Current Year Depreciation not included in Gain/Loss when retiring asset

[Former Member]

I am trying to dispose of an asset (ABAVN) by scrapping.  Am I using the wrong T-code?

When I simulate the disposal transaction, I notice that only prior years' depreciation is being picked up/reversed from the Acc Depr.  Why?  Where is the current year's depreciation being posted/reversed?

(I am rounding)

Cost of Asset = 136,650

PY Acc Depr = 95,484

CY Depr = 15,436

Net Book Value as of 9/30/2015 = 25,730

SAP Accounting (Simulation of disposal):

     CR to (BS) Asset -Machine     136,650

     DR to Acc Depr                         95,484

     DR to Gain(Loss)                        41,165

Shouldn't the Acc Depr be the 95,484 + 15,436 = 110,920? And the gain loss be $25,730 since I am disposing of the asset in Sept 30, 2015. 

Thanks,

Jemma

[austin_steyn · Accepted solution]

Hi Jemma,

You need to change the base value in your depreciation key.

Use transaction AFAMA, select your key and Click on 'Assignment of calculation methods'.

Take note of the multi level method being used.

Then...

Use transaction AFAMS, select your method and Click on 'Levels'.

Check the base value being used.... You may have 24 (Netbook value). To include the current year depreciation you should be using base value (27 - Net book value with proportional value adjustments).

As a suggestion:

Try and copy your existing key to a new one and change this parameter only. When you post retirements you will now see the proportional depreciation values for the current year as well.

Good luck

Austin

[Former Member · Accepted solution]

Austin:

Thank you so much. Can this be applied all at once, or individually for each asset? I've requested IT to change the period control method, but it applies only to new acquisitons.

Thanks,

Jemma

[former_member198650]

Hi Jemma,

1. What is the period control method for retirement of the dep.key?

2. What is the value date maintained in ABAVN/ABAON?

Regards,

Mukthar

[Former Member]

Hello Mukthar:

PCM is 06.  (Support has since change to 01 but will only apply to new acquisitions.)

Value date = 9/30/2015

Thanks,

Jemma

[former_member198650]

Hi,

Change it as 01 for retirement, after that do retirement posting. The system will depreciate the asset up to Sep15.

Regards,

Mukthar

[Former Member]

This message was moderated.

[Former Member]

Hi,

please check your period control for your depreciation key for retirement.

You can set it as no depreciation for the retirement year ( example, the period control is set as 01 start of the year).

Thanks,