08/04/2015

AmendmentsindepreciationpoliciesasperComp...|SCN

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Amendmentsindepreciationpoliciesasper
CompaniesAct2013Configurationand
workflowforIndianclients

Communications

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Version2

createdbySethuramanGanesamurthyonAug16,20145:06AM,lastmodifiedbySethuramanGanesamurthyonAug20,20147:28
AM

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Hellofriends,

AsweallknowCompaniesAct2013hastobeimplementedfromthisFY1415.
ThemajorchangeinrespecttoAssetaccountingis,depreciationhastobecalculatedbasedonusefullife
ratherthanratesofdepreciation.

Letsseeexamplesofpossiblescenarios
Thosewhousedepreciationratecancalculateusefullifebydivide100bytherateandthosewhouseuseful
lifemethodalreadycanusethesamewhileseeingthebelowscenarios.

Assetclass

Depreciationrate

Calculatedusefullife

CO.ACT2013Useful
life

20%

10%

10

5%

20

30

Scenario1:

ForAssetclass1,usefullifeissameinoldmethodaswellasCompaniesActprescribedusefullife.Sothere
isnoimpactindepreciation.

Scenario2a:

Ifforsomeassetsinassetclass2expiredusefullifeis3,thennetbookvalueshouldbedepreciatedover
remainingusefullifeof2years.

Scenario2b:

Ifforsomeassetsinassetclass2expiredusefullifeis6years,thenwholenetbookvalueshouldbecharged
offimmediatelyandhastoadjustedinopeningretainedearnings.

Scenario3:

Forassetsinassetclass3,thenetbookvalueshouldbedepreciatedoverremainingusefullife.

Sowehavetodoconfigurationofdepreciationkeystomeettherequirementsaspercompaniesact2013.
FortunatelyweareinSAPenvironment.Somakingchangesinoursystemisveryeasy.Itcalculates
automaticallytheretrocalculationsalso.Letsseetheconfigurationpart.

Weneedtocreateonlyonedepreciationkeywhichwillsuitforallassetclassesandalltypeofscenarios.
SAPhasprovidedonedepreciationkeyLINSfordepreciationofassetsoverremainingusefullife.Justclone
LINSandcreatecustomiseddepkeysayZLIN.Thepropertiesareshowninscreenshots.
DepreciationKeyZLINiscreatedvideTcodeAFAMAbycloningLINS

http://scn.sap.com/docs/DOC57392

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ThenwewillseethebasemethodvideTcodeAFAMR

ThenwewillseeMultilevelmethodvideTcodeAFAMS

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ThenwewillseePeriodcontrolmethodvideTcodeAFAMP

Thesearealltheconfigsteps.Kindlymakesuitablechangestosuityourrequirements.
NowthenextstepaftercreatingdepkeyistoupdateexistingassetswiththenewdepkeysayZLINand
usefullife.
Manycompaniesmaybehavinglakhsofassetreocrds.Sodoyoufeelitisaherculeantasktoupdateasset
withnewdepkeyandnewusefullife.ThatswhereSAPcomesinforourrescue.Wecandoallmass
updateswithlittlework.
SAPhasprovidedaTcodeOA02tomassupdateofassetrecords.
Let'sseethestepsinvolvedinmassupdate.
CreatesubstituitionvideTcodeOA02.

http://scn.sap.com/docs/DOC57392

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ThengotoTcodeAR01oranyotherstandardreportslikeS_ALR_87011990andcreateworklist

ThenreleasetheworklistvideTcodeAR31

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ThemasschangescanbedonevideothermodeslikeLSMWorBDCalso.Youcanchoosewhichissuitableforyou.

Thatsallfreinds.

HopeIhaveexplainedthestepsclearly.
Kindlyprovideyourvaluablefeedbackstoupdatethedocumentsothatitwillbecompleteandusefultomany.
Awaitingforyourcomments.

Regards,
G.Sethuraman

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AverageUserRating
(2ratings)

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15Comments
DiwapAug16,201411:37AM

Hi SethuramanGanesamurthy,

usefulldocument.thanksforsharing.

Hereihavedoubtaboutassetclass.asyouhavementionedassetclass1,assetclass2.canyou
pleaseexplainwhatismeantbyassetclass1,2,etc..whetheritisplantmachinery,orbuildingsor
furniturefittingsetc...

Regards,
Diwakar
Like(0)

SethuramanGanesamurthyAug16,201412:05PM(inresponsetoDiwap)

HiDiwa,

TheseareallsampleassetclasseswhichIhaveusedonlyforexplanationforeasy
understanding.
IdidntintendtomentionanyBuildingorP&M.
Youcanfitinyourassetclassinanyoftheabovescenario.

Regards,
G.Sethuraman
Like(0)

SridharBolisettiAug18,20145:24AM

HiSethuraman,

Niceexplanationwithoutleavinganyroomfordoubts.Goodone.Thanks.

Regards,
Sridhar

http://scn.sap.com/docs/DOC57392

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Like(0)

SethuramanGanesamurthyAug18,20145:51AM(inresponsetoSridharBolisetti)

HiSridhar,

Thanksalotforyourcomments
Like(0)

sateeshpAug20,201410:30AM

HiSethuraman,

Nicearticle.

Ihadaqueryregardingpoint2bintheabovearticle.IunderstandthatIcanpostthewdvoftheasset
asunplanneddepandthenpasstransferentrytoreservesGL.IsthereanywayIcandirectlytransfer
theamounttoreservesGL.ItriedtoassigntheReservesGLinAO90butitallowsmetoassignaonly
aP&LaccountGL.

Regards,
Sateesh

Like(0)

SethuramanGanesamurthyAug20,201411:16AM(inresponsetosateeshp)

HiSateesh,

IthinkyoucannotassignReserveGLdirectlyhere.
YouhavetouseGLaccountscreatedasP&LstatementaccountinFS00.

Regards,
GSR
Like(0)

SadaBandlaSep6,20148:23PM

Hi SethuramanGanesamurthy,

Itsveryclearnicelypresented,thankyouforsharingusefulinfo..
Like(0)

SethuramanGanesamurthySep8,20144:48AM(inresponsetoSadaBandla)

HiSada,

Thanksalotforyourcommentsandrating
Like(0)

NirmalSagarShahJhalaSep13,20147:42AM

Hi SethuramanGanesamurthy,

Veryusefulldocument.thanksforsharing.

Act2013giventheusefullifebutnotgiventhemethodwhetheritwillbeSLMorWDVmehtodof
deprecationhenceifanychangeintheexistingmehtodfromSLMtoWDVorWDVtoSLMthenitis
consideredaschangeinaccountingpolicyasperAccountingStandardandrequireddisclosure.

IwouldliketoknowhowthisworkunderWDVmethodandwhatisdeprecationkeyforWDVmehtod
basedonusefullifeandremianingusefullife.MyunderstandingisthatWhateveryouexplainedthat
isforSLMMehtod.
Like(0)

SethuramanGanesamurthySep13,20147:50AM(inresponsetoNirmalSagarShahJhala)

HiNirmal,

Thanksforyourcomments.
SAPhasreleasedanote2052506forit.

Kindlygothroughititwillhelpyou.
Like(0)

NirmalSagarShahJhalaSep13,20147:57AM

thanksforpromptinput.howtogetnote2052506
Like(0)

SethuramanGanesamurthySep13,20148:13AM(inresponsetoNirmalSagarShahJhala)

http://scn.sap.com/docs/DOC57392

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Hi,

ContactyourbasisteamtheywillgettheSAPnotefromCustomerserviceplaceinSAP
Like(0)

Mariks.Sep15,20141:10PM

Verygooddocument..thanksforsharing...
Like(0)

SethuramanGanesamurthySep15,20141:22PM(inresponsetoMariks.)

Thanksalot
Like(0)

sandeepgupthaSep29,20147:40AM

thanksforsharingdocument...niceinformation.thanks
Like(0)

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