Capitalization Date

[Former Member]

Hello,

We have problem in capitalization date of fixed asset.

Client has transferred some assets from under construction which has capitalization date - 31.07.2014. While trying to capitalize the fixed asset relating to current year system throws message 'Posting not possible acq. cost of ind. mat. less than transf. amt.' . So now the client has capitalized it relating to Previous year and successfully simulate the postings.(manual posting for fixed asset - transfer for capitalization)

Once the asset is capitalized the system picks up the capitalization date of Asset under construction (31.07.2014) and not the posting date. Even the master data shows the same date (31.07.2014) in both set of books.

I've attached screenshot to help understand this problem.

Thank you.

Regards,

ADT

[Former Member]

So my question is why the capitalazation date is Asset's under construction date's capitalization date instead of Posting date or initial acquisition date????

[Parveen-Kumar]

Hello Aruna

The Capitalization date will be passed from the Source Asset to Target Asset, but the Initial Acquisition date will be same as the posting date of the complete transfer. The depreciation will not start from the Capitalization date instead it will also take the Initial Acquisition date into consideration.

Hence in this case, although the capitalization date is July 2014, depreciation will starts based on the Initial Acquisition date. You are using the depreciation method L010 and as per the depreciation method period control settings, if you perform the transfer on or before 15th Oct then System will start the depreciation from Oct. If you perform the transfer after 15th Oct, then system will start the depreciation from Nov.

The period control method for the depreciation method L010 is 003 and the period control key for the transfer posting is 02 -Pro rata up to mid period at period start. This means the following.

• For transaction postings made up to the middle of a period, the first day of the period is the date relevant for depreciation calculation.
• For postings made after the middle of a period, the date relevant for depreciation calculation is the first day of the next period

You could refer to the help document "Period Control Methods and Keys" for more details. You will find a link to depreciation methods excel which list the basic settings and period control method assigned to each depreciation method. In the help document, you will find the Period Control Key assigned to each period Control method for different types of postings.

Thanks

Parveen Kumar