Full Depreciation

Hi Gurus,
We have an asset with 2 years useful life and last depreciation date was scheduled on April 2012. However, the department head wanted to fully depreciate the remaining book value this december. The system still divides the remaining value by 5 months.
Kindly advise how we can fully depreciate the asset this december.
Thanks.

Hi,
Create a depreciation key similiar to GWG (standard depreciation key) and assign to Asset master. This you can check by selecting standard chart of depreciation- 1000 in AFAMA.
If you are using ECC 6.0 add the new depreciation key in AS02 (follow below steps)
1) Double click on depreciation key which you want to change.
2) click on more intervals then click on add interval and key new date which you want to calculate the depreciation.
Regards
SM

Similar Messages

Full depreciation if the asset is purchased with in first 15 days of the month

Hello All,
We have requirement in Asset accoutning.
If the asset is purchased from 1st to 15th of a month, the depreciation should be charged for entire 1 month.
If the asset is purchased between 16th to 31st of a month, then only half a month depreciation shjould be charged.
Could any share how this can be done in SAP - Asset Accoutning?
Regards,
MG

Hello Javeed,
I tried for both 02 and 03. But 02 at all times takes the values from 1st of the month and 03 takes the values from mid of month everytime.
I am looking for something where in, if the asset is purchased in the first 15days, the depr should be charged full and if purchase after 16th then half.
It should be noted that the depreciation key is assigend to Asset class and depreciation combination and i am not sure how two assets belonging to the same Asset class can have different deprecaiton charges.
Regards,
mg

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

Full depreciation for low value assets

Hi Gurus,
How to set up depreciation key of low value assets to get asset fully depreciated irrespective of depreciation start date.
For example :
Asset No : xxxxxxx xx
APC : 5000 INR
Dep. Key : xxx (100% Depreciation)
O.Dep.Start Date : 14/05/2006
In the above case depreciation was calculated only for 322 days
But I need to calculate depreciation for 365 days ie 100%.
Please advice.
Best regards
Raja Manhoharan V.S.

There is a standard depreciation key with description LVA 100%. i am not sure if dep key is GWG or something else.

Negative assets cause full depreciation the first month

Hi guys: please help me understand why the negative assets that I have set up via AS91 are depreciating completely in the first month.
The positive assets are correctly depreciating. I suspect its the depreciation key LINA that i am using that is causing this, but is it an element of the key (example the base method 0011) that may be tr

Hi,
Check your base methods, which are assigned to your depreciations phases for dep key LINA.
I hope you might have changed the standard key
Check Dep key LIN, below is the standard settings for it.
Phase 1
DepType- N
Phase -1
Base method -0009
Decl.-bal. method-001
Prd cont-003
Multilev.meth-010.
Class-SLM
Multiple shift Increase in depreciation and expir
Scrap value-0
Shutdown-No
Phase 2
DepType-Z
Phase-1
Base method-0030
Decl.-bal. method-001
Prd cont-001
Multilev.meth-011.
Class-(blank)
Multiple shift- Increase in depreciation and expir
Scrap value-0
Shutdown-No
SAVE and check your assets now
Thanks,
Srinu

Calculation of Tax Depreciation - India

Hi,
We are following the New GL Accounting setup to our US based client in India.
My Leading Ledger (US) is Jan u2013 Dec and Non-leading Ledger (India) is April u2013 March.
We also created different Fiscal Year variants (Year Dependent) as S1 and IN for both the Co codes.
I have defined and activated Non-leading ledger for India Company code.
All the transactions were posting correctly as per Leading and Non-leading ledgers except Tax Depreciation in Fixed Assets.
I was able to post correct depreciation for India Company Act Depreciation area with a stated percentage. But the Tax depreciation area calculation is incorrect.
Required Depreciation Calculation for Tax Depreciation Area as below:
For Acquires & Additions:
Rule1: If it is >=180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation as stated percentage. Eg: 10%
Rule2:
If it is <180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation of 50% on stated percentage. Eg: Stated percentage is 10%, then it should be 5%.
I already copied India standard setting IT & NL to my fiscal year variant in Calender assignments of Period controls. But when I tried to post the Tax Depreciation in the month of March as per Non-leading ledger, the system is calculating full Depreciation as per Rule1 instead of 50% of stated Percentage in Rule2.
Can any one of you kindly advice how to setup the Multi levels methods and Period controls for Tax Depreciation key in Indian Tax Depreciation area as per above requirement. I have been working on this since one week. Please help me.
Thanks for the help.
Regards,
JBC

I am not sure if this work.. but give it a try.
In your multi-level method line 1 put Acq yr = 9999, Year = 999, Per = 6, Percent = 50
line 2 put Acq yr = 9999, Year = 999, Per = 12, Percent = 10
Now what i dont understand from your question is that is this rule for the first acquisition year only?
If so, also try with Acq yr = 9999, Year = 1 (so only the first acq yr will get calculated based on the percentage).
Try this in your sandbox and let me know if it works or not!!

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

180 days depreciation as per IT act

Hi,
I want to post 180 days depreciation ( Ours FSV is AP to Mar, if i acquire asset from Apr to Sep it should calculate full year depreciation and if i purchase after, it should calculate depreciation for 180 days as per IT Act, for that i've made setting in Period control, i've taken IN1 in period control, but when i create group asset and if i select the IT depreciation key, system is throwing error message, "E003 SYST: Period 000 is not valid in financial year variant", if please suggest me the possible errors behind it.
Regards,
Sudheer

Hi Sudheer,
This 180 days calculation can be done for Income tax depreciation if you provide the below details in the income tax related depreciation key
Base method: IND1
Declining Balance method: I01 to .... (whatever is available in F4 option based on rates you select)
Period control: IN1
Multi level method: M1 to M9 as provided by standard SAP
Class: 2 Declining balance depreciation
Change method: No automatic changeover
Multiple shift: 2 no effect on depreciation and useful life
Scrap value: 3 cut off value is ignored
shutdown: No
If you follow the above details in the depreciation key, then you will get that 180 days calculation. ie., from 1st april to 30th september if you capitalise any asset, your system will calculate full depreciation and from 1st october to 31st march if you capitalise any asset, you system will calculate 180 days depreciation.
Hope this helps. Assign points if useful
Regards
Dwarak

Depreciation as per IT act India problem in asset acquisition for less then 180 days.

Dear All,
As requested by our client we need to configure depreciation as per IT act.We are using fiscal year variant K4(Oct to Sept) in our company code but as per specification from client we need to use fiscal year variant (April to March) for reporting purpose as per IT act.While posting for asset acquire for less then 180 days asset is not coming in display as per Indian Income tax report(J1IDISPBLK - Display Transaction Details at Asset Level).
We also try to use V3 (fiscal year variant as maintained for Indian IT act with period control "IT").But while putting V3(Fsv) for Depreciation area 15 (Financial Accounting (New) > Asset Accounting > Valuation > Fiscal Year > Fiscal Year Variants) got error that Fiscal year should be same as of company code.In this case we are not able to configure it.Kindly advice if anybody has configured this.

Hi Sudheer,
This 180 days calculation can be done for Income tax depreciation if you provide the below details in the income tax related depreciation key
Base method: IND1
Declining Balance method: I01 to .... (whatever is available in F4 option based on rates you select)
Period control: IN1
Multi level method: M1 to M9 as provided by standard SAP
Class: 2 Declining balance depreciation
Change method: No automatic changeover
Multiple shift: 2 no effect on depreciation and useful life
Scrap value: 3 cut off value is ignored
shutdown: No
If you follow the above details in the depreciation key, then you will get that 180 days calculation. ie., from 1st april to 30th september if you capitalise any asset, your system will calculate full depreciation and from 1st october to 31st march if you capitalise any asset, you system will calculate 180 days depreciation.
Hope this helps. Assign points if useful
Regards
Dwarak

Depreciation for Next Month

Dear SAP Gurus
My requirement for one country is like this:
Asset is procurred on March 15th 2007. Depreciation should strat from April 16th 2007. i.e for March no depreciation, April only half month and from May full depreciation.
Can someone advise. It is very urgent
Thanks

Jimmy,
what is with field <b>XDAILY</b> in tcode AFAMA?
http://help.sap.com/saphelp_47x200/helpdata/en/4f/71ddd3448011d189f00000e81ddfac/frameset.htm
Depreciation to the Day
You can specify that the system performs the depreciation
calculation to the day. The period control rules in the
calculation method are thereby deactivated for the entire
life of the asset.
rgds.
Andreas
pls reward useful answers

FA Depreciation....

Hello All,
My requirement is, depreciation method will be WDV and full depreciation is charged in month of purchase, while no depreciation is charged in month of sale.
Please I will happy if anyone give solution for this....
Thanks and Regards,
Muthu .

Navigation
Setup: Depreciation > Methods
check if your depreciation method is seeded if not then set up then navigate to
Navigate to the Depreciation Methods window. Navigation: Setup: Depreciation > Methods
Enter a depreciation Method name and Description.
Select Formula from the Method Type poplist.
Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis pop up list.
continue setting up as required
For the prorate convention & retirement conventions
Navigate>setup>prorate conventions
set up and name prorate/retirement convention as required
NB - when adding the asset categories allocate a depreciation method and a prorate and retirement convention as set up above
Regards

P&L acc should not hit retained earnings account upon exe Bal Carry Forwar

Hi Friends,
As per business requirement I created two Depreciation expense accounts, only Book Dep account should hit retained earnings whereas other special dep account should not hit. Since both accounts are P&L they are picking upon executing Balance carry forwad.
Special Dep area is created to depreciate the complete asset in the year of purchase to help the org to allocate it to different Cost centers for funding request. As such these special dep accounts are out of scope for FSV so there is no impact on Bal Sheet,however upon exec FAGLGVTR full dep posted on these accounts are carried forward to next year along with true dep.
Please provide any suggestions that help to avoid some of the PL acc carry forard to retained earnings account. I am thinking of creating separate chart of account for these accounts but this consume lot of time for testing all the scenarios.
Thanks in advance.
Venkat

Hi Madhu,
Here is the scenario.
APC of all acquisitions are allocated, in the year of acquisition, among several cost centers using statistical key figure (Work hours). To satisfy this requirement, a second depreciation area (Special) will be created. In the second depreciation area, all assets (regardless of asset class) will be depreciated fully in the year (month) of acquisition u2013 (the same depreciation key as low value asset). The value in the second depreciation area will flow to controlling.
This full depreciation is not even consider in financial reporting as the number range of these dep exp accounts are out of range in FSV. The main purpose is to allocate full depreciation among CC in advance for funding request.
Thank you,
With Regards,
Venkat
Edited by: Venkat Reddy Yedulla on Jun 7, 2010 6:22 PM

Superhero Asset Accounting Tax Question

My future best friend/s-
Background:
I work for an energy company specifically natural gas. We have assets (pipelines, metersu2026etc) that are placed in service (put in the ground) and maintained in a excel spreadsheet. After they go through an internal approval process (which causes a huge backlog for input) they are entered into SAP (or the asset is created). My problem is some assets are installed one year (amounts are maintained in the offline excel spreadsheet) and entered into SAP in another year after the previous year is closed. Our SAP isnu2019t catching the tax books depreciation amounts correctly.
Example:
Asset entered in 2008 (pipe put in ground and tracked in excel)----->Asset entered/created in SAP 2010 (after 2008 and 2009 is closed).
Possible solutions I am looking for:
1.     Can I make the tax books have a different fiscal period or none at all?
2.     Is there something I can do with the depreciation keys, useful life, period control or anything that will help with me?
3.     I know about the write-up functionality, however, the tax accountants (funny I never knew how difficult accountants could beu2026especially since I use to be one) will only use it as a last resort.
4.     Is there any books or web-videos that can teach me this type of stuff in SAP that donu2019t read like stereo instructions (I guess this is a general question).
If you can solve this problem you will be a superhero in my book. Please let me know if you need more info (BTW this is my first blog ever).
Thanks,
Jack

Hi Jack,
What has been said above is right. In AS01 all you do is use the 'post-capitalization' indicator at the start, then you see in the 'General' tab that the 'Capitalization on' field is (in my system at least) a required field. Here for example I enter 01.01.2008. Once hitting enter, following fields are filled automatically and remain greyed out:
First acquisition on 01.01.2008
Acquisition year     2008 001
In tab 'Depreciation areas' in AS01 field ODepr.Start is also automatically filled with value 01.01.2008.
Then comes the posting: as for the value you post, for example in the open fiscal year 2010 (e.g.01.01.2010) you can observe nicely the different system behaviour in case you post an normal external acquistion (ANZON) or indeed a post-captitalization (ABNAN). You will see that in later transaction (ABNAN) you find a value adjustment is posted in AW01N to represent the ord.depreciation calculated and so adjusted for 2008 & 2009. So, only the remaining ord.depreciation will then be planned and posted in the remaining useful life
However, if you for example post a normal external acquisition to an asset (set up with 'post-capitalization' indicator and cap.date 01.01.2008 in AS01), you will also observe, that the FULL depreciation for the asset is now calculated and spread over the remaining useful life.
And yes, whether or not in the first period the planned depreciation is a 'catch-up' amount or an equal 'smooth' amount depends on your setting in the company code in OAYR, just as well explained already above (indiator 'Smoothing').
I hope this further clarifies and helps explain - best of luck!
Kind regards,
Brigitte

100% dep for small assets

Hi All,
While going through the Depreciation Statement it is found that depreciation on small items (eligible for 100% Depreciation, covered under various Asset Classes ) is being calculated prorata on monthly basis.
As per the provisions of law, full depreciation at 100% should be charged irrespective of date of addition. How & where can i make the necessary correction,so that 100% depreciation is calculated in respect of small items eligible for 100% depreciation.
Regards
SAP4ME

Hello
for the first query you need to check the period controls. As i under stood system should depreciate the total value of the asset with in the same acquisition year irrespective of period.
Please check the period controls for the depreciation key.
For your second query
You need to create the (MANU) manual depreciation key.
The same depreciation key need to be assigned to all the assets for which you want to post the deprectioan manually.
Tcode for posting the manual depreciaiton: ABMA
This is manual posting system should not object whether the amount of depreciation is increased or decreased.
Please check and update.
Regards
HK

Full Bonus Depreciation irrespective of DPIS

Hi All,
We want the Full 50% Bonus Depreciation to be taken for the first year irrespective of DPIS, we want this only for Bonus Depreciation and not for the actual Depreciation for an asset having STL Depreciation Method, so we do not want to change the Prorate Date.
Is there any way to achieve this other than using unplanned or override depreciation. This link Re: How to Calculate Initial Depreciation Allowance for Assets? looked very relevant but the solution is not outlined. Please need your help and advise
Thanks,
Sarvesh

Hi All,
Please need your Invaluable inputs and advise.
Thanks,
Sarvesh

Full Depreciation

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