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Depreciation key that posts catch up depreciation from prior years

Former Member
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1,023

I am currently using Depreciation Key LINR.  It will correctly calculate depreciation expense when using a capitalization date in a prior fiscal year.  For example if I capitalize an asset in 2014 with a 10 year life but I assign a capitalization date of 2009 the asset will only post depreciation over the next 5 years which gives a correct end of life that is 10 years from the original capitalization date.  Using LINR it will post depreciation evenly over the remaining 5 years and it does not post any catch-up depreciation in 2014 which would be the total of depreciation that would have posted in the first five years.  Is there a depreciation key that posts this catch-up deprecation when using a capitalization date from a prior fiscal year?

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Answers (6)

Answers (6)

Former Member
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Hi Alex,

What Jhero said is correct.

You can use ABNAN to do prior period capitalisation if capitalisation is yet to be posted but if you already posted acquisition you can reverse the acquisition entry  vide AB08 and post acquisition vide ABNAN.

Hope it solves your issue.

Regards,

G.Sethuraman

ajaycwa1981
Active Contributor
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Hi Sethu

Can we do AB08 for an asset acquired in last year? If am not wrong, system does not allow that..

Br. Ajay M

Former Member
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Hi Ajay,

I didnt mean to reverse the acquistion posted in earlier years that is not possible also.

In Alex's query, he quoted capitalised in year 2014, thats why I told him to reverse vide AB08.

If it is only an example and acquisition is also there in earlier years than posting unplanned depreciation is the only option.

Hope it is clear.

Thanks and regards,

G.Sethuraman

ajaycwa1981
Active Contributor
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Yup, I got confused between 2009 and 14

You are right.. Its better to reverse through AB08 and post ABNAN if catch up in the 1st period is needed...

Otherwise, LINR dep key is also an option whereby Dep Start Date can be changed..But that gives different result than ABNAN on a periodic basis

Br. Ajay M

ajaycwa1981
Active Contributor
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Hi Alex

Did this help?

Br. Ajay  M

ajaycwa1981
Active Contributor
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Hi Alex

I just tried it in my system for you, by posting the below transaction.. It worked.. Sharing the details with you

1. Created Asset - AS01./ Dep Key LINR / Useful Life 1 Year

2. Posted Asset Acquisition - F-90 (Doc Date / Posting Date = 01.05.2014) - 120000 USD

3. Depreciation per month shows as 10000 USD from May 2014 onwards till Apr 2015

4. Changed the Dep Start Date to 01.11.2013 (Nov 2013)..

This changed the planned depreciation

- for the month of May 2014 to 60000 i.e. Depreciation from Nov 2013 to May 2014

- From June onwards as 12000 till Oct 2014..

In short, the Dep Per month has changed from 10000 USD to 12000 USD and the asset perfectly depreciates to ZERO in Oct 2014 i.e. exactly in an year i.e. as per the useful life

Let me know if this is what you were looking for

Br. Ajay M


Former Member
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Hi,

According to me the option of posting extra depreciation is by way of posting an unplanned Depreciation only through T-Code ABAA for Fiscal Year 2009 - 2014.

Regards,

Malhar.

raymond_moynihan
Employee
Employee
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Hello Alex

There is no depreciation key available in the standard system that will calculate prior year depreciation and post it into the current fiscal year.

regards

Ray Moynihan

former_member351125
Contributor
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Alexander,

There is no problem in your depreciation key.

If you will post an acquisition on an asset that was capitalized on prior year, use transaction code ABNAN.

If you already post acquisition on the asset on 2014 and realized that the capitalization date is 2009. You can not do anything about it but to post unplanned depreciation (from 2009-2013) to correct the accumulated depreciation as of 2014.

Hope this help.

Thanks!

Jhero