Posting Depreciation 

Purpose

Every asset transaction in the R/3 Asset Accounting (FI-AA )component immediately causes a change of the forecasted depreciation. However, it does not immediately cause an update of the depreciation and value adjustment accounts for the balance sheet and profit and loss statements. The planned depreciation is posted to the general ledger when you run the periodic depreciation posting run. This posting run uses a batch input session to post the planned depreciation for each posting level for each individual asset as a lump sum amount.

Process Flow

The calculation and scheduling of depreciation, interest and revaluation are automatically controlled by keys in the system, or you can control them manually using a special posting transaction. In both cases, planned depreciation from Asset Accounting must be periodically posted to the corresponding asset and expense accounts of the general ledger. You carry out this posting using a batch input session. In addition to the various depreciation types, interest and revaluation, this batch input session also posts the allocation and writing off of special reserves.

When the system posts depreciation, it creates collective documents. It does not create separate documents for each asset.

Depreciation Posting in Account Form

For additional information on the system settings for the depreciation posting run, see System Settings for Posting Depreciation and Posting Depreciation.

Creating a Batch-Input Session

You call up the report for posting depreciation by choosing Periodic Processing ® Depreciation Run ® Execute. The report should be run according to periods (annually, semi-annually, quarterly or monthly). This program creates a batch input session which contains all posting information for Financial Accounting. The required posting documents are created when this batch input session is processed. You can only start this report in the form of background processing.

The system creates posting sessions with postings per depreciation area and account group in accordance with the posting cycles specified in Customizing. As posting date, the system uses

The parameters for starting the report are described below.

Posting Period

For planned posting runs, the periods are posted in chronological order according to the specified posting cycle.

As long as the last normal period was already posted, it is possible to post to special periods in Financial Accounting. This is generally required, when certain measures for the year-end closing (regarding accounting policy) should be kept from distorting the results for the last normal period. Start a planned posting run by entering any special period (for example, 13).

When you have a non-calendar fiscal year, you still have to enter the FI period to be posted, rather than the calendar period. For more information, see System Settings for Posting Depreciation.

Purpose of the Posting Run

You can choose the following activities during each posting run by setting certain parameters in the initial screen:

You post to the next period that is specified according to the posting cycle. During a regular posting run of this kind, the system does not allow for limiting the run to particular assets.

You can request a repeat posting run for the last period posted. A repeat run might be necessary, for example, if the depreciation terms were changed for individual assets in connection with the year-end closing. During a repeat posting run, the system only posts the differences that resulted between the first posting run and the repeat posting run (=> no double posting). You can limit the run to particular assets.

Take note of the following special considerations related to the posting process (use of catch-up or smoothing) when you make a repeat run (refer to System Settings for Posting Depreciation).

When you use the catch-up method, the system calculates depreciation over again from the start of the year (or depreciation start) up to and including the depreciation period you are now posting. The difference between this amount and the total depreciation already posted is the new depreciation amount that is posted in the case of a repeat run. As a result of this recalculation of depreciation, new postings and changed depreciation parameters are included in the repeat run.

When you use the smoothing method, the annual depreciation that is still to be posted is distributed evenly over the periods that have not yet been posted. There is no recalculation of depreciation, as there is when the catch-up method is used. Once a period is posted, there can be no new posting to the same period. Any changes to depreciation terms, and/or any new acquisition postings, become effective only in the following period. The only exception is when a new asset is created. Depreciation is then posted for this asset in the repeat run, since no depreciation was posted for it up to that point.

If posting run terminated for technical reasons, and changes were already made to the database, you must begin the report over again in restart mode. Using the restart mode ensures that all system activities that were interrupted by the termination are repeated

If, for certain reasons, you want to skip over one or more posting periods, specify an unplanned posting run. The system then creates a posting session for all periods which were skipped, as well as for the period entered. The posting period which you specify, however, must fit into the posting cycle. If you specify period 7, for example, for a quarterly posting cycle, no posting will occur.

Individual List/Test Run

In addition to the batch input session, the report provides a list of depreciation. This list shows the planned depreciation for the year, the depreciation which has been posted up to this period, and the depreciation to be posted in this period, for each account group and depreciation area (and, if desired, for each asset). Correlation of the list and the posting documents is aided by the inclusion of the internally assigned document numbers in the list.

In order to ensure that all assets are processed within a posting period, you can limit the report to certain assets only during a repeat run. If desired, you can start the report in test mode.