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Former Member

Prior Year Depreciation

Hi Friends,

Can anyone kindly give a positive solution for the scenario:

250 computers were purchased in April 2006.

Advance was paid to vendor for this order.

Bills were not received then and accounted for in 2006.

Bills are received now in Aug 2008 and I want to capitalise.

Company has implemented only FICO module. No MM.

I need to capitalise these and calculate depreciation from April 2006 todate.

The rate of dep. is 25% SLM. Fiscal Year is April to March.

The portion of depreciation from April 2006 to March 2008 should go to the GL Prior Year Depreciation.

The portion of depreciation from April 2008 to Aug2008 should go to the GL Accumulated Depreciation of current year.

Please advise me how this can be dealt with.

Thanks

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3 Answers

  • Best Answer
    Sep 01, 2008 at 07:09 AM

    Hi,

    for such scenarios you can use the post-capitalization functionality. You can find details in the SAP Help Portal at [Post-Capitalization (Write-Up to APC) |http://help.sap.com/erp2005_ehp_03/helpdata/en/4f/71e828448011d189f00000e81ddfac/frameset.htm].

    Purpose

    Post-capitalization, in this context, represents subsequent corrections to the acquisition and production costs of a fixed asset. An example of when you need this type of correction is if you neglected to add expenditures and costs linked with the acquisition or assembly of an asset to its APC in a fiscal year that is now closed.

    Process Flow

    The system posts gross post-capitalizations, meaning with historical depreciation amounts. The system newly calculates depreciation from closed fiscal years on the basis of the capitalization date entered in the asset master record.

    The system then posts the historical APC as an acquisition to the asset balance sheet account, and the accumulated depreciation from past fiscal years to the accumulated depreciation account.

    Regards,

    Markus

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    Former Member
    Sep 01, 2008 at 03:47 AM

    Hi

    I usually handle this sort of scenario via AB01 where the postings would be

    Dr Asset cost (B/S)

    Cr Acc Depreciation (B/s)

    Cr Asset clearing or any other a/c

    What is "GL Prior Year Depreciation"? Is it a Balance sheet a/c? Is it an "Asset (reconciliation) a/c"

    Nadini

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    • Former Member

      According to accounting standards, any expenses relating to previous year should go to Prior Year expenses a/c (under P & L ). I wish to open a separate GL Prior year depreciation.

      Since the years are closed, how can I run the depreciation?

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    Former Member
    Sep 01, 2008 at 04:06 AM

    Hi

    As you already have closed the books of accounts of last year.You cant post depreciation to Last Year Account.So you have to choose a prior period GL.If the Gl is not there then Create a GL on Prior Period.Do the Depreciation Run and select the posting date of Current period,

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