Tips for changing fixed asset lifecycle parameters in SAP Business One

During the life cycle of fixed assets in the enterprise, it may be necessary to adjust some of its parameters such as, for example, the start date of depreciation, useful life or type of depreciation.

This article will help you understand the requirements for modifying or adjusting fixed assets and what are the consequences of such changes.

Depreciation start date

The depreciation start date can be determined automatically by the capitalization date (Asset Value Date in the capitalization document) and the Depreciation Convention defined for depreciation type (Depreciation Type Tab ? General ? Settings).

The depreciation start date can also be specified manually. Fields can be edited when the following conditions are met:

·        Fixed assets have been capitalized.

·        The selected fiscal year is the year of compounding.

·        The depreciation area is not a derivative area.

Example

Capitalized assets in 2019:

The depreciation start date can be changed for depreciation area 100 by selecting fiscal year 2019. The start date of depreciation of area 300 cannot be changed because it is a derived area.

Consequences

After saving the changes, the system automatically recalculates the end date of depreciation, planned depreciation, and updates the relevant values for fixed assets.

Life span

The useful life should always be specified when creating fixed asset master data.

This useful life can be changed before reaching the end of the useful life of the asset, but cannot be changed if the remaining useful life for the selected year is 0.

Example

The useful life cannot be changed for fiscal year 2021 because the remaining initial useful life of fiscal year 2021 is 0.

Consequences

After you save the changes, the planned depreciation will be recalculated from the selected fiscal year in which you made the changes.

Depreciation class

The depreciation type must be specified when creating the asset master data. The type of depreciation can be changed at any time.

Consequences

After you save the changes, the planned depreciation will be recalculated from the selected fiscal year in which you made the changes.

If a change in the depreciation start date creates an inconsistency between the planned depreciation recalculated and posted, the difference is automatically adjusted on the next depreciation process.

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