10 Replies Latest reply: May 22, 2011 6:57 AM by prathima Ramappa RSS

Fixed Assets Questions

Dany Bittar
Currently Being Moderated

Hi Dear;

 

any one can explain me in detail (with example) the folowing please?

 

1- the difference of direct and indirect Posting of Depreciation in the depreciation area

 

2- the difference between gross and net Posting of Retirement in the depreciation are

 

3- the Leave with Expense Net Book Value in the fixed assets account determination

 

4- Leave with Revenue Net Book Value in the fixed assets account determination

 

thank you Dear;

  • Re: Fixed Assets Questions
    Ivy Zhang
    Currently Being Moderated

    Dear Dany,

     

    1- the difference of direct and indirect Posting of Depreciation in the depreciation area

     

    When 'Indirect depreciation' is selected, FA bookings will be

     

    debit - ordinary depreciation

    credit - accumulated depreciation

     

    When 'Direct depreciation' is selected FA bookings will be

     

    debit - ordinary depreciation

    credit - balance sheet assets

     

    Regards,

     

    Ivy Zhang

    SAP Business One Forums Team

  • Re: Fixed Assets Questions
    Ivy Zhang
    Currently Being Moderated

    Dear Dany,

     

    2, the difference between gross and net Posting of Retirement in the depreciation are

     

    Please refer to the following system behavior with different settings of 'posting of Depreciation'.

     

    Factors for calculation :

     

    Useful life: 600 months

    Acqusition Value : 6000 (01.01.2006)

    Ordinary Depreciation amount :  59.84 (depreciated to 30.06.2006)

    Net Book Value :  5940.16

    Retirement Net Price : 8000

     

    1, Scenario 'Net':

     

    (1)Settings

    Posting of Depreciation : Indirect

    Posting of Retirment : Net

     

    (2)Journal entry of Retirement

       (I will use the orginial G/L account titles)

     

                                                       Debit       Credit

    Default Revenue Acct Retirement                   8000

    Clearing Acc Asset Acquisition/BP  9400

    VAT                                                             1400

     

    Accumulated Depreciation Acct     59.84

    Balance Sheet of Asset Acct                          59.84

     

    Balance Sheet of Asset Acct                          5940.16

     

    (*Note : this amount is Net Book Value which is calculated like below

    5940.16 = 6000 - 59.84 )

     

    Sales Revenue for Asset Sales Net  8000

    Revenue for Asset Retirement Net                   2059.84

    (*Note : These postings are based on the setting 'Retirement:Net method'

      Account to which profits made from asset sales are posted.

      Profit = Net Profit -Book Value)

     

    2, Scenario 'Gross':

    (1) Settings

    Posting of Depreciation : Indirect

    Posting of Retirment : Gross

     

    (2) Journal entry of Retirement

       (I will use the orginial G/L account titles)

     

                                                      Debit      Credit

    Default Revenue Acct Retirement                 8000

    Clearing Acc Asset Acquisition/BP  9400

    VAT                                                           1400

     

    Accumulated Depreciation Acct      59.84

    Balance Sheet of Asset Acct                         59.84

     

    Balance Sheet of Asset Acct                        5940.16

     

    (*Note : this amount is Net Book Value which is calculated like below

    5940.16 = 6000 - 59.84 )

     

    Leave with Revenue Net Book Value   5940.16

     

    I hope it answers your querstion.

     

    Regards,

     

    Ivy Zhang

    SAP Business One Forums Team

  • Re: Fixed Assets Questions
    Ivy Zhang
    Currently Being Moderated

    Hi Dany,

     

    Pegarding the accounts you mentioned in question3 &4:

     

    The accounts will be used for retirement (Gross method).

    Whether you choose Net method or Gross method depends on your settings

    for the deprecaition area with Depreciation Area Type 'post to G/L'. You

    can check it under administration-> system initialization-> setup->

    fixed Assest-> depreciation area.

     

    When you add a retirement document in fixed Assets module, the account will be used in the Journal entry.

     

    The 'Sales Revenue for Asset Sales Net' is debited.

    If you choose Gross method, whether 'Leave with Expense Net Book Value' or 'Leave with Revenue Net Book Value' will be used in JE depends on the retirement will bring profit or loss.

     

    loss -> If the sales price is lower than the net booking value of the fixed Assets which is sold, the 'Leave with Expense Net Book Value' account will be debited

     

    profit-> If the sales price is higher than the net booking value of the fixed Assets which is sold, the 'Leave with Revenue Net Book Value' account will be credited.

     

    I suggest you to test on a demo system and check the JE generated, which will make it clearer.

     

    Hope it is helpful!

     

    Regards,

     

    Ivy Zhang

    SAP Business One Forums Team

  • Re: Fixed Assets Questions
    Catea k
    Currently Being Moderated

    Hi Ivy

    Can I still change the fixed asset from direct to indirect after they have performed depreciation? if Yes, is there any steps need to do?

     

    Please advise, thanks.

     

    Regards,

    Catea k.

     

    Edited by: Catea k on Jan 12, 2011 8:23 AM

    • Re: Fixed Assets Questions
      Jose Antonio Castillo
      Currently Being Moderated

      Hi,

       

      Fixed Assets Direct/ indirect method does not affect the calculations, saved values and reports that the Add-on provides.

      These values (including the value of accumulated posted depreciations and remaining book value) are stored apart in fixed asset tables

      that do not take its information from the Business One tables related to Journal Entries or GL Accounts balances.

       

      In other words, once the Add-on has selected the GL account for the journal entry, it will not take into consideration the Journal entry itself but the values stored in its own fixed assets tables which do not distinguish if the method was direct or indirect.

       

      Good thing of this behaviour:

      -Changing from direct depreciation or indirect depreciation does not lead to incorrect values for the future or looking at the past in Fixed Assets reports

       

      Bad thing:

      From the Accounting reports .You will have to do manual Journal entries to transfer the balances of postings created during the old method to the desired GL accounts so you have a matching between Accounting Reports (balance sheet) and Fixed asset.

       

      Jose Antonio Castillo

      SAP Business One Support

  • Error: unbalanced transaction during acquisition
    Luz Cornejo
    Currently Being Moderated

    Hello,

     

    I just want to inquire regarding the problem that I have encountered during fixed asset acquisition transaction using the document type: with vendor.  I have tried to add the document with tax code (with corresponding tax amount) but an error saying the account is not balanced pops up. Can you please help me by explaining the reason behind this problem?

     

    Thank you very much for your time.

     

    Luz cornejo

  • Re: Fixed Assets Questions
    Kenny Acosta
    Currently Being Moderated

    Hi Experts,

     

    can anyone help me how can i identify what account i should be set-up in Account Determination of Fixed Asset

    (Administration> Set-up> Fixed Asset> G/L Account Determination):

    i am using SAP BUSINESS ONE  2007 A (8.00.181) SP:00 PL:47

     

    1)  Retirement: Net Method

         a.) Sales Revenue for Asset Sales Net

         b.) Asset Retirement with Exp. Net

         c.) Revenue for Asset Retirement Net

     

    2) Retirement: Gross Method

        a.) Leave with Expense Net Book Value

        b.) Leave with Revenue Net Book Value

     

    I can not run the Retirement of Assets because this part was not been set-up

  • Fixed Assets Questions
    prathima Ramappa
    Currently Being Moderated

    Hello...

     

    I have a question for U guys!!!

     

    While making assets transfer in SAP using transction code AS02 if we make any mistake for e,g typo errors like tying 5 instead of 2 and saved the data.

     

    Is there any option to change it right away????

     

    Because as per ma knowledge unitl the depriciation run to that cost center we cant change the data.

     

    But i am not sure on that, i need to make immediat changes in SAP please help me out with this.

     

    Thanks in advance.

     

    Regards,

    Prathu

  • Fixed Assets Questions
    prathima Ramappa
    Currently Being Moderated

    Hey Dear!!!

     

    I have a question for U guys!!!

     

    While making assets transfer in SAP using transction code AS02 if we make any mistake for e,g typo errors like tying 5 instead of 2 and saved the data.

     

    Is there any option to change it right away????

     

    Because as per ma knowledge unitl the depriciation run to that cost center we cant change the data.

     

    But i am not sure on that, i need to make immediat changes in SAP please help me out with this.

     

    Thanks in advance.

     

    Regards,

    Prathu

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