What is Expired useful life of an Asset

[sridhar_madiraju]

Dear Gurus,

Can any one explain me the concept of Expired useful life of an asset. What is its relevance in assets uploading from legacy system.

What is the configuration for this issue to resolve?

Regards,

Sridhar.

help.sap.com

[narasimhulu_konnipati]

Small example

1. Asset purchased and capitalized on 01.01.2009

2. Depreciation is calculating from the day it was capitalized, in our case 01.01.2009

3. Asset useful life is 10 years

4. You are planning to migrate assets to SAP on 01.01.2012.

What is expired useful life on or before 01.01.2012?

2009 - 1st year

2010 - 2nd year

2011 - 3rd year

It means, 3 years useful life has been already exhausted.

Now what is left? 10 - 3 = 7 years

For exhausted useful life, the depreciation will be captured in Expired useful life under Accumulated depreciation.

Hope this clarifies your doubt

Thanks

[sridhar_madiraju]

Dear Narasimhulu,

Thanks for your detailed explanation. I have some more queries. Please clarify me.

1.what is post capitalization of an asset?

2.Is it possible to capitalize an asset in previous year?

3.Is it possible to calculate depreciation in the previous year and previous period in current year?

4.Is it possible to calculate dpreciation in future period without calculation in current period?

5. Some people are suggesting like we can reverse the depreciation by posting a document in f-02 by    credit the depreciation and debit the accumulated depreciation accounts.

6. Is it possible in many ways to reverse the depreciation posted?

Regards,

Sridhar.

[narasimhulu_konnipati]

See the answers below

1. Post capitalization is nothing but after capitalization of an asset in SAP

2. It can be capitalized, but you need to have a requirement and posting periods opened.

3. Cal. of depreciation in previous year or previous period is possible with Repeat run. but you should be very careful when running, AA year and posting periods should be open for previous year.

4. Not possible

5. That is posting a manual JV to depreciation account. Check this with AB08. You can reverse the Asset accounting depreciation document in AA. Simulate a scenario in QAS

6. Many ways, reversing through AB08, Manual JV, Write-up through ABZU.

Thanks