My customer has an asset class that now has useful life 20 years but they want to change it to 5 years. I know that it is possible to change depreciation key to LINR and then change the useful life. It is also possible to create a new asset class and transfer this assets to the new asset class with ABUMN. It is 170 assets in the asset class, is it better to change asset class to a new with useful life 5 years?
If I change asset class how will the depreciation when I do the first depreciation in the new asset class?
What is best for my customer?
Best regards Lisa
Best of handling this issue:
1) Create a new asset class
2) Maintain the new useful life for the new asset class in OAYZ.
3) Create 170 new assets through AS01 (You can use LSMW recording to create them with reference to the old asset numbers)
4) Create a transfer posting from old asset to new asset. (use LSMW recording with ABT1 transaction)
Thanks a lot for your help, Sirinivasa. We have now created a new asset class and we also had to create a new depreciation key (copy of LINR). The assets get depreciated in 5 years but there will not be a big depreciation in January for the difference between 20 and 5 years so far and then the rest calculated on remaining periods until 5 years. Instead we wanted that the difference will be portioned out in the remaining periods. How can I avoid that, so they can take all cost in January?
Asset started to depreciate in 2007-04-01 and the depreciation was for example 100 per period when useful life is 20 years. If the useful life had been 5 years we would have a depreciation of 401 per period. The difference - 301 per period x the already depreciated periods get 9339 and this cost will we be able to take in January plus the depreciation for January of 401. But now we get 9339 portioned out on the remaining periods together with 401.
Does anyone know how to solve this??
Best regards L
I dont see a need for creating a new asset class, I would change the useful life defaults to 5 years and then do an LSMW to change the useful life on all asset masters. If you change from 20 years to 5 years the system will post a huge adjustment to your current period. If you have smoothing turned on the system will split the adjustment ( not the total adjustment - ) to the remaining months.
If you have the EA-FIN extension turned on you can specify the validity date for the change in life, this will split the difference over the entire life. I would recommend this option.
I have a collegue that did as you said but she have to change depreciation key to LINR also to get it to work. But she did not get it work with taking all cost for the difference in January. It split out on remaining life. If she have had LINK left there would just be changed to a higher depreciation in fiscal year, no change for the earlier years and the asset would not have been depreciated in 5 years.
She also got a problem that the system wanted to open all closed months back from depreciation start. No depreciations was posted back but the system wanted them to get opened. Because of that she did not executed this change on the same asset class.
What do you say about above? Are you sure that this change on present asset class will work?
Best regards L
If she have had LINK left there would just be changed to a higher depreciation in fiscal year, no change for the earlier years and the asset would not have been depreciated in 5 years
You must have smoothing turned on. Please check transaction OAYR. If you uncheck that then you should get all the difference in the first month.
I have a collegue that did as you said but she have to change depreciation key to LINR also to get it to work. But she did not get it work with taking all cost for the difference in January. It split out on remaining life
this is what you want right?. If changing the config of this key doesnt affect other assets, then you can just change LINK to work like LINR. Try changing the base value of LINR(mutlilevel method in AFAMS) to 01 from 03 and see if the change affects the current year only. I would expect the change of life to affect current year only( either higher depreciation or a lump sum adjustment).
She also got a problem that the system wanted to open all closed months back from depreciation start. No depreciations was posted back but the system wanted them to get opened
Not sure why we would need prior months open. This is strange.
Do you have the extension EA-FIN active? you can specify the date of useful life change so system wont affect any prior months.
If I do want to create a new asset class anyway. How can I get the difference in January as I wanted?
I do not have smoothing turned on but do anyway got the difference split out on remaining years.
What do you mean with EA-FIN, how can I check that?
Best regards Lisa
If you create a new asset class, you would need to create the asset using AS91and the post no value in the depreciation posted in the current year column and system will post a catch up in the first month or when you do an ABUMN to transfer the assets to the new class, change the life after that and then change your depreciation key. You will need to do some tests by changing the multilevel method etc in the depreciation key..
Its strange that you dont have smoothing turned on and the system still splits the depreciation out. Please check your depreciation key change it around in test client and you will see what the system is doing.
Do you know if the extension EA-FIN is on in your system? When this is you can create a new time interval for your depreciation rules and you don't need to create a new asset class.
For the depreciation corrections on the old fiscal years you can use the transaction:
ABAA - Unplanned Depreciation
When the depr key is based on depreciation from the rest of the use full-live the asset from 4 years all will be depreciated this year for 100%. For these assets no need to do ABAA - Unplanned Depreciation
I have now changed useful life on the asset class and on each asset. I have even changed depreciation key to LINR on both asset class and each asset. This seams to work, but not for activate new assets. So we will block this asset class for new postings and start a new asset class with useful life 5 years for new assets.
Best regards Lisa