Change in useful life of fixed asset (as per Companies Act 2013)

[former_member462368]

Hi,

we need to capture the depreciation charge on the fixed assets ,whose useful has been already  exhausted as per the New Useful Life Concept (as per Companies Act 2013) .

Can we capture the remaining book value to a different GL A/C  for tracking the charge.

Eg: If a fixed asset of Rs 15000 ,which we were depreciating with a useful life of 15 years but  as per the new useful lifeconcept it should be depreciated within 10 years only and now we are in the 12^th year .We have to make the book value (Rs.4000) of the asset as zero (Rs. 0).

Can we capture this depreciation charge in a separate GL and what are the implications of doing so

Thanks in advance

[former_member198650]

Hi Prashanth,

You can post it by ABSO/AB01/FB01 with transaction type 101/105. The accounting entry will be:

Expenses A/c Dr 4000

Asset A/c Cr 4000

Regards,

Mukthar

[former_member731201]

Hi

Check this link, and follow the 3rd Scenario.

http://scn.sap.com/docs/DOC-55651

Regards

Mani.S

[kamalkumar_biswas2]

Hi

I think this is one kind of revaluation due to change of rules...so you can process it under "Revaluation of assets"

Please do necessary setting in Asset accounting and try