Accelerate the depreciation of one asset

[Dylan2]

I currently need to accelerate the depreciation of one asset. I used the Post Depreciation Manually app, and in the Transaction Type field I selected 640: Unplanned Depreciation on prior-year acquisitions. I then posted an accelerated depreciation of 500 CNY for this asset.

However, when I open Manage Fixed Assets and check this asset, I cannot see any unplanned depreciation of 500 CNY reflected under ledger 0L. What I do see is that a posting document for 500 CNY was generated.

My question is: did I use the wrong method for accelerating depreciation?

[Chuma]

Hello @Dylan2 

Thank you for reaching out to the SAP Community. Your question and the shared screenshot are very helpful

What you have done with transaction type 640 – Unplanned Depreciation on prior-year acquisitions is technically correct, but it explains why you don’t see the 500 CNY as accelerated depreciation under ledger 0L in Manage Fixed Assets.

Why:

Transaction type 640 is used for impairments or extraordinary write-downs. It generates an FI posting and appears in the Transactions / Asset History Sheet view, but it does not modify planned depreciation.

Only the values calculated from the depreciation key and useful life are considered by the depreciation engine. Manual postings made with 640 are not included in the depreciation forecast.

If the goal is to accelerate future depreciation:

Use the Change Asset Master Data app.

Reduce the useful life or alter the depreciation key in the Time-Dependent Data section.

Once the system has recalculated the planned depreciation, you’ll see the changes reflected under ledger 0L in Manage Fixed Assets.

When should you use 640?

Only for true unplanned depreciation events such as impairments, damage, or extraordinary value reductions

SAP Help Portal – Depreciation Posting Run

Post Depreciation Manually - Unplanned and Planned

SAP Help Portal – Change Asset Master Data

In brief, the method you used posts correctly, but it doesn’t speed up planned depreciation. To do that, you need to update the master data (useful life or key) so that the system recalculates depreciation in future runs.

Feel free to reach out again if you still need further support

Thanks again, and kind regards

Chuma

[Dylan2]

Hi Chuma,

Thank you for your detailed answer, one further question.  

My situation is as follows: I have an asset that has been depreciating for 1 year, with an average monthly depreciation of 2000. However, the company plans to relocate, and I need to change the depreciation to 8000 per month for the next 5 months, ultimately bringing the asset’s value to zero. I tried modifying the asset’s life in "Manage Fixed Assets," but that resulted in new depreciation entries for the months that had already been depreciated, which is not what I want. I only want to run more depreciation for the rest life. I would like to know where I should make adjustments in this case? @Chuma