You create a Revaluation or a Manual Depreciation of type Write Down Posting for Fixed Asset ABC to reduce its Net Book Value. For the Book Valuation view in question the Depreciation Method L010 - Str.-line from acq.value to 0 is defined. You expect that the reduction posting will reduce the planned Depreciation amount per Accounting Period (ABC represents the Fixed Asset ID).
Instead, the amounts per Accounting Period do not immediately change.
- you notice that the reduced amount is considered in the very last year of the Fixed Asset's Useful Life.
- You notice that the Useful Life of the Fixed asset was reduced.
SAP Business ByDesign
Reproducing the Issue
In the Fixed Assets work center go to the Fixed Asset's view.
- Find Fixed Asset ABC and press Edit -Values.
- In the Values tab go to the Depreciation Overview sub-tab.
- Here, you see a planned Depreciation amount of, say, 1000,00 LC per Accounting Period (LC stands for Local Currency).
- Create a Revaluation or Write-Down posting via the Manual Postings functionality.
- In the Journal sub-tab of the Values tab verify that the reducing revaluation is documented here with a Journal Entry.
- Again, check the Depreciation Overview. The planned Depreciation per Accounting Period is still 1000,00 LC.
But you notice that the Planned Depreciation for the very last Fiscal Year of the Fixed Asset's useful life is reduced by the Revaluation amount.
Or you notice that the amount of Useful Life Years is reduced.
With the depreciation method L010 - Str.-line from acq.value to 0 net value increasing transactions, for example additional acquisitions result in an extension of a Fixed Asset's useful life.
Conversely, net value reducing transactions, such as revaluations or write-downs can result in a reduction of the useful life or in a reduction of the calculated depreciation amount in the very last year of the asset's useful life (when the reduced amount is lower than the calculated, yearly depreciation amount).
If you need to have the revaluations considered earlier than in the last year of the asset's useful life or if you do not want the useful life of a Fixed Asset to be affected by a revaluation you can use the Depreciation Method L011 - Str.-line from rem. life nbv to 0. Here, additional acquisitions or reducing revaluations/write downs do not result in an extension or reduction of useful life but rather increase or reduce the depreciation rate per accounting period.
Please also refer to the SAP ByDesign help document Depreciation Methods - US
L010, Planned Depreciation per Accounting Period, Revaluation, Write-Down, Write-Up, Additional Acquisition , KBA , l010 , depreciation per period , useful life reduced , useful life increased , SRD-FIN-FA , Fixed Assets , Problem