Asset Revaluation depreciation P&L account

[Former Member]

Hi

I have passed a revaluation amount ABAW (With transaction type 820).As it was legacy data Revaluation happen as per below mentioned accounting entries, 

Entry Passed:

1:- Plant & Machinery  Revaluation A/c... Dr   

         To Revaluation Reserve A/c..... Cr                  

2:- Depreciation Revaluation P&M A/c...Dr

       To Accumulated Depreciation on P&M  A/c.... Cr

Now when i ran depreciation run in AFAB,

Entry on above revaluation amount was passed as follows:

Depreciation A/c (P/L A/c).... Dr                           

   To Accumulated Depreciation on P&M A/c... Cr   

As per requirement, instead of Depreciation A/c (P/L A/c) getting debited, Depreciation Revaluation P&M A/c (mentioned in 2nd entry) must be debited. So in AO90, i mentioned Revaluation reserve A/c in "Expense Account for Ord depreciation field" But it gave me error that P/L GL account can be mentioned & not revalaution reserve. So i have given Depreciation PL Account.

Now my question is how to transfer (except manual transfer) the depreciation in Depreciation Revaluation P&M A/c to satisfy the requirement. Or is there any standard SAP practice by which we can directly hit Depreciation Revaluation P&M A/c instead of Depreciation P&M (P&L) while running AFAB.

[Former Member]

Dear Hardav;

I would like to know if you create a legacy o transaction to post FI Document because by ABAW any FI document is posted.

We need post results a revaluation by ABAW a FI GL could you please give any advice about that.

I am not ABAP developer.

Thank you very much indeed;

Kindest regards,

[Former Member]

Hi Hardav,

The entries are perfect here you need to see the break up

1st part where system shows the Asset revaluation value and the revaluation reserve

DB >     Plant and Machinery (with revaluation amount)                701,745,567.00

CR >     Revaluation Asset P& M (With revaluation amount)         701,745,567.00

===============================================================

2nd Part where system shows Revaluation Depreciation

DB > Depreciation Revaluation P & M                                             195,225,616.74

CR > Accumulated Depreciation****                                                195,255,616.74

**** Here you need to change the configuration AO90 and define an account that documents revaluated accumulated depreciation. You have define same GL account for regular accumulated depreciation and revaluated depreciation.

===============================================================

3rd Part where system records the regular depreciation

DB > Depreciation P&M                                                                 106,167,969.00

CR > Accumulated Depreciation P&M                                           106,167,969.00

Please do let me know

Thanks,

Naseem

[Former Member]

Hi Naseem,

I have highlighted my view as below

1st part where system shows the Asset revaluation value and the revaluation reserve

DB >     Plant and Machinery (with revaluation amount)                701,745,567.00

CR >     Revaluation Asset P& M (With revaluation amount)         701,745,567.00

(This is a correct entry)

===============================================================

2nd Part where system shows Revaluation Depreciation

DB > Depreciation Revaluation P & M                                             195,225,616.74

CR > Accumulated Depreciation****                                                195,255,616.74

(This is a correct entry)

**** Here you need to change the configuration AO90 and define an account that documents revaluated accumulated depreciation. You have define same GL account for regular accumulated depreciation and revaluated depreciation.

===============================================================

3rd Part where system records the regular depreciation

DB > Depreciation P&M                                                                 106,167,969.00

CR > Accumulated Depreciation P&M                                           106,167,969.00

(In this entry instead of Depreciation P&M (PL) account it should be Depreciation Revaluation P & M)

Thanks,

Hardav Surti

[Former Member]

No Hardav, Here system is charging regular depreciation. Depreciation Expense P/L account needs to be debited and accumulated depreciation b/s account needs to be credited.

[Former Member]

Hi Naseem,

As per Indian accounting standard revaluation asset's depreciation should be reduce from revaluation reserve.

Thanks,

Hardav Surti

[Former Member]

Hi Hardav,

In AO90 please go into the Account Determination > Depreciation.

Please plug in "Depreciation Revaluation P&M A/c" as you mentioned in your post in "Offsetting accnt. Reval. Ordinary Deprc" field.

It seems you are defining P/L account in "Reval. accounlated ord. depreciation" field which is for balance sheet. These both fields are under Account assignment for revaluation on deprecation frame.

Let me know if this fixes the issue. I would appreciate if you can provide the screen shot so the picture would be clear with to configuration.

Thanks

Naseem

[Former Member]

Hi Naseem,

Thanks for quick response, In AO90 I have mentioned "Depreciation revaluation P&M A/c"  only but while running AFAB system is posting current year depreciation into P&L depreciation account which should be "Depreciation revaluation P&M A/c", for your ready reference I have attached screen shot as below. If you require any further detail please do let me know.

[Former Member]

Hi Hardav,

Please check if you have selected "Post Revaluation" check box in OAYR in related depreciation area. If not then please do so. If this still does not work then please check OADB for "Revaluation" and "Revaluation Ord Dep." change them to all values allowed.

Let see if this works for you.

Thanks

Naseem

[Former Member]

Hi Naseem,

I have checked mention setting in the system both are in manner as you have told, but still system is posting the same wrong entries. Any other setting needs to be check then please do let me know.

Thanks,

Hardav Surti

[Former Member]

Hi Hardav,

Lets Ajay to respond on this...

I like this issue... wow we have almost checked most of the settings.

Check if following configuration is done as well.

IMG - financial account (new) - asset accounting - special valuation - revaluation of fixed assets > maintain accounts for revaluation.

Thanks

Naseem

[Former Member]

Hello Hardav,

Please check whether Revl APC and Revl Dep are ticked or not for depreciation area in T-code OABW.

Also check whether Transfer of Reserves with all value allowed or not in OADB.

Naseem please correct me if I am wrong.

Kind Regards,

Kalim

[Former Member]

Hi Kalim,

Hardav has confirmed OADB. However, OABW is the only one that I forgot to ask.

Hi Hardav, any success so far...

Thanks

Naseem

[Former Member]

Hi Naseem / Kalim,

Thanks for the response and really appreciate your efforts, I have check the setting and all setting are in placed but still I'm facing the same issue, Just to ensure whether I'm following correct process and did all correct customization I have mentioned all customization and process documents of asset revaluation for your better understanding, kindly let me know in case I have missed out anything.

Step:-1 SAP Customizing Implementation Guide - Financial Accounting (New)- Asset Accounting- Asset Accounting (Lean Implementation) - Organizational Structures-  Depreciation Areas- Define How Depreciation Areas Post to General Ledger

Step 2:- T Code OAYR

Step:-3 SAP Customizing Implementation Guide - Financial Accounting (New)- Asset Accounting- Asset Accounting (Lean Implementation) -  Organizational Structures- Assign G/L Accounts

Step 4:- T code OABW

Process followed by Revaluation of asset

Step -1 :- T code ABAW

Overview of Asset (AW01N)

Depreciation Run: - AFAB

Accounting entry

As I have mentioned issue P&L account is getting hit of current year depreciation which should be Dep revaluation P&M

Thanks,

Hardav Surti

[Former Member]

Might be few of the screen shot got truncated, which are as below,

Step:-1 SAP Customizing Implementation Guide - Financial Accounting (New)- Asset Accounting- Asset Accounting (Lean Implementation) - Organizational Structures-  Depreciation Areas- Define How Depreciation Areas Post to General Ledger

Step:-3 SAP Customizing Implementation Guide - Financial Accounting (New)- Asset Accounting- Asset Accounting (Lean Implementation) -  Organizational Structures- Assign G/L Accounts

Step 4:- T code OABW

Process followed by Revaluation of asset

Step -1 :- T code ABAW

Overview of Asset (AW01N)

Depreciation Run: - AFAB

[Former Member]

Hi Hardav,

The Accounting Entries visible over your print screen is correct:

Dep. P & M	Dr.	106167969.30	PnL
Dep. Reval P & M	Dr.	195225616.74	PnL
Plant & Machiinery Ac	Dr.	701745567.01	B/s
To
Reval. Asset P & M	Cr.	701745567.01	B/s
Acc. Dep. P & M	Cr.	301393586.04	B/s

Please explain what exact Accounting Entry you are looking for.

Regards,

Jaymin R. Bhatt

[Former Member]

Hi Jaymin,

The correct is as below,

Dep.Reval P & M	Dr.	106167969.30	B/s
Dep. Reval P & M	Dr.	195225616.74	B/s
Plant & Machiinery Ac	Dr.	701745567.01	B/s
To
Reval. Asset P & M	Cr.	701745567.01	B/s
Acc. Dep. P & M	Cr.	301393586.04	B/s