Creation of Current Year Asset pertaining to Prior Year and Accelerate Dep

[Former Member]

Hi Everyone,

Our tax group wants to create assets that were not capitalized for book but should have been for tax. So, we want to deactivate book depreciation area but create an asset within the current period representing an asset that should have been capitalized as of the beginning of the previous year without adjusting the useful life but accelerating the first month's depreciation to catch-up the prior year's depreciation.

SO, assume that an asset's value is $200,000 as of January 1, 2008 with a useful life of 5 years and straight line depreciation. If we were to create the asset as of July 1, 2009, I would expect to see the beginning value be $200,000 and have ordinary depreciation of $60,000 (2008 depreciation of 40,000 and 20,000 representing depreciation from Jan-Jun 09). The remainder of 2009 would depreciate the additional $20,000 and 2010-2012 would show depreciation of $40,000/year.

What I'm seeing is that when choosing to capitalize as of Jan 1, 2008, the system adjusts the depreciation based on a useful life of 4 years rather than the 5 years and shows an annual depreciation of $50,000/year.

Can anyone assist please?

Thanks,

Pete

[Former Member]

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[Former Member]

Hi Peter,

First Set your COD with Tcode OAPL.

Then go to OAYZ and select your asset class and double click on depreciation areas

Here check, whether the usefull life for this asset class was given as 4?

And check asset master with AS02 in the depreciation tab for usefull life.

Keep me updated.

Thanks,

Srinu

[Former Member]

Hi Srinu,

Thanks for the reply. All of the master data and config are fine. The useful life shows 5 years. So what I'm trying to do is show the accelerated depreciation for an asset that technically has been in service for 1 full year already but not included in SAP. So the caculcation that SAP shows is correct to state that a 5 year asset in service for 1 year should have a 4 year useful life left. However, I thought there was a way to add the first year's (year 1 of 5) depreciation within year 2 of 5 and have the remaining years complete the depreciation as if the asset was in SAP from year 1. Here's an example of what I'm trying to get at:

This is the scenario I'm trying to get:

Useful life of 5 years. Asset SHOULD have been capitalized as of 01/01/2008 but rather has been capitalized on 07/01/2009. Asset cost basis = $200,000:

Year 1 (2008) = 0 depreciation

Year 2 (2009) = $80,000 (year 1 dep + year 2 dep)

Year 3 (2010) = $40,000

Year 4 (2011) = $40,000

Year 5 (2012) = $40,000

However, this is what SAP is calculating:

Year 1 (2008) = 0 depreciation

Year 2 (2009) = $50,000

Year 3 (2010) = $50,000

Year 4 (2011) = $50,000

Year 5 (2012) = $50,000

Any ideas?

[former_member695461]

Hello Peter

Please make use of Post capitalization functionality while creating Asset Master record.

When this indicator is set, you can post to the asset using the posting transaction for post-capitalization.

When you post post-capitalization to a new master record, you must have manually set the historical capitalization date and the acquisition date for the asset in the asset master record. If you set this indicator, the capitalization date in the asset master record becomes a required field, and the system automatically sets the acquisition date based on the capitalization date.

If you still get problems let me know

Thanks

Sanjeev

[Former Member]

Hi Sanjeev,

I found and tried that too. That's where I am getting my second example above where SAP is depreciating the life over 4 years at $50,000 rather than $40,000 at 5 years.

Any other ideas?

[former_member695461]

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[Former Member]

HI Sanjeev,

I was hoping to stay away from creating another depreciation key because there are a few tax areas that this would pertain to and the example of straight line that I used is not really what would need to be modified, more like MACRS and a few other dep keys.

The second you put in a capitalization date of 01/01/2008, SAP (rightfully so) calculates that there are only 4 more years of useful life so putting an additional amount of depreciation just reduces the cost basis and then still depreciates over 4 years only.

I'll keep playing around to see if there is a better way around this and keep all posted. Any other suggestions would of course be greatly appreciated.

Pete

[Former Member]

Creata a normal asset AS01 with the option post capitalization (on the first screen) . Depreciation start date 01.01.2008

Create the posting on the asset with the transaction ABSO and the transaction type 147

As values you fill in the aquasition value (200.000) and the cum depreciation op to 2009 (80.000)

[Former Member]

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[Former Member]

You can then do an unplanned depreciation for the depreciation in the old fiscal years

TC ABAA - Unplanned Depreciation.

How the depreciation is calculated on the current and next fiscal year is dependend from the depreciation key

[Former Member]

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[Former Member]

Hi Peter, Paul,

I'm an end user with the same problem as Peter. Followed Paul's leads but cannot post using ABSO.

I can post however with ABZON but then I have the following problem:

Although I have to set the posting period in the current open period, I want to set the Asset Value date back to the original acquisition date. This would update my first planned depreciation with the amount of all 'missed' depreciations.

Unfortunately I get a 'green' error message saying:

"Asset Value date and Posting Date are not in the same Fiscal year."

Can you please advise if this is a SAP error message or that maybe our SAP IT Department can change this so the set dates would be allowed. I think this would give me the right values for posting the unplanned depreciation using AFAB.

When testing this and setting the Asset Value date back to 01/01/10 it works. It's just that I cannot set the Asset Value Date back to the original acquisition date.

Thanks,

[Former Member]

When you create the asset then the capitalization date and the depreciation start date is from the old fiscal years.

The asset value date and the posting date is from this fiscal year. It is possible to have asset value date 01.01.2010 and posting date 01.10.2010. The asset value date is the basis from when SAP start to calculate the depreciaton.

Dependend of the settings from asset accounting it is the last day from the old month or the first from the new month.

Do some tests in your test system

[Former Member]

Paul, thanks a lot,

Did do some more testing and came across ABNAN. This transaction does allow the asset value date te be in the Previous fiscal year.

SAP then calculates the depreciation from this PY and posts it as a value adjustment on the asset. The difference between the original acquisition value and the value adjustment is then posted to the off set account we put in manually.

As a result I have the missed depreciation as a balance on my off set account and can post this difference to the depreciation account in the P&L. The result of planned depreciation for the future is exactly as we would expect, based on the Usefull life and depreciation key.

For us this works great and my question is answered.

Thanks again,

John