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Former Member

First acquisition date and Capitalized date in Asset Master

Hello,

We have an asset with the capitalization date 01.06.2011 and the First acquisition date as 29.02.2012. Now the depreciation is being calculated from 29.02.2012 and not from the capitalization date 01.06.2011. Is this correct?

Can somebody please explain me the purpose of these two fields and also the difference between them.

Thanks in advance.

Lavanya

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5 Answers

  • Best Answer
    Jun 21, 2012 at 03:26 PM

    First acquisition date ( FAD) is the actual date on which asset was received/acquired and capitalization date (CPD) is the date from which the asset is actually valued.

    Normally these two dates would be same and in certain cases, similar to your scenario, it could be different as capitalization can be manually updated.

    In your case since both FAD and depreciation start date are same I am assuming that the CPD was manually updated after capitalizing the asset on 29-2-2012. It's correct, that depreciation starts based on CPD but if CPD is manually updated after capitalizing the asset then the depreciation date should also be updated.

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    • Hi

      The first acquisition determines the ord.depreciation start date.

      When you post the first acquisition normally what the system does is

      fill in the cap.date and ord.depr.start date automatically, based on the

      period control in the depreciation key.

      regards

      Ray

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    Former Member
    Jun 20, 2012 at 01:44 PM

    hi

    yes, this is correct. In the year of first acqusition, the system will calculate depreciaiton from the dep. start date in case of acqusition transaction type (like 100), in case of transfer transaction type (like 300) the system takes into account the asset value date and the period control for transfer.

    Best Regards,

    Blaz

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    Former Member
    Jun 20, 2012 at 01:44 PM

    hi

    yes, this is correct. In the year of first acqusition, the system will calculate depreciaiton from the dep. start date in case of acqusition transaction type (like 100), in case of transfer transaction type (like 300) the system takes into account the asset value date and the period control for transfer.

    Best Regards,

    Blaz

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    Former Member
    Jun 22, 2012 at 12:59 PM

    Hello,

    Thanks a lot for your helpful answers.

    My issue is for one particular asset the Capitalization date is 01.06.2011 and the posting date of the initial acquistion is 29.02.2012(also the Fist Acq date in the master data).

    Now the original depreciation start date shown in asset master is 01.06.2011 but the system is calculating the depreciation from the posting date 29.02.2012(also the asset value date)

    Now the user says she wants to calculate the depreciation from 01.06.2011 and not from 29.02.2012.

    Is it that the system is taking the posting date since the capitalization falls into the different fiscal year.

    In these kind of scenarios is it advisable to manually enter the Asset Value Date in transaction ABUMN

    Could somebody please help me.

    Thanks & regards,

    Lavanya

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    • Former Member

      Hi Lavanya,


      Here is the answer on your question:


      In these kind of scenarios is it advisable to manually enter the Asset Value Date in transaction ABUMN - Yes you are correct.


      Regards


      MRathi

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    Former Member
    Feb 20, 2014 at 11:53 AM

    Dear Lavnya,

    Above all experts replies I would like to add something from my end about these two dates -

    Capitalization Date : System uses this date to default asset value date for rest of asset life cycle. Now here two things to be consider :

    a ) Capitalization date is possible to enter on manual basis - as user can enter this date while creating asset master data.

    b ) If you do not enter Capitalization Date system automatically adopts from first acquisition posting as a "Capitalization Date".

    Acquisition Date : Acquisition date is similarly used as a capitalization date and populated based on it's "First Acquisition" posting and Transaction Types used e.g.100.

    In most of the cases where capitalization date is not entered manually system populates these two fields ( Capitalized on and First acquisition on ) from first acquisition transaction posting date.

    Now coming to your point I guess user has manually entered Capitalization Date while creating master data and acquisition transaction posted later on dates which is different to Capitalization Date, and hence difference in these two dates.

    And Depreciation Start Date which determined based on "Period Control Method" so have a look at your period control method how it is configured.

    I hope this will help you to understand functionality regarding date and provides you an insight for your issue. If you need anymore help please get back to forum for further guidance.

    Thank you.

    Regards,

    Pankaj Bhalerao.

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