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Asset impairment

Former Member
0 Kudos

Hi Friends,

Does SAP has different transaction or process to perform impairment activity ? or will this be treated as normal "retirement without revenue (ABAN) transaction" ?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

The business process requirement for asset impairment, stated briefly, is to

change the NBV to FMV on the valuation date and depreciate the same for the

remaining life from that date. This process is not built into SAP as a

standard and hence various work around approaches that meet the requirement

and satisfies the 'wants' of the client. In the absence of a generalized

definition of a BPR for impairment, there does not seem to be any clear

distinction between what is needed vs what is wanted.

Reg

Suresh

Former Member
0 Kudos

Hi Suresh,

Thanks for your valuable feedback. When you refered it as "process is not built into SAP as a

standard and hence various work around is required", does this mean that "enhancement" is required or the workaround is in the configuration ?. I need to document this in my PDD, your feedback on this will highly be appreciated.

Former Member
0 Kudos

Hi,

I implore you not to make this procedure more complicated than it is. I can assure you that you don't need an enhancement to perform an asset impairment. If anything, you may need to perform some customization on a depreciation key (if it is not depreciating correctly after the unplanned depreciation is posted).

Use the below URL to the SAP Library for additional information about manual depreciation adjustments:

http://help.sap.com/saphelp_erp2005vp/helpdata/EN/4f/71e8eb448011d189f00000e81ddfac/frameset.htm

Notice where it talks about an "unexpected permanent reduction", which is the very definition of an asset impairment.

Thanks,

Chad

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

You may also use transaction ABAA - Unplanned Depreciation. By doing so, you can mantain the historical cost of the asset, while still writing down the impaired asset's book value.

Thanks,

Chad