Skip to Content
avatar image
Former Member

howto expense asset

Hi All,

i hv requirement that some assets which should be expense entire amount in the same year i.e when we are booking the invoice we need to expense those assets how to do this.

regards,

Pranav

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • avatar image
    Former Member
    Aug 18, 2007 at 05:42 PM

    Hi,

    One way would be, do not create them as an asset, and expense them as and when you receive the invoice. This expense will have to be booked to a cost center.

    Alternatively, if your client wants to create them as an asset, create the assets but depreciate them fully in the same fiscal year of purchase. In this case, the expense will be booked as depreciation expense, and booked to the cost center to which the asset belongs.

    Hope this helps.

    Add comment
    10|10000 characters needed characters exceeded

  • Aug 18, 2007 at 05:45 PM

    In general, <b>LVAs are fully depreciated in the year of purchase or in the period of acquisition</b>. This can be achieved by using the special depreciation key GWG and the expected useful life of 1 month (period). In order to ensure that depreciation is fully posted in the acquisition month during the monthly depreciation posting, activate the catch-up method for the depreciation posting run .

    Low value assets (LVAs) are completely depreciated in the year in which they are acquired. Since they individually have little value, they are often managed collectively as a <b>single asset master record</b>.

    You set the maximum amount for low value assets when defining the depreciation area at company code level (Customizing: Transactions > Acquisitions).

    Add comment
    10|10000 characters needed characters exceeded