1928116 - Why is Depreciation of Low-Value Asset Calculated for More Than One Year

SAP Knowledge Base Article - Public

1928116 - Why is Depreciation of Low-Value Asset Calculated for More Than One Year

Symptom

Low-value assets (LVA) are generally assets that have acquisition and production costs within specific value limits. Usually, it's supposed to be depreciated completely in the year of their acquisition. However, you have an LVA whose useful life is not one year, and system calculates its depreciation for more than one year.

Reproducing the Issue

  1. Go to the Fixed Assets work center, and select the Fixed Assets view.
  2. Edit the low-value fixed asset in question, and then select Master Data.
  3. Under Life Cycle Data tab, you can see that the Low-Value Asset checkbox is ticked. 
  4. Go to the Values tab, and then select the Depreciation Overview.
  5. From the Fiscal Year drop-down list, you could see more than one year is displayed.

Cause

When the first acquisition posting is made, the system automatically sets the Low-Value Asset indicator if the amount of the acquisition posting falls within the specified value limits, meanwhile, the depreciation method 0100 specified at valuation view level is transferred to the master data as opposed to the depreciation method of the fixed asset class. In addition, when using this depreciation method, the system sets the useful life of the fixed asset automatically to one year.

However, after the LVA is acquired, the Depreciation Method is manually changed to a new one, so the system changes accordingly, and recalculates the depreciation.

Resolution

In order to depreciate the LVA within one year, you have to change the Depreciation Method back to 0100 - LVA 100% complete depreciation.

Keywords

KBA , useful life , lva depreciation , depreciation method , SRD-FIN-FA , Fixed Assets , How To

Product

SAP Business ByDesign all versions