Asset Retirement - Intercompany Asset Transfer

[Former Member]

Hello SAPients,

We are facing a problem with Intercompany Asset Transfer, T-Code: ABT1N, one of our user has posted Asset Transfer wrogly, actually they suppose to post by using Net method but the entry has posted in Gross method.

The entry in posted like .....

Ex: Asset Value 20000

Accumulated Dep: 5000

Entry:

Sending Company

Accumulated Dep A/c -

---

Dr 5000

Revenue clearing A/c----

---

Dr 15000

To Asset A/c -

---

20000

*Receiving Company Entry*

Asset A/c----

---

Dr 20000

Accumulated Dep----

---

5000

Asset Aqui Clearing-------15000

From Above the entry the sending company entry is correct but for receiving company the entry should be in net method, i mean the asset should be debited with 15000 ( instead of 20000)

*The correct entry in receiving company should be :*

Asset A/c -

---

Dr 15000

Asset Clearing A/c----

---

15000

the problem is this entry posted in the month of Dec and they already calculated dep for dec and jan also.

now user want to adjust this entry, i mean they don't want to see any line item in accumulated depreciation account. they wanted to post JV by debit ing to Accumulated Dep a/c (5000) and crediting to Asset A/c .

My question is, ...... is it right way to post JV, or if there is any other way please help me tp solve this problem.

Thanks ..........Sudheer

[Former Member]

Hi,

Hope your FY is APR2MAR....

Then first reverse the asset transfer entry and pass a fresh transfer entry to a new aseet (3) number using same transferposting date, document date, and value date.

By doing this, there is no issue in sending company code's dep calculations.

But in receving company code, when you run the dep for feb period, all the adjustments will be posted accordingly.

Means whatever dep posted for new asset (2) in dec and jan will be reversed. and subsequently depreciation for dec, jan , feb period's depreciation for the new asset (3) will be posted.

2 is your wrongly posted new asset---3 is your new receiving asset

This will solve your issue, since this is as per best practices.

Note: You cannot post any manual entries to either accum dep account nor to asset APC account.

Thanks,

Srinu

[Former Member]

Hi Srinu,

Thanks for your reply,

My FY is Dec-Nov, this ewntry is posted in the month Dec 2009 (year 2010), I also suggested the same, but user is worrying about the reversing and one more we already closed the period, every month we have month report, we already submitted our finacal statements to HO, now system will not allow to post the transaction in the month Dec.

Only the problem about the entry in Accumulated dep and Asset value, as per the B/s the it is correct ( Asset - Accu Dep). but when they are calculating the cost of the company, we are facing the problem. because of the high value in Asset.

I will try to explain about the same, is there any other option to solve this please let me know.

Thanks ....Sudheer