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Former Member

Catch-up depreciation in subsequent year

Hello,

There was a previous posting asking essentially the same question I have, but it was from 2009.  I'm wondering if anything in SAP has changed over the last 6 years to allow me to create my desired posting without using "unplanned depreciation".  The previous posting was titled "Catch up depreciation from previous year".  Here is my example:

An AUC was completed and should have gone into production 12/01/2014 but paperwork and approval delays have resulted in the Accounting department not being notified about this new fixed asset being capitalizated until 11/01/15.  I would like to use the standard SAP depreciation transactions of AFAR and AFAB to post a catch-up entry in November 2015.

Example:

Asset Value - $6,000 (using straight line depreciation)

Useful Life - 5 years

Monthly depreciation = ($6,000/5)/12 = $100 per month

Catch-up depreciation for prior months - December 2014 to October 2015 (11 months) = $100 x 11 = $1,100

Depreciation for current month (November 2015) - $100

Total Depreciation (catch-up + regular monthly amount) booked in November 2015 - $1,100 + 100 = $1,200

Straight line depreciation booked every month thereafter until the end of the useful life - $100

Is it possible to achieve the catch-up posting described in the red line above or would I be required to record unplanned depreciation for the depreciation that should've been recorded in 2014?  Or is there another, more appropriate way for me to approach this type of transaction that I haven't thought of?

Note - accruals for this new asset have been made since December 2014.

Thank you very much for your knowledge and assistance!!!

Lisa

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2 Answers

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    Former Member
    Nov 02, 2015 at 04:16 PM

    Thank you for your response, Pankaj!

    I don't have configurator access but I have checked the settings in the straight line depreciation key and Smoothing is NOT checked off.

    Even when I set the depreciation start date to 12/01/14, SAP doesn't include the catch-up for December 2014, it does a catch-up for January-November 2015 which doesn't result in the correct depreciation expense and accumulated depreciation being recorded.

    If I change the useful life without making any other entries, I don't get the correct monthly depreciation b/c I'm only depreciating the asset over 59 months, not 60 ($101.69 vs $100 per month). 

    Since the 2014 accrual has reversed, I still need to ensure $100 depreciation expense and accumulated depreciation is being recorded in 2015 for the missed period last year (December 2014).

    Through testing, I have also discovered that the asset value date year and the posting date year must be the same.  SAP won't let me complete my transaction if they are not.

    It kind of seems like I'm stuck but I'm certainly not an expert on the FA module in SAP so I'm happy to hear thoughts from others!!!

    Lisa

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    • Former Member Former Member

      thank you 😊  I had to go to a different view of my thread in order to see the buttons.  I got it figured out now!

      Lisa

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    Former Member
    Nov 02, 2015 at 03:43 PM

    Hi Lisa,

    Standard Depreciation Keys take care of this requirement by default.

    i am not sure if you have Configurator access, but you just need to make sure your depreciation key does not have Smoothing Active, which will do calculation in other way around.

    Just change the useful life of asset, system will automatically adjust depreciation to be posted, in your next run.

    Hope it was helpful.

    BR

    Pankaj Bansal

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    • Former Member

      Correction, You will need to set depreciation start date as Jan-1-2014 or as desired to calculate catch up.