Low Asset capitalized amount will make it zero Immediatly

[Former Member]

Hello Experts,

I have one requirement Low Asset value configuration and low asset capitalization amount to make it zero end of the month or immediately,because as per my user requirement 10000 below asset can not be capitalized but for reporting purpose we are capitalizing and immediately making zero all respective cost.

I have done the configuration for low asset value but as per user requirement capitalization amount to make it zero.

For this i am planning to do the fully depreciate the perticular month or immediately?

Can anybody share the configuration step for making deprecation immediately  zero and capitalized amount.

Thanks for your advance help.

Regards,

Lakshmi.

[shanid_mp]

Hi,

Please configure similar depreciation key 'GWG' which is there in '0IN' chart of depreciation.

Make sure that base method in the depreciation key has immediate depreciation.

Regards

Shanid

[Former Member]

Hi All,

Thanks for your reply.I have gone through the  depreciation immediate configuration for your guidance.

But i have some doubts

Base Method : What is the use of Reduce use.life at FY end active/inactive?

                       Dep.after plnd.life end Yes/No? As per my normal asset we did not active both functions.If i activated what the effects will be happened

Period Control : LVA: 01 01 01 01 has given , As per normal Asset configured 01 01 11 11 ,for explained above scenario Which i have given configuration is ok?

Multilevel Method:Ordinary depriciation start date.

i am suspecting which i mentioned above base method and period control settings.

Regards,

Lakshmi.

[Former Member]

Hello

Anybody can explained the settings of Base method and Period control.

Again i am explaining my requirement for Low asset value system has to calculate the fully depreciation in the acquisition month and retire the asset in the same acquisition month. Because user don't want to capitalized the low asset value but for the reporting purpose we are capitalizing the low asset value and immediately depreciating fully capitalized amount  and once we retire the asset automatically asset acquisition gl and accumulated gl will become Zero and the cost is in ord depricication gl instead of ord gl we are planning to give one expenditure gl.

Now i am doing the configuration as per Shanid "GWG" base method has given immediate but as per my requirement in the same acquisition month has to calculate fully depreciation and retirement.     Can i activate the Reduce use.life at FY end?

Can i give the yes in Dep.after plnd life end?

Period Control Method :

If i am purchasing any date in the month system has to calculate fully deprecation and has to retire the full amount.for this Can not follow the same configuration of "GWG-03(01/06/02/02)" ? because i am not retiring the next month in the same month only i want to retire.

For this i can go 01-01-01-01?

I appreciate your valuable inputs.

Regards,

Lakshmi.

[Former Member]

Hello Experts,

Any body can suggest for the same.

Regards,

Lakshmi.

[Former Member]

Hi Lakshmi,

Actually what you are asking is the core question in SAP asset management. Apparently, this is not a simple question to explain to you in just a simple post.
There will be a long explanation to clarify the whole things. Anyway, based on your question, below is a simple question:

1) Period control will tell the system how the value date will determine the depreciation start date/retirement effective date etc.

For your case, if your acquisition and depreciation should always fall in the same period, then 01 is what you need. For retirement, if you want the retirement takes effect (no depreciation in the retirement month)  from the same month as the value date you entered during retirement transaction, then 01 is needed.

2) The two setting in the base method.

a) Reduce useful life at FY end. (Not relevant for your LVA case)

    Example:

    Asset is purchased during the year and starts depreciation (Eg. from period 7). The useful

    life is 4 years.

    If you don't tick this, then the system will calculate depreciation like below

    Year 1 6 periods = total amount/48  * 6

    Year 2 12 periods = total amount/48  * 12

    Year 3 12 periods = total amount/48 * 12

    Year 4 12 periods = total amount/48 * 12

    Year 5 6 periods = total amount/48 * 6

     In this case you will find that the depreciation has been spread through 5 years actually.

     If the check box is ticked. Then it will be like below.

     There will be no more Year 5 and, because the year 5 is actually only half year. In this case, with this parameter system will calculate the

     depreciation over 42 periods only and the figure for each year will be like below.

     Year 1 6 periods  = total amount/42 * 6

     Year 2 12 periods = total amount/42 * 12

     Year 3 12 periods = total amount/42 * 12

     Year 4 12 periods = total amount/42 * 12

     This will achieve the result that the end of the depreciation is also the end of the fiscal year.

     (Note: this is assumed on the simplest scenario)

b) Depreciation after end life is not relevant for your LVA case.

[kurumeti_dhananjayulu]

Dear Lakshmi Sirisha,

There are several doubts on your question.

1). As per Income Tax rules, the asset worth having more than Rs 5000/- should be capitalised and depreciated on intervals. As per my knowledge the assets are having worth more than 10000/- should not fall under LVA. Please check once......

2). Coming to  depreciation..... Yes..... if you have created the assets under LVA, that can be automatically Zero while running of Depreciation (AFAB) (it may be on daily, monthly.... depending on your configuration).

regards

dhana.k

[Former Member]

Hi Lakshmi,

Create one asset class for LVA assets, and set the default useful life as 1 month.

With this, your LVA assets will be depreciated immediately in the month they are capitalized, assuming your period control is the first day of the month.

Regards,

Yahui