Difference between post-capitalization and write-up of an asset

[Former Member]

Dear Experts,

Kindly explain the difference between post-capitalization and write-up of an asset in SAP.

Regards

Komal

[Former Member]

Hi Komal,

Post Capitalization means correction of the value of an asset, which is either set too low due to not carrying out a capitalization in the past, or which is treated entirely as expense.

where as Write up is the reversal of past depreciation and write-up is necessary either when the depreciation posted was too high or when the reasons for unplanned depreciation no longer exist.

Regards,

Venkata Raju

[Former Member]

This message was moderated.

[Former Member]

An asset is capitalized when you make your first acquisition posting on an asset. The capitalization date is used to determinate the depreciation start based on the period control rule from your depreciation key and sometimes for reporting reason