Depreciation Calculation

[former_member1279634]

Dear Experts,

We have a scenario wherein an Asset was created with Depreciation Start Date of 12/01/2018. This asset was capitalized only on 02/01/2019. When we run AFAB for February 2019, it only posted the depreciation equivalent to one month. It didn't include the depreciation value for December 2018 and January 2019. We are using straight line method of depreciation.

2019-03-18-104713.png

Note: We only encounter this kind of problem for those assets where depreciation start date was set from a previous year but capitalization date on the succeeding year.

Thanks in advance.

[former_member188063]

Normally the system determines the depreciation start date from the asset value date of the first acquisition posting.

In both the above examples the system is calculation dep from Capitalization date.

Check the below Note where this topic is discussed in detail.

1789106 - Ordinary Depreciation Start Date Determination

Regards,

Sudhakar*

[former_member1279634]

Hi to all,

In our Scenario 1 above, we do not want to post Unplanned Depreciation manually since there are a lot of affected assets. We want the system to automatically adjust the depreciation whenever there are assets that are capitalized after the indicated depreciation start date in the master data.

In the above sample (scenario 1), depreciation for February 2019 should have been 1,666.68 and not 555.56. It should cover the depreciation for 3 months which is from Dec 2018 to Feb 2019.

Thanks.

[former_member1279634]

Dear All,

To illustrate regarding our concern, kindly refer below for the 2 scenarios. I just wonder why the calculation is different in these 2 scenarios.

Scenario 1: Depreciation Start date (previous year) and Capitalization date (current year)

Depreciation Start Date: 12/01/2018

Capitalization Date: 02/01/2019

Asset Value: 20,000

Useful Life: 3 years

Monthly Depreciation: 20,000/36months = 555.56

In this scenario, the asset was depreciated equally starting from the capitalization month up to the end of useful life.

dep-start-date-previous-year.png

monthly-depreciation.png

Scenario 2: Depreciation Start date and Capitalization date within the same year

Depreciation Start Date: 01/01/2019

Capitalization Date: 03/27/2019

Asset Value: 15,000

Useful Life: 3 years

Monthly Depreciation: 15000/36months = 416.67

In this scenario, the first month of depreciation captured the value from the time of the depreciation start date up to the capitalization date (January to March = 416.67 x 3)

dep-start-date-current-year.png

monthly-depreciation.png

Thanks.

[former_member198650]

Hi Elli,

This is applicable for where depreciation start date is before the capitalization date. If you want to calculate from cap.date, then you have to post unplanned depreciation by ABAA for that period.

Regards,

Mukthar

[former_member1279634]

Hi Mukthar,

Kindly advise if this system behavior is applicable only to those where depreciation start and acquisition year are different? We seem to have no problem when the fiscal year for both are the same.

Thanks.

[former_member198650]

Hi Eli,

It is a standard behavior of the system. System always check the actual postings for the asset. So actual posting done on Feb'19, from this month on wards system calculates depreciation. However, you can post pone the depreciation after posting date. But earlier dep.calculation from posting date not possible.

Regards,

Mukthar

[former_member1279634]

Hi Sir Narasimhulu,

Kindly refer to the links below for our config in AFAMP. Thanks.

2019-03-19-102249.png

2019-03-19-102324.png

[narasimhulu_konnipati]

Could you please send us AFAMP screen shot for your Period control method 012?

[former_member1279634]

Hi Sir Narasimhulu,

Kindly refer to the attached link for our config in AFAMS. We're using 'From ordinary depreciation start date'.

2019-03-18-174931.png

Thanks.

[narasimhulu_konnipati]

In the T-code AFAMS, check what option you have selected under the "Validity Start".

It should be "From ordinary depreciation start date".

Please check the attached screen shot.

cusersi345673onedrive-sap-seprivates4hanascn-issue.png