Symptom
- You create fixed asset ABC for fixed asset class XYZ (ABC is the fixed asset ID, XYZ is the fixed asset class ID).
- You check the Asset Valuation and notice the depreciation method 0100 -LVA 100% complete depreciation; and the Useful Life Years is set to 1 year.
- However, in Fine Tuning you defined a different depreciation method for fixed asset class XYZ.
- You wonder why the system assigned the LVA depreciation method to fixed asset ABC.
Environment
SAP Business ByDesign
Reproducing the Issue
- In the Fixed Assets work center go to the Fixed Assets view.
- Press Edit to open fixed asset ABC.
- On the very top you verify fixed asset class XYZ.
- Navigate to the Master data tab and here to the Asset Valuation sub-tab.
- Under Current Valuation View Settings, you notice the Useful Life Years is 1 year, and the Depreciation Method is set to 0100 - LVA 100% complete depreciation.
To check the fixed asset class set up:
- Access the fine tune task Fixed Asset Classes in the Business Configuration work center.
- Choose the Edit fixed asset classes link.
- Find fixed asset class XYZ.
- For none of the assigned valuation views depreciation method 0100-LVA 100% complete depreciation is assigned.
Cause
Fixed asset ABC has been created as Low Value Asset as its acquisition costs fall within the defined value limits for low-value assets; Fixed assets with acquisition costs within the value limits are capitalized in fixed asset accounting, identified as Low-Value Assets, and usually depreciated completely in the year of their acquisition based on the depreciation method. The standard depreciation method for low-value assets is defined in each fixed assets valuation view.
Resolution
To check the low-value asset value limits
- First, take note of the acquisition cost of fixed asset ABC.
- Access the Capitalization Thresholf for Fixed Assets fine-tune activity.
- Select the relevant accounting principle and check the Minimum Amount and Maximum amount.
- You notice that the acquisition cost of fixed asset ABC falls into this range.
To check the depreciation method defined for low-value assets and the fixed asset valuation view:
- access the Fixed Asset Valuation View fine-tune activity.
- Find the valuation views used in fixed asset ABC.
- Under Default you notice the default depreciation method of low-value assets.
See Also
SAP Business ByDesign help document: Low Value Asset
Keywords
fixed asset, wrong depreciation method, 0100-LVA 100% complete depreciation , KBA , low-value asset , fixed asset class , depreciation method , SRD-FIN-FA , Fixed Assets , How To