You performed the sale of a fixed asset. You see that the Gain on Fixed Asset Sales is more than expected.
You are using the depreciation method L017 - Str.-line from useful life.
SAP Business ByDesign
Reproducing the Issue
- Go to the Fixed Assets work center.
- Go to the Fixed Assets view.
- Search for Asset ABC (ABC is the fixed asset ID) and select it.
- The status is Retired.
- Click Edit General.
Capitalization Date: DD/MM/YYYY.
Deactivation Date: DD/MM/YYYY+N (YYYY+N is N years after the capitalization year YYYY).
Depreciation Start Date: DD/MM/YYYY.
Depreciation Method: L017 - Str.-line from useful life.
- Navigate to the Master Data tab and then to the Life Cycle Data subtab.
The Deactivation Date and the Last Retirement Date has been set as DD/MM/YYYY+N.
- Navigate to the Values tab.
- Select any set of book.
- Navigate to the Book Values subtab.
Please note that the values provided below are as an example:
|Value type||Opening balance||Posted||To be posted||Closing Balance|
|Depreciation Calculated Automatically||-3,037.50||-1,518.75||1,518.75||-3,037.50|
|Depreciation Posted Manually||-7,087.50||10,125.00||0.00||
There is an open amount of 1,518.75 , which is yet to be posted and comes from Depreciation Calculated Automatically.
There is a balance of 2,025.00.
- Go to the Depreciation Overview subtab.
In Fiscal Year YYYY+N, for the accounting period 0MM (0MM is the accounting period), the depreciation is being shown as 1,518.75.
The status is a yellow triangle, meaning depreciation posting has not gone through correctly.
- Go to the Journal subtab.
Depreciation postings have been made from period 001/ YYYY+N (001 is the first accounting period of the year YYYY+N) to period 0MM.
Source Document DEF (DEF is the source document ID) with Journal entry HIJ (HIJ is the journal entry ID) is the customer invoice of sale.
- Click the Journal entry ID to open the same.
This journal entry does not consider the accumulated Depreciation for fiscal year YYYY+N and the Gain on Fixed Asset Sales is posted as 2,025.00.
You expect the following result:
Debit posting: AR-Trade Foreign 7,000.00
Credit posting: Tools and Equipments 12,150.00
Debit posting: Gain on FA sales 7,000.00
Credit posting: Gain on FA sales 506.25
Debit posting: Accumulated Depreciation - Tools and Equipments 11,643.75
You see the following for Fiscal Year YYYY +N:
Book value Opening Balance is 2,025.00
This is derived from the year YYYY+N-1 (Closing Balance is 2,025.00).
12,150.00 - (3,037.50+7,087.50) = 2,025.00.
Now for Fiscal year YYYY+N, you have posted depreciation for example 6 periods = 253.13*6 = 1,518.78
The gain you expect is 2,025.00 - 1,518.78 = 506.22.
During the sale of fixed asset with customer invoice DEF, the accumulated depreciation for the fiscal year YYYY+N got reversed/ ignored.
- Go to the Business Configuration work center.
- Go to the Overview view.
- Search and select Depreciation Methods activity.
- Click on the same to open it.
- Click the Edit Depreciation Methods link.
- Search and select Depreciation Method L017 Str.-line from useful life.
- Under Calculation Parameters, nothing special has been maintained.
You have maintained depreciation method L017 - Str.-line from useful life.
The process control method for this depreciation method is 009: 06/06/06/06 At year start (Major transactions at year start).
According to the Period Control Method 009: 06/06/06/06, the depreciation is always posted at the start of the year.
During the sale of the fixed asset with customer invoice the depreciation calculated at the start of the year is considered the rest is sort of ignored or reversed.
In order to solve this issue you have to perform the following steps:
- Reverse the customer invoice DEF and hence reactivate the Asset.
- Create a new depreciation method with the correct period control key. Please refer to Help Documents:
- Configuration: Depreciation Methods
- Using Depreciation Methods
- Period Control
- Period Control Methods and Keys
- Configuration: Other Fiscal Year (Fiscal Year Variant)
- In your reactivated Fixed asset, change the depreciation method to the new depreciation method.
- Create a depreciation run (first in test mode and check the results).
- Post the sales/ customer invoice.
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