SAP Knowledge Base Article - Public

1707747 - The Depreciation Method for LVA ( Low-Value Asset) is Not the One Defined in the Respective Fixed Asset Class


  • 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.


SAP Business ByDesign

Reproducing the Issue

  1. In the Fixed Assets work center go to the Fixed Assets view.
  2. Press Edit to open fixed asset ABC.
  3. On the very top you verify fixed asset class XYZ. 
  4. Navigate to the Master data tab and here to the Asset Valuation sub-tab. 
  5. 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:

  1. Access the fine tune task Fixed Asset Classes in the Business Configuration work center. 
  2. Choose the Edit fixed asset classes link. 
  3. Find fixed asset class XYZ. 
  4. For none of the assigned valuation views depreciation method 0100-LVA 100% complete depreciation is assigned. 


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.


To check the low-value asset value limits

  1. First, take note of the acquisition cost of fixed asset ABC. 
  2. Access the Capitalization Thresholf for Fixed Assets fine-tune activity. 
  3. Select the relevant accounting principle and check the Minimum Amount and Maximum amount. 
  4. 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:

  1. access the Fixed Asset Valuation View fine-tune activity. 
  2. Find the valuation views used in fixed asset ABC. 
  3. Under Default you notice the default depreciation method of low-value assets. 

See Also

SAP Business ByDesign help document: Low Value Asset


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