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Depreciation catch up from closed fiscal & current year to be posted in Current Year

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423

Hello SAP Experts,

Business Requirement:

We are in S4 Hana implementation. Asset Created on March 2023 and Capitalization start date should be from closed fiscal year Aug 2022.

APC cost 100000, useful life 36 months. Monthly depreciation $2777.77. Straight line and dep start date next month.

Asset created with AS01 with Post capitalization check box ( capitalization date Aug 2022) & Asset creation date March 2023.

Tcode ABNAN: Doc date & Posting date March 2023 and Value date Sep 2022

System calculates Accumulated cost ( Sep, Oct , Nov & Dec 2022 ) 2777.77*4 months = 11111.11

System calculates Current year depreciation ( Jan 23 to March 23) 2777.77 *3 months = 8333.33

Dep key used : Post capitalization option.

Client requirement:

Accumulated depreciation 11111.11 + Current year depreciation 8333.33 should be posted as total catch up in current year March 2023 19444.44. But SAP calculates Accumulated depreciation and current year depreciation separately.

Could you please advice how to post catch up of 2022 ( Sep to Dec , 4 months ) + 2023 ( Jan to March, 3 months ), 7 months ( 2777.77* 7 months = 19444.44.

Can I use any other Tcode ? or Depreciation key?

Regards

Kajendran

OwenLiu
Product and Topic Expert
Product and Topic Expert
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Removed Cloud tag.

Accepted Solutions (0)

Answers (1)

Answers (1)

Neeraj
Employee
Employee
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Hello Kajendran,

Please review the ask from your client. As per the legal and accounting requirements the ask is invalid and incorrect.

Accumulated depreciation represents the depreciation from the previous years. You should not add depreciation of the current year to the accumulated depreciation as it would lead to incorrect financial reporting.

Adding current year depreciation to accumulated depreciation would mean your depreciation expenses are reduced in P&L and your profit is increased wrongly.

Your ask cannot be justified.

Thanks & Regards

Neeraj Agrawal

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Hi Neeraj,

Thanks for your response.

We already shown the demo and we confirmed that we can not add accumulated to the current year depreciation GL account.

I thought of taking SAP expert team's suggestion.

Regards

Kajendran