In an industrial company is very common that it exist periods stopping in manufacture, which is used for maintenance repairs. In these periods, the accounting and controlling departments separate the costs of these repairs to avoid distortions on calculation of production costs: raw material costs are reduced or eliminated and repair external costs increase considerably. In addition, fixed costs are equal apply installations worked or not. A common solution is accounting departments to share out the fixed costs of the shutdown period between the rest of the year accounting periods. This operation is usually an external calculation (in Excel or similar) and posting an accrual entries in SAP system through a recurring document.

One of the fixed costs for which SAP has a standard solution without resorting recurring document is fixed assets depreciation. The solution is that the program for posting depreciation (transaction AFAB) do not perform any accounting entry in the accounting period corresponding to the factory stopping and it share out in the other periods, the total annual depreciation unchanged. Let’s assume in this example a manufacturing company with a maintenance repair stop in August.

There is a customizing that does this automatically:

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On the first point, fix the valuation area to which you want to assign this behavior, depending on the company code (not dependent on the chart of depreciation)

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On the second point, are weighted for each variant periods of exercise (currently example is K4):

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In this example, August (month number 8) is populated with blanks and the weight to other periods is 1, this customizing share out the value of August depreciation in same value to other periods.

See an example: nonstop active August, the annual amount of 2013 (5481.19 eur) is distributed proportionately throughout the year:

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Same asset with customizing stop in August, the annual amount is the same, no change, but in August does not depreciate any value:

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6 Comments

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    1. Prashant Govind Rane

      Hi Ricardo,

      Good information!

      One query, I am not sure for such cases if it is correct way to spread depreciation in 12 month? Instead of can we spread out in leftover months? In my eyes depreciation of stoppage (e.g. Aug) should not be pre-charge and should be adjusted in left over months. I hope to achieve this we will need to adjust Weight Period in Fiscal Year Period table?

      Thanks,

      B/R

      Prashant

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      1. Nathan Genez

        I agree.  I’m not sure this is the correct solution to that problem.  The config is maintained at the company code level whereas the requirement could come up at an individual asset(s) level.

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    1. Ricardo Bellas Hermida Post author

      Hi all,

      I was looking for a method to do this procedure specific by asset class, but unfortunatly this wasn’t possible, because this procedure is only company dependent (and fiscal year variants indeed).

      The only way that I saw, you could create a new depreciation area (not posting area), and only assign this procedure to this new area. The limitation is that this posting would be do by the users manually in FB01, and I think that the procedure is not complete, it isn’t a good practice.

      Thanks a lot for yours coments.

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