Asset transfer (value adjustment)

[aninoo_Pedro]

Dear all,

I have been transfer asset no. To another asset no. At same company code using TC#ABUMN i have notice something when i transfer the amount from old asset no. To new asset no. the NBV for new asset no. became lower and i notice the diff. Goes to field name “value adjustment” my inquiry is : 

1- how i transfer asset next time with right way without any value adjustment 

2- how i correct the value adjustment that is appear in asset explorer AS03 for new asset ? 

[Santosh_Jha1]

Hi, can you please elaborate on the scenario data: What is the asset capitalization date of the sender asset and the receiver assets? Are there any other changes in the master data of he new asset? What is the transfer date (wrt to capitalization date of sender asset)??

[aninoo_Pedro · Accepted solution]

Asset capitalization date for sender asset wan in 2022 and for receiver asset in 2024 

there is no any change the master data for receiver asset. 

the transfer happen in 2024 

the value adjustment is seems as accum dep. in the sender asset transfer to receiver asset and this is impact to decrease the NBV for the receiver asset my inquiry is how i can remove or correct this value adjustment since the receiver asset is land and the land shall not depreciate it ! 

[Avnish_Goyal · Accepted solution]

Dear Aninoo_Petro, You are correct in describing that Land should not be depreciated. Since the original asset (sending asset) has accumulated dep hence it has posted the dep into adjustment. The only way to fix is to use t code ABZU using transaction type 700 and transfer the accumulated value back to APC. Thanks Avnish

[aninoo_Pedro · Accepted solution]

Thanks avnish_goyal1984 for your help. But i faced something in this tc ABZU which is when i simulate the run of transaction ABZU what will happen is DR. Asset (which perfect) CR.revenue (here the credit side will impact into revenue so i didn’t want to impact revenue it is shall impact CR.expense how i can solve this ?

[Avnish_Goyal · Accepted solution]

Hi Aninoo_Pedro, This is coming from account determination setting that you have in AO90.

[Avnish_Goyal · Accepted solution]

In AO90, you have GL account maintained in the “Revenue from write-up on ord.deprec.”. You can either change this setting to the account you want to use. We usually maintain a dep expense account in this setting as you are reversing the dep. Moreover, if we need to transfer this amount to some other account, it is easy to post a journal with dep expense account.

[Santosh_Jha1]

Well, if we have depreciation posting on the sender asset and we do a transfer, the deprecation information will come as adjustment value on the new asset. In your case the NAV at the time of transfer will remain though the asset life if you choose the depreciation key as 0000 in the new land asset.

If you don't want the adjustment value at all in the new land asset: You can retire the sender asset and create the new asset with the NAV (you will not have the linking  though).  

Second option is change the depr key to 0000 in the original asset and rerun the depreciation. This renders the asset to its original APC value. Next, you can do a partial transfer to the extent of the NAV you want on the new asset. Old asset can be retired after the transfer. 

[aninoo_Pedro]

Thanks for your options but i can not retire the asset since we shall be creat this asset by transfer as well as if i retire the asset i will charge expense and this is not acceptable in my company. Can I solve this with transaction code such as ABZU ? And if yes how i can ?

[Mark_W]

On the sender asset there is most likely depreciation that isn't transferred over as it is relevant for the sender asset. 

Check the depreciation key transfer period control settings. Maybe you can pick any depreciation key. Or set a time interval on sender asset for month of transfer using key 0000. Test it on your quality system. 

[aninoo_Pedro]

Thanks for your help, actually already i used dep. with key 0000 but now i have no any option to change the transfer or depr. So are there any other option like using transaction ABZU or any other transaction may help me to adjust the NBV for receiver asset ?