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Mid quarter depreciation without setting the mid period

anish_mathew3
Explorer
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Hello All,

Thank you for taking time to read my question.

When AA went live, half monthly data for the company code was not maintained (while it should have been maintained 15 as the mid period). Since the half period is not configured, I am not able to set the mid month setting in OAVH. Now the taxes are calculated with an additional 15 days when specifying mid quarter when using period method control 005. The company code went live last year October and SAP will not allow updating the mid period from blank to 15.

Have anyone dealt with such a situation? I planned on defining a new period control key and assign it to a custom period method control. But still not able to get the depreciation value correct to the mid quarter.

Any help is greatly appreciated.

AM

Accepted Solutions (1)

Accepted Solutions (1)

former_member183078
Participant
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Hi ,

it seems to be critical issue raise oss to sap.

Regards

Diwa

anish_mathew3
Explorer
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Thanks Diwa. I just can't come up with a configuration to calculate the depreciation for 15 days.. either it's 2 months or 1 month .. not 1.5.

Answers (3)

Answers (3)

sangharsh_navada
Explorer
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Hello Anish,

I am in a similar situation. Did you get any positive response from SAP?

When I raised this issue to SAP, they mentioned to look into the Note No. 2993 and 39416.

They have also mentioned that it is a consulting issue. I certainly do not think it is a consulting issue.

I believe that it is a standard issue in SAP.

As mentioned in Note 39416, I preferred to use the second option i.e. FYV-24 for one depreciation area. The issue I am facing now is, it is changing depreciation values of all the assets in that Depreciation area (owing to the change in the calculation of periods) for Prior years as well. I certainly do not want to impact the depreciation posting of prior years as they should not be impacted. I did find a correction program (RACORR10-Correction Program for later allowance of Half-Periods). However, I am not sure to which extent this will help me.

Have you found out any other alternative solution for this issue?

Thanks in advance.

Regards,

Sangharsh Navada

anish_mathew3
Explorer
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Hi Sangharsh,

SAP came back and said it's a consulting issue.

So what we did was manually calculated and posted the 15 days depreciation.

Thanks,

AM

sangharsh_navada
Explorer
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Hello Anish,

Thank you for your instant reply.

Sorry to hear that SAP has concluded this as a consulting issue, which I think is not!

This is a limitation in SAP FI-AA module. Let me write back to them and will post only if I get any positive response from them.

Regards,

Sangharsh Navada

NathanGenez
Active Contributor
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This has always been a consulting issue and is not a limitation of the software.  There are many settings throughout ERP that can not be changed once there is activity in the company code.  In FI-AA, this is one of them.

sangharsh_navada
Explorer
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Hi Nathan,

Posting ordinary depreciation entries manually (or could be through an upload program) and its reconciliation is a herculean task.

Needless to say, SAP is an awe-inspiring ERP. As we all know, its a robust ERP, which has many good functionalities. However, in my opinion, when we say a functionality cannot be adopted/changed when there is an activity in the company code, one has to agree that it is a limitation which is really not helping the customers.

Many thanks,

Sangharsh Navada

NathanGenez
Active Contributor
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Posting ordinary depreciation entries manually (or could be through an upload program) and its reconciliation is a herculean task.

I agree that it is a herculean task but I'd also comment that it is a bad solution too.  Solve the underlying issue, don't make manual journal entries for a periodic process that will run every month.

sangharsh_navada
Explorer
0 Kudos

Hi Nathan,

This is for Tax Depreciation. I am planning to create a new Transaction type to post the adjustment depreciation only for the Tax Depreciation area and post adjustment depreciation entries. This is just a thought. Apart from this, I do not see a way out. It would be great if you have any alternative solution in mind. Thanks in advance!

Regards,

Sangharsh Navada

Former Member
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Hi Nathan

Have you ever heard of anyone successfully changing their depreciation to half-months in a production system?  If so, did they require the assistance of SAP itself?

Thanks much

Peter

NathanGenez
Active Contributor
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Yes, it is possible.  Our firm has handled this request dozens of times.  Switching to or from half-periods, changes in the FYV... all of them are possible but SAP (and my firm) view it as a consulting service.

anish_mathew3
Explorer
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I have posted for SAP help and opened a OSS note. I will update this forum on what SAP suggests.

Thank you all for your contribution.

AM

NathanGenez
Active Contributor
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They'll most likely say that it's a consulting issue. 

It's not possible, in standard, to switch this setting once there is activity in that company code.

Former Member
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This message was moderated.

nihat_sa
Explorer
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Hi Anish,

what is the result?

Thanks

anish_mathew3
Explorer
0 Kudos

Does anyone else have any other experience in having the system calculate 15 day depreciation without using the mid period setting?

Thank you all in advance for your help

former_member351125
Contributor
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What do you mean without mid period setting? Is this OAVH? Anyway, you can try this.

Use of Half Months in the Company Code

In this step, you determine the company codes in which you want to use half periods. In this way, you can calculate depreciation in these company codes on the basis of half months or half periods.  Using this method, you can work with 24 periods in Asset Accounting, although the fiscal year version in Financial Accounting has only 12 normal periods (without using a different fiscal year version for Asset Accounting).

You should be aware, however, that the specifications for periods in the transactions in Asset Accounting (such as, useful life) have to be based on whole periods (12).

Example

Half periods are, for example, necessary to represent the "mid quarter/month rule". This is a version widely used in the U.S.A. With this rule, it is important for the determination of depreciation whether an acquisition takes place in the first or the second half of a period.

Caution

  • When you specify the use of half periods in the definition of an asset company code, half periods are automatically specified in all other company codes that use this fiscal year version.
  • You cannot use half periods with non-calendar fiscal months.
  • You cannot take back the use of half periods once the specification has been made.  It is noted internally by the system in the asset master records.

Requirements

The number of the posting periods in the fiscal year version used must correspond to the number of calendar months (12).

Activities

    1. Specify the use of half periods by entering the date (for example, the 15th) for the middle of the period for the company codes.
      2. If you have defined period controls yourself

(see Period Control),

  1. you must provide for the use of half periods in their assignment rules. For monthly and quarterly periods, corresponding period controls have already been created as standard in the system.

Thanks!

Jhero

anish_mathew3
Explorer
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Hi Jhero,

For half month in OAVH to work, there is a half month setting in company code that needs to be made. We missed defining the half month period as 15 and so it ended up as blank.

Thanks for your reply.

AM