Assume for a particular fixed asset, that you have made asset and depreciation postings over more than one reporting year. Assume also that at least one of those periods has been closed for postings, including in the asset module. For a valid reason, you have a requirement to reverse transactions posted on this asset.
Different scenarios may be deduced.
1) Both the asset and depreciation postings to be reversed, the asset is no longer needed, because the transaction is wrongly classified as an asset.
2) Only depreciation postings are to be reversed, without reversing the asset posting.
3) Both the asset and depreciation postings to be reversed, because asset is created in the wrong asset class.
Since we are dealing with a situation where at least one of the periods are closed, previous fiscal years must be opened in both FI (transaction OB52) and FI-AA (transaction OAAQ). Discuss with your accounting people for an agreement on this, because closed periods may have been already audited.
1) Scenario 1: Both the asset and depreciation postings to be reversed, the asset is no longer needed, because the transaction is wrongly classified as an asset.
A transaction may have been wrongly capitalized as an asset. In addition, it may have been depreciated over a period of time before the mistake is detected. The correction to this is to reverse both the asset and depreciation postings.
a) Reversing the Asset posting
To reverse a fixed asset posting, use transaction AB08, or follow the menu path below:
Accounting — Financial Accounting — Fixed Assets – Posting — Reverse Document — Other Asset Document
Input the company code, the affected asset number and the year of acquisition (capitalization year).
Click on accounting document to display the accounting entry, just to make sure that you are not reversing the wrong transaction.
Go back and click on reverse to reverse the document.
Click on save
Note: the system will default the capitalization date of the asset as the posting date. If the related period is closed in FI you will get an error.
Usually you will either change the posting date of the reversal document above or discuss with your GL people to open the affected period for you. However, with SAP FI-AA documents, even if you change the posting date to a date opened for postings in FI, you will get another error to the effect of an inconsistency between your asset value date and the posting date.
On the other hand, if you convince your GL people to open the affected period, to be able to post on the asset value date or the capitalization date (14.10.2015), you will get the error below:
b) Opening a period for posting FI-AA
The above error, is pointing to posting period maintenance in the fixed asset module. Unlike the other submodules of SAP FI, for which posting periods are maintained in table T001B (transaction OB52), the posting periods for SAP FI-AA are additionally maintained within the asset module itself (AJAB, AJRW, and OAAQ). With transaction AJAB, you carry out the closing of a particular year in asset accounting, with AJRW you carry out the asset fiscal year change to allow postings to happen in a new fiscal year. With transaction OAAQ, you can reopen an already closed period in a particular company code in FI-AA.
Let us now open the 2015 fiscal year in FI-AA with transaction OAAQ in our company code to be able to post this reversal.
To open 2015, just enter a year less than 2015.
Save your entry.
Now execute the reversal transaction again (AB08).
Our transaction is now reversed.
c) Display the asset in Asset Explorer
Use transaction AW01N to display your asset after the reversal transaction.
We can see from the above that there is no APC Value for the asset, because this has now been reversed.
However, we still have a value for the posted depreciation.
Note also that the system has automatically created an additional planned item representing the accumulated depreciation for each of the fiscal years under consideration. These additional planned items per fiscal year represents a negative entry that will have the reversal effect on the depreciation postings.
d) Reversing the depreciation postings
Run transaction AFAB for the affected years to post these planned items. Note that this is in effect the reversal of the depreciation postings. If depreciation is posted for “n” number of years for this asset, then the AFAB should be executed “n” number of times, because each year will have a planned item to be posted as a reversal of that year’s depreciation.
Input the company code, fiscal year, and the posting period. For the posting period, enter the period of the planned item (in this case 12).
Flag the repeat option.
Also, enter the main asset number of the affected asset.
Execute the life run in background mode.
Now if you display your asset (AW01N) the depreciation figure should be zero.
Note that depreciation figure is now zero, indicating that the postings are now reversed.
2) Scenario 2: Only depreciation postings are to be reversed, without reversing the asset posting
Here the requirement is only to reverse the deprecition postings without reversing the asset postings. Perhaps, this is because the asset should not have been depreciated, or because a wrong depreciation rate is assigned to the asset or for any other valid reason.
To reverse only depreciation documents without reversing the asset document, probably the best way is to change the depreciation key for this asset.
Use transaction AS02 to change the depreciation key in the asset master data to 0000 No depreciation and no interest
Save your entry.
Go to the asset explorer (transaction AW01N) to display the asset.
Just like in scenario 1, we see that the system created a planned item in each of the relevant years.
To effect the reversal, run the depreciation for the asset with the repeat option, to post the planned items. This will have the effect of debiting the accumulated depreciation and crediting the ordinary depreciation.
Go to the asset explorer.
We can see that the planned item has now been posted. Period 12 now has the net of the original posted item and the previous planned item just posted.
Display the accounting document to view the reversal postings.
3) Scenario 3: Both the asset and depreciation postings must be reversed, because the asset is created in the wrong asset class
Let say you realized at some point that a particular asset was created in a wrong asset class and has been depreciated over a number of periods.
There can be two scenarios:
a) The current asset class and the target one (the correct one) have different depreciation terms (example different useful life).
This means that both asset and depreciation postings are wrong and need to be reversed. For this, follow the approach under scenario 1.
b) The current asset class and the target one (the correct one) have the same depreciation terms.
This means that although the asset is now under a wrong class, the posted depreciation is actually accurate. For this, it may be easier to carry out an asset transfer transaction (ABUMN – Transfer within Company Code. You may refer to my earlier article asset transfer from the link below.
Please do share your thoughts on this topic. We would love to hear your comments and suggestions.
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