| # Suspending depreciation You can suspend depreciation in two ways: To suspend depreciation generally for a depreciation method for all asset books, you can use the Suspended Periods (tffam7120m000) session. This method changes the depreciation amount for the periods after a suspended period, and the asset’s last service date does not change. For details, refer to Suspended Periods (tffam7120m000). You can use the Mass Suspend Depreciation (tffam1207m000) session to suspend the depreciation of a range of asset books for a range of years and periods. Mass suspend depreciation In some countries, you can suspend depreciation for periods during which the asset is not used for any reason. You can perform the depreciation in later periods. Before ERP LN can suspend the depreciation for a period, the asset must have been depreciated up to the beginning of the first period for which you suspend the depreciation and no deprecation must exist for later periods. To ensure this, depending on the last depreciation date of the asset book, ERP LN performs normal depreciation for the preceding periods or reverses the depreciation as required for any later periods if you run the Mass Suspend Depreciation (tffam1207m000) session. ERP LN creates a Suspend Depreciation transaction for each period for all asset books in the range. These types of transactions are not posted to the general ledger because the transaction amount is zero. In the Asset Book Transaction Inquiry (tffam8501m000) session, Suspend Depreciation transactions are shown with a transaction amount of zero. For the generated regular depreciation transactions or reversed regular depreciation transactions, ERP LN creates journal entries if you cleared the Suppress Journal Entries check box in the Mass Suspend Depreciation (tffam1207m000) session. If the depreciation suspension was successful, ERP LN sets the Last Depr. Date of the asset book to the last day of the last period for which you suspended the depreciation, and updates the Count of Suspended Periods. If you have suspended the depreciation, you can depreciate the asset at later periods. Periods for which you suspend the depreciation are not included in the remaining asset life. In the Asset Book (tffam1110s000) session, the Count of Suspended Periods field displays the number of periods for which the asset was not depreciated because you suspended the depreciation in the Mass Suspend Depreciation (tffam1207m000) session. Note If you suspend depreciation of an asset for a period in a specific location and during the suspended period you transfer the asset to a new location, depreciation of the asset is not automatically suspended in the new location. You must use the Mass Suspend Depreciation (tffam1207m000) session to suspend depreciation of the asset again in the new location. The Count of Suspended Periods field in the Asset Book (tffam1110s000) session is not affected by suspended depreciation that you perform using the Suspended Periods (tffam7120m000) session. Example For example, you put an asset into service on January 1 2005. The asset life is one year which consists of 12 periods. You do not use the asset in the periods 2005/5 and 2005/6 and during these periods, you suspend the depreciation. For all other periods in 2005, you perform regular depreciation. On December 31 2005, the asset is not fully depreciated. You can still depreciate the asset in periods 2006/1 and 2006/2. Reversing suspension of the depreciation If you reverse the suspension of the depreciation, ERP LN reverses the suspended depreciation as well as the regular depreciation of any periods following the latest period for which you suspend the depreciation. If you reverse the suspended depreciation for a range of periods in the past, you must manually perform the regular depreciation for the periods following the last period for which you reversed the suspended depreciation. For generated reversal transactions, ERP LN only creates journal entries if journal entries exist for the original transactions, independent of whether you select or clear the Suppress Journal Entries check box in the Mass Suspend Depreciation (tffam1207m000) session. If you reverse the suspension of the depreciation, ERP LN updates the Count of Suspended Periods field in the Asset Book (tffam1110s000) session. Example You suspend depreciation for the periods 2005/1, 2005/2, and 2005/3 and you perform normal depreciation for period 2005/4 and post the depreciation transactions to the general ledger. Next, you must reverse the suspended depreciation, starting at period 2005/2. Take the following steps: Select the Reverse Depreciation check box. In the Year/Period From fields, enter 2005/2. You cannot enter a value in the To fields. ERP LN reverses the suspended depreciation of the periods 2005/2 and 2005/3, as well as the regular depreciation of period 2005/4. You must manually perform depreciation for the periods 2005/2, 2005/3, and 2005/4. |