Fixed Assets Impairment

[Former Member]

Hi SAP Gurus

We did fixed assets impairment in 2005, but impairment was not done in SAP till now. The management now requires that this impairment be done in SAP starting July 2015. We are reporting accurately because every month a depreciation reversal adjustment entry is posted to reduce the over depreciation amount that the system is currently posting (the system is planning and posting more depreciation than it should be if the impairment adjustment was done in SAP FA sub ledger) We want the impairment adjustment that we are going to do in July 2015 to be effective April 2005.

The following Configuration settings have been done

1. 1. (OADB) in the depreciation area 01 mark fields: - revaluation, transfer of reserve and revaluation ordinary depreciation as all values allowed.
2. 2. (OAYR) in specify interval and posting rule mark revaluation button on.
3. 3. (AO90) assign the G/L account in the asset classes which have to be revalued in assign G/L accounts area.
4. 4. Post revaluation in ABAW.

When posting the revaluation none of the above options is giving us an option to capture the impairment effective date of April 2005.

Please help, what should I do?

Thanks for your help

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

You want to post the revaluation on 01.04.2015. If yes, then you can enter the posting date as 01.04.2015.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar

Thanks for your prompt response

I would like for the system to post on the 04/01/15 but with effective date of 04/01/2005- with depreciation writeback so I am able to arrive at the current NBV as per our manual excel spreadsheet workout.

Regards

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

It is not possible to impair the asset from 2005. But you can write up the depreciation up to 31/03/15 on 01.04.2015 by ABZU. Later you can do impairment for the asset on 01.04.2015.

Regards,

Mukthar

[Former Member · Accepted solution]

Thanks for assuring me that its not possible to do impair the asset from 2005. . The assets values in SAP (APC & NBV) are more than what we are reporting so we would like to reduce the APC in SAP and also adjust the NBV to match our manual excel spreadsheet (impairment adjusted) that we update on a monthly basis.

Below is an example

SAP figures

APC - 78400.00 acqu. date 08/01/91

ACCUM DEP- 53013.33

NBV - 25386.67

AFTER IMPAIRMENT ADJUSTMENT ( EXCEL SPREADSHEET)-2005

APC - 25004.00

ACCUM DEP -13071.27

NBV- 11932.73

The  above impairment was not  done in SAP now 10 years later we want to adjust SAP with impairments. The reporting is ok because we did manual adjustment and we do a journal entry every month to adjust depreciation that SAP is calculating and posting.

Kindly provide me with a step by step of how I can use ABZU to resolve this issue.

Your help is greatly appreciated

Rgds

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

You have to do revaluation by ABAW with transaction type 893 on 01.04.2015. Here you have to the below amount for the below fields.

Amount posted : 53396

Rev.O.dep.PrYr : 39942.06

After enter the above save the document. When you run depreciation the system will adjust the above amount from APC & Acc.depreciation and will show the NBV as per your requirement.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar,

Thanks a lot for your undivided effort in assisting me with the impairment issue. It looks like this is the right solution for my problem. I have tested it  as at end of last fiscal year and scrutinized the asset explorer. The APC has been adjusted correctly and the planned depreciation amount is exactly what we are expecting the system to calculate. The system is giving accurate results.

We have not tested the impairment at a date which is in the middle of the fiscal year like June 2015 to access how SAP will record the current fiscal year depreciation charge( from April 2015- July 2015) or how we will  have to adjust for this current fiscal year's Accum Dep in the system. I am assuming that we will enter the current fiscal year Accum deprn amount in the "Rev.o.Dep:CY" field.

Kindly confirm if I am right?

Regards,

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

Yes ,you have to enter current year revaluation depreciation.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar

I have a follow up question to my previous Fixed Assets Impairment issue that you helped me solve.

I have noted that the system is showing the correct amounts (i.e. adjusted APC, NBV, and Planned Depr) in the current fiscal year when I use the ABAW. It also posting everything correct to the GL when I run depreciation. However in the next fiscal year (2017) the system appears to reverses the Impairment adjustment transaction back to where it was before impairment adjustment. I can see this from the asset explorer when I compare this year and next year. See below illustration

1. 2016 current fiscal Year

APC = 183 000; Impairment Amt = -118 492.50; APC after Impairmt = 64507.50

2. 2017 next fiscal year

APC = 64 507.50; Impairmt amt = 118 492.50; APC after Impairmt = 183 000.

It is suppose to continue with the correct values of the current year, but its like its writing back the impairment amount.

Why is it doing that? Your feedback is greatly appreciated.

Regards

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

It is strange. Check does any posting happened for 2017.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar

Thats true, very strange indeed. There is no posting in 2017. When I try to check the Balance sheet GL accounts postings for 2017, I am getting an error message saying "No data read for fiscal year 2017" I guess that means there is no posting done. It looks like its happening in Fixed Asset sub ledger only.

Regards

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

I have done testing in my system, it is behaving correctly. Can you please share screen shots of it and also let me know which transaction types have used for do revaluation.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar

When you tried it yourself, did you check the "Comparisons Tab" in asset explorer to check if your transaction is not reversing in the next fiscal year.

Regards

Ronnie

[former_member198650 · Accepted solution]

Hi Ronnie,

Please have a look the below screen shot as you requested.

I have used the ttype 892 for revaluation posting.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar

Thanks for sharing your screen shots.

The issue that was causing the automatic reversal of the APC impairment adjustment in the next fiscal year was to do with the depreciation area -01 that was linked with  depreciation area-10(Federal Tax). We had to unlink using Tcode OABC and set it to "00"

After the unlinking there was no reversal in 2017.

I would like to thank you for your unwaivering support in making sure the issue is resolved. I will consider your recommendation as the correct answer for the benefit of the others who might face simillar impairment problems in future.

Regards

Ronnie

[Former Member]

Hi,

According to me for Revaluation a Revaluation Measure is to be created in which to have to select for which Depreciation Area the Revaluation is to be done and also the date is to be maintained which is revaluation start date. So by that you can try to check if the Revaluation can be done from April 2005. But you can also do one thing that the differential amount can be posted as Unplanned Depreciation through ABAA T-Code and so by that the values of Assets will decrease.

Regards,

Malhar.

[Former Member]

Hi

Thanks for your prompt response.

Posting Unplanned Depreciation through ABAA T-Code will enable me to adjust only the NBV, yet I also want to adjust the APC down to the Impaired amount. How do I go about it?

Regards