Depreciation needs to be reversed for further scrapping

[Former Member]

Hello,

How do I reverse the depreciation for fixed asset which needs to be scrapped on past date. Depreciation is done till date and needs to be reversed before scrapping.

Thank you.

Regards,

Aruna Thakar

[Former Member · Accepted solution]

Hi Aruna,

Reversing a depreciation run is not possible by itself, however the following

workaround can be used for the same effect.

1. Step 1: Trigger a
   recalculation for the open periods of the fiscal year (including periods where
   the depreciation run was already executed).
   Accounting impact of the
   recalculation:
   The recalculation will have the effect to reset / reinitialize
   the planned depreciation for the fixed assets for the open periods. NO POSTINGS
   will occur.
   This means that for the period for which the depreciation run has
   been performed and is correct these periods should be closed before performing
   the recalculation
2. Step 2: Start again the
   depreciation run for the periods of which the depreciations posting are
   initially erroneous.
   Accounting impact of the new depreciation run:
   For
   the periods of which the initial depreciation run was erroneous, new
   depreciation postings will occur with the correct value.
   For the periods of
   which the initial depreciation run was correct, the initial period-relevant
   depreciation values posted will remain. Only the delta will be posted to
   accounting i.e the erroneous non-period-relevant depreciation values posted will
   be reverted (that is, posted with reversed sign).

Kindly confirm this thread if the update fulfills your requirement.

Thanks

Lokesh Sharma

[parveen_kumar6 · Accepted solution]

Hello Aruna

You need to do the following to reverse the depreciation till the date you want to scrap the asset. For e.g. the asset is depreciation till Sept 2014 and you want to scrap it in March 2014.Hence you would like to reverse the depreciation from March 2014 to Sept 2014.

1. Update the master data of the asset and change the depreciation method to No Automatic Depreciation.

     - Select the Fixed Asset

     - Click on Edit - Master Data

     - Go to Asset Valuation tab

     -  Go to Valuation Intervals

     -  Add a new Valuation Interval starting from March 2014

     - Maintain the depreciation method 0000- No Automatic Depreciation.

2. Execute the depreciation run for the Sept 2014 and depreciation from March to Sept would be reversed. If you want to reverse the depreciation at the period level , then you can execute the depreciation run for each period.

Now I am not sure if system would allow to scrap the asset with the posting date in March as the latest posting on the asset would be in Sept. You can try or alternatively post the scrapping with posting date in Sept and system would only consider the depreciation till march for the scrapping for the asset.

Hope this helps.

Thanks

Parveen Kumar

[Former Member · Accepted solution]

Hello Parveen

I've created the same scenario but was not able to Check the reversal of depreciation...when I check the depreciation value it does not show any postings for depreciations?? where Can I check the reversal entry?

Thanks

Regards

Aruna

[parveen_kumar6 · Accepted solution]

Hello Aruna

Can you tell me the settings maintained in the valuation interval and the period for which you executed the depreciation run.

The depreciation run should create the reverse depreciation postings.

Thanks

Parveen Kumar

[Former Member · Accepted solution]

I got it!! Thank you

[parveen_kumar6 · Accepted solution]

I am glad that it helped. You are welcome