9/17/2014 Asset Impairment | SCN

http://scn.sap.com/docs/DOC-50011 1/9
Getting Started Newsletters Store

Products Services & Support About SCN Downloads
Industries Training & Education Partnership Developer Center
Lines of Business University Alliances Events & Webinars Innovation
Log On Join Us Hi, Guest Search the Community
Activity Communications Actions
Browse
Tweet
created by Julie (PHAN THI THU HUONG) on Dec 6, 2013 2:52 AM, last modified by Julie (PHAN THI THU HUONG) on Dec 6, 2013
4:15 AM
1. PURPOSE:
An asset that is worth less on the market than the value listed on the company's balance sheet due to an unexpected or
sudden decline or antiquity innovation change, this could be the result of physical demage to the asset.

2. REQUIREMENT:
IFRS requirement, Impairment of some Asset could be carried out.

3. CONFIGURATION STEP:
3.1. Go to tcode OABW to check revalue APC in the depreciation area where you want to post. This would help in
identifying the area where the Impairment will have to posted.
3.2. Go to tcode OAYR and select your company code. Then click on the posting rule.
In the book depreciation area, go to Other posting settings. Check on "Post revaluation".
This setting is required for posting the impairment amount.
Asset Impairment
Version 1
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 2/9
3.3. Go to tcode AO90 and create a revaluation APC for each fixed asset class and clearing account Revalutaion APC.
The revaluation APC has to be a reconciliation account and the revaluation clearing is P/L account.
3.4. Go to tcode AO84 to create Transaction type, example "Z80", "Z81", "Z82", "Z83"
- Z80: Impairment Loss (Prior-Yr acq.)
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 3/9
- Z81: Impairment Loss (Curr-Yr acq.)
- Z82: Reversing an Impairment Loss (Prior-Yr acq.)
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 4/9
- Z83: Reversing an Impairment Loss (Curr-Yr acq.)
3.5. Go to tcode ACSET and select the company code, then choose Book depreciation area, add account assignment
object "KOSTL" - cost center and account assignment type "Depreciation Run".
This setting is required cost center for posting the impairment GL account when Depreciation Run.

4. BUSINESS SCENARIO:
- Post impairment asset: Tcode ABAW:
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 5/9
Now, go to tcode ABAW, select the asset to be impaired. Put the transaction type as Z81, press Enter.
In the next screen give an asset value date, amount to be posted as Impairment. Now, click Save.
An asset accounting document will be generated.
NOTE: This impairment amount will NOT be posted automatically. Once depreciation run takes place then only the
amount gets posted to GL account.
a. Impair loss
b. Reverse Impair loss
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 6/9
Average User Rating
(12 ratings)
Tweet

- Run depreciation: for a period in tcode AFAB:
a. Impair loss
b. Reverse Impair loss:
End





2783 Views Tags: asset, accounting, fi, aa, financial, fixed_asset, fi-aa, impairment
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 7/9
20 Comments
Like (1)
Sethuraman Ganesamurthy Feb 18, 2014 11:10 AM
Good one Julie.
Thanks for sharing.
Like (1)
RAHEEM BAKSH Feb 19, 2014 6:41 AM
Hi Julie Phan

Excellent Document


Regards
Raheem
Like (1)
Sada Bandla Feb 19, 2014 12:05 PM
Hi
Nice documentation thank you for sharing knowledge.
Like (0)
Julie (PHAN THI THU HUONG) Feb 20, 2014 3:20 AM
Thank you very much, guys!
Like (0)
Gopikrishna Mallireddy Mar 4, 2014 11:14 AM (in response to Julie (PHAN THI THU HUONG))
Hi Julie,

Very useful document. Thanks for the efforts.

In this i have a doubt..

When we run impairment loss system has reduced impairment loss from APC Value and it is
showing Acquisition value as 900 its okay.

When we reverse the same impairment loss why it is showing Acquisition value as 1100
instead of 1000?


Regards,

Gopikrishna Mallireddy
Like (1)
Shaik Md Abubakar Siddiq Feb 20, 2014 7:02 AM
Helo Julie...

Very Use full Documentation for me as of now...Good Work and thanks for your Wonder full Efforts.
Like (1)
Santosh Visave Feb 20, 2014 11:56 AM
Hi Julie,

Very nice document, keep it up....


Santosh Visave
Like (1)
Pankaj Pareek Feb 20, 2014 4:49 PM
Hi Julie,
Nicely explained implementing the asset impairment.
Thank you for sharing it.
Regards
Pankaj Pareek
Jazib Tariq Feb 21, 2014 7:02 AM
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 8/9
Like (1)
Hi Julie,

Nice Document
Like (1)
Kishore Kumar Pasumarthy Mar 4, 2014 8:03 AM
Thank you very much, guys!
Like (2)
Ravi Sankar Venna Mar 4, 2014 11:29 AM
Thanks for the document.
The inherent design problem of Impairment is it would only considered from the next year for
calculating the ordinary depreciation. Even after posting the impairment, there would not be any
difference in the current year's ordinary depreciation, this is the design of the system, we may have to
live with it. But, most of the clients are not happy.
Like (1)
Julie (PHAN THI THU HUONG) Mar 18, 2014 8:15 AM (in response to Ravi Sankar Venna)
Thank you very much for your valuable information, Sir Ravi.
I noted this point.
Like (1)
Satyendra Prasad Singh Mar 11, 2014 4:49 PM
many thanks for the document !!!


Best regards
Satya
Like (0)
sreehari tokala Apr 8, 2014 9:30 AM
Thank you very much Julie...........

It's very help full Document to implement .


Thanks & Regards,
Sreehari. Tokala
Like (0)
Warren Nash Apr 29, 2014 10:13 AM
Good document Julie.

Regards

Waza
Like (0)
Lakshmi Sama Jun 10, 2014 8:58 AM
Hello Julie,

Nice document and you explained the concept in a good manner anyone can understand it easily

Thanks & Regards,
Lakshmi S
Like (0)
M. Javed Kamal Jun 13, 2014 3:45 PM
Dear Julie,

Nice explanation about impairment concepts, process and configuration.

Thanks for sharing.

Regards
Javed
Ganesh K.B. Jun 18, 2014 2:56 PM
Hi Julie,
9/17/2014 Asset Impairment | SCN
http://scn.sap.com/docs/DOC-50011 9/9
Follow SCN
Site Index Contact Us SAP Help Portal
Privacy Terms of Use Legal Disclosure Copyright
Like (0)

Very nice document with clear examples.

Regards,
Like (0)
Erwin Leitner Jun 29, 2014 9:51 AM
Hello,

Thank you very much for excellent information.

"Mrs. SAP"

all the best Erwin
Like (0)
Pankaj Bansal Jun 29, 2014 5:48 PM
Very Helpful!

All the best!