Asset Revaluation and Impairment

[atif_amin]

Hello Experts,

I have a confusion in how revaluation and impairment process should be executed in SAP.

I have made settings for manual revaluation process. I assigned GL's in AO90. I executed upward revaluation through tcode ABAW. Revaluation is posted in revaluation reserves account. Let suppose revaluation was of 30,000. After that, in next year an impairment of 40,000 is realized. Now 30,000 revaluation reserves should ne reversed and remaining 10,000 should pe posted to impairment P&L account.

How can i configure the system so that the system reverses the revaluation reserves and post 10,000 impairment automatically?

I have searched for it but i couldnt find a proper process for this.

For impairment, SAP provides unplanned depreciation solution but it does not decrease asset cost value. It increases the accumulated depreciation and in result NBV is decreased but asset cost is not adjusted. This process is not suitable if depreciation straight line method is used. If both straight line method and declining balance method is used then which SAP process will be suitable for executing asset revaluation and impairment?

Please guide me in this matter.

Regards,

Atif

[former_member182098]

Please refer SAP Note 1144500, this is only for UK Public Sector Undertaking SORP requirement, but you will get an idea.

Impairment (unplanned depreciation) will not effect immediately during the year, the planned depreciation remains the same for the year, the planned depreciation only gets adjusted from the next year. There is no automatic way of posting 10,000, they get only posted based on your AO90 account determination settings. The asset value gets adjusted from the beginning of the next year, not in the current year. This is the standard behaviour for Impairment.

What is the based method, depreciation key settings and multi level method settings.