Over-Depreciation 

Use

According to Japanese law, the maximum depreciation amount for an asset is 95 percent of APC, that is, the minimum book value of an asset cannot be less than five percent of the acquisition value. However, if you have a separate depreciation area for investment support or asset impairment and you post acquisitions and investment at different times, the total book value can drop below the minimum value or five percent of the acquisition value. The localization of the New Depreciation Engine for Japan prevents this. The solution enables you to compare an asset’s total book value with its scrap value and make corrections in other depreciation areas, if necessary.

Features

The solution for Japan prevents depreciation from exceeding the maximum depreciation amount (95 percent of acquisition value) for all depreciation types in the following cases:

●     Asset acquisition and investment support are posted at different times

●     Another transaction is also posted in addition to asset acquisition and investment support

●     Asset impairment

Activities

In the SAP Easy Access menu, choose Accounting ® Financial Accounting ® Fixed Assets ® Asset ® Asset Explorer. Select the relevant depreciation area, enter your company code and asset, and choose the Comparisons tab page. The system simulates the asset book value for future years and compares the relevant values.

 

For more general information, see Investment Support and Revaluation.