What do we know about the general parameter PRVSITUPD?

• This parameter is located in Setup, General parameters, Parameter values, AAS module, FAS group.
• A value of 'No' prevents any modifications of fixed assets values and depreciation charges of a previously closed, fiscal year. Therefore, the various flow reports will show those values at the time of the closing. 
• As a general rule, the value of PRVSITUPD is set to 'Yes' during the installation of the software. This allows for adjustments to the Fixed Assets and Depreciation charges for the prior fiscal year. Once the setup is complete with all the previous year assets and depreciations are in and it's validated, the best practice is to change the value of this parameter to 'No'. This will prevent any operation that would modify the accounting situation prior to the current fiscal year.
• Please find below how this setup impacts the following actions:

A. Recording of an asset (by entry):

PRVSITUPD= No

1) The posting date must be after or on the current FY start date.

- To check what is the current fiscal year start date, go to the depreciation contexts in setup, fixed assets and select the company and the appropriate context.

- Select the FY/Period tab.

In this example below; current FY start date is 04/01/18 and the current period is 04/01/18 - 04/30/18.

In fixed assets, fixed assets, assets, the posting date cannot be in the past.

2) The depreciation totaling of the previous fiscal year is equal to 0 and cannot be forced.

- Depreciation total field is greyed out. 

- Click on the action icon under depreciation tab and select 'Force charge', receive the following error message.

"The depreciation charge cannot be forced, the asset was submitted to a method change during the current period".

3) The depreciation start date is before the start date of the current fiscal year.

- The previous FY totaling is equal to 0, with the forcing indicator to 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 of this period.

Depreciation start date = 01/01/17

Previous year charge is adjusted in the current period.

PRVSITUPD= Yes

1) The posting date is not subjected to a control.

2) If the depreciation start date is prior to the start date for the current fiscal year, the totaling at the end of the previous fiscal year is updated if the forcing indicator of this totaling is to No.

B. Recovery of a financial asset prior to the FY (by entry or import):

PRVSITUPD= Yes

1) The accounting posting date is prior to the current FY start date.

During the calculation of the asset the depreciation variance is:

- be balanced naturally at the end of the depreciation if the asset is depreciated according to the depreciation basis,

- or be leveled on the residual duration if the asset is depreciated according to the net value mode.

In this example below; the accumulated depreciation for the previous fiscal year gets calculated automatically under the Total column.

2) The accounting posting date is later than the current FY start date.

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

C: Deletion of an asset:

PRVSITUPD= No

1) The deletion of an asset is prohibited if this asset has;

- A posting date prior to the start of the current fiscal year (from Accounting and Fiscal context, if it has a holding type in property or in concession or from IAS/IFRS context, if it has a holding type In lease or rental).

- A depreciation total for the previous FY which is different from 0.

- Depreciations relating to the interval [Current FY start date - Current period end date] which have already been posted.

PRVSITUPD= Yes

The deletion of an asset is not subject to a control.