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author's profile photo Former Member
Former Member

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

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

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 20, 2009 at 06:13 AM

    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

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    • Former Member 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

  • author's profile photo Former Member
    Former Member
    Posted on Mar 03, 2010 at 09:13 AM

    This message was moderated.

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