Accelerating depreciation (100%) on Assets that were acquired in a closed fiscal year

[mike_mccrary]

Hello All,

I am looking for some direction with accelerating depreciation a 100% on Assets that were acquired in a closed fiscal year.  What is the best practice for this process?

Prior to my takeover of support for Assets, my business partners would use depreciation key ‘LVA’ to complete this task and say that they have never had issues until this past year.  The depreciation key ‘LVA’ works correctly for Assets that were acquired in this fiscal year and that is what I expected.

Now my question is, what impact or concerns should I have if I were to create a new depreciation key (Z Copy) to accomplish this task?  Is this an option or will not work at all?

Thanks,

Mike

[Former Member · Accepted solution]

Hi Mike,

One cannot post depreciation in a closed fiscal year.

So better create asset with previous year's capitalisation date and Dep key LVA.

Then post acquisition vide T code ABSO TTY-401.

Depreciation will be posted in current year. That is correct in accounting standards perspective also.

Hope it is clear.

Regards,

GSR

[mike_mccrary · Accepted solution]

Hello GSR,

Thank you for your reply, but I just want to elaborate on this:  So, my asset is 2 years old (FY2013) and the company wants to accelerate the rest of the depreciation into this fiscal year(FY2015) w/o touching the past 2 years.  Is this really the only way to accompolish this?  It just seems like a lot of work for a pretty standard process.

Thanks again for your help,

Mike

[NathanGenez · Accepted solution]

Do they want to write it off right now?  Or do they want to spread the depreciation calculation equally over the remaining periods in 2014?         

[mike_mccrary · Accepted solution]

Hello Nathan,

They want to write it off in the current period.  Just to let you know though, we did resolve this issue.

The practice here is to keep the prior year’s Asset Accounting open and when we changed the depreciation key to LVA, it was trying to actually post in to FY2014 and not FY2015. So, we closed FY2014 in Asset accounting and tried it again in which it worked successfully.

With that said, I was wondering if you could tell me what the benefit is by keeping the prior year’s Asset accounting open?

Thank you,

Mike

[NathanGenez · Accepted solution]

There is no advantage to leaving it open and I'd consider it a messy habit to do so.  If you need to do something in the prior year, it's possible to re-open the year, make your change, and re-close it.  That's the proper way to do it... not leave it open indefinitely.

[mike_mccrary · Accepted solution]

Thank you for your help and we are going to close it from now on.

Thanks again,

Mike