Previous situation reason

In asset management, use this parameter to determine depreciation values at the beginning of a new fiscal year or initial software installation.

No - This setting preserves the accumulated depreciation values from the previous fiscal year at the new fiscal year start.

Yes - Generally, this setting is only used on initial software installation so you can recover a fixed asset dated prior to the fiscal year start date. After the fixed asset recovery is validated, reset this to No to prevent any modifications to the accumulated depreciation values.

The value you select also affects the following actions.

Creating an asset

No - The following apply:

The posting date must be on or after the current fiscal year start date.

If the accumulated depreciation total from the previous fiscal year is zero (0), the depreciation value cannot be recalculated.

If the depreciation start date is before the start date of the current fiscal year, the accumulated depreciation total from the previous fiscal year is zero, and the DPRCUMFLG in the DEPREC – Charge table is Yes:

The charge that should have been applied for the previous fiscal year is adjusted in the current period of the current fiscal year. This adjustment is added to the charge for this period.

Yes - The following apply:

The posting date is not subject to a control.

If the depreciation start date is prior to the start date for the current fiscal year, the accumulated depreciation total from the end of the previous fiscal year is recalculated if the DPRCUMFLG is No.

Recovering an asset prior to the fiscal year (by entry or import)

Yes - There are two situations:

1. When the accounting posting date is prior to the current fiscal year start date:

During asset calculation, the depreciation variance is balanced naturally at the end of depreciation if the asset is depreciated according to the depreciation basis or leveled on the residual duration if the asset is depreciated according to the net value mode.

2. When the accounting posting date is after the current fiscal year start date:

The depreciation variance is systematically adjusted on the current period of the current fiscal year for any depreciation mode. This adjustment is added to the charge of this period.

Deleting an asset

No - An asset cannot be deleted if:

The posting date prior to the start date of the current fiscal year:

When the context is Accounting and fiscal, and the holding type is In property or In concession.

When the context is IAS/IFRS, and the holding type is In lease or On rental.

The accumulated depreciation total for the previous fiscal year is other than zero.

Depreciations within the  Current FY start date - Current period end date range has already been posted.

Yes - Deleting an asset is not subject to a control.