Asset Scrapping - Calculating Depreciation for entire year

[former_member275472]

Hi guys

We want to scrap an asset without revenue using ABAVN.

Asset Details:

The asset will be completely depreciated by the end of this year (December)

We have smoothing indicator on.

We wish to post the retirement and close out the asset balances in this month itself.

(No depreciation should be pending for the remaining periods of the year)

When we post the retirement transaction in test environment, it still shows the planned depreciation for the entire year.

How do we avoid the planned depreciation posting for future periods ?

Thanks!

Gautam

[former_member275472 · Accepted solution]

Perhaps, the following might be a solution that can be implemented safely in a production setup:

Objective: To post retirement related depreciation in a single period without smoothing over the remaining periods.

Solution:

1. Perform standard depreciation posting run for current period
2. Turn Smoothing Indicator Off
3. Write Off Asset
4. Run Repeat Depreciation Posting Run (select Repeat Posting Run instead of planned and also input the retired asset number)
5. Turn Smoothing Indicator back on

This should post the complete depreciation in the current period for the retired asset and smooth out the depreciation for all remaining assets

[former_member205615]

Hi Gautam

To avoid the symptom, you have to deactivate 'smoothing depreciation' via T-cd:OAYR.

Hope it's helpful.

Regards
George

[former_member275472]

Hi George

Yes I agree - I was analyzing the impact of doing this in a production environment by running depreciation simulation before and after.

My understanding is that it would impact only those assets newly acquired / retired in the current year.

Can you think of any other transactions being impacted ?

[former_member205615]

Hi

Please refer to F1 help of field 'Smoothing'. it means that as far as there is planned depreciation existing, the depreciation amount will be distributed equally over left periods, no matter of what kind of transaction you posted.

"If you set this indicator, the depreciation posting program calculates the

periodic depreciation to be posted by distributing the remaining depreciation to

be posted equally over the remaining periods of the fiscal year."

Regards
George

[former_member275472]

Yes George - I agree - Have read that...

By impacted -  I meant adversely impacted.

For example, since I already have depreciation set to smoothing, for all assets acquired in prior years, depreciation is already set as planned to distribute over all periods.

Assuming no changes in master record or posting of unplanned depreciation for these assets in the current year, we can safely say that these assets will NOT be impacted if we remove the smoothing indicator (prior year changes have already been smoothed out in those years)

However, for all those assets acquired/retired in the current fiscal year or whose asset master record has been changed in the current fiscal year, removal of smoothing indicator will lead to catch up of depreciation posting in the immediate next depreciation posting

[former_member205615]

Hi

You are right.

If you couldn't move the indicator of 'Smoothing', then there is no a standard way to post depreciation like 'Catch up' in the year of acquisition/retirement posted.

Regards
George