Tips for Changing Fixed Asset Lifecycle Parameters in SAP Business One

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

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

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 the depreciation type (Depreciation Types Tab > Settings > General).

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

• Fixed assets have been capitalized.
• The selected fiscal year (fiscal year) is the year when compounding occurs.
• 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 depreciation start date for area 300 cannot be changed because it is a derived area.

Consequence

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

Lifetime

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

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

Example

The benefit period cannot be changed for the 2021 fiscal year because the remaining useful life at the beginning of the 2021 fiscal year is 0.

Consequence

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

Depreciation class

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

Consequence

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

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

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