Asset Accounting

[Former Member]

Hi Gurus,

I have an issue in Asset Accounting

Assets depreciation start date is 1st March 2007.

We have run the depreciation upto September 2007.

FYV is K4 (Jan - Dec) SAP version 4.7.

The issue is ---

1. For few assets, Client wants to bring down the value of Indian GAAP (01 depreciation area) say from one lakh to hundred rupees for various reasons on 31st March 2007. And for these assets depreciation should not be calculated from 1st April 2007.

Plz help. I will assign full points for any useful answer.

[Former Member · Accepted solution]

You can post a credit memo to the asset as on 31st March, 2007.ABGL - ... in Invoice Year or ABGF - ... in Next Year. Give the Asset value date as the asset capitalization date.

You need to give an offsetting account for debit entry. Asset will be credited with the value you give here. But the depreciaiton will get adjusted in the current period. The net effect will be no depreciation will be calculated from April, 2007.

[Former Member · Accepted solution]

Hi Vijay,

Thank You so much for your answer.

For our assets Acq. and Capitalization date are 2006/12/31 and Dep. Start date is 2007/03/01. which one should i use? ABGL or ABGF. I tried both of them in quality. You told me to give the Asset value date as Asset capitalization date. but, it says you give the same year as the capitalization year. Any how, i have changed that and posted. Thanks for this. Comment if i have done wrong.

and importantly, you said no depreciation will be calculated. why? Still there is some value for the asset since credit memo i have done for some amount only.

For this remaining amount, client say he doesn't want depreciation from 1st April 2007. For this, can I use Change over Method. for this I have to create new depreciation key for this and asssign it to the asset, right?.

[Former Member · Accepted solution]

I mean, Depreciation for the amount in credit memo will get reversed in the current month. Means no depreciation for the amount mentioned from April.

To restrict the system to calculate depreciation on the remaining amount, you can use <b>Scrap Value field</b>. this is in the Depreciation area Screen. Double click on the depreciaiton area in the Depreciation area Tab of AS02

If you dont find it in the Screen, change the scree layout rules for depreciation area.

Mention Scrap value as the balance amount, if you want to maintain the Value without depreciation.

[Former Member · Accepted solution]

Thank you so much Vijay for your reply.

One more final question. Client wants to reduce the amount of the asset in ONLY Indian GAAP. If we post a credit memo it reduces the amount in US GAAP also.. <b>Here, we are maintaining different Gross Block values in Indian GAAP and US GAAP. This very different thing.</b> How to reduce the value of an asset only in Indian GAAP without affecting the USGAAP value.

Your answers were really helpful. I hv learnt a lot. Thank you so much once again.

Thanks @ Regards

[Former Member · Accepted solution]

Thank you.

Hope you have separate dep. area for US GAPP accounting. In ABGL/ABGF in the screen where you mention the Offsetting account, press the <b>button Line Items</b> and change the value per Dep. Area. You can delete the values in other Dep. Area or can increase the values as per the requirement. Adjustment entries will get passed in respective Dep. Areas, if amount is mentioned. If you put 0 no chages to the respective Dep. Area.

Hope this is clear.