SAP Knowledge Base Article - Public

2813681 - Change of Useful Life Retriggers Depreciation Values for Previous Period

Symptom

  • You have completed the Depreciation for the previous Fiscal Year YYYY/ Accounting Period XXX (YYYY represents the previous Fiscal Year, XXX represents the previous Accounting Period).
  • You change the Useful Life of Fixed Asset XYZ, either by shortening or lengthening its Useful Life. You expect that this change will effect the Depreciation calculation from the following Fiscal Year/ Accounting Period.
  • Instead, the Depreciation is recalculated for all previous, open Accounting Periods, even if they are in a previous Fiscal Year.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. In the Fixed Assets work center go to the Fixed Assets view.
  2. Find Fixed Asset XYZ and open it via Edit - Values to access the Values tab.
  3. Navigate to the Depreciation Overview sub-tab.
  4. You see that for all previous accounting periods (of Fiscal Year YYY) the depreciation is completed (Status: Green).

To change the Useful Life of the Fixed Asset

  1. Navigate to the Master Data tab.
  2. Here, select the Asset Valuation and then Asset Valuation.
  3. In the Valuation Views per Set of Book table select the Valuation view for which you need to make the change.
  4. In the Current Valuation View Settings sub-tab change the Useful Life of the Fixed Asset in the Useful Life/ Periods field.
  5. Press Save.

To check the planned Depreciation

  1. Navigate to the Values tab and here to the Depreciation Overview sub-tab.
  2. You notice that the Depreciation amounts got recalculated not only for the current and following account periods but also for previous accounting periods, possibly of previous Fiscal Years, even though Depreciation was completed for these accounting periods.

Cause

In Business ByDesign changes of a fixed assets' valuation data are being considered for all open Fiscal years and accounting periods. Only if previous accounting periods or even Fiscal Years are actually closed, these changes are only considered for current or future accounting periods.

Resolution

If you need to have valuation data changed for a Fixed Asset, such as a change of useful life only to be considered from a specific date, e.g. 01.01.ZZZZ, you can maintain a new Valuation Interval for the respective Fixed Assets valuation view. (ZZZZ represents a current or future Fiscal Year). 
This way, even with the previous Fiscal year/Accounting Period still open, all changes will only take effect from the maintained Interval's start date.
 
To maintain a Valuation Interval:

  1. Open Fixed asset XYZ with the current useful life of, say, 10 years.
  2. Go to the Master Data - Asset Valuation tab.
  3. Select Valuation view for which the Useful Life is to be changed.
  4. Go to the Valuation Intervals sub-tab.
  5. Press Add row and maintain starting date 01.01.ZZZZ and the new useful life, for example 8 years.
  6. Press Save.

The Depreciation for all open Accounting Periods up until 31.12.YYYY is now calculated for a useful life of 10 years. From 01.01.ZZZZ the Depreciation considers a useful life of 8 years and calculates the Depreciation amounts accordingly.

Keywords

Fixed asset, change useful life, depreciation calculation, balance carryforward execute depreciation , KBA , SRD-FIN-FA , Fixed Assets , Problem

Product

SAP Business ByDesign all versions