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Asset impairment: Why is new depreciation split into two planned line items?

Aug 04, 2017 at 08:15 AM

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Former Member

Hello community,

We have customized the asset impairment via AR01 (work list) and AR31 according to suggestions like this:

https://blogs.sap.com/2015/05/20/impairment-of-assets-standar-ias-36-after-implement-finglci3-customizing-and-funcional-guide/

We have two issues:

1. Why is the impairment split into two transactions?

I post an impairment AR01/AR31 (reduction of book value) with the checkbox "impairment as dep. revaluation" active. In general, our setup seems to work. We can see the amount of 100000. But there is lack of "reasoning". We don't understand the logic behind this.

Let's say, we book a value reduction of 100000.The result looks like this:

The amount of 100000 has been split into two parts according to a rule, which isn't too obvious.

  • What is the purpose of this split?
  • Is it a function or a bug in our customizing?
  • I have noticed that we can only pick the same movement type, when choosing the "Prior year/current year" transaction types. Is this a problem?

2. What is the calculation logic of the impairment?

I have tried to re-calculate the adjusted depreciation in Excel using the reduced book value (not visible in reports before dep. run) and for the remaining dep. periods. The result came kind of close, but I don't understand the calculation rule regarding the split. What is the distribution rule?

I hope you can bring some light into this issue. :-)

Kind regards

as03-impairment.jpg (145.7 kB)
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