Asset prorata temporis catch-up depreciation key

[Former Member]

Hello everybody,

I hope one of you expert can help me out. My client asked me to change our  depreciation key in order to perform a retrospective catch-up, whenever a subsequent acquisition is posted. Catch-up should occur in the same month subsequent acquisition is posted and recover all depreciation delta from the start depreciation date.

We are currently using a depreciation key which meet other business requirements and it is customized as it follows :

• base method : 007 ordinary percentage  from  life (after end of life)
• period control : 01/01/11/11
• base value : 03 replacement value(no multilevel)
• class : straight line depreciation
• multiple shift : no effect on depreciation and useful life
• base value : base value is reduced  by the scrap value amount

This key corrects planned monthly depreciation starting from subsequent acquisition date but it postpones asset depreciation end date.

We would like SAP not to postpone the depreciation end date, to recalculate planned monthly depreciation onward and to perform a catch-up of previous depreciation delta calculated from asset depreciation start date.

Is there any possible way to obtain this behaviour modifying our key paramenters ?

Any suggestion , hint will be greatly appreciated.

Thank you all in advance for your help.

Best regards,

Emiliano Leschiutta

[Former Member]

This is an exemple of how depreciation is currently calculated

[ajaycwa1981]

Hi

For additional acquisition in same year, you can just do F-90/Migo again in the same year / same asset

For additional acquisition in next year after the previous year is closed , you must do Abnan I.e. Post capitalization

that's the right process because it catches up the whole dep. Also don't use smoothing in oayr

you can also raise oss message under component xx-csc-IT as you say it is alegal requirement. Sap would tell you what have they designed to meet this requirement

Ajay M

[Former Member]

Hi Ajay,

thank you for the valuable  information . I did try with tcode ABNAN for additional acquisitions in the next year  but unfortunately Sap doesnt catch up the all depreciation.

It catches up from  beginning of current year only. It calculates new monthly depreciation and postpones asset depreciation end date. Smoothing is not active

We will contact SAP to see whether a possible workaround exists.

Thank you again for your help.

Emiliano

[ajaycwa1981]

Hi Emiliano

I did not find ABNAN behaving the way you described

My Base Value in MLM is 01 / 24

When I do ABNAN,say, for 10000 USD to be capitalized from last year (01.01.2015). Useful life of asset is 5 years, following happens

Asset APC Debit          10000

Accum Dep Credit          2000 (Accum Dep till last year end)

Income from Post Cap    8000

Right now you are in March. So, in March there will be excess dep of 500 USD (i.e. 2000 * 3/12).. Is this not what you want?

Do keep us posted incase you come across some different solution. Will be more than happy to learn the Italian solution.. Am a great fan of Italian cuisine, by the way

Ajay M

[Former Member]

Hi Ajay,

Let's imagine we post the new aquisition  on 01/01/2016 for 10000 USD.

I would expect to have an excess dep of 2000 USD  in January 2016 and the remainder of 8000 USD evenly spread across  2016,2017,2018 and 2019 increasing the monthly dep.

I'll keep you posted in case we find any solution.

Thank you again for your help. Glad to know you like italian food  I love the indian specialties, even the spiciest ones

Emiliano

[ajaycwa1981]

Hi Emiliano

As far as my knowledge goes,

1. Post F-90 for 10000 in Current year

2. Post Unplanned Dep of 2000 in Jan 2016 (related to FY 2015) using ABAA

3. Regular (Planned) depreciation from Jan will increase to the extent of 2000 per year

Incase SAP provides any other solution, it would be great for all of us to know

Ajay M

[Former Member]

Hi Ajay,

thank you for the suggestion. Actually we had already thought about this solution. It could work but we would like to find something more "automatic", if possible.

This process is a daily task and transaction volumes are really high.

I'll let you know in case SAP provides us a more suitable solution.

Emiliano

[ajaycwa1981]

Ok

am eagerly waiting too for the solution

can provide a workaround or the logic for z program incase you don't get a solution from Sap

Ajay M

[tjirongoa]

This message was moderated.

[Former Member]

In Yellow the result we would like to achieve,

[ajaycwa1981]

Hi Emiliano

Is this the right process? The reason am asking this is assume you acquired an asset in the Previous year -> The Year is now closed - > You are in 2016

If you make another acquisition in same asset now, it is not going to catch up since 2015. How do you want the depreciation to behave in this case?

Normally, if you post a subsequent acquisition in the same year in the same asset, the depreciation on the new acquisition is calculated from the date of 1st acquisition, unless you made modifications in Table T090NP.. Catch Up or Smoothing is what you do in OAYR. See if Smoothing Indicator is ON

SAP Recommends to manage every subsequent acquisition in a Sub Asset Created from AS11. This gives you complete control on how you want to depreciate the asset

Regards

Ajay M

[Former Member]

Hi Ajay,

thank you for your reply.You are right, this is an unusual request but unfortunately  it meets italian legal requirements , at least for my customer.

This subsequent acquisition must be interpreted as a delayed first acquisition.

The information should have been received at the time the asset was first acquired  but due to process delays, it arrives only in the future. It may happen a few months later in the same fiscal year as well as one year later as explained in my previous message.

We would like to find a solution to manage the latter case.

I will enclose a snapshot which describes the result we would like to achieve.

Thank you all for your help.

Regards,

Emiliano

[former_member198650]

Hi Emiliano,

Can you please share screen shot of depreciation calculation in AW01N for the asset?

Regards,

Mukthar

[Former Member]

Hello Mukthar Ali, thank you for your reply. I will soon post the as is as well as the to be expected. Its a little complicated.