Fixed asset treatment

[Former Member]

Dear All,

I have this scenario, please kindly advice.

Three years ago, my company has leased one big printer machine, the lease term is three years over useful life is five years. Initially, the accounting staff has treated the down payment deposit to expense account, and we have paid rental fee each quarterly depends on the quantity of printed paper. Three years passed, the printer is belong to our company. My boss asked to book this printer as a fixed asset. I would like to use T-code ABNAN to do this...

Could you please advice the process how to book this printer machine ? As now the printer is not in our Fixed asset register, to avoid anyone sell this printer, boss adviced to book into fixed asset... Please kindly advice. I never use ABNAN.

1. AS01 to set up asset number.

2. Using ABNAN .. Then ... How to do it ?

[Former Member]

Thanks you all for your advice .. i will start to work on this in few days. Thanks:)

[Former Member]

Hi Jojo,

I see your accounting department has been expensing the lease/usage payment for the last three years and now wants to capitalize the printer for its remaining useful life (two years). Since the prior treatment was based on usage, you may want to consider treating the asset as unit of production for its remaining useful life.

Setup or maintain an asset class that will be relevant for units of production using OAOA, preferably with a new number range. You will designate the asset to this class when you create the asset master record using AS01.

You will also need to setup or maintain a depreciation key for unit of production.(SPRO: Financial Accounting (New) / Asset Accounting / Depreciation / Valuation Methods / Depreciation Key  Maintain Depreciation Key)

As Asheesh has pointed out, post capitalization does not apply in this situation since your organization is placing it in service now. If you were to post-capitalized the asset, you would be capturing the prior three year depreciation as current expense. (You would be doubling your expenses.)

You will need to determine the FMV (fair-market value) of the printer when the lease expired and base your APC on that value. You will also need to maintain and project the monthly paper usage based on past usage. Use AO25 to maintain unit of production.

Prior to your depreciation run for each month, you will need to maintain AO25 for paper usage for that month.

Then recalculate the depreciation plan using AFAR and then post depreciation using AFAB.

Best Regards,

Ron

[Former Member]

hi,

i agree with Asheesh. but calculating NBV and creating asset using ABSO also a workaround. It is not a correct solution.

please refer the below thread which explains how to handle the lease asset. There is separate legal procedures are there for lease asset. refer sap library for better understanding. otherwise during audit you have to answer to the auditor

https://scn.sap.com/thread/1403455

regards

vijay

[ab_ab]

Hello,

I don't think ABNAN (Post Cap) is the right thing to do. Post capitalization is used if you had missed expenses to be capitalized for closed years. It doesn't look like this was ever created as a lease asset in  your system. All you did was to pay rentals for 3 years.

From your business perspective, it's a NEW asset now. Find out the NBV of the asset now, and create a new asset and post values via ABSO. There is no point trying to bring in historical depreciation as it was not an asset in your books until after 3 years.

Thanks

Asheesh Bhatia

[Former Member]

Hi,

According to me as per my understanding of your requirement is that, now the Asset is new for you i.e. now its sort of Asset Acquisition, or an Asset on Lease was already created 3 years back. As then you can now transfer that asset to another asset through ABUMN for the remaining life of 2 years and claim depreciation on the same. ABNAN is used for post capitalisation on the existing asset. Now according to me its not further acquisition. Still I am bit unclear about your question.

Regards,

Malhar.

[Former Member]

Dear Jojo,

in OB52 open accounting period (before).

Good Luck.