on 09-30-2015 6:50 PM
Dear experts, we have a problem with a transfer that was done from one asset (in a different class with different useful life) to another. It was a partial transfer and brought some accumulated depreciation with it. But when the new asset depreciation was calculated, it didn't take this transfer of 1,625.02 into consideration and adjusted the current year depreciation to be posted. The total should just be 34,242 (1,438,172 / 7 yrs straight line for just 2 periods in 2015). So I would expect only 32,617 to be booked since 1,625 was already booked on the other asset.
Can anyone explain if my thought process is wrong, or if we posted this transfer incorrectly?
Thanks for your help!
Julie
Hi Julie,
Yes, your thought process is wrong. When you do transfer posting, the APC & accumulated depreciation has transferred from old asset to new asset. So the depreciation which has carry forward to new asset is already charged for old asset. When you run depreciation for new asset, the system will calculate the depreciation either on APC value or NBV. But it wont possible to deduct the depreciation which was carried to adjust in current year depreciation. However, either you cannot charge any depreciation for old asset, in this case there is no carry forward the depreciation or write up the posted depreciation for the new asset by ABZU.
Regards,
Mukthar
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Thanks for the information Mukthar. I tried using ABZU but no matter which transaction I tried I got error AA400 - you cannot post write-ups. According to the transaction type you have to post to are 01. However in this area there is either no accum depr or the write-up depreciation types are not managed in this are.
Since we do have accum depr on the asset, I assume there is some missing configuration?
Also, I wanted to mention that we found a similar situation from 2010 where the current year depreciation was adjusted as we expected. Any idea why it worked in this case? The current year depreciation for 17 yrs double declining calculates out to 3,503. If you add the 3,533 for current year and the -30 from the transfer, it does equal 3,503.
The 2010 asset was an example of an asset that posted the way we expected. I don't need to adjust it. The asset we wanted to try the ABZU write up on was the current asset, but the system won't let me post using that transaction. See the error above. If you have any info on whether we need to change our config to allow it can you let me know. Thanks!
You can create a new transaction type by copying a standard transaction type of unplanned depreciation and change the account assignment as debit transaction and limit the depreciation area for this transaction type.After that you post the unplanned depreciation by ABAA by using this transaction type. Then it will post same entry as you expect from write up.
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