This window is used to change the accounting allocation for the displayed asset. This change can pertain to the Holding type, the classification of the asset as Held for sale, the Accounting family and/or the Accounting code.

This accounting allocation change function can be used to perform start-up operations: transfer of a Fixed assets in progress account to a Fixed assets in service account.

If the section associations are defined for the Asset object, any change of the accounting allocation can generate method changes in one or more depreciation plans.
This window can also be used to view the new depreciation methods and to carry out any modification required.

This window is called from the Actions menu in the Assets management function. 

..\FCT\SEEINFO Accounting allocation change is prohibited for assets:

- which are Inactive,
- whose holding type is Template,
- which have been subjected to a real asset disposal,
- which are in the process of an intra-group sale.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

This window is composed of:

  • a header containing the asset identification information,
     
    as well as the following two tabs:
     
  • the Parameters tab used to enter the new account allocations,
     
  • the Depreciation plans that is used to view any new depreciation methods determined by the section associations and to carryout any modification required.

Management method for the window

The management mode is the same for this window as for all the actions that can be applied to assets.

It is therefore advisable:

 1/ First, to enter the parameters linked to the action being implemented.

 2/ Then, it is possible:

- Either to directly validate the entry of the new parameters by clicking on [OK]. A consistency check on the new allocation and the new method is then carried out. In the case of an error, a message is displayed, blocking the update of the asset; it is then necessary to modify the incorrect parameters.

- Or to go through an intermediate stage of control of the parameters entered by clicking [Control]. A window is displayed. It can be used to view the result of applying the new parameters to the asset when these parameters are coherent, and also to identify, by means of a colored display, possible lines in error along with the corresponding error messages. The display of the assets in errors is not updated with the parameters entered ; these are displayed with the parameters of the original methods.

Click the [OK] button to close the control window; the parameter entry window is displayed again, making it possible either to confirm by clicking [OK] if no error has been detected, or to correct the parameters in error.

Note: This stage is part of the management method which is the same for different processing tasks, whether they concern a mass or an individual processing. Its only real usefulness is in mass processings, where it authorizes, if necessary, manual adjustment of the values for certain processed assets. In unit processings, this window can be accessed only in view mode, the entered parameters affecting only one single asset; their adjustment is done directly in the entry window of these parameters.

3/ If the parameters are correct, the [OK] button is used to confirm their application and to return to the Assets screen in modification mode. The processing is taken into account only after saving the asset.

Header

The header displays the reference as well as the description of the asset from which the allocation change action is called. This information cannot be modified.

Business object

Reference (field OBJREF)

Reference for the financial asset. 

Description (field OBJDES)

Description of the financial asset.

Tab Setup definition

This tab is used to: 

  • Specify the reason justifying the allocation change.
     
  • Modify the accounting allocations:

    - Holding type: only the assets with holding type 'In leasing' for which no lease contract reference has been specified can be modified. Its value can then be 'In property'.

    - Classification of the asset as 'Held for sales': this classification stops the depreciation for each IAS/IFRS plan.

    - Family and/or Accounting code.
     
  • View the new Nature and CoA allocation (and any IAS/IFRS if the IAS/IFRS standards are managed) if the accounting code is modified, either directly, or by means of the application of the section associations after the modification of the Family.
     
  • Enter the asset Start-update when the accounting allocation change involves a transfer from an account 'In progress' to an account 'In service'.

The effective date of the allocation change is automatically determined as follows:
- If the accounting allocation change does not involve a transfer from an account 'In process' to an account 'In service', the effective operating date and the effective accounting date have the furthest of these two values: Depreciation start date and Start date of the current period.
- If the account posting change does involve the switch from a fixed asset account 'In process' to an account 'In service', the operation effective date is the start-up date, and the accounting effective date is the furthest of the following: Start-up date and Current period start date.

..\FCT\SEEWARNING Notes:

1/ The change of the CoA accounting nature from 'Fixed assets In service' to 'Cost' or to 'Fixed assets in progress' is not authorized if a previous depreciation total exists for one of the plans of the asset (apart from the IAS/IFRS plan).The same goes for the IAS/IFRS accounting nature when an IAS/IFRS depreciation total exists for the IAS/IFRS plan.

2/ At the end of the account transfer, the asset must be allocated to at least one fixed asset account either according to the CoA standards or to the IAS/IFRS standards.

Transfer parameters

Reason (field MVTTYP)

This field is used to enter the reason for an account posting change. This information is mandatory.

Transfer type

Holding type (field FLGOWN)

This indicator is linked to the field that follows. It enables the user to force the value of the field when it is activated.

Holding type (field OWNTYPD)

Help common to the single and mass processes for the account posting change.
This field enbales the user to modify the holding type of the asset or, in the case of a massive process, all the selected financial assets. Only the assets with holding type In lease contract for which no lease contract reference has been entered, can be modified. It can then take as value In property.

Asset held for sale (field FLGSAL)

Help shared by the unit and mass processes of accounting allocation change.
When activated, this indicator is used to classify the asset or all the assets (in the case of a mass processing) as held for sale.
Use this classification to anticipate on the sale of an asset in the standard IAS/IFRS plans.
The classification date must be specified in the next field.
The classification for sales is only authorized for assets with the 'Property' holding type.
This action applies to each of the depreciation IAS/IFRS standard plans and triggers the stop of the depreciation on these plans.
The classification for sales prohibits any other business action on the asset and a fiscal year closing is unauthorized as long as the asset has not been disposed.
A classified for sale asset can be identified using the classification date displayed in the disposal information.
Classification cancellation
As long as the asset has not been disposed, the classification for sale can be canceled by unchecking this flag.
If the classification date is prior to the start date of the current period, this cancellation will be effective from the beginning of the current period.
If the classification date is later than or equal to the current period start date, the deletion will be carried out as if the asset had never been classified for sale.
Classification date (field SALCLSDATD)

Help shared by the unit and mass processes of accounting allocation change.
The classification date can only be specified when the Asset held for sale check box is selected.
The date entered must be later than or equal to the current fiscal year start date.

Classifying an asset as held for sale stops the depreciation of the asset for each IAS/IFRS plan and changes the depreciation method to 'Residual'. If the classification date is greater than the current period end, the method will not go to 'Residual' upon closing the period containing the classification date.
A classification for sale event (FASCFS) is generated automatically.

Deleting this date cancels the classification. This cancellation will be effective at the start of the current period, if the classification date is earlier than the current period start date.
If the classification date is later than or equal to the current period start date, the deletion will be carried out as if the asset had never been classified as held for sale.
Expected sale amount (field EXTSALAMT)

Use this field to specify the sufficient value which is expected for the sale when a sales date is entered in the Classified for sale field. It can only be accessed when the Asset held for sale option is checked.
The amount is updated automatically in the Assets function.
Currency (field ACGCUR)
Family (field FLGACG)

This indicator is linked to the field that follows. It enables the user to force the value of the field when it is activated.

Family (field ACGGRPD)

Help shared by the unit and mass processes of accounting allocation change.
This field is used to specify the Group of the asset or, in the case of a mass processing, all the selected assets. If the group associations are defined for the Asset object, entering the Family code can determine the Accounting code.

The definition screen of the Asset groups, which can be accessed from the Jump-to icon, can be used to:
- View the values determined by the associations, for the entered group code,
- Access the entry/modification screen of the values of these associations.
Accounting code (field FLGACC)

This indicator is linked to the field that follows. It enables the user to force the value of the field when it is activated.

Accounting code (field ACCCODD)

Help shared by the unit and mass processings of accounting allocation change.
This field is used to specify the accounting code of the asset or, in the case of a mass processing, all the selected assets. It can be entered by hand or, if section associations have been defined for the Assetobject, loaded after entry of the family. The accounting code entered must correspond to a Fixed asset -type code defined in the table of accounting codes. It is used to deduce and load the following fields: CoA nature, CoA accountand, if the IAS/IFRS plan is managed, the fields: IAS/IFRS nature and IAS/IFRS account. If section associations have been defined for the Assetobject, the entry of the Accounting code can determine the value of different sections, including the depreciation methods.

General account (field GACD)

Help shared by the unit and mass processings of accounting allocation change.
This field displays the CoA account, which is the accounting classification of the asset, or all the selected assets, towards the national standards. It is loaded with the CoA fixed asset account, defined at the level of the Accounting code and cannot be modified.

CoA nature (field GACACND)

This field displays the nature of the CoA account.

In service date (field ITSDATD)

Help shared by the unit and mass processings of accounting allocation change.

  • In unit processing mode, the "Date put into service" is loaded with the one recorded for the asset.
    It can only be modified if the account posting change creates a transfer from an account In process to an account In service.
    Changing this date automatically updates the depreciation start date for the depreciated plans according to a method for which the depreciation start date is loaded with the start-up date.
  • In mass processing mode, the "Date put into service" can be entered if an entry into service is detected (transfer from a "Fixed asset in progress" account to a "Fixed asset in service" account). It automatically loads, in tab "Depreciation plans", the "Depreciation start" date for each of the depreciation plans selected to be processed.
IFRS account (field IASACCD)

This field displays the IAS/IFRS account, i.e. the accounting classification towards the IAS/IFRS national norms. It is loaded with the IAS/IFRS fixed asset account, defined at the level of the Accounting code it cannot be entered.

IFRS nature (field IASACND)

This field displays the nature of the IAS/IFRS account.

Tab Deprec plans

This tab is made up of a table containing as many lines as there are depreciation plans managed by the company. It is used to:

  • View the impact of the accounting allocation change (Family and/or Code) on the depreciation methods of each plan. Each of the elements in the modified method can be identified with its Update indicator set to Yes.
  • Select each of the plans on which the new method will be applied. This selection is carried out by activating the Process indicator. It is possible, for the selected plans, to carry out any adjustment necessary on one or several elements of the depreciation method. To do so, the Update indicator preceding it must be set to Yes, if it isn't already.  The plans for which the Process indicator is not active retain their depreciation methods which were applied before the processing.
  • Specify the effective date of the method change. It can either be:
    - the Period start date
    - the FY start date
    - the Depreciation start date.
     
    The effective start-up date depends on the start date of the asset depreciation. The various possibilities and associated processing terms, when a method change is joint to the allocation change, are described hereafter.

    Note: when the posting change corresponds to a start-up, the effective start-up date is automatically the Depreciation start date.
     
  • To precise the management terms of the potential variance on the depreciation when the change of method takes effect at the asset depreciation start date, which is earlier than the start date of the current fiscal year.

    Note on the asset start-up: if, through the setup of the depreciation method, the asset depreciation start date is updated with the start-up date entered and this date is earlier than the current fiscal year start date, the adjustment of the variance automatically takes the value of the Period charge. This adjustment is managed as follows:
    - the total of the previous fiscal year FY-1 equals 0 (the forcing flag is set to Yes)
    - the charge that should have been applied in E-1 is adjusted in the current period of fiscal year E (the adjustment is added to the charge of this period).

     
    After entering the parameters, it is necessary to either confirm using the  button, or to perform a check of the information entered via  . See the management mode of the window, described above.

Grid New deprec methods

Process (field TRTFLG)

Indicator activated by double-click, which enables the user to precise the change of method generated by the modification of the account posting (Group and/or Accounting code) must be applied to the plan.

Plan (field DPRPLND)

The code for the depreciation plan.

Chg effective start (field MTCTIATYP)

Help common to the single and mass processes for the account posting change.
This field is used to select the date at which the change will be effective.
If the acount posting change implies changing the depreciation mode, the available selections in a unitary process depend on the depreciation start date of the asset:

  • If the depreciation start date is before the start of the current financial year, the mode change can be effective on the Depreciation start date, Financial year start date or Period start date.
  • If the depreciation start date is after or equal to the start of the current financial year, and before the start of the current period, the mode change can be effective on the Depreciation start date, or Period start date.
  • If the depreciation start date is after or equal to the start of the current period, the mode change is automatically and necessarily effective on the Depreciation start date.

Specificities: when it corresponds to a first use, the account posting change is necessarily effective on the Depreciation start date.

In a mass process, the default effective date set up in this tab can be customized in the Control window for each asset, according to its situation.

For more details and examples on the process terms related to the effective date selection for an account posting change, see thefunction documentation.
Rec. meth chge var (field MTCDEVADJ)

Help common to the single and mass processes for the account posting change.
This field is used to indicate how the difference will be managed on the depreciation total following an account posting change causing the change of depreciation mode.
This field can be entered if the depreciation start date is before the financial start date of the current plan, and if the effective date for the mode change is equal to the depreciation start date.
To know more about the management terms for this variance, see the documentation related to the Account posting change or Account posting change - Mass process functions.
Specificities: If the depreciation mode is IT (Ordinario / Anticipato) and the Exceptional depreciation rate is other than 0, the variance in the depreciation total cannot be processed by the Financial year exceptional charge or Period exceptional charge recovery option.

Update-> (field STRFLG)

When set to Yes, this forcing indicator enables to force the value of the field to which it is associated.

Depr. start (field STRDPRDATD)

Help shared by the unit and mass processings of accounting allocation change.
This field can only be entered if the Upd indicator is set to Yes.
It is used to enter the depreciation start date for the asset, or in the case of a mass process for the group of selected assets. It is mandatory that this date is greater than or equal to that of the start of the current fiscal year for the context.
In the case when the change of account posting urges the asset first use, this date is automatically revised using the depreciation start date set up for the depreciation method used.
In mass processing mode, this date is automatically loaded with the "Date put into service" entered in tab "Parameters".
Once a closing has been carried out, this date can no longer be modified.

Current mode (field DPMO)
Method (field DPMD)

Help common to the single and mass processes for the account posting change.
This field displays the depreciation mode, potentially defined when applying the field association following an account posting change. Otherwise, the field is left blank.
It can be entered or modified only if the Process indicator has been activated for the plan. This mode should be authorised for the related company, plan and country.

The choice of the mode is submitted to the following restrictions:

  • On a French company Fiscal plan, the method can only be DF - French decreasing, or LP French straight line.
  • The CA - Amortization expense / Gross value or RA - Amortization expense / Net value modes can only be used on a plan of the Accounting and fiscal context other than the Subsidy plan and only if the asset holding type is In concession. If the management mode of the concession is Transmitted by renewal, the depreciation method of the plan designated to manage the amortization expense must be:
    - SA, when it comes to renewing assets.
  • The OPE - Operation Units mode can only be used on a plan belonging to the context retained for the OPE management and only if the asset has been attached to a Production workbench.

The modification of the amortization mode can lead to the modification of the Depreciation start date of the plan and its loading, according to the setup carried out at the level of the Depreciation method, either with the First use date, or with the Purchase date, or with the Posting date.
Update-> (field ENDDPRFLG)
Depr. end (field ENDDPRDATD)
Current duration (field DPRDURO)
Update-> (field DURFLG)

Upon opening the window, this indicator, if set to Yes, signals that the value of the field to which it is linked, has been updated on applying the field association. It can only be modified if the Process indicator is active. If set to Yes, the indicator enables to enter or change this value.

Depre. durn (field DPRDURD)

Help common to the single and mass processes for the account posting change.
When the corresponding Update indicator is set to Yes, this field displays the depreciation duration defined by the field associations. This value can only be entered or modified if the Process indicator is activated for the plan and if the Update field is set to Yes.

The rules for the entry and the value of the depreciation duration are a function of the depreciation method entered:

  • The duration can be entered except if the method has the value: WD (With depreciation), OU (Operation units), PI (Inflated progressive), OR (Ordinario), AN (Anticipato) or IT (Ordinario/Anticipato).
    In this case, the duration will be equal to 0 and it cannot be modified.
    If the mode has FM for value (Shapes and moulds), the duration is automatically of 3 years.
    If the mode has LG for value(Line), the duration is automatically of 1.5 year.
    If the mode has LP for value (French straight-line), and the specific rule is 12 months software, the duration is automatically of 1 year.
  • It is mandatory that it is greater than or equal to 3 years for the Digressive type methods.
  • If the depreciation method is a Free, method, the duration is at least equal to the minimum duration specified for this method.
Current rate (field DPRRATO)
Update-> (field DPRRATFLGD)

Upon opening the window, this indicator, if set to Yes, signals that the value of the field to which it is linked, has been updated on applying the field association. It can only be modified if the Process indicator is active. If set to Yes, the indicator enables to enter or change this value.

Rate (field DPRRATD)

Help common to the single and mass processes for the account posting change.
When the corresponding Update indicator is set to Yes, this field displays the depreciation rate defined by the field associations. This value can only be entered or modified if the Process indicator is activated for the plan and if the Update field is set to Yes.

The rules for the entry of the depreciation rate are a function of the depreciation method entered:

  • When one of the following modes are entered, this field cannot be entered, and the rate must be set to 0:
    CA (Amortization expense / Gross value), DA (German digressive), DE (Spanish declining), FD (French declining), DX (German mixed declining), DP (Portuguese declining), DV (Portuguese mixed declining), DI (Spanish mixed declining), FM (Shapes and moulds), LG (Line), PR (Progressive), RA (Amortization expense / Net value), RE (Residual), SA (Without depreciation), SY (Softy), UD (Declining balance), UL (Straight line), OU (Operation units)
  • When the method entered has the value PI (Inflated progressive), AN (Anticipato), OR (Ordinario) or IT (Ordinario/Anticipato), it is mandatory to enter the rate.
  • When the entered mode is the DB one (Belgian declining), this rate, when entered, must be higher than the linear rate and lower than the double of the straight rate.
Update-> (field DPRRA2FLGD)

When set to Yes, this indicator enables to force the value of the field to which it is associated. It can only be modified if the Process indicator is active for the plan.

Exc. depr rate (field DPRRAT2D)

Help common to the single and mass processes for the account posting change.

This field is linked with the management of the IT (Ordinario/Anticipato) mode. It is displayed only if the mode is allowed for company's country and can be entered only if the Maj flag is set to Yes. It is used to enter the depreciation rate used by the IT depreciation method (Ordinario/Anticipato) in order to calculate the Anticipato depreciation.

  • The rate value should be lower than or equal to the depreciation rate value.
  • If the asset is new, the rate can be entered only for the first three years of depreciation.
  • In the case of a second hand asset, the rate can be entered only for the first year of depreciation.
Update-> (field RSDVALFLG)

When set to Yes, this indicator enables to force the value of the field to which it is associated. It can only be modified if the Process indicator is active for the plan.

Residual value (field RSDVALD)

Help common to the single and mass processes for the account posting change.
This field is only visible during a unitary process and can only be entered if the Upd indicator is set to Yes.
It is used to enter the residual value of the asset in another plan than the subsidy plan. The residual value must not be greater than the NV at the start of the period (or start of the financial year if the periods are not managed).

Update-> (field ALWFLG)

Upon opening the window, this indicator, if set to Yes, signals that the value of the field to which it is linked, has been updated on applying the field association. It can only be modified if the Process indicator is active. If set to Yes, the indicator enables to enter or change this value.

Specif. rule - fiscal help (field ALWCODD)

Help common to the single and mass process for the account posting change. 

When the Update indicator is set to Yes, this field displays the specific rule code defined by the field associations.
This code can only be entered or modified if the Process indicator is activated for the plan and if the Update field is set to Yes.
The rule to apply is selected according to the depreciation mode selected and/or the depreciation plan. For example, rules generating fiscal help (Help 25 %, Help 50 %, Energy, Depreciation rise 30 %, ...) can only be applied for the Fiscal plan.

Note on the 40% deduction [15/04/15-14/04/17] Specific rule for a French company:

To apply this rule, the purchase date must be on or before 14/04/17. If not, you receive the message "If the specific rule no longer applies at the purchase date, make sure you have the rights to apply it. Do you confirm?" You can select Yes or No to dismiss the message.

Yes: Applies the rule even if the purchase date is past 14/04/17.

No: Creation or updates are not applied and you need to change the Specific rule to None or cancel the action.

Spc FYR rule amt (field ALWAMT)

This field is used to enter a fiscal help. The amount should be less than the net value at the period start.
Data entry is disabled for plans on which one of the following rules has been specified:

  • Help 25 %, Help 50 %
  • Depreciation rise 30 %
  • Rate rise 30%
  • Energy
  • Increase of 1 of the degressivity factor
  • Dedicated to research
  • Press 39 bis
  • 40% deduction [15apr15 - 14apr17]

Note on the 40% deduction [15/04/15-14/04/17] Specific rule for a French company:

To apply this rule, the purchase date must be on or before 14/04/17. If not, you receive the message "If the specific rule no longer applies at the purchase date, make sure you have the rights to apply it. Do you confirm?" You can select Yes or No to dismiss the message.

Yes: Applies the rule even if the purchase date is past 14/04/17.

No: Creation or updates are not applied and you need to change the Specific rule to None or cancel the action.

 
Update-> (field ACLCOEFLG)

When set to Yes, this indicator enables to force the value of the field to which it is associated. It can only be modified if the Process indicator is active for the plan.

Acceleration coeff. (field ACLCOED)

Help common to the single and mass processes for the account posting change.
This value can only be entered if the Process indicator is activated and the Update field is set to Yes.

The depreciation accelerator coefficient is used to manage depreciation modes: Declining balance, Belgian declining, Russian straight-line, Russian declining, Russian constant and Softy Russian modes. It can only be modified for these depreciation modes.
When this factor is applied to the Belgian declining mode, it must be included between 1 and 2 and contain up to 2 decimals (examples: value 2 corresponds to 200 %; the value 1.5 corresponds to 150 %).
Update-> (field PRATYPFLG)

Upon opening the window, this indicator, if set to Yes, signals that the value of the field to which it is linked, has been updated on applying the field association. It can only be modified if the Process indicator is active. If set to Yes, the indicator enables to enter or change this value.

Prorata (field PRATYPD)

Help common to the single and mass processes for the account posting change.
This value can be entered only:
- If the Process indicator was activated
- If the Update field is set to Yes
- and if the amortisation method on the plan is one among the three following: UL (Straight line), UD (Declining balance) or RE (Residual).

Fiscal year start date (field FIYSTRDAT)

This field , non modifiable, displays the financial year start date of the context which the plan belongs to.

Period start date (field PERSTRDAT)

This field displays the period start date of the plan.

Depre start date (field STRDPRDAT)

This field, non modifiable, reminds the user of the asset amortisation start date.

FY depre total (field DPRCUM)
Standard (field PLNSTD)

This field reminds the user of the accounting standard retained for the management of the depreciation plan.

Periodic total P-1 (field PERCLOCUM)

Potential effective dates and processing terms

The table below lists the different potential choices for the effective date of the method change and the adjustment or processing terms applied, according to the asset depreciation start date.

1/ The depreciation start date is less than the start date of the current FY fiscal year.

Effective date 

Processing Terms 

 Depreciation start date

The depreciation total on FY-1 end is recalculated.
The variance between the new and the former total can be processed, as the user wishes, according to one of the following modalities:
- In carry-forward See Example 1.
- Fiscal year exceptional charge. See Example 2.
- Period exceptional charge. See Example 3.
- Integrated to the fiscal year charge. See Example 4.
- Integrated to the period charge. See Example 5.

 Current F Fiscal year start date

The depreciation total on FY-1 end is not recalculated.
The F fiscal year charge will be recalculated using the new method, which is necessarily based on a residual method applied to the depreciation net value at the start of the F fiscal year.
The charge of the P period will contain the regulation of the charges of the closed periods.
See Example 6.

 Start date of current period P

The depreciation total on FY-1 end is not recalculated.
The depreciation total of the closed periods of the current fiscal year is not recalculated.
The "residual" F fiscal year charge [P period start - F fiscal year end] will be calculated using the new method, which is necessarily based on a residual method applied to the depreciation net value at the start of the P period.
This charge of the "residual" fiscal year will be distributed on the P period and the following of the F fiscal year.
The charge of the F Fiscal year will be equal to the total: charges of closed periods before method change + charge of "residual" fiscal year.
See Example 7.

2/ The depreciation start date is greater than or equal to the start date of the current FY and less than the start date of the current period P.

Effective date 

Processing Terms 

 Depreciation start date

The charge of the F fiscal year will be recalculated using the new method.
The charge of the P period will contain the regulation of the charges of the closed periods.
See Example 8.

 Start date of current period P

The depreciation total of the closed periods of the current fiscal year is not recalculated.
The depreciation charge of the "residual" fiscal year [P period start - F Fiscal year end] will be calculated using the new method, mandatorily based on a residual method.
This charge of the "residual" fiscal year will be distributed on the P period and the following of the F fiscal year.
The charge of the F Fiscal year will be equal to the total: charges of closed periods before method change + charge of "residual" fiscal year.
See Example 9.

 3/ The depreciation start date is greater than or equal to the start date of the current period P.

Effective date 

Processing Terms 

 Depreciation start date

The charge of period P (or the depreciation start period) will be recalculated based on the new depreciation method.

A list of examples is provided below, illustrating the implementations and processing terms available.

Effective date and consecutive method changes:

During an ongoing fiscal year, multiple depreciation method changes can be carried out. The implementation of a method change cannot be prior to the previous change.
Example
Let us consider a fiscal year containing 4 periods: P1, P2, P3 and P4.

  • During P2, a change of method is made to be effective at Period start.
    During P3, only a change of method to be effective at Period start will be possible.
  • During P1, a change of method is made to be effective at Fiscal year start.
    During P3, a change of method to be effective at Fiscal year start or a change of method to be effective at Period start will be possible.

Examples of method change

Depreciation start date less than Current fiscal year FY
  • Example 1

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Carry forward balance

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Carry-forward
(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

(3,005.46)
(1) 2,505.05

1,667.00

(2) 333.50

826.65

(-500.41)

01/07/06 -
30/09/06

2,505.05

1,667.00

420.17

1,246.82

01/10/06 -
31/12/06

2,505.06

1,667.00

420.18

1,667.00

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00

(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Carry-forward at the start of F financial year.
The new total at the end of F-1 (2,505.05) cancels and replaces the previous one (3,005.46), even though the forcing flag is set to Yes for this total.

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
New total at the end of 2005 re-caculated after the change of method + Charge of 2006
Let us consider: 2,505.05 / 1,667.00 = 4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 2

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the fiscal year

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Fiscal
exception.(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,667.00

(2) 333.50

826.65

(-500.41)
-248.15

01/07/06 -
30/09/06

3,505.46

1,667.00

420.17

1,246.82

(-500.41)
-126.13

01/10/06 -
31/12/06

3,505.46

1,667.00

420.18

1,667.00

(-500.41)
-126.13

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.0

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.0

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.0

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the F fiscal year, this exceptional charge must be distributed on the current period and the following ones.
For the period [01/04/06 - 30/06/06]: -500.41 x (181 / 365) = -248.15
For the period [01/07/06 - 30/09/06]: -500.41 x (273 / 365) - (-248.5) = -126.13
For the period [01/10/06 - 30/12/06]: -500.41 - -374.28 = -126.13

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 -  500.41 =  4,172.05

Depreciation start date less than Current fiscal year FY
  • Example 3

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the period

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Fiscal year start total

Fiscal year charge

Period charge

Period end total

Fiscal
exception.(1)

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 - 31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,667.00

(2) 333.50

826.65

(-500.41)

01/07/06 -
30/09/06

3,505.46

1,667.00

420.17

1,246.82

01/10/06 -
31/12/06

3,505.46

1,667.00

420.18

1,667.00

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the P period, when the change of method was carried out.

(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 -  500.41 =  4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 4

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 integrated to the charge of the fiscal year

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(1) 1,166.59

(2) 85.35

578.50

01/07/06 -
30/09/06

3,005.46

1,166.59

294.05

872.55

01/10/06 -
31/12/06

3,005.46

1,666.59

294.04

1,166.59

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/07

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00



(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year. Let us consider 1,667.00 - 500.41 = 1,169.59

(2) The charge of the fiscal year is recalculated using the new duration, which contains the variance on the total at the end of F-1. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
1,166.59 X (181 days / 365 days) = 578.50 - 493.15 = 85.35

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05



Depreciation start date less than Current fiscal year FY
  • Example 5

    Effectiveness: Depreciation start date
    Chosen terms: Variance on total at the end of F-1 integrated to the charge of the period

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

(1,005.46)
838.05

01/01/05 -
31/12/2005

(2,000.00)
1,667.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

1,166.59

(1) -166.91

326.24

01/07/06 -
30/09/06

3,005.46

1,166.59

(2) 420.17

746.41

01/10/06 -
31/12/06

3,005.46

1,666.59

420.18

1,166.59

01/01/07 -
31/12/07

01/01/07 -
31/03/07

(3) 4,172.05

1,667.00

411.04

411.04

01/04/07 -
30/06/2007

4,172.05

1,667.00

415.61

826.65

01/07/07 -
30/09/2007

4,172.05

1,667.00

420.17

1,246.82

01/10/07 -
31/12/07

4,172.05

1,667.00

420.18

1,667.00

01/01/08 -
31/12/08

5,839.05

1,667.00

01/01/09 -
31/12/2009

7,506.05

1,667.00

01/01/10 -
31/12/10

9,173.05

826.95

01/01/11 -
31/12/11

10,000.00


(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year (1,667.00 - 500.41 = 1,169.59) and posted in the charge of the P period.
Let us consider [1,667.00 x (181 / 365) - 493.15] + (-500.41) = -166.91

(2) The charge of each following period does not contain any variance on the total at the end of F-1. The calculation is as follows:
1,667.00 x (273 / 365) - 326.24 + (500.41 ) = 420.17 --> total at the end of 3rd period = 746.41
1,667.00 c (365 / 365) - 746.41 + (500.41 ) = 420.18 --> total at the end of 4th period = 1,166.59

(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05


Depreciation start date less than Current fiscal year FY
  • Example 6

    Effectiveness: F Fiscal year start date
    Imposed terms: Recalculation of the FY fiscal year using the new method based on a residual mode. The charge of the P period contains the regulation of the charges of the closed periods.

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

1,005.46

01/01/05 -
31/12/2005

2,000.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(1) 1,554.82

277.87

771.02

01/07/06 -
30/09/06

3,005.46

1,554.82

391.90

1,162.92

01/10/06 -
31/12/06

3,005.46

1,554.82

391.30

1,554.82

01/01/07 -
31/12/07

01/01/07 -
31/03/07

4,560.28

1,554.81

383.38

383.38

01/04/07 -
30/06/2007

4,560.28

1,554.81

387.64

771.02

01/07/07 -
30/09/2007

4,560.28

1,554.81

391.89

1,162.91

01/10/07 -
31/12/07

4,560.28

1,554.81

391.90

1,554.81

01/01/08 -
31/12/08

6,115.09

1,559.08

01/01/09 -
31/12/2009

7,674.17

1,554.81

01/01/10 -
31/12/10

9,228.98

771.02

01/01/11 -
31/12/11

10,000.00


(1) The new charge of 2006 fiscal year equals to: Net value start of 2006 x (number of days in 2006 / number of days between 01/01/2006 and the depreciation end date: 30/06/2010).
Let us consider: (10,000 - 3005.46) x (365 / 1,642 days) = 1,554.82
The duration change is performed in the current period [01/04/2006 - 30/06/2006]; the charge of this period is equal to: Charge of fiscal year x (number of days until 30/06/2006 / number of days in 2006) - Depreciation total of P-1.
Let us consider: [1,554.82 x (181 / 365)] - 493.15 = 277.87


Depreciation start date less than Current fiscal year FY
  • Example 7

    Effectiveness: P Period start date.
    Imposed terms: Recalculation of the "residual" fiscal year charge using the new method based on a residual mode. This charge of the "residual" fiscal year is distributed on the P period and the following of the F fiscal year.

    - Depreciation start date: 01/07/2004 (i.e. 184 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Depreciation total on FY-1 end: 3,005.46
    - Duration change (extended to 6 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/04 -
31/12/2004

1,005.46

01/01/05 -
31/12/2005

2,000.00

01/01/06 -
31/12/06

01/01/06 -
31/03/06

3,005.46

2,000.00

493.15

493.15

01/04/06 -
30/06/06

3,005.46

(2) 1,645.14

(1) 381.20

874.35

01/07/06 -
30/09/06

3,005.46

1,645.14

385.40

1,259.75

01/10/06 -
31/12/06

3,005.46

1,645.14

385.39

1,645.14

01/01/07 -
31/12/07

01/01/07 -
31/03/07

4,650.60

1,529.00

377.01

377.01

01/04/07 -
30/06/2007

4,650.60

1,529.00

381.21

758.22

01/07/07 -
30/09/2007

4,650.60

1,529.00

385.39

1,143.61

01/10/07 -
31/12/07

4,650.60

1,529.00

385.39

1,529.00

01/01/08 -
31/12/08

6,179.60

1,533.19

01/01/09 -
31/12/2009

7,712.79

1,529.00

01/01/10 -
31/12/10

9,241.79

758.21

01/01/11 -
31/12/11

10,000.00


(1) The charge of the method change period is calculated as follows:
(10,000 - 3,005.46 - 493.15 ) x (275 days / 1,552 days) x (91 days / 275 days) = 381.20
1,552 days = depreciation residual duration, corresponding to the period [01/04/2006 - 30/06/2010]
275 days = residual duration in the fiscal year, equal to the period [01/04/2006 - 31/12/2006]
91 days = period duration [01/04/2006 - 30/06/2006]

(2) The new charge of 2006 fiscal year equals to:
493.15 + [(10,000 - 3,005.46) x (275 days / 1,552 days)] = 1,645.14


Depreciation start date greater than or equal to the current FY fiscal year start and less than the current period P start
  • Example 8

    Effectiveness: Depreciation start date
    Imposed terms: Recalculation od the charge of F fiscal year using the new method
    The charge of the P period contains the regulation of the charges of the closed periods.

    - Depreciation start date: 01/02/06 (i.e. 334 holding days)
    - Asset value: 10,000
    - Method: linear
    - Duration: 5 years
    - Current fiscal year: 01/01/2006 - 31/12/2006
    - Current period: 01/04/2006 - 30/06/2006
    - Duration change (extended to 4 years)

Fiscal year

Period

Total
fiscal year start

Fiscal
fiscal year

Fiscal
period

Total
period end

01/01/06 -
31/12/06

01/01/06 -
31/03/06

1,830.14

323.29

323.29

01/04/06 -
30/06/06

2,287.67

(1) 704.11

1,027.40

01/07/06 -
30/09/06

2,287.67

630.13

1,657.53

01/10/06 -
31/12/06

2,287.67

630.14

2,287.67

01/01/07 -
31/12/07

01/01/07 -
31/03/07

2,287.67

2,500.00

616.44

616.44

01/04/07 -
30/06/2007

2,287.67

2,500.00

623.29

1,239.73

01/07/07 -
30/09/2007

2,287.67

2,500.00

630.13

1,869.86

01/10/07 -
31/12/07

2,287.67

2,500.00

630.14

2,500.00

01/01/08 -
31/12/08

4,787.67

2,500.00

01/01/09 -
31/12/2009

7,287.67

2,500.00

01/01/10 -
31/12/10

9,787.67

212.33

01/01/11 -
31/12/11

10,000.00


(1) The charge of the fiscal year is recalculated using the new duration. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
2,287.67 X (150 days / 334 days) = 1,027.40 - 323.29 = 704.11


Processing description

An accounting allocation change performs the following operations:

  • Update of the asset.
     
  • Generation of:
    - a Principal event of Allocation change (FASCHGIMP)
    - if necessary, a 'Method change' (FASMTC)
    - as many Secondary events of 'Allocation change' (FASCHGIMP) as there are periods with a 'Definitive' posting on the original allocations (both on the current fiscal year and the next one).
    Update 8.0.0 and higher: 
    - otherwise, a 'Classified for sale' event (FASCFS) or classified for sale cancellation.

    - The effective operating date is saved in the EVTDAT field.
    - The effective accounting date is saved in the CPTDATINT field.
     
    Notes: 
     
    Update 8.0.0 and higher:
    --> When an asset is classified for sale, no business action is authorized on the asset. The fiscal year closing is also prohibited as long as the asset has not been disposed during the FY. A classified for sale asset can be identified using the classification date displayed in the disposal information.
     

    --> When the allocation change corresponds to a start-up (transfer from an In progress account to an 'In service' account), the EVTDAT field is loaded with the Start-up date, and the CPTDATINT field is loaded with the furthest of these dates: Depreciation start date, Start date of the current period.
     
    --> When the allocation change does not involve a transfer from an In progress account to an In service account:
     
    1/ In the Principal event FASCHGIMP: EVTDAT and CPTDATINT display the furthest of these dates: Depreciation start date, Start date of the current period.
     
    2/ In the Secondary event FASCHGIMP: EVTDAT is loaded with the start date of the period concerned (already posted in Final) and CPTDATINT is loaded either with the start date of the current period (for events pertaining to the closed periods of the current fiscal year), or the start date of the period concerned (for events pertaining to the open periods of the current or next fiscal year).
     
    The user can view the events in the Events journal window that can be accessed from the Other info tab of the Fixed assets management function.
    In this window, the Principal events can be identified thanks to the FASTRFC_01.jpg icon displayed in the line header. Double-clicking this icon expands the tree view of the list of Secondary events linked to it.
    In the event content, the field EVTPRINC - Principal event of type 'Local menu', enables the distinction between principal and secondary events, both events being linked by the alphanumeric field TIMSTPP - Time stamp.
     
  • Generation of the accounting entry used to post the event, if the Entry type pertaining to this event is set up for an immediate posting of the event.
     
  • When the asset is attached to expenses, update of the following information about the expenses, from the asset: Accounting family, CoA and IAS Nature, CoA and IAS Account.

Specific Buttons

Check

This button triggers the display of a control window that can be used to view a table of the new allocations of the asset as well as a table of the new depreciation methods introduced by the allocation changes.
 
In both tables, the lines with errors are displayed in color. The reason for each error can viewed in the Message column.
The non modified parameters and the parameters of the lines with errors are displayed with their initial value.

  • If there are no error in the lines, the next step is to click  . The parameters screen is displayed again; click   to return to the Assets screen, then    to validate the new asset parameters in the database.
  • If there is at least one line with an error, it is necessary to click   then   to return to the parameter entry screen for correction. Then click   to apply the new parameters to the asset or proceed again to the control of the new parameters entered.

Error messages

In addition to the generic error messages, the following messages can appear during the entry :

No specific message is recorded. See generic messages.

Tables used

SEEREFERTTO Refer to documentation Implementation