Can we close Fiscal Year for Assets without posting Depreciation?

[Former Member]

Hi All,

My client has 11 Company Codes. During the year end activity, I closed the FY of Assets for 10 Co. codes (T.code AJAB) and 1 is pending as depreciation is not posted for some assets yet. The client wants me to close the FY for assets without posting the depreciation.

Can anyone guide me on following doubts:

1. Is it possible to Close FY for assets without posting depn?

2. If YES, then what can be the adverse consequences of it?

3. If NO, then what is the alternative reply I can give to my client?

I hope the above info. is sufficient.

Regards

Amarendra

[Former Member]

This message was moderated.

[Former Member]

Dear Radha/ All,

The client cannot post depreciation due to inconsistancies in the entries passed during asset acquisition. They have passed JVs instead going through standard process of asset acquisition. This has resulted into balances not matching for assets. Now the client doesn't want to post a single rupee towards the depreciation of these assets and wants to carry forward the same asset balances to next fiscal year.

So i want a solution where:

- zero value of depreciation can be posted so that i can close the Fiscal Year 2007 and open FY 2009

OR

- Close FY 2007 without posting depreciation.

Can you give any such solution?

Thanks

Amarendra

[Former Member]

1. Is it possible to Close FY for assets without posting depn?

2. If YES, then what can be the adverse consequences of it?

3. If NO, then what is the alternative reply I can give to my client?

1. You can have only 2 open fiscal years. It is not possible to close an old fiscal year when the depreciation runs are not completed.

2. You can do the depreciation runs for the old fiscal year and close it, Then it is possible again to re open the old fiscal year with the transaction OAAQ - Entire Company Code.

For the depreciation you can do repeat runs to get the correct depreciation ammounts based on your changes.

These changes will create postings in FI in the old fiscal years!!

[Former Member]

Hi All,

Finally I got the solution. I had to do some off track adjustment which might not be allowed otherwise. After getting that confirmation from the client that:

1. They want to post zero values towards Depreciation for the year 2007 &

2. After closing the year, later on there wont be any adjustments for the closed FY 2007

When client gave me above confirmation i did following steps:

1.Note down the Current Depreciation Key of the asset

2.Change the current depreciation key to u201C0000 - No depreciation and no interestu201D (TC: AS02)

3.Close the fiscal year 2007 (TC: AJAB)

4.Change the u201COrdinary Depreciation Startu201D date to 01.04.2008 for ALL the Depreciation Areas of that asset (AS02)

5. Restore the Depreciation Keys of the assets as per the step 1 (TC: AS02)

6.Open New Fiscal Year 2009 (TC: AJRW)

So now the depreciation will be calculated from 01.04.2008 and no values are posted towards depreciation for the year 2007.

Off course in the normal course of time above solutions are useful.

Regards,

Amarendra

[former_member348872]

Just wondering if you are able to close Fiscal year for 2007. If not, you will get problem during fiscal year change to 2009, as you cannot keep 2 years open at same time.

[Former Member]

Hello,

Amarendra,

it was v good idea.

but what about Depreciation as per Companies act/ IT act rules.

[former_member348872]

This is not allowed to keep consistency between Subledger and GL. Best way is to complete depreciation by opening Fiscal period. System checks table TABA for posting information.

If it is not possible to open fiscal period because of audit issues, then you can contact SAP, who can help you, but they will charge consulting fee.

[Former Member]

Hi,,

With out depreciation posting for 12 periods we cannot close fiscal year for asset accounting.

Regards,

R.N.Reddy