I acquired an asset in 2022 and capitalized it on October 3, 2025.

[ALI_HASSAN58]

I acquired an asset in 2022 and capitalized it on October 3, 2025. The asset has a book value of 197,765, and I intend to depreciate it by 95% in November 2025 using unplanned depreciation.

I attempted to post the depreciation using transaction types 640 and 650, but both resulted in the same error (screenshot attached). To address this, I also configured the depreciation key to include a scrap value of 5%, but this did not resolve the issue.

Despite these adjustments, the system continues to reject the posting. I would appreciate guidance on how to correctly execute this unplanned depreciation while ensuring compliance with asset accounting rules.

[Chris1973]

Good day @ALI_HASSAN58 

Thank you for your question.

Have a look at the following references for further details.

Depreciation Areas, Unplanned Depreciation Expense, Manual Planning of Depreciation, Transfer Postings

Restricting Transaction Types to Depreciation Areas

The error message you provided highlights discrepancies between your transaction type year category and the acquisition posting year of your asset.

To summarise, in public cloud, the system enforces strict controls on unplanned depreciation posting to maintain compliance with IFRS and its clean-core accounting principles. The system interprets this as a prior-year acquisition and transaction types for unplanned depreciation must align with the 640 (for current-year acquisitions) and 650 (for prior-year acquisitions not prior YEARS) classification.

That means, the system will reject your posting if:

• The wrong transaction type is used
• You attempt to depreciate beyond the allowable residual value. An example would be depreciating more than book value minus scrap.
• Both prior-year and current-year values exist and therefore it requires separate posting split by acquisition category.

Your 5% depreciation key scrap value setting was correct but not relevant to the manual transaction logic.

Let me know if you have further questions.

Best regards

Chris