1562637 - What is the difference between Smoothing and Catch-up in depreciation?

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SAP Knowledge Base Article

1562637 - What is the difference between Smoothing and Catch-up in depreciation? Version 2 Validity: 23.03.2011 - active Language English

Symptom
There is a difference in the depreciation calculation as a result of the settings Smoothing or Catch-up.

Environment
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All SAP Releases Asset Accounting (FI-AA) - Depreciation Posting

Reproducing the Issue

1. Run RAPOST2000 (transaction AFAB) for one or more periods. 2. Change depreciation-relevant parameters on the asset master or in customizing (e.g. useful life or depreciation key). 3. Flag or unflag the checkbox 'smoothing' in transaction OAYR and watch the result in transaction AW01N or RAPOST2000.

Cause
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Some parameters for depreciation (e.g. depreciation key or useful life) have been changed and as a result the planned depreciation amount changed. One or more periods for depreciation posting have already been posted. As a general rule it is not possible to change already posted depreciation and post in periods which have been already posted.

Resolution

https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui/main.do?param=...

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Example: 1. Depreciation has already been posted for periods 1 - 6 via report RAPOST2000. 2. In period 7 some depreciation-relevant parameters were changed in asset master data or in customizing (for example useful life or depreciation key). 3. As a result the depreciation for the fiscal year 2010 increases from 1200 to 2400. Original depreciation calculation: 1.200 / 12 periods = 100. Changed depreciation calculation: 2.400 / 12 periods = 200. Original depreciation Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Planned Planned Planned Planned Planned Planned New depreciaion 200 200 200 200 200 200 200 200 200 200 200 200 Difference 100 100 100 100 100 100

1 2 3 4 5 6 7 8 9 10 11 12

What should happen with the difference between the original and new depreciation in periods 1- 6? There are 2 possibilities: Smoothing or Catch-Up.
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Smoothing

The difference will be equally distributed over the remaining planned periods:

1 2 3 4 5 6 7 8

Original depreciation Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Planned Planned

New depreciaion 200 200 200 200 200 200 200 200

Difference

Ammount to be posted

100 100

300 300

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9 10 11 12
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Planned Planned Planned Planned Catch-Up

200 200 200 200

100 100 100 100

300 300 300 300

The whole difference will be posted in the next planned period:

1 2 3 4 5 6 7 8 9 10 11 12

Original depreciation Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Posted 100 Planned Planned Planned Planned Planned Planned

New depreciaion 200 200 200 200 200 200 200 200 200 200 200 200

Difference

Ammount to be posted

600

800 200 200 200 200 200

See Also
SAP Hinweis 30260 Restverteilung SAP-Documentation Graphic

Keywords
smoothing, catch-up, depreciation, RAPOST2000, AFABN, OAYR

Header Data
Released on 23.03.2011 21:25:56 Release status Released to Customer Component FI-AA-AA Basic Functions Priority Normal

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Category

How To

Product
This document is not restricted to a product or product version

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10/12/2011