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Depreciation on revalued assets for following years

rajesh_c7
Explorer
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Dear Experts,

We have an unique requirement in Asset module. Example one asset acquired with Rs 500000 in year 2016 with useful life of 10 years. There is reevaluation requirement of asset for Rs.100000 APC and 10000 for depreciation. Client has posted the revaluation amount in ABAW transaction with Rs. 100000 APC and Rs. 10000 for depreciation. Now in the year 2016 we can know how much is the reevaluated depreciation that is Rs.10000. Now client want to know the depreciation calculated on only revaluation amount (Rs.100000) for the following  years till the useful life. But in system it will not show separately for following years as it will add up to the normal depreciation only.

Now I want to know, is there any way through configuration or report we can show the depreciation for acquisition and revaluation amounts separately for following years up to useful life. Client need this because, they will transfer this reevaluated depreciation amount yearly to capital reserve account. Note that revaluation will be one time only, but depreciation amount should be seen desperately for following years.

I have searched forum but not found suitable solution. Please advice.

Thanks in advance

Rajesh 

Accepted Solutions (1)

Accepted Solutions (1)

former_member198650
Active Contributor

Hi Rajesh,

Please refer below thread, it is similar to your issue.

Regards,

Mukthar

Former Member
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This message was moderated.

Former Member
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Answers (4)

Answers (4)

Former Member
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Hi, Rajesh.

The key configuration to have ony revaluations to GL is in the integration between FI-AA and FI-GL:

(SPRO/ORFA) Asset Accounting> Integration with General Ledger Accounting> Define how depreciation areas post to general ledger

- for the new area, set the GL indicator to 3 (area posts depreciation only)

- if you double click in the line (magnify glass) you will see a lot of another configuration. Pay attention to "Value Maintenance" block and check what you will need to "Revaluation" (just if you have negative values to be allowed in your enviroment) - usually all values

Another key configuration will be:

(SPRO/ORFA) Asset Accounting>Valuation> Depreciation Areas> Specify Transfer of APC Values

- here you will define if and how the APC values can be derived from one area (for instance 01) to your new depreciation area

For all other remain configuration for create a new area and parameter (many), follow the usual process.

Hope it helps.

Best regards,

Nilton Duque.

rajesh_c7
Explorer
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Hello Nilton,

Sorry for delayed response. We do not have non leading ledger in our system. So we cannot go for derived depreciation area. I have created only one depreciation area only to allow revaluation postings. But I faced issue when creating assets, the new area not updated in created assets. Again I configured revaluation measure and ran transaction AR29. Then the new area got updated with zero revaluation amount. To post the revaluation amount again I went to transaction ABAW and posted the revaluation amount. Now it got posted and I am able to see the APC and revaluation amounts differently along with depreciation. Hope I am following the correct process only, please advice.

Is there any configuration to update amount also in AR29 itself with standard revaluation tab. I have checked the index series with percentages but it has not worked.

Thanks in Advance

Rajesh

Former Member
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Hi, Rajesh.

I believe that for automatically update amounts in AR29, the settings are located in "Index-Based New Valuation" (last tab), field "index for new value of assets" - a flat rate to revaluate, positive or negative.

For an individual asset the tab "new valuation of an asset" has the field "asset value after new valuat.".

For multiple assets the tab "new valuation multiple assets" and the upload file.

Best regards,

Nilton Duque.

rajesh_c7
Explorer
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This message was moderated.

rajesh_c7
Explorer
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Hello Nilton,

Thanks for your quick response. Could you please brief about what configuration steps need to do for the new depreciation which should post only depreciation of revaluation amount.

Thanks in advance

Rajesh

ajaycwa1981
Active Contributor
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Hello Rajesh

I agree with Nilton's reply

That's the only way. Otherwise a custom report

Ajay M

Former Member
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Hi, Rajesh.

One way to have this is by creating a diferent depreciation area for revaluation purposes only.

The new area must not have aquisitions postings to GL, avoiding double amounts,and will only post depreciations to GL.

Best regards,

Nilton Duque.