Unposted Depreciation for LVA after transfer from LVA to Semi-Expendable

[Former Member]

Dear Experts,

Last November 2010, we received goods which were purchased as low-value assets, but Accounting advised to reclassify them as Semi-expendables (direct expense). We assign DepKey 0012 (LVA 100% Complete Depreciation in 1 Period) for low value assets in our org so upon GR of the goods, the system calculated and posted full depreciation on the first period after acquisition.

When the end-users reclassified the said assets as expenses (through JV, not retirement), the planned dep for the reversal of the ordinary dep was not posted. (Picture this: Under Posted Values in the Asset Master, there is a posted negative value and a planned positive value both in period 12 2010.) This results to a different SL balance compared to the Acc Dep GL.

What should we do to clean-up the unposted depreciation and subsequently reconcile our SL and GL? We are currently undergoing mid-year audit and it will be very much appreciated if we can get help ASAP.

Thank you,

ov@Lt!n3

[Former Member]

Thank you Ajay M for the quick response!

I consulted our auditors and I was told that we cannot open period 13 2010 because we have already submitted our testified 2010 FS to the regulatory board. Because of this, I cannot follow the solution in Note 619969 nor can I reverse the JV posted in the previous year (within which the asset valuation date is).

Is there any way that we can make adjustments to the SL without having to change the GL or open a previous fiscal year? We are okay with posting the adjustments in the current period, if it's possible.

In order to avoid this kind of problem in the future, we have advised our Accounting team not to directly reclassify assets to expense via JV and use ABSO or the normal retirement procedure instead. Is that correct?

Also, we advised them to run ABST2 regularly to detect differences between SL and GL and make corrections in the correct period.

Thanks again.

[ajaycwa1981]

Hi

Refer note 29694 and you can make posted dep = planned dep

This is recommended if you cant adopt note 619969

br, Ajay M

[ajaycwa1981]

Hi

welcome to sdn

Follow note 619969 and execute Dep in Period 13 2010... That should post the Planned figure in P12 2010

Else, as an alternate, reverse the JV that you posted (I dont know how you posted it) and you could have used ABSO t code with tr type 101 and specify any expense acct as the Offsetting acct

br, Ajay M