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Former Member
Oct 18, 2011 at 10:05 AM

Asset depreciation posted with Debit value

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Dear all,

We have an asset where depreciation was calculated with possitive value and posted ex: in the month of august for $427,236. as per the depreciation key the asset is going to retire on July but, an addition to the asset (asset Transfer) was posted ( $8).

detailed Example:

It appears that SAP is not calculating depreciation accurately when there is a combination of 2 events, for a specific month:

the month the asset is planned to reach NBV $0

an addition to this existing asset is done.

Appendix 1 is an example of an asset investigated.

Dec 2010 value is :

Cost: $12M; NBV: $571K

Life 12 years, rate 8.33%

Planned depreciation for 2011: min ($571K, ($12M*.0833))

Then $571K, NBV $0 to be reach in July 2011

we can see that monthly depreciation is calculated as expected until July, the month reaching $0NBV.

However there is a reversal of $427K ⚠️ in August.

We have been able to understand how SAP has calculated this reversal amount.

On July 12, there is an addition of $8. In the calculation loop, SAP will normally use the $8 as the base value, and calculates the incremental depreciation for the rest of the year.

Can some one help in undestanding the logic behind the depreciation calculation?

Thanks,

Rambo21

Edited by: Rambo21 on Nov 4, 2011 2:34 PM