Fixed Asset depreciation Key Change #COE #MODPIZZA

[former_member95896]

Hello,

I've been trying to find any documentation or explanation on the steps needed to change the depreciation key and useful life for multiple valuation areas on legacy fixed assets newer then 2018 and then do the necessary recalculations.

In our situation the CARES Act tax law changes in the US which passed about 2 months ago changes assets in leasehold improvements from 39 to 15 year useful life and they are now eligible for bonus depreciation retroactive to 2018. That means that we need to change not only the config moving forward in the SSCUI but also all assets capitalized in 2018 or newer in the tax areas and recalc all of them.

How do we best do this?

We are going from assets with this default setup in these areas:

Valuation View

Valuation View Desc

Deprecation Key

Depreciation Key Desc

Useful Life

0US_0090

ACRS/MACRS

SUL6

SL Mid Month

39

0US_0091

ALT MIN

SUL6

SL Mid Month

40

0US_0092

ACE

SUL6

SL Mid Month

40

To this default setup (and need to make the changes to the existing assets to these dep keys and lives):

Valuation View

Valuation View Desc

Deprecation Key

Depreciation Key Desc

Useful Life

0US_0090

ACRS/MACRS

S200

DB 200% Half Year w/Bonus

15

0US_0091

ALT MIN

S150

DB 150% Half Year w/Bonus

20

0US_0092

ACE

S150

DB 150% Half Year w/Bonus

20

[Nadja_Medeiros]

Hi Ryan,

The depreciation keys are delivered with the content for the country with the SAP understanding of what is legal for that country, as such it cannot be changed in S4HC, but as you are mentioning that this is a (new) legal requirement I recommend that you contact you CSM or PE, so you can raise a WSR (customer impediment)

The useful life can be changed direct on the master record of the asset.

KR

Nadja

[former_member95896]

Hi Nadja,

Both sets of depreciation keys are delivered for the US, I'm not asking for anything to be added for the tax areas in question.

I'm asking what is the best/correct procedure for changing the keys and useful lives of all of the assets from 2018 forward that have the top configuration to the bottom and how do I get all of the depreciation and calcs efficiently and accurately recalculated to today for those assets particularly since the depreciation method we need to switch to has special depreciation.

Thanks,

Ryan

[Former Member]

Dear Ryan,

In the end you need to change the depreciation area settings for all affected asset master records. You also may want to consider to create a new time intervall for the desired change of depreciation key and useful life. If you need to perform this action on may assets in the same manner it might be a good idea to have a look a our new API (delivered with release S4H 2005): https://api.sap.com/api/FIXEDASSETCHANGE/overview

With that API you can automate such kind of changes.

Best regards,

Mick

[former_member95896]

Hi Mick,

If I change a depreciation key for an asset from its capitalization in 2018 which was straight line depreciation to special depreciation will recalculation catch all of that up or just effect the 2020 amount moving forward? We need the former not the latter.

Also regarding the new API, I'm glad it has been added as a step towards much needed improvements in functionality. However without development resources in house or the money to pay for custom development right now due to COVID-19s impact many businesses (like ours) cannot utilize this like we could if an app was built into S/4HC.

Regards,

Ryan

[Former Member]

Dear Ryan,

I propose that you prepare such an example in your Q-system and try to adjust this asset manually to see whether it brings the results you desire. Once you are satisfied with the way how the system calculates depreciation, the mass change is the next step. Have you tried to perform such a change already?

I totally see the point with the consumption of the API as it requires at least basic developer skills to write such a small programm. Unfortunately this is the only way currently to perform asset changes on a mass scale. And this is also the strategic decision from SAP to bring flexibility and extensiblity to our S4H Cloud customers. Any kind of app to deal with "mass processing" are not planned for future releases.

Best regards,

Mick