How To Fix AY423 - Capitalization dates before the prior fiscal year are not allowed

SAP Error Message - Details

• Message type: E = Error

• Message class: AY - Deprec. simulation - maint. module (AIPS) /gen. master data

• Message number: 423

• Message text: Capitalization dates before the prior fiscal year are not allowed

What causes this issue?

You want to enter a distribution that has a capitalization date before
the last fiscal year. However, the 'compare with actual settlements'
indicator is set in the investment profile. Since the system determines
the actual settlements starting with the last fiscal year, you are not
allowed to make changes to older distributions.

How to fix this error?

Change the capitalization date or delete the distribution.
If you really want to enter the distribution, you first have to remove
the 'compare with actual settlements' indicator in the investment
profile.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AY423 - Capitalization dates before the prior fiscal year are not allowed ?

  The SAP error message AY423, which states "Capitalization dates before the prior fiscal year are not allowed," typically occurs when you attempt to capitalize an asset with a capitalization date that falls before the start of the previous fiscal year. This is a common restriction in SAP to ensure that asset management and financial reporting adhere to accounting principles and fiscal year constraints.
  Cause:
  
  Capitalization Date: The date you are trying to use for capitalizing the asset is earlier than the first day of the previous fiscal year.
  Fiscal Year Settings: The fiscal year settings in your SAP system may restrict transactions to only allow capitalization dates that are within the current or future fiscal years.
  Asset Management Configuration: The configuration settings for asset management may have specific rules that prevent the capitalization of assets with historical dates.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check the Capitalization Date: Ensure that the capitalization date you are using is within the allowed range. It should be on or after the first day of the current fiscal year.
  
  
  Adjust the Date: If the capitalization date is incorrect, change it to a valid date that complies with the fiscal year restrictions.
  
  
  Review Fiscal Year Settings: If you need to capitalize an asset with a historical date for valid business reasons, you may need to review the fiscal year settings in your SAP system. This may involve:
  
  Consulting with your finance team to understand the implications of changing fiscal year settings.
  Adjusting the fiscal year variant if necessary, but be cautious as this can have broader implications on financial reporting.
  
  
  
  Consult Documentation: Refer to your organization's SAP documentation or guidelines for asset management to ensure compliance with internal policies.
  
  
  Seek Help from SAP Support: If you are unable to resolve the issue, consider reaching out to your SAP support team or consulting SAP notes for further assistance.
  
  
  Related Information:
  
  Fiscal Year Variant: Understand how your organization defines its fiscal year and how it impacts asset capitalization.
  Asset Accounting Configuration: Familiarize yourself with the configuration settings in SAP related to asset accounting, particularly those that govern capitalization dates.
  SAP Notes: Check for any relevant SAP notes or updates that may address this error or provide additional context.
  
  By following these steps, you should be able to resolve the AY423 error and successfully capitalize your asset within the constraints of your SAP system.