FI-AA: How to manage special depreciation

[Former Member]

Hi all,

I have to set up FI-AA module and I was recently requested to be able to manage special depreciation in it.

In fact, my company is going to have a partnership with another company: so for some assets, special depreciations will be required in order to have on 30/06/2015,a value for the assets = 0.

The accountant chief asked to be able to have the amortization plan with special depreciation but also have the depreciation plan we would get if the depreciation was ordinary. He wants to know the difference between these 2 amounts.

For the moment, the following depreciations areas are defined:

Depr. area	Description
01	Social amortization
02	Fiscal amortization
03	Difference between 01 and 02 (01-02)
30	IFRS amortization
31	Difference between 01 and 30 (01-30)

I I don't know FI-AA very well (I just started to work on it) and I did not find useful documentation about special depreciations ...:(  So, for special depreciations, I just saw there are 3 codes for customizing (OABS, AOBK, AO94)..

=> Could you please help me?

Thank you in advance,

Zhen

[surendra_kotha]

Hi Zen Hui,

As per your requirement it is understood that for an Asset you need two different Depreciation rates/ lifes.

to achieve this You can manage two depreciation Areas one is with ordinary depreciation and another one is with special depreciation.  we have depreciation base method  it differentiate ordinary depreciation and special depreciation , interest.. in SAP depreciation types: ordinary, special and interest amount can be calculated automatically with the depreciation key and unplanned depreciation we need to calculate manually.

For one depreciation area you can assign dep key having ordinary depreciation as base method

For other depreciation area(tax) ( special depreciation) you can assign dep key having special depreciation as base method.

You can have another depreciation area - i.e derived depreciation area which is the difference between ordinary and tax depreciation and this difference you can post to the deffered reserve account to deduct from the Net book value of the ordinary dep area i.e corporate accounts book area.

Thanks and regards,

Surendra..

[ajaycwa1981]

Hi Zhen

To have special depreciation, you must have allowed special depreciation in your depreciation area in OADB

You must have 2 phases in your depreciation key, one each for ordinary and special depreciation

Phase 1 - Ord dep  - Base Method - Multi level method - period control etc

Phase 2 - SPL dep  - Base method - ----

Br. Ajay M

[Former Member]

Hi Ajay, Surendra and everybody,

In fact, I am in a specific case of merger: on 30/06/2015, the net booked value has to be 0 for some softwares assets. 

I don't see how I can define a depreciation key for that..

Is manual posting throught ABAA with codes 620 and 630 the way to manage that?

Please don't hesitate to detail your answers (I m lost! ).

Thank you in advance for your help!

Zhen

[ajaycwa1981]

Hi

Why dont you just define a useful life for the asset which ends on June 30 2015??

Have your dep  key based on useful life and have useful life that ends on June 2015...

That's the simplest way

Br. Ajay M

[Former Member]

Hi Ajay,

I will propose this solution to the customer. But I am not sure she will agree because she wanted to know the ordinary depreciation (with the original useful life) AND the special depreciation as well. It is a second constraint.

But, if she is OK, where can I indicate an end of useful life date on June 30th, 2015?

Thank you for your help,

Zhen

[ajaycwa1981]

Hi

You mention useful life in the asset master - depreciation area tab...

Mention useful life such that it ends in Jun 2015. Say if you create asset on Apr 1 2014, mention useful life as 1 yr and 3 months

Br. Ajay M

[Former Member]

Hi Ajay,

Thank you for the answer. In fact, I asked that question because in the asset master for the useful life, It seems we cannot indicate months but only years. So, I don't know how to make the depreciation stop on 30/06/2015.

Zhen

[ajaycwa1981]

Hi Buddy

You have the option to enter useful life in both years and periods

May be you did not enable the Periods in your dep  area screen layout

Br. Ajay M