Unplanned Depreciation

[former_member1279634]

Hi Experts,

We have encountered an error in posting unplanned depreciation for April 2014.  Pls see screenshot below:

Useful life of the asset is 4 years:

Depreciation was supposed to end on December 2014 but we wanted to post unplanned depreciation amounting to 100,164.97 from April to June 2014:

Kindly advise on how we can proceed with the posting of unplanned depreciation.  Do we need to adjust the useful life of the asset?

Thanks in advance.

[beam_liang]

Hello Elli,

Please refer to note 50761:

*******
Unplanned depreciation does not influence the depreciation calculated by
the system in the current year. The only take effect in the calculations of the following years.
*******

For your example, net book value at the beginning of next year is 1.So system allow you only post amount 1

when you post unplanned deprciation.

You may consider post a negative write-up simply by entering a negative amount as the write-up affects the scheduled depreciation in the current year in the case of a net book value depreciation.

Hope this information could help you.

Best regards.

Beam

[ajaycwa1981]

Hi Elli

With the Planned dep of 50082 per month till Dec 2014 and with the Unplanned depreciation of 300494.91 that you already posted, the asset will have NBV of 1 at the end of 2014

If you further try to post Unplanned dep now, the NBV at the end of 2014 will go below zero... Thats why you are getting this error

Even though you post unplanned depreciation in April, the planned dep of 50082 per month remains the same

If you want to post this unplanned depreciation anyhow, activate the asset shutdown once on the asset from 01.Apr.2014.. May be it will allow you to post the unplanned depreciation then

You can also reduce the asset life by 9 months so that useful life ends in Mar 2014.. May be it will allow you to post unplanned dep then, after recalculating from AFAR

Br. Ajay M

[former_member1279634]

Hi Ajay,

We want to fully depreciate the asset up to June 2014 with equivalent amount of depreciation as shown below:

April     150,247

May      150,247

June     150,247

Thanks.

[former_member1279634]

Hi Experts,

We tried to change the asset useful life from 4 years to 3 years and 3 months and the planned depreciation was recalculated.  However, the planned depreciation for April was quite higher as compared to May and June.  How can we equally distribute the depreciation for April, May and June?

Thanks.

[former_member1279634]

Can we post a positive depreciation for the month of April so that the 250,412.43 will be reduced?

[Former Member]

Hi,

For equally posting of depreciation in period April, May and June, the 'Smoothing' indicator should be activated. You check in T-Code 'OAYR' and then select the company code in which you are posting the documents and then check whether smoothing is ticked or not. If you tick the smoothing indicator, system will post the difference of depreciation in an equal amount in 3 periods.

Regards,

Malhar.

[former_member1279634]

Hi Malhar,

Thanks for your recommendation.  However, if we tick smoothing, it will be applied to the whole company code.  As much as possible, we would like to apply the smoothing method only to one specific asset (let's say Asset 10000). The rest of the assets will still use the old posting rules.

Pls advise if it's advisable to just temporarily shut down Asset 10000. Then we will run AFAB for all assets where Asset 10000 will not be included since it was already shut down. After that, we will activate Asset 10000 then we will tick the smoothing method and run AFAB again only for Asset 10000.  After the depreciation run for Asset 10000, we will untick the 'smoothing' method. This process will be repeated until June 2014 when Asset 10000 is fully depreciated.

Other recommendation will be highly appreciated.

Thank you.

[ajaycwa1981]

Hi Elli

1. Post write up in April to bring down the depreciation to 150247 (ABZU)

2. Post unplanned dep in May and June to bring up the depreciation to 150247 (ABAA)

Br. Ajay M

[former_member1279634]

Hi Ajay,

We tried to post a write-up to bring the depreciation to 150247 but it has an error:

Line item causes scrap value of      1.00 to be violated

There is a depreciation calculation error in asset 000000010000 0000

Kindly advise the exact amount that should be posted as write-up.

Thank you.

[former_member1279634]

We also tried to post unplanned depreciation but it encountered an error:

In area 01, you can only post manual dep. up to the amount           
1.00

[former_member1279634]

We have already posted our planned depreciation for April.  However, we really need to post an unplanned depreciation amounting to 100,164.97. But upon posting in ABAA, there is an error saying that:

"In area 01, you can only post manual dep. up to the amount           
1.00"

[former_member1279634]

Is it still possible to post unplanned depreciation for April even if we have already run the planned depreciation in AFAB for the monh of April?

Thanks.

[Former Member]

yes, you can do it.