1. PURPOSE:
An asset that is worth less on the market than the value listed on the company’s balance sheet due to an unexpected or sudden decline or antiquity innovation change, this could be the result of physical demage to the asset.
2. REQUIREMENT:
IFRS requirement, Impairment of some Asset could be carried out.
3. CONFIGURATION STEP:
3.1. Go to tcode OABW to check revalue APC in the depreciation area where you want to post. This would help in identifying the area where the Impairment will have to posted.
3.2. Go to tcode OAYR and select your company code. Then click on the posting rule.
In the book depreciation area, go to Other posting settings. Check on “Post revaluation”.
This setting is required for posting the impairment amount.
3.3. Go to tcode AO90 and create a revaluation APC for each fixed asset class and clearing account Revalutaion APC.
The revaluation APC has to be a reconciliation account and the revaluation clearing is P/L account.
3.4. Go to tcode AO84 to create Transaction type, example “Z80”, “Z81”, “Z82”, “Z83”
– Z80: Impairment Loss (Prior-Yr acq.)
– Z81: Impairment Loss (Curr-Yr acq.)
– Z82: Reversing an Impairment Loss (Prior-Yr acq.)
– Z83: Reversing an Impairment Loss (Curr-Yr acq.)
3.5. Go to tcode ACSET and select the company code, then choose Book depreciation area, add account assignment object “KOSTL” – cost center and account assignment type “Depreciation Run”.
This setting is required cost center for posting the impairment GL account when Depreciation Run.
4. BUSINESS SCENARIO:
– Post impairment asset: Tcode ABAW:
Now, go to tcode ABAW, select the asset to be impaired. Put the transaction type as Z81, press Enter.
In the next screen give an asset value date, amount to be posted as Impairment. Now, click Save.
An asset accounting document will be generated.
NOTE: This impairment amount will NOT be posted automatically. Once depreciation run takes place then only the amount gets posted to GL account.
a. Impair loss
b. Reverse Impair loss
– Run depreciation: for a period in tcode AFAB:
a. Impair loss
b. Reverse Impair loss:
End
Good one Julie.
Thanks for sharing.
Hi Julie Phan
Excellent Document
Regards
Raheem
Hi
Nice documentation thank you for sharing knowledge.
Thank you very much, guys! 🙂
Hi Julie,
Very useful document. Thanks for the efforts.
In this i have a doubt..
When we run impairment loss system has reduced impairment loss from APC Value and it is showing Acquisition value as 900 its okay.
When we reverse the same impairment loss why it is showing Acquisition value as 1100 instead of 1000?
Regards,
Gopikrishna Mallireddy
Helo Julie…
Very Use full Documentation for me as of now…Good Work and thanks for your Wonder full Efforts.
Hi Julie,
Very nice document, keep it up….
Santosh Visave
Hi Julie,
Nicely explained implementing the asset impairment.
Thank you for sharing it.
Regards
Pankaj Pareek
Hi Julie,
Nice Document 🙂
Thank you very much, guys! 🙂
Thanks for the document.
The inherent design problem of Impairment is it would only considered from the next year for calculating the ordinary depreciation. Even after posting the impairment, there would not be any difference in the current year’s ordinary depreciation, this is the design of the system, we may have to live with it. But, most of the clients are not happy.
Thank you very much for your valuable information, Sir Ravi.
I noted this point.
many thanks for the document !!!
Best regards
Satya
Thank you very much Julie………..
It’s very help full Document to implement .
Thanks & Regards,
Sreehari. Tokala
Good document Julie.
Regards
Waza
Hello Julie,
Nice document and you explained the concept in a good manner anyone can understand it easily 🙂
Thanks & Regards,
Lakshmi S
Dear Julie,
Nice explanation about impairment concepts, process and configuration.
Thanks for sharing.
Regards
Javed
Hi Julie,
Very nice document with clear examples.
Regards,
Hello,
Thank you very much for excellent information.
“Mrs. SAP” 🙂 ➕
all the best Erwin
Very Helpful!
All the best!
Good explanation…Thank you for sharing your knowledge.
All the best
Mukthar
Hi Julie,
Thanx For Your Information…….
Regards,
Kishore.P
Hello Julie,
We have a requirement in which we have to revalue an Asset with out Accumulated Depreciation impact.
Regards
Pawan Gupta
Good sample and detail customizing explaination!
Hi,
Nice document. Beautiful explanation. Thanks for sharing your knowledge.
Regards
Karthi
Hello Julie,
We have implemented Asset impairment functionality but we are facing issue in profit center determination, when depreciation posted with more than one profit center as per assignment of asset then in impairment g/l account is not splitting as per profit center assigned in asset but constant is determined.we want impairment split as per profit center in asset.
Can you please guide on it