SAP: Asset Accounting: Reversing Documents

You can reverse documents that originated in Asset Accounting.

TCODE: AB08 -> Posting -> Reverse Document.

When you call up the reversal transaction, the system shows you all the transactions for the asset. Select the transaction you want to reverse, and choose the Reverse function.

Postings that Cannot Be Reversed in Asset Accounting

The following postings cannot be reversed in Asset Accounting. They have to be reversed in the integrated application in which they were posted:

• Acquisition with vendor (Accounts Payable)

• Acquisition with purchase order (goods/invoice receipt)

• Retirement with customer (Accounts Receivable)

• Stock withdrawal (Materials Management)

Reversal Indicator

 

Along with the special reversal transaction, the initial screen of the FI-AA posting transaction also offers a reversal indicator. When you set this indicator, you can create a posting that corresponds to the selected posting transaction, but has reversed positive/negative signs.

 

This posting, however, has no relation to the original document. In addition, when you use this posting, the system newly calculates the proportional value adjustments in accordance with the asset value date of the posting. This is different from the procedure with an actual reversal.

 

Reversal of the Settlement of an Asset under Construction

 

There is a separate transaction for reversing the settlement of an asset under construction. Enter the number of the asset under construction that was settled. The system then reverses all documents that were posted during the last settlement. If you want to reverse a settlement that was posted before the most recent one, you first have to reverse all the settlements, which were posted after the one you want, in chronological order.

 

You cannot use this transaction to reverse the settlement of assets under construction that were only managed for cost accounting.

SAP: Dates in Asset Accounting

Asset Value Date: is the value date of an asset transaction from the asset accounting point of view. Each transaction on a capitalized asset triggers the automatic calculation of depreciation on the posting amount. The asset value date, corrected by the period control of the depreciation key, is the key factor in determining the depreciation start date.

Default Values for Asset Value Date

Since the asset value date has a direct influence on the amount of depreciation, the system creates a default value for this date when it can. The overview that follows shows the default asset value date for the most important asset transactions:

Initial acquisition ->	Capitalization date from master record (if in same FY, otherwise posting date)
Subsequent acquisition in the same year->	Asset value date of initial acquisition
Subsequent acquisition in later years->	Document date
Down payment->	Capitalization date from master record (if in same FY, otherwise posting date)
Investment support->	Capitalization date from master record (if in same FY, otherwise posting date)
Revaluation->	Date of revaluation measure
Credit memo at time of invoice receipt->	Value date of the invoice receipt (if in same FY, otherwise posting date)
Later revenue/costs from retirement->	Date of last retirement (if in same FY, otherwise posting date)
Manual adjustments->	First day of fiscal year
Retirement/transfer->	No default value (required entry)
Settlement of AuC->	Posting date

If the capitalization date is not set in the asset master record after the initial acquisition, or if this date is not in the current fiscal year, the system uses the logic below to determine a default value for the asset value date:

• If the document date and the posting date are both in the current fiscal year, the system uses the earlier of these two dates as the default asset value date.

• If the document date is in a past fiscal year, the system uses the posting date as the default asset value date.

Automatically Set Asset Value Date

In the following posting transactions, you cannot enter an asset value date directly. The system therefore uses the default asset value date automatically. It determines which date it uses based on the table below:

 

Goods receipt (valuated) ->	Posting date
Invoice receipt with ref. to purchase order(valuated)->	Posting date of goods receipt (if in same FY, otherwise posting date)
Invoice receipt without reference to purchase order (valuated)->	Posting date
Invoice receipt (difference post.)->	Posting date of goods receipt
Stock withdrawal->	Posting date

 

Defining Your Own Logic for Determining the Asset Value Date

You can set up your own the method for determining the asset value date in Customizing for Asset Accounting (choose Transactions). Or you can use a customer enhancement project (transaction CMOD).

 

Capitalization Date

You can enter the capitalization date manually when you create the asset master record. The system uses this date as the default asset value date when you post the first acquisition to the asset. If you do not enter a capitalization date in the asset master record, the system automatically adopts the asset value date of the first acquisition posting as the capitalization date. The system inserts the asset value date of the first acquisition posting in the capitalization date field (Capitalized on...) in the asset master record, when a capitalizing transaction type is used.

 

Depreciation Start Date

The system determines the start period for depreciation calculation from the asset value date and the period control specified in the depreciation key (period control method) of the transaction category. The depreciation start date is the first day of the start period. The system determines the book value of an asset at the point of retirement In a similar fashion.

 

Date Asset Is Ready for Operation

Along with the date specifications already mentioned, you can also enter the date the asset is ready for operation in the asset master record (in the detail specifications of the depreciation areas). This date is for informational purposes only, and has no influence on the calculation of depreciation. If you do not make an entry in this field, the system automatically enters the capitalization date.

 

Fiscal Years That Can Be Posted

In the FI-AA component, it is possible to post to the current fiscal year and all previous fiscal years back to the date of the legacy data transfer for assets. When you post to past fiscal years, the system automatically updates all the relevant values in the subsequent fiscal years. Therefore, it is possible to make correction postings in the previous fiscal year, even after the fiscal year change (but before the year-end closing). However, after posting in a previous fiscal year, you need to run the depreciation posting program again for that year and all the following fiscal years up to the current fiscal year.

It is no longer possible to post to fiscal years that have been closed using the report for this purpose (refer to Year-End Closing).

Asset Accounting : Scrap Value and Cutoff Value

It may sometimes be necessary to depreciate assets not to net book value zero, but only up to a scrap value or cutoff value.

 

There are two ways of specifying the scrap value:

 

o             By assigning a scrap value key to the depreciation key used in the depreciation area

o             By entering an absolute scrap value in the asset master data for the depreciation area

 

Path: Financial Accounting (New) ® Asset Accounting ® Depreciation ® Valuation Methods ® Further Settings ® Define Cutoff Value Key

 

You can assign a scrap value key to each depreciation key in its definition.

 

Start date: capitalization date

Percentage: 5%

Validity period: 5 years

A cutoff percentage rate of 5% is valid for assets that are no older than 5 years old according to their capitalization date.

 

 

For more info . . . on Scrap Value

Depreciation Types in Asset Accounting :

Ordinary depreciation  - is the planned deduction for wear and tear during normal use of an asset.

Special depreciation  - represents deduction for wear and tear on an asset from a purely tax-based point of view. This form of depreciation allows percentage depreciation, possibly staggered within a period allowed by the tax authority, without taking into account the actual wear and tear on the asset.

Ordinary depreciation - reflects the deduction for wear and tear during the normal use of the asset. Unusual influences, such as damage which leads to a permanent decrease in the value of the asset, are covered by unplanned depreciation.

Transfer of Reserves/Reduction of APC - Reduction of APC allows you to reduce the depreciation base of an asset by a given amount. This type of depreciation has to be posted manually. It cannot be posted automatically using depreciation keys like the other depreciation types.

Interest - For internal accounting purposes, it is also relevant to evaluate the fixed capital tied up in an asset in addition to the depreciation. You can account for the tied up capital by calculating imputed interest. The system treats the calculation of imputed interest as a depreciation type, since it is also controlled by depreciation keys and calculation methods, similarly to the calculation of depreciation..

Depreciation Calculation Methods - Base Method:

 

 

Percentage from Useful Life / Percentage from Remaining Useful Life

There are two variants of this depreciation calculation method:

·        The system determines a depreciation percentage rate from the total useful life; the rate remains the same for each year.

·        The system calculates a new percentage rate for each year based on the remaining useful life. The depreciation percentage rate rises constantly until it reaches 100% in the last year of the useful life.

 

Total Percentage Rate in the Tax Concession Period

This method allows you to depreciate a certain percentage rate from the depreciation base within a tax concession period. In order to calculate the current periodic depreciation, the system first determines the accumulated depreciation up to the period under examination. The period depreciation is the difference between the already existing depreciation and the total depreciation allowed. With subsequent acquisitions, the system automatically catches up depreciation from previous years in a lump sum.

 

Stated Percentage Rate

In contrast to a total percentage rate, here you specify the percentage rate for each fiscal year. The system uses this percentage rate for calculating depreciation for each period. For example, you can depreciate 3.5% in each of the first 12 years, then 2% a year for 20 years and 1% per year for the remaining 18 years. The total of the percentage rates over the useful life is always 100%, so that complete depreciation is reached by the end of the useful life.

 

Percentage Rate from Remaining Life + Changeover Date - Depreciation Start Date

This method is used as a changeover method (in the next phase in the depreciation key) following depreciation within the tax concession period of an investment support measure. The net book value of the asset will be depreciated over the total useful life when the tax concession period ends (that is, the actual duration of depreciation encompasses the tax concession period plus the total useful life that is entered).

 

Mean Value from Several Areas

When defining depreciation areas, you can establish dependencies between them by specifying a mathematical formula. This method allows you to calculate depreciation in one area based on the depreciation in another area using this mathematical formula. Using this method you can, for example, calculate the mean value of straight-line depreciation and declining-balance depreciation.

 

Unit-of-Production Depreciation

Unit-of-production depreciation is based on the output-related use of the asset. When you specify a total expected output or a total expected number of units, and the exact output per period or exact unit of production output figure per period, the system determines the resulting depreciation for each period. You enter the output or number of units at the level of the depreciation key.

 

Depreciation Over Remaining Units of Production

In the same way as with the unit-of-production method of depreciation, the amount of depreciation here is dependent on output. In contrast to the unit-of-production method of depreciation, the system uses the remaining units of production and not the total units of production to determine the periodic depreciation. Depreciating using the remaining units of production ensures that, for post-capitalization, the book value reaches zero when the total output or the total units of production is reached.

 

Sum-of-the-Years-Digits Method

An arithmetic sequence is set up based on the total useful life. The depreciation percentage rate is proportional to the remaining useful life.

 

Depreciation According to the Present Value of Lease Installments

This depreciation calculation method is designed for leased assets that have been capitalized using the capital lease procedure. The depreciation amounts correspond here to the present value of the periodic lease installments. The interest is determined as the difference between the lease installment and the present value.

 

Your Own Depreciation Calculation Method

You can program your own depreciation calculation methods using the BAdI method FAA_EE_CUSTOMER (Set_percent_amount). For more information, see the documentation of this customer enhancement (transaction SE18.)