Freeze assets - Question

[Former Member]

Hello Asset Accounting gurus,

I have been confronted with a particular situation by our Accounting team.They created 9 assets in July 2015 through settlement of multiple AUCs. Depreciation start dates for these assets was July 2015. All these assets were associated with installation of a machine used for manufacturing, and unfortunately the product coming out of this machine was determined not to be of required quality recently. So now they want to work on recalibrating this machine to make it work right and this could take a few months. So the Accounting head wants to reverse all depreciation that happened on these 9 assets related to this machine for the past 2 months, since we are now in September . After that, reverse the 'settlement of AUCs into those assets', so that we get back the AUCs. Then they would like to re-use these AUCs to post more invoices for the continued work on the machine. When the machine is ready once again in a few months time, they would like to settle these AUCs back to those assets and start depreciation again. All this sounds impractical to me, but I have to admit I am not an expert in this area, so would like to hear your opinions on how best to tackle this scenario.

Hoping to hear from you ASAP,

Thanks and regards,

Wayfarer

[Former Member · Accepted solution]

Hi,

According to me for reversing the depreciation you have to assign the standard depreciation key of '0000' to all the 9 assets by which system will assume that wrong depreciation is posted for this assets. Then when you execute AFAB for September period then the posted depreciation will be reversed and then the Assets value will be at the initial transfer amount from AUC. Noe you need to reverse the settlement of AUC. This can be done through T-Code AIST and by this all the 9 assets value will again come in AUC.

Regards,

Malhar.

[Former Member · Accepted solution]

Thank you guys, for responding so quickly,  I just have to try this out. Will give you points once I can successfully do this over the next few days. Unfortunately the depreciation key on the book depr.area is display only since it defaults from the asset class, so I have to change configuration to make it changeable temporarily before I can play with it. So after making these changes, can I assume that the September AFAB run will automatically reverse the July and August depreciations , and I don't have to run repeat AFAB runs for those 2 months?

[former_member198650 · Accepted solution]

Hi Wayfarer,

You have to change the dep.key in the asset itself by AS02. However, when you run the depreciation for Sep month, the depreciation already posted will get reversed.

Regards,

Mukthar

[Former Member · Accepted solution]

Thank you Mukthar and Malhar, your solutions worked. I just had to use AO21 to make the depreciation key changeable temporarily on those assets since it is greyed out by default thru screen configuration. We ran the depreciation for September and it reversed the depreciation taken out in July and August for those 9 assets. Since the AUCs involved were settled to some more assets(which were still valid) other than the 9 problem ones, we decided NOT to reverse the settlement of the AUCs thru AIST since it may pull back values from those valid ones and not just the 9 problem ones.

Thanks again,

Wayfarer

[former_member198650]

Hi,

First you have to change the depreciation key for the assets as 0000, then after run the depreciation in repeat mode for the depreciation in the last dep.posted period in AFAB. After run this transaction, the depreciation which was posted for the assets got reversed. After that you reverse the AUC settlement by AIST.

Regards,

Mukthar