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Is there a way to allow for fixed asset value reductions?

Dec 28, 2017 at 05:42 PM

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I am trying to see if there is an easier way to reduce the value of an asset that is already in service. I have two examples of times where we would need to do this:

Example #1 we are unable to perform the partial settlement (KO8G) when there is a negative entry hitting an internal order that has already been fully settled (KO88)/ depreciable asset placed into service.

Example #2, we simply need to reduce the value of the asset for costs that were incorrectly coded to an internal order that has already been fully settled (KO88)/ depreciable asset placed into service.

In both instances, the only thing we know to do to ensure we account for this properly is to write off the asset (ABAVN), and reclass the gain/loss associated with the write off back into the internal order. We then can create a new asset and depreciate the remaining NBV at the remaining useful life.

I could only imagine that there is an easier way to do this. Your help would be greatly appreciated!

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2 Answers

Tammy Powlas
Dec 28, 2017 at 05:58 PM
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You can always create a miscellaneous transaction to reduce cost (transaction ABSO) - I would review with the asset accountants what entry they are expecting, and then try the manual transactions to see what fits.

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Nathan Genez
Dec 29, 2017 at 03:47 PM
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Settling expense postings to an asset happens all the time. It takes a bit of discipline on the CO/PS side but even then, it can still happen. SAP allows for you to settle from the AuC back to CO if necessary. If the costs are already on the final asset, you can definitely reduce the asset using either a delivered transaction type or, most likely, a custom one that doesn't deactivate the asset and has proper tax treatment (among other things).

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