write back of unplanned depreciation

[DC_1]

we have changed depr key with retrospective effect and now wants to post depreciation effect for earlier year. System is posting delta amount for the current year but not making any changes for precious year. 

[Jeremy_Deo]

Hello dear user,

And thank you for asking your question in the SAP Community blog.

In SAP S/4HANA (including Public and Private Cloud editions), when you change a depreciation key with retrospective effect, the system does not automatically post depreciation adjustments to previous closed fiscal years. Instead, it only adjusts the depreciation from the start of the current year (i.e., current fiscal year postings only).

This is standard system behavior and designed intentionally to avoid retroactive changes to closed accounting periods.

Why the previous year's depreciation is not adjusted:

• SAP Asset Accounting does not post depreciation corrections to previous fiscal years once they are closed.
• Even with retrospective depreciation key changes, the system:
• Recalculates depreciation from the Asset Value Date,
• But only posts delta adjustments in the current fiscal year.
• Prior-year adjustments require manual handling.

Options to Handle the Prior-Year Effect:

1. Manual Adjustment via Journal Entry

• Calculate the difference in depreciation for the prior year (based on old vs. new depreciation key).
• Post a manual journal entry to reflect this adjustment.
• Debit: Depreciation Expense
• Credit: Accumulated Depreciation (Balance Sheet account)
• Add a text or reference to indicate it’s a retrospective correction.

2. Adjustment Using ABAA (Unplanned Depreciation) — Not available in Public Cloud

• In S/4HANA On-Premise or Private Cloud, you can post unplanned depreciation using transaction ABAA for the prior year period (if it's open).
• In Public Cloud, this is not available, so you must go with the manual journal entry

3. Reopen Prior Periods (Not Recommended)

• Technically possible (in On-Premise or Private Cloud) to reopen prior year periods and re-run depreciation.
• Not supported in Public Cloud.
• Not recommended from audit and compliance perspectives.

In Summary:

• SAP will not retro-post depreciation to previous years.
• You must manually adjust prior-year depreciation via journal entry.
• Going forward, the system will calculate depreciation based on the updated key.

I hope this will help you answer your question.

Best regards,

Jeremy