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Fixed asset depreciation between fixed start and end date

Mar 13 at 12:01 PM


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Good morning,

I have a requirement to make a linear depreciation on a daily basis starting on a certain date and ending on another fixed date.

It's the case, in Italy, of the enhancements or maintenance made to third parties properties, like rented buildings.

We can capitalize the related costs and then book the depreciation.

Depreciation starts on maintenance ending date and should be carried on, on a daily basis, until the rental contract exact end date, on which we should reach a 100% depreciation.

So, if depreciation starts on 27.01.2018 and the the rental contract ends on 29.04.2025, we have a useful life of 2650 days and the rate is 100/2650 per day.

Unfortunately UL is in years and period, and therefore the depreciation calculated by SAP differs from the expected one and we may have problem with fiscal authority, if capitalized costs are very high.

I'm trying to understand, also, if the problem could be solved using the BADIs



I will appreciate any suggestion about above problem.

Currently I'm working on S/4hana 1610.

Thanks in advance for your support.



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1 Answer

Nathan Genez
6 days ago

I don't think this can be done in standard because the UL of the asset is measured in days that could be less than 1 fiscal period. SAP only calculates it at the period level. It might be possible to solve this with an alternative fiscal year variant but I don't think I'd pursue that.

If it were me, I'd consider enhancing the asset with the specific start and end date fields you mention and then use the BADIs to calculated the depreciation amounts. They're not hard to work with.

Good luck.

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