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Monthly Depreciation Adjustment

former_member650819
Participant
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Hi,

I had posted a thread earlier regarding Depreciation adjustment .

I have posted accelerated depreciation for FY 2013. Now starting from FY 2014, I have run the Depreciation for all assets including the asset for which accelerated depreciation is posted.

I am trying to post a Journal Entry to reduce the depreciation charged against the asset by posting

40 (Posting Key)-----Accumulated Depreciation -----Dr

50 (Posting Key)-----Depreciation A/C -------------------Cr.

But manual entry is not affecting the asset net value which should be increased after posting this journal entry.

Also, I am trying to post Asset Write-Up through ABZU after depreciation run, but I am seeing that the system is charging additional Depreciation instead of decreasing the Depreciation amount.

Kindly suggest how to overcome this situation.

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Answers (4)

Answers (4)

former_member650819
Participant
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Hi All, I am unable to proceed in the posting in ABZU. Can anyone suggest what should be the Document type used for write up entry in ABZU?

former_member351125
Contributor
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nabin,

"Iam trying to post a Journal Entry to reduce the depreciation charged against the asset by posting"

     - You are posting journal entry, this means that you want to adjust the GL as the posting is not correct. So I guess the asset values are correct but not matching in the GL accounts that is why you are posting journal entry?

"But manual entry is not affecting the asset net value which should be increased after posting this journal entry"

     - Manual entry only affects the ledger and not the asset. If you want your posting refelect as well in the asset, post an asset transaction.

You need to clarify the problem:

1. Why are you posting entries on GL?

2. Are you posting entries on GL only or both GL and asset?

3. Are GL and asset balances tally?

4. Is your asset balance correct?

Thanks!

Jhero

former_member650819
Participant
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1. I am posting entries on GL since, I want to adjust extra depreciation charged last year into this year.

2. I am posting entries only on GL and not on Asset. If I hav to post both, kindly suggest the entries to be posted for both Depreciation and asset. Kindly suggest the posting keys and Transaction Type if any if we have to post JV.

3. Asset and GL entries are tallying, but this manual entry is an adjustment entry to adjust extra depreciation charged last year to current year.

4. Asset Balance is correct, but I wanted one Journal Entry to impact both asset and Depreciation. However, I am trying for write up ABZU. Kindly suggest, if ABZU can fulfill my requirement.

Also, please suggest what should be the Document type used for write up entry in ABZU?

srinivas_rao69
Active Participant
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Hi Nabin,

If you are posting JV it will be effect to GL only not the asset.If you want to effect the GL and asset for decreasing or increasing the depriciation you can use unplanned depriciation through ABAA TType:640.once you post the unplanned depriciation it will adjust asset netbook value as well as it will updated the gl.

If you want to see the depriciation in FS ask to user select the accumlated gl and unplannedacumlated gl it will give correct report.

i hope it will be help to you.

Regards,

Nivas.

former_member650819
Participant
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Hi,

I have posted the adjustment through write up in ABZU.

Is there any impact?

Please suggest.

srinivas_rao69
Active Participant
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Hi Nabin,

Don't have any differenece posting depriciation through ABZU (Can post last year depriciation) and ABAA, it will be effect same the way to GL.

But in Asset explorer if use ABZU it will direct effect to GL and will be deduct from asset netbook value and it will not show in the depriciation line item posted area in the asset explorer.

if want to show in depriciation posted in asset explorer through ABZU can not show.If you post through ABAA it will show in deprication posted line in unplanned area remain will be same as how the system is showing how you did through ABZU in the asset explorer.

I hope you will understand.

former_member650819
Participant
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I checked what you are saying in AW01N, and the system has recorded the amount of write up value in write up and the net figure is showing in AW01N for the asset Net Book Value.

Entry posted is:

Asset Dr

Depreciation Cr

Is there any problem here?

srinivas_rao69
Active Participant
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Hi Nabin,

No Problem, it is ok.can you check entries again.becuase entry will come like this.

70 Accumlated depriciation Dr

       50  Depriciation                   Cr

former_member351125
Contributor
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nabin,

Can you inform me what is your expected amount on the asset and what is currently in SAP so I can help you to analyze the correct postings?

1. Expected Accumulated depreciation as of (what year).

2. Accumulated depreciation in SAP as of (what year).

3. When do you want to post the adjustment?

4. Is it ok to correct the accumulated depreciation as of today? and not as of previous fiscal year?

Thanks!

Jhero

ajaycwa1981
Active Contributor
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Hi Nabin

May be you entered a -ve amount there in ABZU

Select trans type as 700 and enter +ve amount

ABZU cam never increase depreciation... Thats for sure

br. Ajay M

former_member650819
Participant
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I am posting in ABZU with transaction type 700, I am getting error message:

You cannot post write-ups

Message no. AA402

Diagnosis

None of the areas to be posted in accordance with the transaction type entered manages one of the depreciation types entered or cumulative values.

Procedure

Check the transaction type.

The asset was purchased this year 2014. This is for testing purpose. I tried with an old asset as well, I am getting same error message.

Please suggest.

narasimhulu_konnipati
Active Contributor
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ABZU will never increase the depreciation hence it decreases the depreciation and increase the Net book value.

Please check and let us know the result.

former_member650819
Participant
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Can you tell me the steps for posting ABZU? Like Transaction type to choose and whether to run AFAB after posting ABZU?

Former Member
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Hi Nabin,

Please check the base value key in multilevel method assigned to your depr. key. This key controls which balance will be picked up for depreciation run.

Regards

Rohit