ABUMN issue : Asset transfer

[Former Member]

Hi folks,

When I do an asset transfer using ABUMN the old asset has a planned depreciation for a certain amount for the next period.

Say for example the asset has an acquisition Value of 10000.The original depreciation start date for old asset is Period 1 of 2005 and the useful life is10 years. So it’s depreciating 1000 each year. At the end of 2010 it will have NBV of 5000. Now in 2005 we run depreciation for 6 months i.e. $500. Therefore the NBV at this point is 4500. Now we decide to an asset transfer to a number of reasons. So we create a new asset, then use ABUMN and give the asset value date of P7/1/2010. The NBV that gets transferred to the new asset is 4300 and $200 gets posted as planned in the old asset for P7. And the new asset starts depreciating from P7 with a NBV of 4300.

Any idea as to why it is doing this? I know it is not standard as I have seen it doing it right in the past. Is there any piece of configuration that I am missing ??  Any response will be appreciated.

If the above example is not clear please let me know and will explain in detail.

Thanks,

Kunal

[former_member205041 · Accepted solution]

Hi Kunal,

Generally the following points are relevant:

1. Specify Transfer of Fields

CU: FI-AA:                                                              
-> Transactions                                                        
  -> Intercompany Asset Transfers                                       
   -> Automatic Intercompany Asset Transfers                            
    -> Define Transfer Variants                                         
     -> Specify Transfer of Fields (for New Asset in Target CoCd)       
      -> 03#Ord.dep.start date                                          
                                                                        
If you mark "03#Ord.dep.start date ", the system is calculating         
depreciation from the year  of capitalization.                          
                                                                        
2. Transaction type: Indicator: Transfer adopting dep. start date

Indicator: Transfer adopting dep. start date                          
Set this indicator, if you want to adopt the historical depreciation  
start date and capitalization date from the retiring asset when you   
perform intercompany asset transfers or intracompany transfers.       

3. Also, could you please verify these setting in you system according
to note 327088   

4. Period control of the depreciation key.

Best regards Bernhard

[Former Member]

Hi,

Accordign to me kindly check yout period control for the depreciation key that is used for purpose of transfer. It should be '02' ion normal case so system will start calculating depreciation from the 7th month and so it will caculate depreciation on NBV of 4500 and not on 4300.

Regards,

Malhar.