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author's profile photo Former Member
Former Member

Stop Depreciation of an asset

Hello All,

Situation:

I would like to stop the depreciation for an asset, as this asset is not being used at present.

So the Business unit has decided to scarp this asset too. For which scrapping process can be followed. But before doing the scarping the depreciation has to be stopped i suppose.

I have already read some threads regarding the Stop depreciation, but have some clarification before proceeding on it.

First I understand that we have use the shutdown option.

  • In AS02 for e.g. Asset no 450000269 i have checked the same & will click the check box in the time-dependent tab.

  • Then when I have checked what depreciation key is used from the tab depreciation areas, 1004(Machinery straight line 20%) & 1044(Machinery straight line 10%-Tax).

  • Then In AFAMA I have go to this particular depreciation key & choose the shutdown option to Yes.

Now my clarification here is that these depreciation key will also be used by the other asset machinery like for e.g. 450000270.

So by changing the option shutdown to yes at the depreciation key level how is it getting restricted only to Asset 450000269 which is intended asset for depreciation stop.

Do we need to a separate set up for this.??? Pls clarify my point & confirm if my understanding is correct so that i can proceed with this solution.

Definitely I will assisgn points...

Regards,

Bala..

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Nov 15, 2007 at 03:37 PM

    In addition to allowing asset shutdown in the depreciation key, the asset in the asset master record (AS02) has to be flagged for shut down. Other assets using the same depreciation key will not be affected by this since the shut down is indicated individually by asset.

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    • Former Member Former Member

      Hi Lidia,

      I have done the following step:

      Step1:

      1) AS02 - In Time dependent tab - clicked on Asset Shutdown.

      2) Noted down the depreciation key as 1004 & 1044 from the tab Depreciation Areas from AS02.

      Step2:

      In AFAMA, I have changed the the shutdown option to YES for both the Depreciation areas identified from AS02.

      Now my question is do I need to do anything else. And will the setting be left as it is.

      And Client is going to scarp this asset as next step.So do i need to any other step apart from this to stop depreciation with respect to scrapping asset.Or whether it is temporary stopping or permanent stopping of the asset the same action has to be taken ??

      After the scrapping of the asset shoud I need to change the setting back of the depreciation areas of the shutdown option.

      Pls reply soon..As always i will assure you points..

  • author's profile photo Former Member
    Former Member
    Posted on Nov 20, 2007 at 08:46 AM

    Clarification posted back...

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