Subsequent Creation/Deletion of Depreciation AreasA step-by-step guide

Tom Michael - Michael Management Corp.Eddie Luther - Motorola

• Adding new areas is a fairly simple 3-step process

• Adding the correct values to the new area is not

• To avoid problems in the future include areas from the start

• Adding and deleting areas can be done with standard SAP functionality

Overview

• SAP provides all necessary tools to add new areas after go-live…

• …but does not provide a tool to recalculate values in the new area

Overview – Adding Areas

Start here to create a new depreciation area

Step 1 – Add Area to Chart

Create a new area by copying an existing one

Step 1 – Add Area to Chart

Set new default depreciation terms for ALL classes

Step 2 – Add Area to Asset Classes

Step 2 – Add Area to Asset Classes

Job Creation & Worker Assistance Act

Adds area to all assets except for AuC/CIM, retired assets

Step 3 – Add Area to Existing Assets

Job Creation & Worker Assistance Act

Creates an identical copy of the reference area

Step 3 – Add Area to Existing Assets

?

• No standard SAP tool available for this

• Requires a custom recalculation program

Step 4 – Calculating New Values

Deleting An Area

Standard delete function will delete from COD, asset classes and existing assets

Motorola Application

• Additional Reporting requirements identified in multiple company codes post go-live

• UK Government requirement to track depreciation for certain types of leased assets

• Crolles Joint venture requires tracking of depreciation for Phillips reporting

Motorola Application

Depreciation Area 90 tracks leased asset depreciation for UK statutory reporting on government grant assets

Motorola Application

Depreciation Area 90 tracks Phillips depreciation methods for Crolles joint venture equipment

Motorola Application

• Addition of Area 90 to standard and custom transaction types

• Addition of additional depreciation areas for previously retired assets

• Adding additional depreciation areas for Assets under Construction

Summary

• Adding an area is a simple 3-step process

• New values require custom recalc. program

• Deleting an area is standard SAP functionality

Q&A

• Comments• Questions

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Session Code: 1407