Hello Bhaskar,
We also faced the similar issue while closing our Assets Fiscal Year. Since the Previous fiscal is closed it is not possible to post the depreciation in the previous year as it will affect the Financial statement of the closed Fiscal Year which will never be allowed by the auditors.
The solution which we applied was as below:
1. Open the Previous Fiscal Year period lets say 2013.
2. Post the deprecation in the repeat mode.
3. Check the amount posted in the deprecation account in the Previous fiscal year i.e 2013.
Now since with the above posting Financial Books for 2013 are affected, we need to reverse the booking done via AFAB i.e depreciation posting in the same Previous Fiscal Year i.e 2013. The issue here will be that we cannot directly reverse the depreciation for the asset. For this purpose SAP has provided one transaction i.e ABF1 where we can directly hit the Assets reconciliation account. this means you can reverse the entry posted by AFAB using transaction ABF1 manually. ABF1 is just like a FB01 and you have to post the below entry.
Provision of depreciation account Dr.
Depreciation account Cr.
(In your case since it is negative depreciation is being posted the reverse entry of above should be posted in AFB1)
With the above posting, you financial statement will not be affected as the entries are reversed in the same year i.e 2013.
However please note that with this you will have a mismatch in the FI and Asset books in the Year 2013.
Now since the depreciation should also be posted in the books and will be treated according to AS-5 issued by ICAI as prior period item in the current Fiscal year.
We need to reverse the posting made in ABF1 in the current fiscal year i.e 2014.
Impact:
- No impact on FY 2013
- FY 2014 will have the depreciation of one month of 2013 which will treated as a error and will be shown in the P&L of 2014 according to AS - 5 as prior period item.
- With the reversal entry in 2014, both asset and Fi books will again match in the year 2014.
Please let me know if you have any question in the above process.
Regards,
Sumti Bhadani