Asset rentals in SAP

[Former Member]

Hi Gurus,

We have a requirement where assets are rented out to different parties. Initially they are inventory items. When a agreement is reached with a party ( usually for one year) the inventory item is converted into an asset. The depreciation begins on asset. If customer decides to buy that asset within one year we have to convert it back into inventory, back out the depreciation and treat it as a sale of inventory item.

Note - If it is more than one year it can be directly sold ( asset sale). Under one year is the issue.

Any ideas on how to achieve this in SAP.

[ajaycwa1981]

Hi

Welcome to SDN!

1. When you decide to rent out - Do MB1A - 241 mvt type to convert inventory to asset

2. before one year, customer decides to buy

a. back out the Dep - Change the Dep Key in the asset master to 0000.... Execute AFAB in repeat mode for the last Dep Posted period

b. Depreciation posted would be zero as a result

c. Do MB1A - 242 movement type... Here, the challenge is that 242 mvt type will be generated at the Prevailing MAP at that time.. i.e. If the Asset value is 100 and the MAP at that time is 95 - 242 mvt type will take the asset into stock at 95

Hence, a balance of 5 would remain on the asset... You need to manually increase the value of the inventory and scrap the asset for the remaining value

OR

As an alternate to (c) - Try to scrap the Asset for 100 - Create a Dummy PO and a Dummy Vendor - Receive the inventory @ 100 - Knock off the Vendor Cr balance with the Scrap GL Account

No need to do MIRO for this Vendor.. You can automate it using ERS Feature... Contact your MM guy for this

br, Ajay M

[Former Member]

Hi Ajay,

Thanks for your response. We have already looked at this option. The issue is all the materials ( incl RM and FG) is valuated at standard price. So we cannot take back the asset into inventory at a different price since the asset is already depreciated. Any other possiblities..?

[ajaycwa1981]

Hi

I could not get you... Since the asset is already depreciated - You want to take it at a Lower price??

Can you explain with a numeric ex... It will be easier to explore further

br, Ajay M

[Former Member]

Hi,

If I am not wrong you are facing the problem in valuation as FG is maintained in standard price. In my opinion you will face the problem in both type of valuation as you may be taking different assets at different valuation and the depreciation will differ. So moving average and also standard price will give you wrong valuation at individual asset level.

Regards

Milind Sonalkar