How to reset depreciation run in SAP?

A depreciation run in SAP can be "reset" in several ways, primarily by reversing a posted run, adjusting asset master data, or halting future depreciation for specific assets. The most common interpretation of resetting a depreciation run involves reversing a period that has already been posted to the General Ledger (GL), effectively undoing the depreciation for that period.

Understanding Depreciation Runs in SAP

A depreciation run (often executed via transaction code AFAB) is a crucial period-end closing activity in SAP's Asset Accounting module. It calculates and posts the depreciation amounts for assets to the respective GL accounts for a specific accounting period. This process ensures that asset values are accurately reflected on the balance sheet and depreciation expenses on the profit and loss statement.

Why You Might Need to Reset a Depreciation Run

There are several common reasons why an organization might need to reset or reverse a depreciation run:

Errors in Master Data: Incorrect useful life, depreciation key, acquisition value, or other asset master data details were used.
Incorrect Period/Fiscal Year: The depreciation run was executed for the wrong period or fiscal year.
Missing Asset Transactions: New assets or asset changes (e.g., acquisitions, retirements) were not processed before the depreciation run.
System Issues: Technical glitches or system errors occurred during the run.
Auditor Requirements: Adjustments requested by auditors.

Methods to "Reset" Depreciation in SAP

"Resetting" depreciation can mean different things depending on the desired outcome. Here are the primary methods:

1. Reversing a Posted Depreciation Run (Transaction AFAB)

This is the most direct way to undo a depreciation run that has already been posted. SAP allows you to reverse a depreciation run for a specific period, effectively crediting the depreciation expense account and debiting the accumulated depreciation account, reversing the original posting.

Steps to Reverse a Depreciation Run in SAP (AFAB):

Access Transaction AFAB: Go to the SAP Easy Access screen and type AFAB in the command field, then press Enter.
Select Parameters:
- Company Code: Enter the relevant company code.
- Fiscal Year: Enter the fiscal year for which the depreciation run was posted.
- Posting Period: Enter the period of the depreciation run you wish to reverse.
- Reason for Posting Run: Select 'Restart' or 'Repeat' based on whether you want to re-execute after reversal. For a pure reversal, you would execute the reversal first, then potentially a repeat run later.
- Processing Type: Crucially, select "Restart" or "Unplanned Posting Run" and ensure you have the option to reverse. The 'Restart' option allows you to reverse an erroneous posting run. For reversing the last posted run, you would typically use the 'Restart' option for the same period.
- Test Run: Always perform a test run first by checking the "Test Run" checkbox. This generates a log without posting any changes.
Execute the Test Run: Click on the "Execute" button (F8). Review the log for any errors or unexpected outcomes.
Execute the Actual Reversal: If the test run is successful, uncheck the "Test Run" checkbox and execute again. This will post the reversal documents.
Verify the Reversal: Check the posted documents in transaction AW01N (Asset Explorer) or by viewing the GL accounts.
Correct Underlying Issues: After the reversal, address the root cause of the incorrect run (e.g., correct master data, post missing transactions).
Run Depreciation Again (If necessary): Once corrections are made, execute a new depreciation run (AFAB) for the correct period, using the "Repeat" or "Planned Posting Run" option.

Important Considerations for AFAB Reversal:

Period Locks: Ensure the accounting period is open for posting reversals.
Last Posted Period: SAP usually allows reversal of the last posted depreciation run. Reversing older periods might require additional steps or direct intervention if subsequent periods have already been closed.
Dependent Processes: Consider the impact on other financial processes that might have relied on the original depreciation postings.

2. Halting Future Depreciation for an Asset (Using Depreciation Key '0000')

If the goal is not to reverse a past posting but to prevent or stop future depreciation for specific assets, a highly effective method is to change the asset's depreciation key.

Once the assets have been identified, proceed to modify the depreciation key to '0000'. SAP offers a predefined depreciation key, '0000', which can be assigned to halt the depreciation calculation for that asset. This effectively sets the depreciation amount to zero for all future periods, "resetting" its depreciation behavior.

Steps to Modify Depreciation Key:

Access Asset Master Data: Use transaction AS02 (Change Asset Master Record).
Enter Asset Number and Company Code: Specify the asset you want to modify.
Navigate to Depreciation Areas: Go to the "Depreciation Areas" tab.
Change Depreciation Key: For the relevant depreciation area (e.g., 01 for Book Depreciation), change the "Depreciation Key" field to '0000'.
Save Changes: Save the asset master record.

When to Use This Method:

When an asset should no longer depreciate, for example, if it's fully impaired, held for sale, or taken out of service, but not yet retired from the system.
As a temporary measure while investigating issues with an asset's depreciation calculation.

3. Correcting Depreciation Through Asset Master Data Adjustments

Errors in asset master data often lead to incorrect depreciation calculations. "Resetting" in this context means correcting the underlying data so that future depreciation runs calculate the correct amounts.

Useful Life & Salvage Value: Adjusting the "Useful Life" or "Salvage Value" (Scrap Value) in AS02 will cause future depreciation to be recalculated based on the new parameters.
Acquisition Value: If the asset's acquisition value was incorrect, changing it will impact depreciation. However, modifying acquisition value after initial posting might require specific asset accounting transactions (e.g., ABMA for write-ups, ABAA for unplanned depreciation).
Asset Transfers/Deactivations: If an asset should have been transferred (ABUMN) or deactivated (ABAVN), performing these actions will cease or modify its depreciation calculation from the effective date.

After making these corrections, a subsequent depreciation run (AFAB) will typically adjust the depreciation values, either by posting additional depreciation or by reversing some if an over-depreciation occurred.

Practical Example: Reversing and Rerunning Depreciation

Imagine your team accidentally ran and posted depreciation for period 03/2024, but several new assets acquired in March were not yet capitalized.

Initial Problem: Depreciation for 03/2024 is posted, but it doesn't include the new assets.
Action 1 (Reversal): Execute AFAB for company code XYZ, fiscal year 2024, period 03, with "Restart" processing type (after a test run). This reverses the incorrect depreciation for 03/2024.
Action 2 (Correction): Capitalize the new assets for March using AS01 (Create Asset Master Record) and ABZO (Acquisition posting).
Action 3 (Rerun): Execute AFAB again for company code XYZ, fiscal year 2024, period 03, with "Repeat" or "Planned Posting Run" processing type. This time, the depreciation will be calculated correctly, including the newly capitalized assets.

Key Considerations and Best Practices

Aspect	Description
Test Runs	Always perform a test run (`AFAB` with "Test Run" checked) before executing any actual posting or reversal to preview results and identify potential errors.
Timing	Reverse a depreciation run as soon as an error is identified to minimize downstream impact. Ideally, reverse before closing the accounting period.
Period Management	Ensure the relevant posting period in Financial Accounting (`OB52`) is open for the reversal and subsequent re-posting.
Authorization	Only authorized personnel should perform depreciation runs and reversals due to their significant financial impact.
Documentation	Document the reason for reversal, the steps taken, and the outcome for audit purposes.
Impact Analysis	Understand the impact of reversal on financial reports, cost centers, profit centers, and other integrated modules.
Consult Experts	For complex scenarios or issues affecting multiple periods, consult an SAP FICO or Asset Accounting expert.
Customizations	Be aware of any custom reports or interfaces that might be affected by depreciation run reversals.

By understanding these methods and best practices, users can effectively manage and "reset" depreciation runs in SAP Asset Accounting to maintain accurate financial records.