SAP Knowledge Base Article - Public

2777252 - Revaluation/ Acquisition / Write Down Does Not Change Planned Depreciation but Useful Life for Fixed Asset with Depreciation Method Str.-line from acq.value to 0

Symptom

You create a Revaluation or a Manual Depreciation of type Write Down Posting for Fixed Asset ABC to reduce its Net Book Value. For the Book Valuation view in question the Depreciation Method L010 - Str.-line from acq.value to 0 is defined. You expect that the reduction posting will reduce the planned Depreciation amount per Accounting Period (ABC represents the Fixed Asset ID).

Conversely, you create an additional acquisition posting for a fixed asset and expect the depreciation amounts per period to increase.

Instead, the depreciation amounts per Accounting Period do not immediately change.

- You notice that the reduced amount is considered in the very last year of the Fixed Asset's Useful Life.
Or
- You notice that the Useful Life of the Fixed asset was reduced (for a write down) /increased (additional acquisition).

Environment

SAP Business ByDesign

Reproducing the Issue

  1. In the Fixed Assets work center go to the Fixed Asset's view.
  2. Find Fixed Asset ABC and press Edit -Values.
  3. In the Values tab go to the Depreciation Overview sub-tab.
  4. Here, you see a planned Depreciation amount of, say, 1000,00 LC per Accounting Period (LC stands for Local Currency).
  5. Create a Revaluation or Write-Down posting via the Manual Postings functionality or create an additional acquisition. 
  6. In the Journal sub-tab of the Values tab verify that the reducing/increasing revaluation is documented here with a Journal Entry.

You notice that the Planned Depreciation for the very last Fiscal Year of the Fixed Asset's useful life is reduced by the Revaluation amount.

Or you notice that the amount of Useful Life Years is reduced/increased.

Cause

With the depreciation method Str.-line from acq.value to 0,such as L010 or L050 net value increasing transactions, for example additional acquisitions result in an extension of a Fixed Asset's useful life.
Conversely, net value reducing transactions, such as revaluations or write-downs can result in a reduction of the useful life or in a reduction of the calculated depreciation amount in the very last year of the asset's useful life (when the reduced amount is lower than the calculated, yearly depreciation amount).

Resolution

If you need to have the revaluations considered earlier than in the last year of the asset's useful life or if you do not want the useful life of a Fixed Asset to be affected by a revaluation you can use the Depreciation Method Str.-line from rem. life nbv to 0, L011 or L053. Here, additional acquisitions or reducing revaluations/write downs do not result in an extension or reduction of useful life but rather increase or reduce the depreciation rate per accounting period.

See Also

Please also refer to the SAP ByDesign help document Depreciation Methods - US

Keywords

L010, L050,  Planned Depreciation per Accounting Period, Revaluation, Write-Down, Write-Up, Additional Acquisition , KBA , useful life reduced , useful life increased , depreciation per period , l010 , SRD-FIN-FA , Fixed Assets , Problem

Product

SAP Business ByDesign all versions