Fixed Assets - Tax Book Depreciation Reset

Hello Fixed Assets Experts,
My company recently reorganized our parent company, and now has the following scenario:
Due to legal changes, we need to start over the useful life on our tax books (10 and 11) and restart the calculation of depreciation based on the net book value of the asset on 1/1/2008. Book 01 needs to continue as normal. We would like to use the current asset numbers and not transfer anything to new numbers. These are all of our FFE assets, so there are multiple depreciation keys and useful lives (i.e. computer equipment, property, etc). I have tried making custom depreciation keys and changing the useful lives to get the desired result, but can't seem to find a way to do it.
Here is an example:
Asset 1 (software), was capitalized on 06/30/2006 with a useful life of 3 years and has been depreciating since. It is scheduled for end of life in 2009. The net book value of the asset on 1/1/08 is 1219.97. I need to depreciate the 1219.97 over 3 years starting on 1/1/08.
Is this possible? We have not run our December 08 depreciation, but I am running out of options.
Thanks in advance!

Do you working on ECC 6 and activate the option EA-FIN. In that case it is possible to use time intervale in the tab Depr Areas (click 2 times on the line). This should solve your problem.
See the wiki about new depreciation
https://www.sdn.sap.com/irj/scn/wiki?path=/display/erpfi/asset+accounting

Similar Messages

Fixed Assets: Changing Category, Depreciation, life

hi
i have an requirement where we need to change asset category, depreciation method, no depreciation and life(1 month). And want to make total depreciation to zero.
Ex:
Asset#A1 already depreciated some amount.
Original category X and degault rules are set to Depreciable.
Defined to new category Y and associate default rules to all CORP and TAX books to not depreciate.
Changed from category X to Y
Now after reclassification, it is depreciating entire amount of the asset and posting to current open period. As the reclassification does not default the new category depreciation flag, it is depreciating entire fixed asset cost immediately. I didn't run depreciation.
Now how do i change YTD depreciation to zero?
Thanks in advance for all your suggestions.....
Need it immediately.....

Hmm, did you not test this out in a test environment first before doing this in production? Can you be specific on the choices that you made when you changed this asset? Maybe you chose to expense the adjustment in the current period rather than to amortize? Because you originally had it in a depreciable status, then changing it to new financial information, looks like it is choosing to expense the remaining asset cost immediately (which is why you are getting depreciation without having run depreciation). You may need to contact Oracle support at this point to find out how to best recover from this. Though if just one asset, you can just do a journal entry to reverse the depreciation. Then you would want to contact support to find out what is the best way in the future to make this kind of change. The documentation unfortunately does not address the kind of change you were making here. Doe show that it is important to get the depreciation setup correct before activating an asset.
John Dickey

Fixed Asset: Current Year Depreciation

Dear Experts,
Previously, fixed assets was managed manually in an excel sheet and depreciation was calculated manually in the excel sheet.
My client wants to start using the FA Addon in March. I managed to import all the fixed asset master data with its Cost, Acc. Depn and NBV. They all tally with the GL balances as at 31.12.2010 which is the last day of the accounting year.
However, I have problem with the current year accumulated depn figure. When I run depreciation for Jan-Feb, the figure does not tally with the GL balances as at 28.02.2011.
For example:
Fixed Asset Cost: $5,859.00
In SAP B1
Depreciation method: Straight-line depreciation
Calculation medthod: Percentage of Acquisition Value
Percentage: 33.33%
Planned monthly depreciation: $162.77 <-- Not sure how B1 get this figure
Therefore, accumulated depreciation for current year as at 28.02.2011 = $325.54
Manual via Excel
Depreciation method: Straight-line depreciation
Calculation medthod: Percentage of Acquisition Value
Percentage: 33.33%
Accumulated depreciation for current year as at 28.02.2011= ($5,859 x 33.33%) / 12 x 2 = $325.47
How do I get the current year depreciation to tie with the GL?

Hi Joyce,
I understand the issue you are facing is that
accumulated depreciation for current year as at 28.02.2011(calculated by Fixed assets addon) = $325.54,
but
accumulated depreciation for current year as at 28.02.2011(calculated by excel)= ($5,859 x 33.33%) / 12 x 2 = $325.47
you want to know how system calculate the accumulated depreciation as $325.54?
in order to make it clear,
please let me know how did you define the FA master data,such as the net book value,useful life,remaing life and so on.
Please check the FA master data->general tab and calculation tab,as it is not possible to attach the screenshot to show the relevant data,please log a SAP message for the further assistance.
Kind regards,
Eleven

Differing asset tax book and accounting book when the currency is foreign

Hi Asset Gurus,
My company has this requirement that when the asset is acquired in foreign currency there will be acquisition posting on Accounting Book (area 01) but zero on the Tax Book (area 15). They said this is in conformance with the reporting standard. Can anyone give me an idea how can this be done in the asset accounting? Do I need to setup new depreciation area just for this requirement?
Thanks,
Aloy

Thanks AP for your reply. Please bear with me a little bit as I still don't see the complete picture. Currently this is what's happening:
When the acquisition is made in foreign currency, both depreciation area 01 (accounting book) and area 15 (tax book) gets updated with local currency value (APC). Now the requirement is to make tax book area not posted to everytime this situation happens. We don't really need to have the foreign currency amount reflected in the asset.
Given the requirement description above, do you still think parallel currency in FI and additional depreciation area would be the solution? If yes, could you kindly expound further on that solutions please?
Thanks a lot for your help.

Fixed Assets Add-On: Depreciation Calculation After Credit Memo

In the beginning of the year, I have a fixed asset as follow:
Cost $16,128,667.00
NBV $14,515,800.35
Planned Useful Life for this asset is 120 months.
In July this year, created a Fixed Asset Credit Memo for this asset at $1,110,942.92.
Originally, before the credit memo, the planned depreciation is $134,405.53 per month which is correct.
After the credit memo, it recalculates the planned depreciation to $124,119.04 per month. How did the system arrive at this figure?
Depreciation method:
Straight line
Full Year

Hi,
Based on NBV $14,515,800.35, minus Credit Memo $1,110,942.92, you got $13,404,856.43. The useful life is 108 based on NBV. So you get new planned depreciation to $124,119.04 per month.
Thanks,
Gordon

Oracle Fixed Assets (11i) Fully Depreciated Assets...

Hi there
How to Find out that Assets is Fully Depreciated?
Is there any one field (Flag) on Screen or in any Assets table?
Thanks
ASIM

check that u r NBV bcomes zero

Copying assets in Tax book which didnt exist in the corp book last year?

Hi All,
We are facing following issue with our Fixed Assets Tax reporting. If someone can point us in right direction, we would really appreciate that
1)     We are currently running on Oracle 11.5.10
2)     Right now (as of JUN-11), we have 1 consolidated corp book in the system with around 14000 assets in it and no tax books
3)     Tax reporting is done from a third party software. Right now we have filed for taxes till 2009. 2010 tax filing is still pending
4)     We want to file 2010 taxes by August and we want to do it through Oracle. We are planning to configure tax book in the system so that taxes can be filed
5)     The approach would be to create a Tax book with open period as of 2009. Run the Initial Mass copy from corp book to tax book. This would copy everything from corp book to tax book as of Dec-2009. Then depreciate the tax books all through 2010 and run periodic mass copy for every month and we will get the DEC-2010 figure
6)     But there is a catch here. As I said that we have all our assets in just one corp book. But that wasn’t the case before Jan-2011. We had around 20 corp books for every legal entity. So all the assets that we have today were lying around in various corp books. We did the consolidation of the assets into one book this January-2011 because all our legal entities were consolidated.
7)     Now given this scenario, if we run the Initial Mass copy as described in point 5 to the tax book only those assets from the corp book will be copied to the tax book which existed in this corp book as of DEC-2009. (This is the standard Oracle functionality). This is not the complete list as only few assets were there in this book as of Dec-2009. Rest of them were in different books
8)     Do we have to create tax books for all the corporate books to achieve what we want to achieve or is there a way that multiple corp book data can be copied to one tax book?
Please let me know your thoughts
Regards,
Rahul

I will re - ask the question in just one line. Please reply if you know the answer:
Is it possible in Oracle to Initial mass copy asset data from corp book to tax book in the last fiscal year when the assets did not exist in the corp book as of last fiscal year? Assets were brought to that corp book only this year as part of consolidation
Thanks
Rahul

[B1-V9] Cancel automatic depreciation run/Fixed Assets

Dear Expert,
Could you please let'us know how to cancel automatic depreciation in fixed assets
Depereciation : Depreciation run
Possibility to cancel capitalization: yes
Version: 9 , PL:09
Thank you for your feedback
Kind regards,
Med

Hi
Below is the SAP Note for Cancel Depreciation.
1974682 - Posted Depreciation is cleared after Captalization is canceled
Symptom
Posted Depreciation in Fixed Asset Master Data ->Depreciation tab is cleared after Captalization is canceled.
Reproducing the issue
Prerequisites:
Enable Fixed Assets is ticked Administration->System Initialization->Company Details->Basic Initialization.
Scenario:
1. Define a Fixed Asset
2. Create AP invoice (Purchasing AP->AP Invoice) or Capitalization (Financials->Fixed Assets->Capitalization) for fixed asset and planned depreciation for each month is 100 for example
3. Run depreciation to post depreciation for this asset, for example 400 is shown in 'Posted Depreciation' column in Fixed Assets Master Data ->Depreciation Tab
4. Cancel the document you have created in step 2 via Data->Cancel
Actual behavior:
In fixed asset add-on: The posted depreciation remains in the 'Posted Depreciation' column in Fixed Assets Master Data ->Depreciation Tab
In Business One version 9.0: Value in 'Posted Depreciation' column in Fixed Assets Master Data ->Depreciation Tab is cleared.
Cause
Behavior change.
Solution
In Business One version 9.0, there are three status for asset master data, which are "New", "Active" and "Inactive". If the status of the asset is "New" after its first capitalization is cancelled, no data would be shown in the grid in Asset Master Data's Depreciation tab. But users can still run depreciation again to clear the posted depreciation.
And In Business One version 9.0, users can define the default behavior when canceling the first capitalization document via Document Settings form -> Per Document tab, and choose Capitalizatindocument -> check box 'Deactivate Fixed Asset After Capitalization is Cancelled'. If this check box is chosen, the status of asset master data will be "Inactive" after its first capitalization is cancelled, otherwise, the status will be "New".
With Regards
Balaji Sampath

Inflation Accounting on Fixed Assets

Hi ,
Could anyone advice how to configure for Inflation Accounting on Fixed Assets wherein Accumulated Depreciation needs to get Revalued.
Is there any Notes to be applied in this regard.
regards,
M Suresh Kumar

You can use as basis SAP Note 725957 - Inflation adjustment of fixed assets in Turkey
https://service.sap.com/sap/support/notes/725957
The compleet set-up is in there, perhaps there is a version for your own country
Me setup is:
03 Local books               (create postings)
13 Local books inflation   (create postings)
14 = 03 + 13                  (for reporting)

FA TAX BOOK FLOW

제품 : FIN_FA
작성날짜 : 2004-07-01
FA TAX BOOK FLOW
================
PURPOSE
TAX Book을 사용하고자 하는 User에게 Tax Book을 Setup해서 사용하는 절차를 설명한다.
Explanation
FA TAX BOOK Flow
1. 먼저 Corporate Book의 Setup을 마친다.
2. Corp Book을 바탕으로 Tax Book을 Setup한다.
=>주의할 점은 Allow Mass Copy기능을 꼭 선택하도록 한다.
Current Period는 Corp Book의 이전 회계년도의 마지막 Period를 선택하도록 한다.
3. Corp Book에 대한 Asset Category를 등록한다.
4. Corp Book에 자산을 등록한다.
5. TAX Book에 사용할 Asset Category를 등록한다.
6. Corp Book에 대한 상각을 수행한다.
7. TAX Book에 대해서 초기 1회 Initial Mass Copy를 수행하도록 한다.
8. 이미 상각이 수행된 Corp Book에 대한 Period에 대해서 Periodic Mass Copy를 수행한다.
=> Tax Book에 Category가 등록이 안되어 있을때에는 Tax Book에 Addition이 되지 않는다.
9. Tax Book에 대한 Depreciation을 수행하여 Corp Book과 같은 Peiord로 맞추도록 한다.
Example
Reference Documents
-------------------

It all depends on how much data you have? the easy way is to setup new book if you want to change in production. can setup new fiscal calendar for FA but as the existing book cannot be changed after data is loaded. one more way is to update the records with jun-08 in test instance and run depreciation

Import Fixed Asset on Previous Year

Hi experts,
I would like to know, is it possible to upload fixed asset on previous year as fiscal year. For example I want to upload asset per June 2010 as beginning period, I tried several ways to upload but I couldn't find the right one.
I tried to upload fixed asset data with depreciation start / capitalization date before Jan 2010 and succeed
eg.
Asset: Printer
Acquisition date: 01 Feb 2009
Depreciation start date: 01 Feb 2009
APC value: 22000000
Useful Life: 36
Remaining Life: 25
Ordinary Depr: 8066667
But it didn't work out with the depreciation start / capitalization date on Jan - Jun 2010
eg.
Asset: Printer
Acquisition date: 01 March 2010
Depreciation start date: 01 March 2010
APC value: 2100000
Useful Life: 36
Remaining Life: 36
Ordinary Depr: 0
Any help will be most appreciated. Thanks

Yes, I did. It said "We recommend you to import fixed asset master in the past years. If you insist on importing an asset for the current fiscal year, make sure the depreciation start date is the first date of current fiscal year and the Remaining Life is the same as the Useful Life." This case is different, the company wants to upload asset as per June 2010 as its beginning balance =) Thx for your reply Julie

Import fixed Asset

Dear All,8
I cannot import fixed asset to SAP Business One ( Hanna) PL8, the following message appear
The Remaining life of fixed asset for depreciation area GAAP is incorrect
how i can solve this issue ?
Regards,
Abdualla Fatayer

the formalla is :
remaining useful life = ( date of fixed asset that will be imported to SAP - starting depreciation date)\30 day.
and the result from this equation is subtracted from useful life of fixed asset.
note:
starting depreciation date =Dec 31 from the year that customer acqustion fixed asset.
example:
the capitalization date of an asset is 5/2/2012
I will consider starting depreciation date will be 31/12/2012
I will import the fixed asset on 1/1/2014
asset useful life is 80 Month.
then i will use the equation above to calculate remaining useful life
regards

Credit Note in Fixed Assets add-on

Hi experts,
I really do not understand how Credit Note is working in this add-on.
Depreciation(accounting impact):
Dr                                                                                Cr
510000 - Depreciation (Personal Computers)        110000 - Personal Computers
So, for my Credit Note is a little bit differen(I am using Credit Note without Vendort:
I want the Credit Note to perform as following:
Dr                                                                         Cr
110000 - Personal Computers             510000 - Depreciation (Personal Computers)
My G/L setting in Fixed Assers add-on:
Balance Sheet of Asset Acc. Cost - 110000
Clearing - (for this account, I have tried placing 110000 and 510000)
Ordinary Depreciation Acc. - 510000
But, it does not work.
Please advice on that.

Hi Gordon,
I thought this account was for Credit Note purposes but it wasn't.
So, for 1st scenario I tried putting 110000 and then I made a Credit Note without Vendor thought of debiting back depreciated amount into my fixed asset account and crediting the depreciated amount in my depreciation account. The result was unfavorable, it worked out the same way as I did for depreciating my assets:
Dr                                                                    Cr
510000 - Depreciation Account                     110000 - Fixed Assets Account
In fact, for 2nd scenario I tried replacing 110000 in Clearing Account with 510000 thought of achieving my goal below:
Dr                                                                    Cr
110000 - Fixed Assets Account                     510000 - Depreciation Account
But the outcome was same exactly as 1st scenario.
How can I produce the goal in 2nd scenario, please advice.
Thank you.

Oracle 11i Fixed Assets - Additions Error Message Company is not value

I have created Fixed Assets Corporate Book and trying to add a new record through Assets Workbench and Addition Option. When I try to create information in Assignment Detail to enter Expenses Account and I am selecting Expense Account but getting Message "Company is not value for Book selected (Company Name1 should be 01, Company Name2 should be 02, Company Name3 should be 03)
It shows message with old existing Corporate Book.
Do you have any idea Why this message is shown.
Your Help in this regard will be apreciated.

Its 01.10.2000. So i think thats the problem
I want to post in 1st April 2009 (7th month of fiscal year 2009) and 01st November 2009 (ie 2nd month of fiscal year 2010). So what date i should put ?
Edited by: Deepak Agrawal on Nov 6, 2009 10:51 AM

FAGL_FC_TRANS for Fixed Assets

SAP experts,
We are doing FC Valuation and translation for a foreign subsidiaries to report US GAAP . ( FAGL_FC_VAL for FC valuation followed by FAGL_FC_TRANS for Translating the group currency with spot/avg raye for BS and PL respectively). Confiured BS adjustment account for translation and the translation difference posted at Month end ( BS adjustment acccount) at month end and reverse it on 1st day of next period. No update on individual accounts.
The FASB docs explains that FASB amount is to strip off the EX rate influence on the BS numbers of Foreign subsidiaries. ( Group currency amount of Foreign Subsidiary in SAP)
Gone thru SDN and came to know the treatment to be given to Fixed assets. Looks like it need not be valuated as it sits on Balance sheet long time. It is not clear . In simple terms do we have to include Fixed assets and accumilated depreciation in FAGL_FC_TRANS or not?
Answer is yes for Translation the what rate . How do I derive the correct historical rate as the assets are carried over a long period when we do not update the assets Group currency amount.
Do we do the translation for all P&L accounts also?
Appreciate early replies.
Regards

Please see my responses below.
1. For all BS accounts using Spot rate - yes, the rate on the last day of the month.
2. For Fixed assets account different rate - same rate applied to all balance sheet accounts
3. For PL balances separately after ticking the P&L accounts - yes, but this is at the average rate for the month
4. Do we have to check (tick mark) the u2018valuate period balance only u2018 on the screen for PL? YES
Is the fixed assets GL accounts are to be treated in a different way unlike other BS accounts? - I don't see any reason why they should be handled differently.
The Fixed assets are to be re measured with different ex rate ie Historical rate? - No. It is the equity that you want to keep at historical rate.
How do I get historical rate? - The historical rate is on the individual postings on the account. You don't need to get the historical rate from anywhere, as you just leave the historical rate on equity account postings, by excluding these accounts from the selection screen of your Balance Sheet translation variant.
Make sure that for BS translation, you also reverse the translation program entries on the first day of next month. You don't need to do this for PL translation, as you are translating period balance only.
What steps to be followed to complete the FASB52 and how to reconcile with manual. - All of the above conform with FAS 52 rule. What do you have in your manual record? I would eliminate the need for any reconciliation once you are in SAP. A spot check in your testing cycles should do!

Fixed Assets - Tax Book Depreciation Reset

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