FI-AA: Delta on Depreciation Areas

[Former Member]

Hi,

In Asset Accounting, for our USA Company, we have the following Depreciation Area with following customizing:

Area	Description	Real Area	G/L
01	BOOK DEPRECIATION	X	1	Area Posts in Realtime
60	CAP BOOK OF DEPRECIATION	X		Area Does Not Post
61	GAAP VS CAP CRITERIA DIFFERENCE	Derived Area (-01+61)		Area Does Not Post

Users required to activate for G/L posting also delta Area 61.

The new customizing for Area 61 now is:

Area	Description	Real Area	G/L		XAFABER
61	GAAP VS CAP CRITERIA DIFF.	Derived Area (-01+61)	2	Area Posts APC and Depreciation on Periodic Basis	X

And also we customize the correspondent Account determination (Transaction: AO90).

Problem: we activate Depreciation Area during the year, all values deriving from the difference between Area 01 and Area 61 in the
previous months, are posted on period 03; in this way now we have a high value in this month but it is unreal from an accounting point of view. Users would have a monthly posting of this delta. See the following example.

We activate Depreciation Area when Devaluation in period 01 and 02 were already posted. In period 03 we run AFAB transaction. All values
deriving from the difference between Area 01 and Area 61 in the previous months, are posted on period 03; in this case, note that it isn’t any difference between Area 01 and Area 61, but the result is that in period 03 arise a difference of 363,82:

Period	AREA01		AREA60		AREA61
	Planned Value	Posted Value	Planned   Value	Posted Value	Posted   Value
1	-181,91	-181,91
2	-181,91	-181,91
3	-181,91	-181,91	-545,73	-545,73	363,82
4	-181,91	-181,91	-181,91	-181,91	0
5	-181,91		-181,91		0
6	-181,91		-181,91		0
7	-181,91		-181,91		0
8	-181,91		-181,91		0
9	-181,91		-181,91		0
10	-181,91		-181,91		0
11	-181,91		-181,91		0
12	-181,91		-181,91		0
TOT	-2.182,92	-727,64	-2.182,92	-727,64	363,82

This is not correct from an Accounting point of view. The system would give us the possibility to recalculate Planned value for Area 60
in order to have the situation showed in Table:

Period	AREA01		AREA60		AREA61
	Planned Value	Posted Value	Planned   Value	Posted Value	Posted   Value
1	-181,91	-181,91	-181,91	-181,91	0
2	-181,91	-181,91	-181,91	-181,91	0
3	-181,91	-181,91	-181,91	-181,91	0
4	-181,91	-181,91	-181,91	-181,91	0
5	-181,91		-181,91		0
6	-181,91		-181,91		0
7	-181,91		-181,91		0
8	-181,91		-181,91		0
9	-181,91		-181,91		0
10	-181,91		-181,91		0
11	-181,91		-181,91		0
12	-181,91		-181,91		0
TOT	-2.182,92	-727,64	-2.182,92	-727,64	0

Is there some possibility to obtain this result?

Thank you,

Simona.

[Former Member]

Hi,

According to me I am bit confused regarding the requirement of your client. Derived Depreciation is not a real time depreciation area and the same is actually deriving the values from 2 or more depreciation areas by either subtracting or adding or any multiple permutations combinations as required by Client.

So I think it would be better to create new Depreciation Area rather then making such changes in existing Depreciation Areas.

Regards,

Malhar.

[Former Member]

HI Simona,

the value 363.82 came from by deducting 181.91 - 545.73=363.82. Depreciation for period 1 and 2 has been calculated and is been showing in period 3.

You can activate/Deactivate smoothing method in TC OAYR. You will have more clear picture.

Hope this helps!!

Regards

[Former Member]

Hello Simona,

I dont think there is any provision to meet your requirement.

But You can distribute the differential amount over the remaining periods in the fiscal year.

The function is called "SMOOTHING".

If you activate smoothing, for your example 545.73 will be distributed to periods 3 to 12 with the amount 54.57(545.73/10)+normal depreciation of 181.91. So depreciation for the periods 3 to 12 will be 236.48.

You can activate smoothing in T code OBY6.

Hope it clarifies.

Regards,

G.Sethuraman