No Appropriate Depreciation catch up on Assets

[Former Member]

Hi All,

Can any body give best inputs for below situation...

Currently Assets depreciation is calculating based on straight line basis over their useful economic life.

now problem is no appropriate depreciation catch up on assets added to the register with a start date in prior financial year.

Assets added with start date in prior financial year can be following reasons...

Larger projects which take considerable amount of time to close

phased projects

subsequent addition to assets like over heads

this create  significant amount of work for my client to recalculate in excel and then post the correct depreciation catch up amounts to the register on a monthly basis.

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Well, even if you normally create the asset from As01 without the Post Cap check box, it will work

in Abnan, your dates of asset cap and value date will be of previous years

When you do Abnan, system will post below entry

Asset Apc Debit

Accum. Dep Credit (upto last fiscal year)

Income from Post Cap

All these GL must be assigned I Ao90

Ajay M

[Former Member · Accepted solution]

Hi Ajay and Mukathar,

Sorry for the delay response due to i was not able to login in forum.

i just followed what you both said and it has been posted successfully in testing system.

@Ajay Accounting Document posted exactly like you said.

Thank you for reply.

Regards,

Ravan

[Former Member · Accepted solution]

Hi Ajay and Mukthar,

How the depreciation will get calculate for the earlier posting periods once processed post capitalization please let me know.

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Hi Ravan

As I mentioned, depreciation upto Previous Year is posted in the Post-Cap (ABNAN) itself

Depreciation from the start of the Current year to the Current Posting Period will be posted in the next AFAB Run (Depending on Smoothing or Catch Up Option in OAYR)

Regards

Ajay M

[Former Member · Accepted solution]

Hi Ajay,

Thank you for update...

Let assume  Asset APC value is 2000 and use full life is 4 years

Asset was capitalize in 01/04/2014,and my accumulated depreciation was 500 till 2014 fiscal year.

Assume Depreciation is ran up to current period. 

Now i want add capitalize amount worth of rs 1000  in previous year at 31/12/2014

Could You explain how system behavior on depreciation in previous fiscal year?

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Hi Ravan

Once you do ABNAN with date of 31/12/2014, the system would compute Dep till 31/12/2015 and post the entry

Assume the dep till 31/12/2015 is 150 on this amount of 1000.

     APC            Debit 1000

     Accum Dep Credit 150

     Income from post Cap Credit 850

Now in 2016, when you do AFAB in Feb 2016, it will post dep for the current year (Jan+Feb) in the month of Feb

Please do this.. It will be clear to you

Rgds

Ajay M

[former_member198650]

Hi Ravan,

First have to create a asset master in AS01 by selecting post capitalization check box, After that you have to mention the capitalization date and fill other details. After that you have to post capitalization by ABNAN. Based on value date mention in the transaction data the system will post the depreciation for the asset.

Regards,

Mukthar

[ajaycwa1981]

Hi Ravan

You should do Post-Capitalization of assets, where the asset was supposed to be capitalized in previous year, but was not capitalized

T. Code ABNAN

Regards

Ajay M

[Former Member]

Hi Ravan,

Have you tried legacy asset data transfer..? That is possible through AS91, AS92 - care should be taken in giving values in Asset Values tab - where you would mention the NBV + Accumulated Depreciation + Depreciation to date amounts.

This will eliminate the need to run the Depreciation run. Or, next month will then calculate all the values (of depreciation expense TBP) from the 1st month of the current year.

Also - do change the cut over date in the ASSET SPRO.