Assets Depreciation in WBS Elements

[Former Member]

Hello forum,

Any comments or orientation in this issue will be greatly appreciated.

We have to book depreciation for multiple oil wells that are currently producing.

Depreciation is currently being booked against assets that are tied to multiple oil wells. This is causing the depreciation to hit WBS elements that are tied to these wells. However, depreciation should not be booked against the WBS elements.

The fact that SAP pulls against the WBS budget is causing the problem in which at year end closing the Customer have to double the budget in order to run depreciation. A possible solution is to parameterize the system so there is no budget control in the accounts involved in the depreciation. This solution will take significant time due to the Customer Policies on making changes to existing configuration.

Another solution is to find a way to disassociate the G/L accounts for depreciation from the WBS elements. Is it possible to disassociate the G/L accounts for depreciation from the WBS elements? That would solve the problem with the expense being book pulling against the WBS budget

Please let me know if you need further details. Any comments or orientation in this issue will be greatly appreciated.

Regards,

Marco

[Former Member · Accepted solution]

Hi

Disassociating GL account from the WBS element will create problem like at the time of depreciation, system will throw error message stating that there is no budget for this GL account.

Alternatively, if a particular WBS element is used only for Depreciation purpose, then you can deactivate the accounting element tick in the WBS element.

Regards,

Lakshmanan Krishnan

[Former Member · Accepted solution]

Thanks for your response.

The problem is that the WBS numbers assigned to the Assets are not only used for depreciation purposes. They are used for both, Cost and Depreciation.

Unless I am mistaken, I can only assign one WBS to an Asset and therefore the asset depreciation will always hit the WBS. I am not sure if there is a way to specifically assign Asset Depreciation to a WBS. If that's the case I would expect to see the WBS field in the Asset Depreciation Areas.

Like I mentioned before, at this time, my customer needs to significantly increase the budget just to run depreciation. I think that there must be a way in PS or AA configuration to disassociate Asset Depreciation from the Budget in PS.

Any comments or orientation will be greatly appreciated

Thanks in advance for your help.

Marco

[Former Member · Accepted solution]

Hello

I am not sure whether I am interpreting your question in right way. But there are 2 ways of associating WBS with Assets:

1. From Project i.e. from WBS > AUC > Fixed Assets. In this case the depreciation will only start once the WBS is TECO and a Asset (Initially AUC and later ASSET) is created against WBS. The final settlement cost will be APC cost of Asset and that will be the amount on which the depreciation will be calculated. At this point of time WBS will not be relevant for depreciation.

2. Direct Asset Acquisition. Here the Asset is procured directly against account assignment category as A i.e. Asset. WBS is assigned to Asset Master shell only for Budgetory control purpose. So in this case WBS always remains statistical and all postings goes to Asset. Once invoicing is done the Asset is capitalized at that amount and depreciation starts. Now that cost also appears against WBS and that will be statistical, no need to settle that WBS and no question of depreciation of WBS. Chk the report CJI3 and look for value type. It will be 11 which is statistical actual.

So I dont see any way of linking depreciation to WBS. Hope this helps.

Thanks

Sarang

[Former Member · Accepted solution]

Configure the node 'Specify Exempt Cost Elements' under SPRO>Project System>Costs>Budget>Specify Exempt Cost Elements.

Enter your depreciation GL account here and there wouldn't be any budget availability control happening against any posting with the GL account.

Regards

Sreenivas

[Former Member · Accepted solution]

Thanks Sreenivas. You just solved my problem.

All the comments in this thread were very helpful.

Regards,

Marco

[Former Member · Accepted solution]

One last question on this regard.

We just exempted the appropiate cost elements from the budget control.

Is there any way that my customer can confirm that budget is not being consumed while he runs depreciation?

Thanks in advance for your help.

Regards,

Marco

[former_member203108 · Accepted solution]

If the cost element is exempted, the budget check will not happen for the cost postings under that cost elements.

[former_member339309]

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