Remaning Netbook values goes to Reserve & Surplus A/c

[pranav_gupata]

Hi,

SAP Expert,

As Per New Companies Act India for Fixed Asset Rules has Been Changed w.e.f 01.04.2013 but we have to  implemented from 01.04.2014,

Scenario is Earlier we have calculated % wise Depreciation including some Useful life like 99.

Now As per New Companies Act now we have to Deduct Depreciation based on Useful Life say All Plant & Machinery useful Life 15 Years, Building 30 Years, Electronics Desktop laptop 3 years and if Amount is remain i.e Net book Value after expired of Asset , Value is showing 25000/- these amount goes to Direct Reserve & Surplus A/c. w.e.f Asset Acquisition Date Say if you Purchase Asset Lap Top  Date of Acquisition  Asset 15.04.2008 Value Rs.224000- Acc. Dep 216469.67 .

Note :  Old one Pecentage of Asset @33.34%   Net Book Value as on 31.03.2014 Rs. 7530.33

now As per New Company Act this amount goes to Reserve & Surplus A/c as discussed  with External Auditor

and accounting will be Generate

GL A/c No. 100500 Reserve & Surplus A/c Debit Rs. 7530.33  Balance Sheet A/c Liabilities. 

GL A/c No. 200225 Acc. Dep. Electronics  Credit Rs. 7530.33  ( Recon A/c) Asset  .  Asset No. 2051100205

We have more then 2000 Thousand of Asset i.e under Reserve should be posted above accounting while Depreciation Posting Year end 2014. 31.03.2015 simentionusly Depreciation Posting Also Generated which is Depreciate as per Planned value. for remaining Asset which is not under Reserve.

i,e Normal Process.

Dep A/c Debit

to Accumulated Dep. A/c Credited.

in Configuration AO90 .for Normal Asset mapped. but we have to calculate as well Reserve Net book Value Amount  i.e 7530.33. where we have to Config for achieve the same. 

Thanks in Advance

Kind & Best Regard

Pranav Kr. Gupta

[former_member198650 · Accepted solution]

Hi Pranav,

It is not possible automatically post some entries to reserve and some to depreciation a/c. Instead you can post manually to reserve a/c by asset class wise. First you prepare a details for each asset class how much you have to post to reserve a/c, then pass lump sum amount for each asset class by manual JV.

Regards,

Mukthar

[pranav_gupata · Accepted solution]

Dear Mukthar sir,

Thanks for replying , i was suppose to wait for yr will reply at least  my issues.. but in this regard in AW01N screen there is one Field Reserve TBP  i.e Reserve to be Posted, see the screen shot same amount suppose to show in this filed.

Kindly advice when we will use this field.

Kind regards

Pranav Kr. Gupta

[vivek_srivastava12 · Accepted solution]

Hi,

It is part of Special Valuation, in SPRO you can find:

Transferred Reserves (Deferred Gain)

In the following section, you define the system settings that are necessary for transfer of reserves (also called undisclosed reserves, deferred gain, balancing charges) to newly acquired fixed assets.

The tax legislation of many countries allows the entire undisclosed reserves, created by the sale of assets, or a part thereof, to be transferred to replacement acquisitions. The gain on the sale then reduces the depreciation base of the newly acquired assets. If such undisclosed reserves are not transferred in the year they are formed because there are no suitable new acquisitions, a reserve can be set up in the year in question to prevent the gain on the sale from having an influence on profit. These reserves have to be transferred in the next few years to assets acquired during this time period.

Further notes

SAP library FI-AA: Special Valuations of Fixed Assets -> Undisclosed Reserves (Deferred Gain, Balancing Charges)

Also this field will be populated when you have "Transfer of reserves" configured under Value maintenance of Depreciation Area.

Br,Vivek

[pranav_gupata · Accepted solution]

Dear Mukthar sir , not like that..might be i am wrong to explain scenarios.

Simple sir, if we have number of asset which is already going depreciation rate %  as well useful Life.

After New Companies act w.e.f 01.04.2014 your all Existing Asset Depreciation will be charge by useful of Life. when i changed the useful life of Asset Master data AS02, system calculate Depreciation based on Useful Life. working fine. few assets Value Amount is lying coz of we have change the Useful life from %. we have more the hundred Asset which is value is there after completion of Depreciation. say 25600/- showing Net Book Value only. not Planned Value for Depreciation. coz already useful is completed.  now this Amount i.e 25600 goes to Reserve & Surplus Account Automatically. so not required to pass the JV one by one to avoid this process by manual. IF SAP has given facilities then we can use it.

Note : This if First Time In India every Industry w.e.f 01.04.2013.. whaterver amount showing after expired of Asset if value is there , transffered to Reserve & surplus A/c.

And Accounting will be Generate Automatically

Reserve & Surplus A/c Debited      25600

To Acc. Dep. P&M A/c Credited    25600.

we are taking Depreciation Post Yearly till now for Fiscal Year not taken coz of New Amendment as per New Company Act.

So what we want, if we  do Post Depreciation for Fiscal 2014. system also Generate the Reserve A/c Balance which is keep and showing Net Book Value in AW01N... goes to Reserve & Surplus A/c Debited  Rs. 25600 and Acc. Dep P&M Cr. for 25600/-

Kind regards

Pranav Kr. Gupta

[pranav_gupata · Accepted solution]

Dear Mukthar sir , not like that..might be i am wrong to explain scenarios.

Simple sir, if we have number of asset which is already going depreciation rate %  as well useful Life.

After New Companies act w.e.f 01.04.2014 your all Existing Asset Depreciation will be charge by useful of Life. when i changed the useful life of Asset Master data AS02, system calculate Depreciation based on Useful Life. working fine. few assets Value Amount is lying coz of we have change the Useful life from %. we have more the hundred Asset which is value is there after completion of Depreciation. say 25600/- showing Net Book Value only. not Planned Value for Depreciation. coz already useful is completed.  now this Amount i.e 25600 goes to Reserve & Surplus Account Automatically. so not required to pass the JV one by one to avoid this process by manual. IF SAP has given facilities then we can use it.

Note : This if First Time In India every Industry w.e.f 01.04.2013.. whaterver amount showing after expired of Asset if value is there , transffered to Reserve & surplus A/c.

And Accounting will be Generate Automatically

Reserve & Surplus A/c Debited      25600

To Acc. Dep. P&M A/c Credited    25600.

we are taking Depreciation Post Yearly till now for Fiscal Year not taken coz of New Amendment as per New Company Act.

So what we want, if we  do Post Depreciation for Fiscal 2014. system also Generate the Reserve A/c Balance which is keep and showing Net Book Value in AW01N... goes to Reserve & Surplus A/c Debited  Rs. 25600 and Acc. Dep P&M Cr. for 25600/- simentionusly.

[pranav_gupata · Accepted solution]

Hi Expert,

i have seen in AO90 Configuration where Depreciation Folder : Account assignment for Transfer of Reserves :-

1. Val.adj Acct. for transfer of reserves : GL A/c Shall i Give here Reserve & Surplus A/c

and we have already assign the " Ordinary Depreciation account assignment :

1. Acc. Dep acnt for Ordinary Depreciation  : 214450 Acc. Dep. Plant & Machinery (Recon A/c)

2. Expenses account for ordinary depreciation : p&L 469250 : Dep .Acct P&M

so in our scenario we have to post the ramming Asset Net Book Value which is already Depreciated but few amount is still lying and these amount as per New Company Act goes to Reserve & Surplus A/c Debited and Acc. Dep P&M Credited. but we can not post directly to reconciliation Account, if i m not wrong.

Note : Once we  do Transferred the remaining amount say refer screen shot above 7530.33 assets No. 2051100205 should not goes to post why because when i retired of the same asset if Net Book Value will be zero then it is difficult to find out our Assets so we have given Memo Rs. 1.00 in OAYI.

Achieve goal is :  Reserve & Surplus A/c Debited  from 7529.33

                         To Acc. Dep P&M  A/c Credite 7529.33

as per External Auditor. it necessary w.e.f 01.04.2015 as per Rules Company Act.

Getting Error: if i go to ABMA

Kindly Help

Thanks

Pranav Kr. Gupta

[Marssel700 · Accepted solution]

Hi Puranav,

if you post through ABAA as unplaned depreciation you can define respective account determination in AO95 after enter depreciation plan in OAPL.

Try it and let us now

Regards