How to configure asset impairment ECC6.0

[Former Member]

Hi,

Our client is looking to enable asset impairment functionality in SAP. An asset impairment is different from a revaluation. Revaluation occurs when a business adjusts the assets prices from a mark to market perspective. An impairment occurs when the business realizes the assets it possessu2019 are worth more or less then what is declared on their balance sheet. SAP FA has standard transactions for revaluation of assets and allows to determine the GL accounts in transaction (AO90 under revaluation account assignment) but nothing for impairment.

I know there are several options listed on the forum to post an impairment but none provide the end result I am looking for

The closest option I have is using ABAVN with a partial retirement (but the posting is wrong).

The client provided the following example:

Facts:

u2022Fixed asset with original cost of $100

u2022Original useful life of 10 yrs

u2022Straight-line depreciation

u2022Impaired to $50 at end of 2nd year (after $20 of depreciation) expense

u2022No expected change in useful life

The related posting must be:

-50 cr. FA acquis

20 dr. Acc. Depr.

30 dr. impr loss (P&L)

After the impairment posting the depreciable base is 50, original useful life is 10, and remaining useful life is 8.

The asset would continue to depreicate at a rate of 6.25 per year for 8 years.

Has anyone configured this in their system?

Thanks,

Kuldeep

[former_member680563]

Thanks all for your help!!!

[jayesh_narwaney]

If you are on ERP 6.0 EhP 5 or above, you can turn on the business function New General Ledger Accounting 3, and use the mass processing for impairment.

[dfg1988]

See the note:

Note 847826 - Documentation for RAAUFW02

[bettassoci]

Hi Kuldeep,

Markus is right on target with AR29N.

Don't be mislead by the name 'Revaluation'...you can use if for impairments too.

In both scenarios, revaluation and impairment, you are required to adjust APC and accumulated depreciation.

Regards,

Kent Bettisworth

[MarkusBredel]

Hi,

try the new valuation functionality from RAAUFW02/AR29N. You can find information about this functionality in the SAP Help Portal.

Regards,

Markus