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Author's profile photo Jose Antonio Castillo

How useful life is handled in SAP Business One Fixed Assets

In this blog I want to explain some scenarios that you can find when using SAP Business One Fixed Assets in a Monthly calculation system:

Why some times, you can see that in the year when the fixed asset ends it useful life, the number of periods with depreciation doesn’t match with the number of months shown in the remaining useful life displayed in the General tab in the fixed asset master data:

Why the depreciation calculation base ‘yearly’ or ‘monthly’ defined in the depreciation type can influence:

  • On how the depreciation is distributed along the periods of depreciation in the fiscal year.
  • On how the rounding of 2 decimals happens
  • On how the rounding of Net Book Value happens (once a year or every month)

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      Author's profile photo Jose Antonio Castillo
      Jose Antonio Castillo
      Blog Post Author

      If you add a new acquisition after the Depreciation End date, if you use for example a depreciation type with method Straight-line, the added extra APC will we depreciated in the following way:

      1-If the Calculation Base is 'Yearly', it will depreciated in equal parts from the period in which the additional acquisition was added, until the end of the fiscal year of the additional acquisition

      2-If the Calculation Base is 'Monthly', it will be depreciated all at once in the same period in which the additional acquisition was added.

      It is important to understand that adding new APC doesn't mean extending the life of the asset: If the remaining useful life is 0, the system will expect that from then , no Net Book value should exists, and it will depreciate it as soon as it can.

       

       

      Author's profile photo Former Member
      Former Member

      Hi Jose Antonio Castillo,

       

      Thank you for this information.  It is very helpful and useful.  Is it possible to share the slides with me?

       

      Regards,

      Desiré Janse van Rensburg

      Author's profile photo Jose Antonio Castillo
      Jose Antonio Castillo
      Blog Post Author

       

      Hi Desiree

       

      I am pleased that you found it helpful

       

      I have no means to share the PPT I used to be with the video, in the communities

      I wouldn't mind it private.

       

      But it doesn't seem possible in here

      Jose

      Please use the comments, in the media itself, if you have something unclear, or ideas you may have on the topic