Skip to Content
author's profile photo Former Member
Former Member

FI-AA: Delta on Depreciation Areas

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.

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 01, 2014 at 09:45 AM

    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

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2014 at 05:09 AM

    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

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2014 at 05:58 AM

    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.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.