LVA after 1 year

[Former Member]

Hello Experts

Low Value asset will b depreciated 100% in the year of acquisition right. Then what the process i need to do after year end. Do i have to go for Write up or retirement. I need to have list of all low value assets existed in company. What if I will give scrap value as 1 rs and then depreciate fully. Do i need to retire/write up asset after 1 year. If i wont do then what will impact., Will it show in inventory/quatity.. Plz clarify my doubt..

Thanks in advance

Thank

Regards

Pooja

[MarkusBredel · Accepted solution]

Hi,

ususally customes create and use an own asset class for low value assets. Alternative possibility is to identify such assets with a unique depreciation key (in standard key GWG) which uses immediate depreciation.

Why do you want to see these low value assets in the subsequent years? I mean this is the basic intention of the simplification rule for low value assets. To reduce the reporting requirements from these minor value assets.

Regards,

Markus

[Former Member · Accepted solution]

Hi Markus

thanks thanks a lot for replly.

But my client want to c existance of that asset after one year.. Whether that asset physically exist r not. What should i do for this

Thanks a lot

Regards

Pooja

[MarkusBredel · Accepted solution]

Hi,

did you ever execute an Asset History sheet in a subsequent year for a fully depreciated asset? I think this would answer your question immediately. If the asset is not retired, you see this asset in the asset history sheet with cumulated APC and depreciation values. Did you check this in the system?

What you say indicates that SAP would not display fully depreciated assets, which is definitely incorrect.

By the way, your question concerning the usage and necessity of a kind of memo value is described in note [32901|https://service.sap.com/sap/support/notes/32901].

We consider the existence of a memo value unnecessary because Asset Accounting always considers the gross values, that is acquisition value and accumulated depreciation, and not just the net book value. This always ensures that completely written-off assets are displayed as well with book value zero in all legally required reports. In particular, if you later introduce a memo value, the time and effort required is much higher than the return.

Last comment on low value assets: only if you use the function of LVA retirement simulation in the Asset History sheet, the low value assets depreciated in prior years are not displayed any more. But this is on purpose of the user then using the retirement simulation.

Regards,

Markus

[Former Member · Accepted solution]

Hi Markus

Thanks a lot

Actually I am not good at asset and not very sure about Asset History Sheet. I got this requriment so i had posted..

Thanks a lot for your valuable inputs..

Will try and explore

Have a nice time

Regards

Pooja