What is the best procedure for accelerating depreciation on fixed assets to a date? #COE #MODPIZZA

[former_member95896]

Hello,

We have a situation where it was announced that we are closing an old store and opening a new store down the street later this year. As a result we need the useful life of the assets in the old store to end by the date the new store opens and for the depreciation to accelerate over the course of the rest of this year until that date (or the closest period based on the depreciation key).

We have roughly 70 assets in that store that we need to make sure are fully depreciated as of Nov 15 2021 (which is right in the middle of one of our 4 week non-month fiscal periods).

Here is an example of one asset, what is the best way to accomplish this accelerated depreciation as efficiently as possible in all of the areas below? Currently we are in the second week of our fiscal period 8, the date above is in between our fiscal periods 12 and 13.

Thanks,

Ryan

[OwenLiu]

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[Mark_W · Accepted solution]

Hi Ryan

Add a time interval for the period you need to accelerate the depreciation with only one period at useful life. You could test the APIs to add the new interval.

https://help.sap.com/viewer/5bcca49998834de2b5533c36602e52a2/2105.500/en-US/594cb5c3a8b34db1a6105b4b...

Or

Could you create a time interval for November, adopt depreciation key MANU for that period, and manually post the depreciation?

Thanks
Mark

[former_member95896 · Accepted solution]

Hi Mark,

I'm not sure how these procedures would work using the example above and specifically in the second instance we don't want to post a manual depreciation since it would appear differently and hit different accounts correct?

Can you elaborate based on the example above how the procedure would work to accelerate the depreciation to end by the end of our fiscal P12 if we're currently in P8.

Thanks,

Ryan

[Mark_W · Accepted solution]

Hi Ryan

For the time interval suggestion I've created a similar asset on my own test system.

In the general parameters in area 01 I added a new interval, you can of course pick a date to suit your own needs.

[Mark_W · Accepted solution]

Now the depreciation is going to look like this, the take over value in my asset was 100k

Now you can see overall at the end of period 11 I'll have zero NBV once the depreciation is posted

I suggest you create a sample asset on Q and see if it works out for you, you'll need to do the same to each area in the asset.
For the 70 assets you are looking for the API for adding a new time interval could be used, or you could do manually either depending which is easier for you.

Let me know if that gets you where you want, and you're correct about the manual depreciation, it will hit different GL accounts.

Thanks
Mark

[former_member95896 · Accepted solution]

Thanks Mark,

I tried what you had above in just the 01 area in a similar asset example and the behavior is still perplexing to me. So here's what the team would like to have happen, using my example asset above (which was from Q):

Asset NBV at the beginning of fiscal year 2021: $908.96

Ordinary Depreciation posted FYTD 2021 (thru P7): $449.54

NBV remaining: $459.42

If we recognize that a store is closing in P12 2021 and want to accelerate normal ordinary depreciation to end then and I'm currently in P8, I would think that the new interval and useful life would be one of 2 options:

1. New interval would begin at the beginning of the fiscal year and useful life would be 12 periods. The expectation is that the system take the $908.96 / 12 periods and create a posting to catchup up the previously posted periods in the current period and the 5 remaining periods would be (~$75.75).
2. New interval would be the start of P8 (7/12/21) and the useful life 5 periods. The expectation in this scenario would be that the system take $449.54 / 5 periods and post that in the remaining periods (~$89.91).

What I've found in both those scenarios is that regardless of what I put in the useful life the system will not post any further than P7 in the first scenario (the beginning of the year) or P8 in the second, posting all of the depreciation at once, why is that?

I recognize that your example above is effectively create an interval for the last period with a 1 period useful life and the system will post the remainder, but I'm curious why the intervals in the two scenarios above are not calculating as we would think they would (and also why you can't delete them and revert if you save).

Thanks,

Ryan

[Mark_W · Accepted solution]

Hi Ryan,

Can you post some screen shots of the asset from the Manage Fixed Asset app, if you capture the same 4 screen shots I've posted I'll try replicate on my own system and see what is happening.

Is there scrap value on the asset is one thing I'm thinking about?

Kind regards
Mark