by Kent Bettisworth

May 10, 2010

Thank you for connecting with the insider learning network! 

My focus is specifically to connect the business of project accounting and fixed asset accounting with other significant business processes and the best use of SAP applications.  For example, you can expect discussions about integrating project portfolio management, not only with financials, but also with engineering, sales, R&D, and other relevant processes. I will also discuss special topics such as adopting international accounting standards and the impact on project and fixed asset accounting.  And, of course, I will allocate time to the basics of project accounting with Project Systems/cProjects, and the fundamentals of asset depreciation for financial, tax, and other statutory purposes.

 I look forward to mutually sharing our insights.  Welcome!


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Gary Clements

9/25/2013 8:43:27 PM

Hi Kent,

We implemented AA with PS in January of this year. We are currently on ECC 6.0. We have been running SAP since 1997, but with fixed assets running on a third party system, up to this point. We have noticed a problem with what I would consider to be basic fixed asset functionality. The problem manifests itself when capitalizing an asset with an in service date in a prior year. What we are experiencing is that in such a situation SAP will start depreciation in the month capitalized without any attempt to record 'catch-up' depreciation from the in service date in that first month. Consequently, the planned depreciation end date is also calculated incorrectly.
(This does not happen when capitalizing an asset with an in service date in a prior month within the same year. In such a situation, 'catch-up' depreciation is correctly calculated and recorded in the first month after capitalization, and the depreiation end date is correctly established.)
All research to date has indicated that this is just the way it works, which is actually quite surprising and disappointing, if true.
Our question is, is this in fact the way SAP behaves in such a situation and if so, how do we correct the depreciation expense and the scheduled depreciation end date?
If this is not typical system behavior, do you have any insight into what we may be doing incorrectly?
Any input you might provide would be greatly appreciated.