Expense wrongly classified as asset, depreciation is run

[Former Member]

Dear SAP FICOns!

Please help me out with these 2 scenarios?

*I'm without accounting background, but I can pick up adequately if you talk in accounting language.

Assets acquired but in wrong classification.

‘- Dpr has been run for 6 months

- On month 7 only we notice that the asset is under wrong classification.

Pls advise how to reclassify the asset & to correct the dpr (assuming that assets has different useful life)

Answer: Do Asset Transfer within Company Code??? *do point out important things to note if any

Expenses wrongly classified as assets, actual is expenses.

‘- An expense was wrongly classified to assets ac, which was later realized that it should be under expenses ac.

‘- Dpr has been run for 8 months

We cannot just adjust by journal entry as the Dpr is now auto calculated in the Asset Dpr module.

Answer: Retire asset? mind to share the process and concept (involving terms like P&L and BS) ? *do point out important things to note if any

Thank you!!

[former_member198650 · Accepted solution]

Hi Chin,

Assets acquired but in wrong classification.

You can transfer the asset by ABUMN to the correct asset. When you transfer the accumulated dep. & its APC value got transferred to the new asset. After transfer the asset, the new asset calculates the depreciation as per dep.key maintained for the asset.

If you want to correct the depreciation which has over/under charged to the old asset. Then before transfer the asset, you have to change the depreciation key as you required in the old asset. After change it, run AFAR for the asset. The depreciation got adjusted in the old asset up to transfer date. Later when you transfer the asset, the accumulated depreciation transfers to the new asset.

Expenses wrongly classified as assets, actual is expenses.

If you wrongly capitalized assets which should booked in expenses. Then first change the depreciation key as 0000 and run the depreciation by AFAB in the last period in repeat mode. When you run it, the depreciation which has charged to the asset, got reversed. After done it, then pass the below accounting entry in ABSO/AB01/FB01 by transaction type 101/105.

Expenses A/c Dr

Asset A/c Cr

Hope you are clear now.

Regards,

Mukthar

[former_member188063]

Hi Chin,

As suggested by fellow FICONS :-), You can use T.code-ABUMN for first Scenario where as for second use Dep Key-0000 while running Dep run with AFAB and reverse the entry with AB08.

Regards,

Sudhakar*

[Former Member]

Hi,

According to me for the first requirement, if you can use ABUMN T-code by which the old Assets Acquisition GL will get credited and Accumulated Depreciation for the old asset will get debited , thus nullifying the old asset value and in New Asset the Acquisition GL value will get debited and Accumulated Depreciation GL will get credited. So all the values will be displayed in the new Asset.

For the second issue, you can do the thing is maintain the depreciation key as 0000 by this all the posted depreciation will become 0 Rs. And then you can use T-Code AB08 for reversing the document by which the Asset account will get credited and vendor account will get debited. So by this nil effect is displayed. So now a normal entry can be passed by debiting the expense and crediting the cash account or vendor account.

Regards,

Malhar.