Suspending depreciation

You can suspend depreciation in two ways:

• To suspend depreciation generally for a depreciation method for all asset books, you can use the Suspended Periods (tffam7120m000) session. This method changes the depreciation amount for the periods after a suspended period, and the asset’s last in-service date does not change. For details, refer to Suspended Periods (tffam7120m000) .
• You can use the Mass Suspend Depreciation (tffam1207m000) session to suspend the depreciation of a range of asset books for a range of years and periods.

Mass suspend depreciation

In some countries, you can suspend depreciation for periods during which the asset is not used for any reason. You can perform the depreciation in later periods.

Before LN can suspend the depreciation for a period, the asset must have been depreciated up to the beginning of the first period for which you suspend the depreciation and no deprecation must exist for later periods.

To ensure this, depending on the last depreciation date of the asset book, LN performs normal depreciation for the preceding periods or reverses the depreciation as required for any later periods if you run the Mass Suspend Depreciation (tffam1207m000) session.

LN creates a Suspend Depreciation transaction for each period for all asset books in the range. These types of transactions are not posted to the general ledger because the transaction amount is zero. In the Asset Book Transaction Inquiry (tffam8501m000) session, Suspend Depreciation transactions are shown with a transaction amount of zero.

For the generated regular depreciation transactions or reversed regular depreciation transactions, LN creates journal entries if you cleared the Suppress Journal Entries check box in the Mass Suspend Depreciation (tffam1207m000) session.

If the depreciation suspension was successful, LN sets the Last Depreciation Date of the asset book to the last day of the last period for which you suspended the depreciation, and updates the Count of Suspended Periods.

If you have suspended the depreciation, you can depreciate the asset at later periods. Periods for which you suspend the depreciation are not included in the remaining asset life. In the Asset Books (tffam1510m000) session, the Count of Suspended Periods field displays the number of periods for which the asset was not depreciated because you suspended the depreciation in the Mass Suspend Depreciation (tffam1207m000) session.

Reversing suspension of the depreciation

If you reverse the suspension of the depreciation, LN reverses the suspended depreciation as well as the regular depreciation of any periods following the latest period for which you suspend the depreciation.

If you reverse the suspended depreciation for a range of periods in the past, you must manually perform the regular depreciation for the periods following the last period for which you reversed the suspended depreciation.

For generated reversal transactions, LN only creates journal entries if journal entries exist for the original transactions, independent of whether you select or clear the Suppress Journal Entries check box in the Mass Suspend Depreciation (tffam1207m000) session.

If you reverse the suspension of the depreciation, LN updates the Count of Suspended Periods field in the Asset Books (tffam1510m000) session.