During the life of a fixed asset in a company, it might be required to adjust some life parameters, for example Depreciation Start Date, Useful Life, Depreciation Type.
This article will help you understand the prerequisite to change life parameters for fixed assets and the consequence of the changes.
Depreciation Start Date can be automatically determined by Capitalization Date (Asset Value Date in Capitalization Document) and the Depreciation Convention specified for the depreciation type (Depreciation Types - Setup - General Tab).
Depreciation Start Date can also be specified manually. The field is editable when the following conditions are met:
•The asset has been capitalized.
•The fiscal year you select is the year during which the capitalization takes place.
•The depreciation area is not a derived area.
Example
An asset capitalized in year 2019:
Depreciation start date can be changed for depreciation area 100 when you select fiscal year 2019. Depreciation start date cannot be changed for depreciation area 300 since it is a derived area.
Consequence
After you save the change, the system automatically recalculates the Depreciation End Date and Planned Depreciation and updates the asset-relevant values.
Here is Demo of above example.
Useful Life must be specified when creating the fixed assets master data.
The useful life can be changed before it reaches the end of asset's life. It is not possible to change useful life if the remaining life for the selected fiscal year is 0.
Example
Useful life cannot be changed for fiscal year 2021 since the remaining life at the beginning of fiscal year 2021 is 0.
Consequence
After you save the change, the planned depreciation will be recalculated starting from the fiscal year selected when the change is made.
Here is a Demo of above example.
Depreciation Type must be specified when creating the fixed assets master data. The Depreciation Type can be changed any time.
Consequence
After you save the change, the planned depreciation will be recalculated starting from the fiscal year selected when the change is made.
If the change of depreciation start date will cause mismatch between the recalculated planned depreciation and the posted depreciation, the difference will be adjusted automatically in your next depreciation run.
Here is a Demo of example.
Support Spotlight Series
We hope this read has been informative and beneficial. For more blog posts and tips from the SAP Business One Support team, please visit our space on the communities: https://blogs.sap.com/tag/b1-support-spotlight/
For questions about SAP Business One, please submit your question here.
This article will help you understand the prerequisite to change life parameters for fixed assets and the consequence of the changes.
Depreciation Start Date
Depreciation Start Date can be automatically determined by Capitalization Date (Asset Value Date in Capitalization Document) and the Depreciation Convention specified for the depreciation type (Depreciation Types - Setup - General Tab).
Depreciation Start Date can also be specified manually. The field is editable when the following conditions are met:
•The asset has been capitalized.
•The fiscal year you select is the year during which the capitalization takes place.
•The depreciation area is not a derived area.
Example
An asset capitalized in year 2019:
Depreciation start date can be changed for depreciation area 100 when you select fiscal year 2019. Depreciation start date cannot be changed for depreciation area 300 since it is a derived area.
Consequence
After you save the change, the system automatically recalculates the Depreciation End Date and Planned Depreciation and updates the asset-relevant values.
Here is Demo of above example.
Useful Life
Useful Life must be specified when creating the fixed assets master data.
The useful life can be changed before it reaches the end of asset's life. It is not possible to change useful life if the remaining life for the selected fiscal year is 0.
Example
Useful life cannot be changed for fiscal year 2021 since the remaining life at the beginning of fiscal year 2021 is 0.
Consequence
After you save the change, the planned depreciation will be recalculated starting from the fiscal year selected when the change is made.
Here is a Demo of above example.
Depreciation Type
Depreciation Type must be specified when creating the fixed assets master data. The Depreciation Type can be changed any time.
Consequence
After you save the change, the planned depreciation will be recalculated starting from the fiscal year selected when the change is made.
If the change of depreciation start date will cause mismatch between the recalculated planned depreciation and the posted depreciation, the difference will be adjusted automatically in your next depreciation run.
Here is a Demo of example.
Support Spotlight Series
We hope this read has been informative and beneficial. For more blog posts and tips from the SAP Business One Support team, please visit our space on the communities: https://blogs.sap.com/tag/b1-support-spotlight/
For questions about SAP Business One, please submit your question here.
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