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Author's profile photo Nathan Genez

New Ways to Depreciate Fixed Assets in ERP 6.0 (Part 3)

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      Author's profile photo Former Member
      Former Member
      Nathan,

      We have turned on the EA-FIN in our sandbox environment which is at ECC 6.0.  When I look at the change screen for assets it does not give me the option to make the depreciation areas time dependent???

      Is there another setting we need to change??

      Thanks

      Jennifer Berlin
      jberlin@agrium.com

      Author's profile photo Former Member
      Former Member
      Dear Nathan,

      The article is highly useful for consultants working on FI-AA module, infact i faced the same problem and it was very difficult to understand how depreciation is recalculated and the adjustment entry is posted by SAP in the next depreication run.

      Now this is a welcome step by SAP, that deprecitaion does not recalculate for the old period.

      Thanks & Regards
      Sanjay Marathe

      Author's profile photo Alexandre ORTS
      Alexandre ORTS
      I am facing on the same problem, but I think that NDC doesn't work correctly !
      I understood the explanations about the new depreciation calculation.
      But my problem is following :

      - For the asset 100007556, I created an interval from 27.02.2009 with 15 years of use instead of 6 year initially (1st printscreen).

      - After this modification, when I display asset values (3rd printscreen - AW01N and comparisons), I see the same values for 2009 and the following years (2010, 2011, etc...). I did'nt understand why, because this new interval start from 27/02/2009 and not from 01/01/2009 !!!
      (I think that the depreciation in 2009 should be 10/12 of 2818.71 euros and no 12/12 !)
      The recalculation is done from start of the year and no at the start of new period !
      Thanks for your help.

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      I would recommend looking at the depreciation trace to see whether or not the intervals are there and if they have been created with the changes that you specified.
      Author's profile photo Alexandre ORTS
      Alexandre ORTS
      Dear Nathan

      After having finalized the tests, I must say that the new depreciation calculation works accurately and meets our needs absolutely, fom a point of view of calculation.

      I must also congratulate you for the quality and the relevance on your blog.

      Therefore, I must continue the tests in order to measure the impact on our FI processes, during the activation of the module function EA-FIN in the environment of production.

      However, you who have already this experience, can you say to me if the activation of this module function can have impacts not desired on module FI ?

      For example:

      - impacts on the fixed assets on which modifications of values or periods took place in the past during the activation of the new depreciation calculation

      - subsidiary fixed assets

      Thank you very much for your help.

      Regards

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      I'm not sure I understand your two questions since they could be interpreted several different ways.

      1. If you've made adjustments to asset values in the past and then activate the New DCP those adjustments will not disappear or somehow recalculate in another manner.  The same is true for changes to the depreciation terms of the asset because the New DCP will only see a single interval for the master data records after it is initially activated.

      2.  How are subsidiary assets different from a depreciation calculation standpoint?  The company code or cost center (or however you are referring to subsidiary) that is assigned to the asset is not affected by the New DCP. 

      Author's profile photo Alexandre ORTS
      Alexandre ORTS
      Nathan

      For the first point,the example is the following:

      - our fiscal year is fixed over the calendar year (from 1/1/2009 to 12/31/2009)

      - We execute the depreciation calculation once a year, with the end-year closing

      - the new depreciation calculation is activated at July 1st, 2009

      - we have modified the depreciation terms or the values of a fixed asset at February 15th, 2009

      - At the end of the year, while the closing process, the depreciation calculation will be done with the new program or with the old program (or with the both ?)

      For the second point, I think that it is a mistranslation: it is acted in fact of sub-number assets.

      Many thanks

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      Keep in mind that the depreciation program merely posts the values that are calculated in the subledger by the depreciation engine (either Old or New).  So the timing is irrelevant in a way..  if values are changed (ex., change in deprec key that is reflected back to the beginning of the year), then the posting program just calculates what should be posted as of that time and posts the delta.  There are no changes to RAPOST2000 in ERP 6.0 so it is not a variable when discussing EA-FIN or the New DCP.

      Another point...  part of implementing the New DCP is that you need to run a recalculation immediately after the extension is active.  This is what SAP recommends...  and I would recommend that you should recalculate values immediately prior to the technical upgrade.  This would ensure that the values in the system (as a starting point) are correct and any subsequent changes that are encountered after the upgrade are not the fault of the New DCP.

      To your question...  If you modify the deprec key on the asset using the Old DCP (prior to the upgrade or activation of EA-FIN) then the change is calculated over the entire year.  That's how the old DCP works and the value stored in the asset tables will reflect this...  I would expect to see the same calculated amount in each month throughout the year.  The posting program will post this calculated amount the same before or after the upgrade, before or after EA-FIN is activated.  IF you had changed the key after EA-FIN was activated and did so specifying a time interval, THEN you would get a different calculated amount.  Again, RAPOST2000 would just throw that amount up to the GL.  To put it another way, if the New DCP is active it is completely active and the old calculation is not used in any way except for AW01_AFAR (there are some back doors but I'm not posting those!).  So RAPOST2000 will just use the amounts in the asset tables that were recalculated using the New DCP.

      There are no differences regarding sub-assets.  Sub-assets are (in many ways) completely identical to main assets in terms of functionality, reporting, posting, and value treatment.  The New DCP does not treat them differently in any way.  No changes in that area.

      Author's profile photo Alexandre ORTS
      Alexandre ORTS
      Thanks you very much for this excplanations, Nathan.
      But in the following sentence ("then the posting program just calculates what should be posted as of that time and posts the delta"), have the posting program to be replaced by depreciation engine ????

      Thanks

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      No, it has not been replace.

      There are two parts to this; Calculation of depreciation values, and the posting of those values to the GL.  The posting of values by RAPOST2000 has not changed.  It only reads the asset's planned and posted amounts and figures out what to be posted next.  In your case there isn't much of a calculation since the posted amount is zero all the way until the end of the year.  But for most customers that run depreciation monthly, the posted amount will increment 1/12 with each execution of the program.

      This blog series deals with how the values are first calculated and stored in the appropriate tables.

      Author's profile photo Former Member
      Former Member
      Hello Nathan

      I thank you for all this information.

      At now, if you are available, I would like to know in which tables, informations is stored resulting from the depreciation calculation.
      On how long do these tables store the information (is a history keep) ?

      Thank you in advance.

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      There have been no changes related to this.  No new tables to store values or calculations.  That would require a significant re-work to all of the asset reports.  ANLC is the main value table that stores the final calculated amounts.
      Author's profile photo Former Member
      Former Member
      Good morning Nathan

      - I assume that it is not possible to keep historization of old datas (SAP keep only the last calculated amounts).

      - I have two others questions :
         - is it possible to work with 12 ponderated periods of 30 days instead day per day or month of 28 days, then month of 30 days, etc...)???

         - in the case where I modify the business area in the mid year (for example, on 7th may), is it possible to have the depreciation from 01/01/2009 to 06/05/2009 on one busiess area and depreciation from 07/05/2009 to 31/12/2009 on another one ??

      One more time, thanks a lot for your help.

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      1. Correct.  It has never tracked a history of the calculated amounts in a way that can be reported.  The figures are stored in change documents but you can't really report on that.

      2. yes.  this is not dependent on the NewDCP and has always been available.  You can either define your FYV that way or weight the periods in FI-AA.  But assuming a normal K4 FYV, the subledger treats each period the same (1/12th) regardless of the number of days in the period.

      3. yes.  this is standard.  If you assign a new BA or CC as of a particular date, the depreciation that was posted to the previous BA/CC prior to that date will remain on that BA/CC.  The expense is not moved.

      Author's profile photo Former Member
      Former Member
      Many thanks, Nathan

      But to do this, is it necessary to unmark the field :
      "Dep. to the day" in AFAMA transaction ?

      and if the response is "yes", what happens when the asset is modified for exemple on 17th june ? the depreciation will be calculated from this date (17/30 and 13/30)or from the 1st june (30/30) (start of period) ?

      Author's profile photo Former Member
      Former Member
      Hi Nathan

      I hope you are wery well.

      When you say : "by the way, for questions like this please use the forum or email me directly"

      what is your email address, please ?

      I have just two last questions about your last response.

      Many thanks.

      Alexandre

      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      you can look in people's business cards here on SDN to see if they have maintained it (which I have).  I'm also very easily found via Google and my company.
      Author's profile photo Nathan Genez
      Nathan Genez
      Blog Post Author
      by the way, for questions like this please use the forum or email me directly.
      Author's profile photo Former Member
      Former Member
      Hi Nathan,

      Thanks for sharing the information on new functionality of depreciation. I have a quick quetsion for you.In old function, if the useful life of the asset is reduced say from 5 to 3 years and depreciation was already calculated for 2 years, SAP will post catch depreciation in the period in which the useful life is changed. But if we want to spread the affected depreciation amount over the remaining useful life of the asset instead of it being posted in one period, shall we need to change depreciation key in the asset master along with useful life or by using interval in asset master record, system will by default post deprecaition in the remaining useful life? Can you pl. confirm this?

      Thanks and regards,

      Pinky

      Author's profile photo Lakshmi Sama
      Lakshmi Sama

      Hello Nathan,

      Nice document on FI-AA time dependent depreciation concept. It is really fantastic one.

      Thanks for sharing knowledge šŸ™‚

      Regards,

      Lakshmi S

      Author's profile photo Karthik Prasad
      Karthik Prasad

      We have activated EA-FIN in out system. We are in EHP 6, ECC 6.0. We are not able to see the interval field. Is there any other setting that is required.

      Author's profile photo BHASKAR REDDY SINGAM
      BHASKAR REDDY SINGAM

      Hi Nathan,

      Do more intervalsĀ work for USA AssetTax depreciation ( Special depreciation) ?

      Our requirement is we had aĀ ACRS/MACRS key is Z200 in thatĀ 50% special depreciation was assigned. Now the tax rules changed from 50%Ā  to 100% . We would like to change it to 100% and haveĀ  50% special depreciation historical data which we used earlier. Does it store historical data in asset master or Asset Values?

       

      Kindly advice.

       

      Regards,

      Bhaskar Reddy.S