How to start depreciation on the month of the shift

[Former Member]

Hi,

maybe it is a very simple question, but I'm struggling on the following topic:

I need to shift the value from a not depreciated asset (AUC) to another asset to be created (Final asset, with monthly depreciation).

The AUC itself receive a posting from a GL account with values with a posting date = end of the month (let's use April the 30th).

So as far as I'm understood, the asset value date MUST be at least the same or even posticipate = end of the month (still April the 30th) - please confirm.

Now, even if I'm manually changing the "capitalized on" date and the "depreciation start" date to the beginning of the month after the posting (example: capitalization date 31st of March and Dep. Start date = 1st April) the asset will NOT post on April and calculate this month of depreciation splitted on all the rests of the year.

I really don't understand if this behaviour is due to the depreciation key or not, what I'm searching for is to obbly the asset to post on the 30th of April the first month of the depreciation.

Did someone know how to do it?

Thanks!

[former_member205661 · Accepted solution]

Hi Giovanni,

The depreciation start date is determined by the period control in the depreciation key assigned in the fixed asset. See in customizing transaction OAVS (Maintain Period Control) what options you have.

So if your AuC has a value received on last day of the period, and you transfer on same day, then the depreciation start date depends on the setting in the depreciation key taking into account the period control in the assigned period control method (in AFAMA).

For example 01 is 'Pro rata at period start date'. So if that is transferred on last day of the period (30 April), the start date should be also at start of period, in your example 01 April.

Maybe also look into the option of field 'Transfer adopting dep. start date' in the transaction type customizing and which is used in the transfer from AuC to FXA.

Regards,

Brigitte

[Former Member]

Hi Giovanni,

As what Brigitte, NSK, and Mukthar have said, normally, it's in period control that has a direct impact with the depreciation of an asset. Now, if you're transferring/loading assets, I would like for you to check the configuration for the 'Specify Transfer Date/Last Closed Fiscal Year' (SPRO -> financial  accounting->asset accounting->asset data transfer->parameters for data transfer->date specifications->specify transfer date/last closed fiscal year).

Regards,

JP

[former_member198650]

Hi,

Yes, you can input asset value date same date or it must be in the fiscal year of the posting date. The depreciation start date will be determined based on period control method of the depreciation key. If you are using day wise depreciation then the dep.start date will be posting date of the asset. Else it is based on period control method.

However, after done posting, you can change the capitalization date and depreciation start date. System will calculate the deprecation as per dep.start date. If you are posting the depreciation by monthly, then it will split the depreciation .

Regards,

Mukthar

[narasimhulu_konnipati]

What Brigitte told is correct.

If your requirement is to start depreciation from the first date of that month though the capitalization happens in the middle / end of the month, then 01 fulfills.

Refere the below list and select the same from the Period control methods.

01 Pro rata at period start date

02 Pro rata upto mid-period at period start date

03 Pro rata at mid-period

04 First year convention at half year start date

05 Year start date/Mid-year/Year-end (Austria)

06 At the start of the year

07 At mid-year

08 At the end of the year (=Start date of following year)

09 At mid-quarter

10 At the first quarter

11 Next month

12 Next quarter

13 Next half-year

14 Modified half-year rule

Period control methods are there in AFAMP. You have to select one and update it in the Depreciation Key and test it with a couple of scenarios.

BR,

NSK