, and check the Amortize from Current
Period check box. Oracle Assets will begin to amortize the remaining net book value as
of that period.
Oracle Assets uses the unplanned depreciation amount, in addition to regular
depreciation, to calculate depreciation for the period in which you entered the
unplanned depreciation. When you create journal entries for the general ledger, Oracle
Assets posts the expense due to unplanned depreciation to the account you selected
when you entered the unplanned depreciation for the asset.
I think i have better explain it to you, for furthur query plz reply back.
Regards,
Nadeem Aslam

Asset is not getting reversed when posting credit memo

Dear Sapians,
My client is having an asset with a value of Rs 6,00,000/- and the asset capitalized date is 19.07.2007. Now the client wants to raise a creidt memo on 19.07.2007 for Rs 5,00,000/- for which he dont wants to calculate depreciation with the transaction type 105 (credit memo in invoice year) in t.code F-90.
But the system is giving the following error.
Balance for transaction type group 10 negative for the area 01.
so can anyone plz revert back me on the issue.
Regards
T N R

Hi:
Go to Asset Master As02, clcik on the tab Depreciation areas
double click on Depreciation area (Ex:Book Depreciation area)
you will come to the screen Change Asset:Depreciation area Book depreciation .
In Additional specifications, you will find a check box Neg.values allowed.Select on the check box and try again.
Please let me know if you need more information.
Assign points if useful.
Regards
MSReddy

Not able to close the Org Period

Hi,
We recently upgrated from 11.5.10.2 to 12.1.3, and we are not able to close the org due to error in tables WSM_LOT_MOVE_TXN_INTERFACE and WSM_LOT_SPLIT_MERGES_INTERFACE. The records are getting reflected as 'Pending WSM interface' - Resolution Required.
These records are back dated, with year as 2007/2009 and for some Jul'11, for which period has been closed except Jul'11 which is - 'Closed not Summarized'.
Sample records are like
Pending Shop Floor Lot Split Merge Transactions WSM_LOT_SPLIT_MERGES_INTERFACE Resolution Required
Header Id Transaction Id Transaction Type,Transaction,Date,Transaction Reason,Reference,Lot,Process,Status,WIP,Flag,Split,Flag,Group Id Request Id Error Message,
1030,Lot Based Inventory,Translate,25-OCT-07 07-3547-B4 Error 2 1 1031 210415824 Invalid lot_number in Starting Lots,11547,Lot Based Inventory,Translate,25-OCT-07 07-3547-B4 Error 2 1 ,11548 211066708 Invalid lot_number in Starting Lots
Pending Shop Floor Lot Move Transactions WSM_LOT_MOVE_TXN_INTERFACE Resolution Required
587560686 2 12-MAR-09 09-4139-C1 Error 17200 50 END 999 END 20156699 290394731 Error:WSMPLBMI.MoveTransac
tion(stmt_num=240) :
Has any one faced same issues with OSFM/INV modules closing process ?
Regards
Adarsh K

Hi,
Please check the charecterstic of Book Area 01 in customization. If net book value has been maintained as negative, then you have to run depreciation to make it negative.
If depreciation for all asset has not been run a particular fiscal year then you cannot close the fiscal year.
Please check wheather depreciation for all additional assets has been run or not.
Hope you have understood.
Regards
Tapan

Standard reports in Fixed Assets

Hi all,
Is there any standard report in SAP that gives the information on additions made to the asset. I looked into the report S_ALR_87011990(asset history report), it has all the information I need except for additions made and corresponding depreciation for that addition. Could anyone tell me if there is any or how do I go about this problem. Please tell me if custom report is a must in this case, also the tables where I can find this information.
Thanks in advance
Kumar

These are report avaiable in SAP
| |-- Fixed Assets
| | |-- Asset Accounting Information System
| | | |-- Individual Asset
| | | | -
AW01N Asset Explorer
| | | |-- Asset Balances
| | | | |-- Balance Lists
| | | | | |-- Asset Balances
| | | | | | |-----S_ALR_87011963 ... by Asset Number
| | | | | | |-----S_ALR_87011964 ... by Asset Class
| | | | | | |-----S_ALR_87011965 ... by Business Area
| | | | | | |-----S_ALR_87011966 ... by Cost Center
| | | | | | |-----S_ALR_87011967 ... by Plant
| | | | | | |-----S_ALR_87011968 ... by Location
| | | | | | |-----S_ALR_87011969 ... by Asset Super Number
| | | | | | -
S_ALR_87011970 ... by Worklist
| | | | | |-----S_ALR_87010125 Sample for Address Data for Asset
| | | | | |-----S_ALR_87010127 Real Estate and Similar Rights
| | | | | |-----S_ALR_87010129 Vehicles
| | | | | -
S_ALR_87011978 Asset Balances for Group Assets
| | | --- Depreciation Posted
| | | | |-----S_P99_41000192 Posted depreciation by asset and posting period
| | | | -
S_ALR_87010175 Posted depreciation, related to cost centers
| | | |-- Depreciation forecast
| | | | |-----S_ALR_87012936 Depreciation on Capitalized Assets (Depreciation Simulation)
| | | | -
S_ALR_87012026 Depreciation Current Year
| | | |-- Day-to-Day Activities
| | | | |-- International
| | | | | |-----S_ALR_87012048 Asset transactions
| | | | | |-----S_ALR_87012050 Asset Acquisitions
| | | | | |-----S_ALR_87012052 Asset Retirements
| | | | | |-----S_ALR_87012054 Intracompany Asset Transfers
| | | | | |-----S_ALR_87012056 Directory of Unposted Assets
| | | | | |-----S_ALR_87012058 List of Origins of Asset Debits
| | | | | -
S_ALR_87012060 List of Origins by Cost Elements
hope this is helpful...
Please asign points as a way to say thanks.

Post interest in OAYR

hi,
in depreciation area posting rule, there is a part on post interest.
may i know what is post interest and how it affects the depreciation or valuation of the asset? i read the help yet still not understand.
thanks
rgds

For cost accounting, you might have to calculate imputed interest on the capital tied up in assets. Therefore, the system enables you to calculate this interest per depreciation area, in addition to the depreciation and/or valuation types already mentioned (ordinary depreciation, special depreciation, unplanned depreciation, and reduction of APC)
Interest calculation is controlled in the same way as depreciation calculation, using any internal calculation key. This calculation key is itself part of the depreciation key. In addition to the base value for the calculation (for example, acquisition value or replacement value), you can also specify the interest rate using the internal calculation key. Interest calculation is carried out either until book value zero is reached, up to the end of expected useful life, or for an unlimited period.
Calculation of Interest
The calculation of interest to be posted depends fundamentally on the base value of the interest key. When you use an interest key that uses the current net book value as the base value, this net book value is taken into account to the exact period during depreciation posting. Therefore, the planned value for the distribution during the fiscal year is not the planned book value at the end of the year. Instead, the system uses the net book value determined in the posting period (period net book value).
An example of a depreciation key of this kind is the interest from the mean net book value, which is calculated as follows:
Interest amount = (NVSY + NVPER) / 2 * Interest rate / 100
NVPER = Net book value in period
NVSY = Net book value at fiscal year start
Concrete example:
Asset: Net book value at start of year = APC = 12000, useful life 10 years, straight-line depreciation = 10%
   1. Calculation of annual depreciation:
Planned annual interest: 12,000 / 10 = 1,200
          o period deprec. to be posted: 100 per period
          o net book value per period: 01 - 11,900 02 - 11,800 03 - 11.700,..., 12 - 10,800
   2. Calculation of interest 5% from mean net book value
          o planned annual interest: (12,000 + 10,800) / 2 * 5 / 100 = 570
          o interest to be posted:
period 01: (12,000 + 11,900) / 2 * 5 / 100 / 12 * 1 = 49.79
period 02: (12,000 + 11,800) / 2 * 5 / 100 / 12 * 2 = 99.17
previously posted: 49.79
to post: 99.17 - 49.79 = 49.38
period 03: (12,000 + 11,700) / 2 * 5 / 100 / 12 * 3 = 148.13
previously posted: 99.17
to post: 148.13 - 99.17 = 48.96
Edited by: m_n_novice on Aug 25, 2009 5:22 PM

Depreciation for additional acquisition

Hello,
I had the below requirement, Could you please help if anybody had any idea on this issue..
If i purchased additional acquisition in 3 rd month (Use ful life of asset is 12 months) say for ex: Asset Value is 2700/-
From 3rd month onwards it should post 2700/9M=300 per month so that end of the month the asset value will be "zero"
But as per my customizing it is calculating like this:
If the asset value is 2700 which i purchased in 3rd month it is posting dep as 1 Month -200
                       2 Month-200
                       3 Month-200+900=1100
                       4 Month- 200+300=500(200 is normal value)
                       5 Month -200+300=500
Here it is calculation 2700/12 month and equally distributing, i don't want to calculate for first 3 months,
Hope there must be some control for additional acquisition, i have checked period control also, but still getting the same problem.
Can anybody help on this, as it is very urgent for me..
Many tx,
Veena

Hi,
ok, I understand what you mean. With reference to my example, a subsequent acquisition:
01.07.2008     300,00     100     External asset acquisition     EUR
produced the following situation:
4     300,00-     0,00     0,00     0,00     EUR
5     300,00-     0,00     0,00     0,00     EUR
6     300,00-     0,00     0,00     0,00     EUR
7     433,33-     0,00     0,00     0,00     EUR
8     333,34-     0,00     0,00     0,00     EUR
9     333,33-     0,00     0,00     0,00     EUR
10     333,33-     0,00     0,00     0,00     EUR
11     333,34-     0,00     0,00     0,00     EUR
12     333,33-     0,00     0,00     0,00     EUR
     3.000,00-     0,00     0,00     0,00     EUR
As you explained, in my case, the system will catch up the depreciation for the periods 4 to 6 in period 7.
This is the standard system behaviour, because once the depreciation start date is set, the subsequent acquisitions will take this depreciation start date as reference, and not the date of the subsequent acquistion, as you are assuming.
Please read SAP note 46456, which explains this issue more in detail.
The 'Calculate according to asset value date' indicator in the calculation key for the depreciation cannot be maintained as of maintenance level 3.0E. As SAP note 53166 describes this indicator frequently caused misunderstandings. And that is why this function has been "removed".
But, you can still configure this behaviour with a modification, in table T090NP, field XBZDAT at your own risk. Please beware that with such a modification, there is no support in case of future incidences. In note 814004 you will find a short report which enables you to change the parameter.
I hope this will help you.
Sven

Depreciation for additional vaule

Hi All
While we are running depreciation in AFAB , for the asset additional vaule. In this connection System is not calculating dep on capitailzed date for the additional value. This issue details are:
1.Old asset value is 4,97,000, Capitailzed date is 14.02.2000,legacy asset upload to SAP system on 01.06.2008.
2. For this asset we can add additional value of 100000 rs on 31.12.2008.
3. We follow the 10% WDV method.
We are trying to calculate depreciation for additional value and old asset value, but system is not considering the capitalization date for additional value.System is calculating dep one day for additional value.
User wants to calculate depreciation for 365 days for additional value.(100000)
Anbody can access me to solve this issue.
Regards
G.K.Dharmendar

Hi
You just check either you have set the asset data transfer dates properly and it is ok then check while creating legacy data through AS91 you have given the take over values in all dep areas, these 2 reasons may be causing just check and confirm.
Regards
T N R

Depreciation on Additions

Hi All,
We have the below scenario.
We have an asset which is created in year 2006. The depreciation is calculating correctly. Now in 2008 we have posted new additions to this asset.
For the additions the depreciation is calculating from 2008. But the requirement is that the depreciation for the new additions should calculate from 2006.
Is there any settings we need to do for this requirement?
Appreciate for your responses/views/suggestions.
Regards
RS

Hi,
the post capitalisation is in my opinion the wrong way....
Post capitalisation means: You have posted expenses for an asset in prior (closed) periods to the GL. This has to be corrected in current period. Because of this the system create a posting : Asset account (DE) - PL account (CR)
But it seems that you have subsequent aquisition costs (i. e. invoice from a supplier). This means you have already posted Asset (DE) - Supplier/Liability (CR).
Therefore a manual or unplanned depreciation is the only solution - in my opinion.
Best regards
Horst

Additions to existing fully depreciated assets

We have scenario wherein Assets useful life is over but still asset is in use.
Asset is fully depreciated however Gross APC/*** Deprn is shown in books.
Now we would like to make additions to this asset & would like to post Deprn in a normal way as if new asset is created.
Kindly advice as to what will be best practice/steps to be followed in SAP to meet such requirement
Thanks
Nikhil

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

Depreciation of a addition

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