We have around 5 assets acquired from previous years with 10 years Useful Life and depreciation will end by year 2016. The management wanted to fully depreciate these assets by December 2012. Kindly advise on the steps/procedures that should be done to finish the depreciation posting by the end of December 2012.
In AFAMA please select dep key GWG and change base value to Base method 0011. It will proporinate the amount over 12 months. Make sure there are no existing assets with this dep key in live server otherwise it will also impact them.
As suggested by Bernhard you can also proceed with unplanned dep posting posting period wise which will be posted to GLs upon posting of dep run every month. There is no harm in doing so.
We have 3 assets in live server that were using dep key GWG. However, these assets were all fully depreciated last December 2011. Can we just create a new dep key with base method 0011?
Regarding the suggestion of Bernhard to use Unplanned Depreciation every month, we will look into this option since what you've said is that there will be no harm if we do it.
Yes you can copy GWG in AFAMA and create new one and assign it the base value 0011 and then assign it to the asset master data for 5 assets you are talking about.
I have created a new dep key ZGWG which I copied from GWG . I assigned this new dep key in the asset master but the depreciation remains the same. It doesn't divide the remaining book value into 12 months. Last Depreciation still shows to be on year 2013.
I have selected the following values in AFAMA:
DepType - Ord. Depreciation
Phase - From the start of depreciation
Base method - 0011 (Ordinary: percentage from useful life)
I have activated the new dep key in AFAMA and assigned the same dep key in the asset master data but it still doesn't divide by 12 months.
There was a warning message upon activation:
ABC ZGWG N 1 : Check the treatment after the end of useful life
Message no. ACRSL018
Diagnosis
In multi-level method 044, you entered acquisition value or replacement value as the base value. For these base values, you should enter depreciation after the end of planned life,so that the system can, for example, depreciate to a book value of zero. Due to rounding or post-capitalization, these base values may leave a net book value after the end of the useful life. Without your entering a treatment for the end of depreciation, this net book value cannot be written off.
Procedure
Use a base method, in which the 'depreciation after end of planned life' indicator is set, in the depreciation key; and/or enter changeover method 5 (changeover after end of planned life) and a changeover key in the assignment of the depreciation key. The incorrect entry is in ABC ZGWG N 1 (chart of depreciation, depreciation key, depreciation type, depreciation phase).
You need to change the useful life of asset first and then check the following for maintenance in dep key. For me its working.Please check the again the parameters in ZGWG as given under
Base Method..0011
Decl Bal..001
Prd Cont..003
Multilevel:003
Rest is ok. The message system issued is informtion message and can be ignored.
Simply note down the NBV as on 31.12.2011 for your said assets.
Ex: for asset A, NBV is $1200 on 31.12.2011, then post unplanned dep with ABAA for this asset to an amount of USD 100 on 31.01.2012, again $100 on 29.02.2012, again $100 on 31.03.2012....and so on
Since the above entries wont effect your GLs anyway, until and unless you run AFABN.
In case system is already calculating Planned Dep also for FY 2012, then adjust that amount with above $100 and post the remainting balance only in ABAA. So first you need to get planned dep for each month of FY 2012, and then reduce that much of amount from the $100 and post the remaining bal only as unplanned dep.
Ex: in case if planned dep for period 01 of Fy 2012 is $25, then you post $75 only on 31.01.2012 as unplanned dep and repeat the same for rest of the periods also.
I already decrease the Useful life of the assets. It seems to spread the net book value into 12 months. However, the 1st month seems to be greater than the rest of the months.
For whatever reason we no longer have GWG on our system. I'm trying to rebuild it by this post, but I am also missing the standard settings for these. Will some kind soul please reply with them?
If you want system to fully exhaust depreciation on all these 5 assets by year 2012,then you can use dep key GWG and assign it to the asset master data. Do it in december 2012,system will post the whole dep in the month of december.
We wanted to divide the remaining net book value into 12 months. With this, we want to run the depreciation from January to December 2012 such that at the end of 2012.
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