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Former Member
Jun 13, 2007 at 10:36 AM

Partial retirement of Revalued Asset

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Hi Friends,

I have an issue in Asset accounting as followes if anybody is having any idea on this issue please pass it me.

Issue : Partial retirement of Assets which are revalued (in April 07) are considering only hte proportinal Planned depreciation and and not considering the proportional Unplanned depreciation value (which were posted in Revaluation time) for the calulation of Depreciation.

Example :

1.Asset c/f balance from last year (dec 2006) to jan 2007 is 815,284.00 USD and Accum dep c/f balance is 551,378.00 USD.

2. The asset has been revalued to 186000 USD (reduced -629,284.00) while revalution the adjusted depreciation value posted is 451,735.14 USD.this is thru ABAW by using Transaction type 898 and these revlaued values have been given by some out side valuers.

3.the problem here is for 815,284.00 USD accum dep is 551,378.00USD for revised value 629,284.00 USD this accum dep suppose to be posted is 425,585.87 USD but posted dep is 451,735.14 USD.SO it means the difference (451,735.14-425,585.87) 26149.27 USD is unplanned dep and the system is not considering this 26149.27 USD (un plan dep) for calculation dep while partial retirement of this asset.

4.we are doing the partial retirement of 22,692.00 USD at the time of partial retirement the journal entry system is posting is

Accum dep Dr 17,889.26

loss/gain on asset sale Dr 4802.26

To Asset acqisition/prod cost Cr 22,692.00

for more details please check the below manual work around.

we have a manual work around to do this but we would like to know is there any method or customisation to do this automatically by SAP it self.

Any suuggestions highly appreciable.

Manual work aound method is as followes:

1) Calculate the amount to be disposed:

Year end Acquisition. Value: 186,000

  • Percent to be retired: 12.2%

-


Dollar amount to be retired: 22,692

2) Determine the Gain/Loss of retirement:

Current NBV: 53,143

  • Percent to be retired: 12.2%

-


Gain/loss: 6,483.45

3) Post the retirement (ABAVN)

Amount to post: 22,692

Posting date should 1 day less than month end date.

4) Review the FI Posting amounts:

PK Account Amount

75 1900250000 22,692

70 1950250000 17,889.26

40 6910110000 4,802.74

note: PK 70 and 40 are incorrect we now need to adjust these entries.

5) Find the Current month Depreciation from ABAVN posting by running YFAB in test mode for the asset:

Depreciation to Post: 282.74

6) Calculate and post (ABAA) the depreciation posting:

True gain/loss: 6,483.45 (From above)

- Posted gain/loss 4,802.74 (From ABAVN above PK 40)

+ Pending Depr 282.74 (From YFAB above)

-


Unplanned Depr 1,963.45

7) Post Gain/loss adjustment Journal entry:

From account - Depreciation account

To account - Gain/loss account

Amount: 1,680.71

Regards,

Manu