on 01-20-2016 8:40 PM
Hi. I am not a functional guy, so I might be asking something many of you already know, but I can't figure it out... so here I go.
My tax department wants to create a new depreciation area for California (let say area 41), it will be similar to another depreciation area (let say 40), but some asset classes will have different depreciation key and most of the asset classes will have different useful life.
I was able to create new depreciation area by copying area 40.
I used OADB, OABC, OAYZ and AFBN to create, activate and open new depreciation area.
My problem is existing asset is depreciating based on area 40 instead of 41.
How can I change, so that area 41 is depreciate based on useful life of 41?
Example:
Asset 101 was 1/1/2010 at $100,000.
Useful life of area 40 is 10 years.
So, fiscal year 2016 (Jan 2016) starting netbook value is $40,000 and ordinary depreciation is -$60,000.
Now, depreciation area 41's useful life is 20 years.
What tax department want to see is depreciation based on 20 years...meaning
fiscal year 2015 starting netbook value should be $70,000 and ordinary depreciation should be $-30,000.
Is this possible?
How can I achieve this?
Thanks for any help you can give.
John
Hi John
@. What is the dep start date in Area 41. I hope it is same as 40
2. Hope you maintained a different useful life in Area 41. Also don't takeover identical dep terms from area 40. You have a config to "define takeover of dep terms". Don't tick the identical option there
3. If these two things are ensured, and you have assigned dep key based on remaining useful life, it should work
Just do Afar also once and see
Ajay M
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Thanks for your reply Ajay.
Yes, depreciation start date is same for both areas 40 and 41.
Useful life for 40 is 15 years and 41 is 45 years.
I don't understand when you say "You have a config to "define take over of dep terms". Where do I do this?
This is what I did to create new depreciation area:
1. Using OADB, copy depreciation area 40 and created depreciation area 41.
2. I didn't change anything in OABC and OABD. Identical button is not checked as default.
3. Using OAYZ to activate area 41 for all asset classes. This is where I changed depreciation key and useful life.
4. Using AFBN to open the depreciation area.
When I did this, for existing assets, depreciation area 41 has same depreciation key and useful life as 40. I have to manually change depreciation key and useful life of 41 for each asset.
Why does it do this?
Also, when I change the key and useful life, starting balance of current fiscal year doesn't change, it only changes depreciation value for current and future years...
OABC
OABD
OAYZ
AS03
Hi John
1. When you add a new dep area, you have to specify a dep area from where it can takeover dep terms..
You might have specified 40 as the ref for 41 here:
SPRO >AA > Valuation > Depreciation Areas > Specify Transfer of Depreciation Terms..
You should avoid that..
2. Then you have an Option in AFBN when you add Dep Areas...
The option is "Dep terms from asset class".. Please enable that..
3. Now add dep areas...
4. Run AFAR if the result is not OK for Area 41..
Let me know if that does not help
Br, Ajay M
Really strange...
Is it OK atleast from 01/01/2017?
May be you should raise SAP OSS.. I have added new dep areas many times, but for me the dep terms were copied from asset class...
Fortunately for me, the useful life was not different in the new dep areas....
Your case makes me think do you need to change the Useful in 40 first, create 41 and then restore back 40? But that will be crude way of doing it
- May be you can share your expertise please...
Regards
Ajay M
Hi John
The starting balance for Area 41 would be from Area 40 as of 1/1/2016
So, if there is no other solution, I would suggest let the system post it what it is now.. At the end of 2016, you post Unplanned depreciation in Area 41 so that from 2017 it is what you expect
You can create a Custom Tr. Type (Copy from 640 or something), restrict it to Area 41 and post Unplanned dep from ABAA
Ajay M
Hi John - From the thread, what I could gather is you want the dep calc is on NBV not on GBV...if that is right, then you should address at dep key level, can you check period control used in the dep key setting? 0012 should be on useful life and 0024 should be on WDV/ NBV....if my memory serves well.
Please check and confirm.
Thanks
Prabhakar
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