Posted Depreciation is reversed

[Former Member]

Hi

We got a problem for an asset whoseful life is expired in Nov 2012.The entire depreciation posted from Jan 2012 to Oct 2012 got reversed or posted wih "-"ve sign  in Nov 2012.  The depreiation amut from Jan 2012 to Nov 2012 updated as planned dep in Dec which is wrong

Useful life: 6 years

APC: 5,173,234.09

Monthly depreciation 71,850.47-

Actual dep start date - 1.12.2006 

As of December 31, 2011, the netbook value of the asset was 788,970.18 THB

Also as of December 31, 2011, remaining useful life should be 11 Months i.e nov 2012.  

	788,970.18	NBV as of December 2011
January	(71,850.47)	Depreciaition
February	(71,850.48)	Depreciaition
March	(71,850.47)	Depreciaition
April	(71,850.47)	Depreciaition
May	(71,850.48)	Depreciaition
June	(71,850.47)	Depreciaition
July	(71,850.47)	Depreciaition
August	(71,850.48)	Depreciaition
September	(71,850.47)	Depreciaition
October	(71,850.47)	Depreciaition
	70,465.45	NBV as of October 2012
November	718,504.73	All Depreciation postings (January - October) was reversed
December	(788,970.18)	Booking the entrie amount 2012 YTD
	(70,465.45)	Difference between Nov and Dec 2012 (offsetting the value as of October
	0.00	NBV As of December 2012

We are using base method as "percentage from useful life" , period conrol is "period start" , multievel metod with base value "replacemen Value" but no cut of value key is assigned for dep key.

Please help us to understand why dep got reversed in Nov 2012?

[nishan_dev · Accepted solution]

Radha,

Did you made any changes to Depreciation key such as from XYZ to 0000, if yes then this is expected.

Please keep in mind that when you change the Dep. kep from XYZ to 0000 and run the depreciation, system will reverse the depreciation from posted values to ZERO for all open periods. 

You should be very careful in doing this..

Also verify the change document on the asset may be, some one else would have done, or add the AW01N Screen shot here.

Thanks,

Nishan Dev

[Former Member · Accepted solution]

Thanks Dev for the reply.  I checked change log for asset master. No changes for the asset for any field. Also there is no change in dep key config or assignment. Please see thebelow screenshots

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Regards

Radha

[nishan_dev · Accepted solution]

Radha,

Yes I can see depreciation are reversed, but still I am unable to figure out how it happened, this changes are only possible if we make some changes  on asset master specifically on depreciation key.

Also can you check if this observation only for one asset ? or for most of the asset? specially the asset which are using this depreication key. ?

Then we can investigate on depreciation key , is it standard key ? or Z key ?

Also please add screen shot of depreciation area for this asset.

Thanks,

Nishan

[Marssel700 · Accepted solution]

Hi,

Your netbook value is 788970,18. Monthly depreciation is 71850,47. Useful life: 10,980724 months. This is the point. It isn't okay because the system works only for integral values.

Analysing your information we have:

1 - Monthly depreciation: 71850,47

2 - Year Depreciation: 862205,64

3 - Remaining Year Depreciation: 215551,41

4 - Legacy Data Transfer: 646654,23

Your Legacy Data Transfer is different. This amount is defined in AS92 -> takeover value -> field: Ord.dep.posted and overflows Accm.ord.deprec. It regards only same year previuous months. Please check this information.

Other situation is depreciation the start date and useful life. I recommend you write in a excel sheet all Asset Lifetime month by month. Your start date would be from go-live, and your useful life would be the number of months up to lifetime end.

Probably to preserve monthly depreciation amount you must be forced to enter a netbook value for 11 months value: 790355,17 instead 788970,18. In this case you can subtract the difference from Accm.ord.deprec.

Let me know if I was clear.

regards

[Former Member · Accepted solution]

Hi Nishan,

Dep Key is "Z" key here are the screenshots.  It is affecting all the assets whose life is 6 years and has to be expired by Nov 30 2012 and also have the same dep key. Ordinary dep start date is 1.12.2006.

Dep key - settings

Base Method

Multilev Method -  Base value 03 - is for Revaluatin Value

We are using the same key for different company codes. Only got problem for one company code. 

The only difference I found is in legacy data transferred in 2011. The acc dep as per the key is 659119.52 but loaded as 644883.86 for 2011 till Sept. Later on dep amount got changed from Nov 2011 and same amount got posted till Oct 2012. NBV as of Nov 2012 30th is not equal to monthly dep.  NBV is 70465.43 but monthly dep is 71850.47. Is this causing the issue??

Regards

Radha

[Former Member · Accepted solution]

Hi Marssel,

Thank you for your reply.  The legacy uploaded values are different at the time go live.   Data migrated in 2011 and ordinary dep start date is 1.12.2006

As per the dep. method... the NBV as of Nov 2012 should be 56229.78, but as per the system, NBV is 70465.43. Please see the calculation below.

Legacy Acc dep till 2010 Dec	3522058.23	uploaded in AS92
posted dep till 9th period 2011	644883.86	in AS92
Amount posted at the time of Go live	4166942.09
10	73,620.87
11	71850.48
12	71850.47
2012 -1	71850.48
2	71850.47
3	71850.48
4	71850.47
5	71850.48
6	71850.47
7	71850.48
8	71850.47
9	71850.48
10	71850.47
5,102,768.66
5173234.09
70,465.43

Calculation as per Dep key
01.12.2006	1 month	73,235.50
2007	12 months	862205.6817
2008	12 months	862205.6817
2009	12 months	862205.6817
2010	12 months	862205.6817
2011	9 months	659119.515
Total as of go live	4,181,177.74
10	73,620.87
11	71850.48
12	71850.47
2012	1	71850.48
2	71850.47
3	71850.48
4	71850.47
5	71850.48
6	71850.47
7	71850.48
8	71850.47
9	71850.48
10	71850.47
Total Acc dep till oct 2012		5,117,004.31
Acc cost		5173234.09
NBV as on Nov 1st	56,229.78

As NBV is less than the monthly dep, is this causing the isssue??  You can see dep key settings in my earlier reply. 

Thanks & Regards

Radha

[Marssel700 · Accepted solution]

Yes, in this case the system is adjusting planned values for 11 months. You must check the takeover fields: Ord.dep.posted and Accm.ord.deprec.

Ord.dep.posted is legacy migration in current year.

Accm.ord.deprec. is the depreciated amount in all times

E.G.:

Depreciated values from 2011/01 to 2011/12 = 1000

Depreciated values from 2012/01 to 2012/06 = 500

Ord.dep.posted = 500

Accm.ord.deprec. 1000 + 500 = 1500

please chek that on AS92

[former_member188063]

Radha, I would suggest you to raise an OSS message.

Regards,

Sudhakar*