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Depreciation calculation based on which date

Former Member
0 Kudos

Hi ALL,

We have depreciation key configured with period control 03 (Pro rata at mid period).In Asset master , ordinary depreciation date is mentioned as 01/04/2013 while Capitalised On date is mentioned as 30/04/2013.

Depreciation is calculated for the full month & we would like it to be calculated for half month as asset capitalised date is 30/4/2013.

Kindly let me know the check points so that system calculates depreciation for half month if capitalised date is mentioned any date after mid of month.

Thanks

Kishore Jain

Accepted Solutions (0)

Answers (4)

Answers (4)

ab_ab
Active Participant
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Kishore

I am not sure if my last message went through.

Please refer note 2993 for your issue. Thanks.

former_member351125
Contributor
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Kishore,

You should set-up this on Valuation > Fiscal Year > Use of Half Months in the Company Code. However since you already have existing assets and I guess in a live system. You should contact SAP as this is consulting issue.

Thanks!

Jhero

ab_ab
Active Participant
0 Kudos

Hello Kishore

If I understand you correctly, what you are trying to achieve is what is called mid month rule, which is very common in US. Under this rule, you basically are dividing your month into 2 asset periods, and you fiscal year into 24 periods. If that is what you want, then, first define in the company code definition that you want that company code to use half period (under Valuation > Fiscal Year > Use of Half Months in the Company Code). At this step also tell the system what date should be considered as 'mid month'. Usually this should be 16, which means the 2nd period of the month starts on the 16th of the month.

Once you have defined the start of the month, now you need to define a period control for acq. which basically says - "start the depreciation at the START of the period' (like period control 01). Therefore an acquisition on Jan 15th would mean depreciation start date = Jan 1, and an acquisition on Jan 28th would mean that depreciation start on Jan 16th.  You do not need to mark the period control as 'MidMonth' in OAVH.

I think this is what you intend to have.

Thank You

Asheesh

Former Member
0 Kudos

Thank you for the valuable reply.

There are few questions regarding above solution.

1.We have already existing assets

2.What if we implement this solution in existing company codes

3. We have exisitng assets with depreciation already posted.

4.Any other point which we should check to implement the solution

Thanks

Kishore Jain

ab_ab
Active Participant
0 Kudos

Kishore

Please refer to Note 2993 for your issue. Without knowing your system landscape, it's hard to recommend the next steps. This note should help you figure that out

Thanks

Asheesh

Former Member
0 Kudos

Hi Kishore,

As my understanding, the depreciation is calculated based on Ordinary Dep. Start day.

Your dep.key use period control 03 (for mid period).

If you keep blank this field (Ordinary Dep. Start date), the system will be picked up automatically the date

which is middle of first aquisiton period.

Example:

Your aquisition is 05.07.2013.

Check asset master data after aquisition, the Ordinary Dep. start date will be updated to 15.07.2013.

But, if you enter this field (Ordinary Dep. Start date) manually, the system will calculated start on this date.

In this case, you entered manually as 01.04.2013. So the system will calculate depreciation from 01.04.2013, it means calculate for hold month.

Now, you can change the Ordinary Dep. Start date to 15.04.2013 and run Dep. for this month again.

For next time, keep this field is blank when creating asset.

Julie

Former Member
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Hi Julie,

I have created new asset & didn't enter any Ord depr start date.Then I have posted acquistion with posting date as 05.05.2013 & checked in asset master.

In asset master ord depr start date is 01.06.2013.

Can you please share your thoughts on this.

Thanks

Kishore Jain

former_member351125
Contributor
0 Kudos

Upon posting of acquisition what asset value date did you use?

Can you please inform us what is the period control method assigned to your depreication key?

e.g

Per Method | Acq | Add | Ret | Trans |

Thanks!

Jhero

Former Member
0 Kudos

Hi Kishore,

Please check your calendar assignment (tcode OAVH)

- Fiscal year variant: the FV has been assigned to your company code

- Period control: 03

- Year:

- Month:

- Day:

- Period:

- Mid month checkbox:

Can you provide the setting in OAVH with period control 03.

For your information, you can read the below SAP help for this setting:

-------------------------------------------------------------

Define Calender Assignments

The system uses the assignment rules in the period control to establish the connection between the asset value date of an asset acquisition or retirement and depreciation periods or fiscal year periods.  The assignment rules determine the relationship between posting intervals and periods in the given fiscal year version.  These entries have to be changed in the following cases:

  • You use period control rules you defined yourself.
  • You change the definition of the periods in the fiscal year version in Financial Accounting.

  Example (first year convention of a half year) 

Posting up to 06/30depreciation start/end in period 000
Posting up to 12/31depreciation start/end in period 006

Caution

The system interprets period 000 as the start of the first period, that is, for depreciation calculation to start at the start of the fiscal year, enter period 000 (or BLANK).

Standard settings

There are standard period controls supplied by SAP.  The system automatically sets up the relationship to the calendar for these standard period controls when the fiscal year version is assigned to the asset company code.  It is also possible to generate this assignment to a fiscal year manually (application menu: Periodic processing -> Settings) for a given fiscal year.

Recommendation

If the two points outlined above do not apply to your enterprise, take over the entries determined by the SAP system without changing or adding to them.

Preconditions

  • You must have defined fiscal year versions in Financial Accounting.

Actions

    1. Assign depreciation periods to calendar dates in your fiscal year. Define posting intervals based on calendar intervals.  For acquisitions, determine the starting depreciation period. For retirement, determine the period up to which depreciation should be calculated.  You define the posting intervals by entering the last calendar date in the given time period.
    Make sure that the beginning and end date of the defined posting intervals are the same as the start and end date of the fiscal year version in the company code.

        2. You can also calculate depreciation on the basis of half periods (for example, the mid-        quarter convention in U.S.A.).  In this case, you also have the set the indicator for '       depreciation as of mid- period' in each assignment rule.

-------------------------------------------------------------

Julie

Former Member
0 Kudos

Hi Jay,

I have not entered asset value date while posting acquisition.

Period control method 03 is maintained in Depr Key.(03 means Pro rata at mid period)

Thanks

Kishore Jain

Former Member
0 Kudos

Hi Julie,

In OAVH,please find the settings as below

- Fiscal year variant: the FV has been assigned to your company code Yes (C4)

- Period control: 03

- Year:Blank

- Month:05

- Day:31

- Period:12

- Mid month checkbox:not checked

Thanks

Kishore Jain