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Assets - Sub Assets Depreciation

Dec 29, 2016 at 05:55 AM

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Hello Experts,

Does the useful life of the Asset Sub number have to be the same as the useful life of the Asset Main number?

I have the case, If we setup main asset such as plant and machinery with the useful life of 10 years. After 4 years, we purchase main component of that machine with the useful life of say 10 years.

What will be the behavior of SAP, it will allow us to depreciate that sub asset additional 4 years or it will get depreciated within 6 years as per the main assets.

Sincerely,

Rash Bharmal

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5 Answers

Mukthar Ali Ahamed N Dec 29, 2016 at 09:43 AM
1

Hi,

Yes, the sub asset active till 2026. It is a standard behavior.

Regards,

Mukthar

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Bernhard Kirchner
Dec 29, 2016 at 03:09 PM
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Hi Mukthar,

this depends on the screen layout rule (AO21). Useful life should be flagged on "Main No" in order to transfer the "useful life" into
the sub number.

If It is flagged on the field "class" the sub number will take values from tranx OAYZ.

best regards Bernhard

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Bernhard Kirchner
Jan 02, 2017 at 08:21 AM
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Hi Rashida,

There are so many influence factor. Of course it is possible that the main asset get depreciated in year 2022 while component 'Sub Asset' remain active and depreciating till 2026. In your example the main asset has been depreciated 4 years before the sub asset was created. In this case you cannot depreciation the sub asset in closed fiscal years.

If you want to have the same depreciation on main and sub asset, you should have at least the same depreciation parameter. That means for example the same depreciation start and the same useful life. The same useful life you can get with the settings of the layout rule (AO21). The "Useful life should be flagged on "Main No" in order to transfer the "useful life" into the sub number.

Of course if you create the sub number a few years later you will have a different result. If you want to have here also the same result you have to make additional settings. For example a unplanned depreciation. But there is no general answer.

best regards

Bernhard

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Mukthar Ali Ahamed N Dec 29, 2016 at 07:23 AM
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Hi,

It will depreciate for total 10 years means charge additional depreciation for 4 years. In that case, either you change the dep.start date with back date i.e.main asset dep.start date or change the useful life as 6 years.

Regards,

Mukthar

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Hello Muktar,

Appreciate your response but I did not get it properly.

Suppose,

Main Assets Acquired in 2013 with useful life of 10 years

Sub Assets Acquired in 2017 with useful life of 10 years.

What will be the standard treatment of SAP? Is it possible that main asset get depreciated in year 2022 while component 'Sub Asset' remain active and depreicating till 2026..?

Rashida

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Mukthar Ali Ahamed N Jan 13, 2017 at 07:32 AM
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Hi,

Yes, it is possible, if you maintain useful life as 10 years and done capitalization in 2017 for the sub asset. And also dep.start date should be from the cap.date of the sub asset.

Regards,

Mukthar

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