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Incorrect posting in asset accounting after legacy asset transfer

Former Member
0 Kudos

I have an issue in Asset accounting.

The depreciation key used is LINA (with a base method 0009 and Dec. bal. method – 001 straight line depreciation)

My question is:

An asset was acquired 02/01/2005. It has an expected useful life of 1/11.

Under AS93.

I see the asset cum. acquisition value 205,695.00

Accu.ord. deprec - 78,784.06

The asset was transferred to SAP at 03/31/2007.

Now In aw01n I see the following:

Legacy data transfer Per – 3 Ord. deprec – 10,143.87

Posted Per – 4 – 13,364.13

Posted 5 – 5877.00

Posted 6. 5877

Till 8th month posted 5877.

The posted values are wrong. Since it was transferred to SAP it has a useful life

of 1 year. At this rate it will go for 3 years.

What can I do to rectify this error?

Why is it posting 5877?

Thanks,

Accepted Solutions (0)

Answers (1)

Answers (1)

dominic_holdstock
Active Contributor
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Hi,

Check what the useful life of the asset in SAP is set to.

The 5877 seems to be based on a UL of 35 Months (205695/5877 = 35)

Also in AFAMA check in the Multi-level method what the base value is and whether Rem.Life is ticked.

Kind regards

Former Member
0 Kudos

Dominic

Thanks for the response.

The useful life of the asset in the system is 1/0

When I checked in AFAMA in Multilevel method ( 052) the base value is ‘03’ and remaining life is not flagged .

In the <b>depreciation key</b> here is what is defined:

Base Method: 0009

Dec. base method : 001

Prd cont -008

Multilev. Meth. 052

Class: Straight-line

Multiple shift: Increase in depreciation and expired useful life.

What steps can I take to fix it.

Thanks

dominic_holdstock
Active Contributor
0 Kudos

Hi Roma,

The useful life has to be the Total Useful life of the asset.

Since your useful life is less than the expired usefull life the system is calculating depr. for after the end of useful life, which for base method 0009 is curbing.

<i>Curb

With depreciation beyond the planned useful life, the depreciation percentage rate can be derived, not only from the planned useful life, but also from the actual useful life. This method produces a declining-balance effect instead of a straight-line effect (curb).

Use Base Method 0007, this does not curb.

Kind regards

An asset that originally had a useful life of 10 years is depreciated in year 11 by 1/11 = 9.09 %, in year 12 by 8.33 % and in year n with 100/n %.

When you use below-zero depreciation with a curb, the system determines the percentage rate, after the end of planned life, to the exact period and not to the year.</i>

Former Member
0 Kudos

Your answer is very helpful.

Thanks for replying...

Dominic . I am trying to understand . You can see the numbers of my asset in posts above. Can you explain why is it calculating dividing by 35.

In the system in AS93

I see for depreciation area 01( book value ) useful life is 1/0 and expected useful life is 1/11.<b> '01' area is what we are using.</b>

But for depreciation area '10' (ACRS/MACRS) it has useful life 10/0 and expected useful life of 1/11.

For these two depreciation area is the useful and expected life linked anyway?

What is the exact difference between useful life and expected useful life.

P.S. I am thankful for your answers. I am giving points also.

Thanks once again