The following is a detailed description of the possible Customizing settings for posting depreciation. (Implementation Guide: Integration with the General Ledger.)

You have to specify a document type for posting depreciation. When you post depreciation using Periodic processing ® Depreciation run ® Execute, use only document types that are limited to use with batch input according to the indicator in their FI-AA Customizing definition. In this way, you can prevent unintentional use of the document type.

It is also essential that you specify in the Customizing definition of the document type that the document type uses a number range with external number assignment. The depreciation posting program can then assign the document numbers itself (from the specified number range). If the numbers are assigned in this way, the depreciation posting program can keep a check on posting to Financial Accounting. If errors occur, this numbering also makes it possible to make corrections.

You determine the depreciation posting cycle by entering the length of time (in posting periods) between two depreciation posting runs. This means that a setting of 1 indicates monthly posting, 3 means quarterly posting, 6 means semi-annual, and 12 means annual (for a fiscal year version with 12 posting periods). When you start a depreciation posting run, you have to enter the period for which you want it to be carried out.

You do not have to keep strictly to this posting cycle. You can also choose an unplanned depreciation posting run using an indicator in the initial screen of the depreciation posting program. When you set this indicator, you can skip over several periods, and post the total depreciation for all of the skipped periods in one period. You might need to do this, for example, if you carried out legacy data transfer during the fiscal year. This method enables you to post all depreciation up to the transfer date at one time.

The system supports two different procedures for distributing the forecasted depreciation over the posting periods.

• Catch-up method

The difference between the two procedures becomes evident when processing acquisitions within the fiscal year or when handling post-capitalization.

• With the catch-up method, depreciation falling due on a transaction within the fiscal year (from the depreciation start date, according to period control, up to the current period) is posted in one total. The depreciation posting program posts this amount in the period, in which the posting date of the acquisition lies. The amount posted is dependent on the asset value date.

• With the smoothing method, this amount is distributed equally over the periods from the current posting period to the year end (independent of the asset value date of the transaction).

• You should be careful if you use smoothing, and the depreciation start date comes after the acquisition date. In this case, the system does not distribute the planned depreciation first to the periods after the depreciation start date. Instead, it posts depreciation starting from the acquisition date. However, the total amount of planned depreciation is not affected .

• When an asset is retired during the fiscal year (partial or complete retirement) smoothing does not distribute depreciation only up to the retirement date; it distributes depreciation up to the end of the year.

If you manage interest and revaluation in a given depreciation area, you can post them to appropriate accounts in Financial Accounting in the same way as depreciation. Or you can specify that they be ignored. It is not possible to post interest or revaluation alone (without depreciation).