on 08-20-2013 4:50 PM
Hi,
We have an issue concerning multi level method for italy
For legal requirement on italy they need to depreciated the first year 50 % of the acquisition value :
Acquisition value 1000€ usefull life 5 year ( 200€ / year Ordinary depre)
1 year : 500 €
2 year : 125€
3 year : 125€
4 year : 125€
5 year : 125 €
I already created a multi level method :
9999 1 | 24 50,0000 |
9999 2 | 10 12,5000 |
9999 3 | 10 12,5000 |
9999 4 | 10 12,5000 |
9999 5 | 10 12,5000 |
It is working fine, but the issue is I have different class with differents usefull life
How we can configure the setting do we need to create different mulit level as far as different usefull linked to different depre key ?
example : Asset class : Machinery & Equipment : Usefull life 5 years Do i need to create a special multi level for 5 years then after linked to a new depreciation key specially dedicated for this asset class ?
Software : Usefull life 3 years Do i need to create a special multi level for 3 years then after linked to a new depreciation key specially dedicated for this asset class ?
Office Furniture : Usefull life 10 years Do i need to create a special multi level for 10 yearsthen after linked to a new depreciation key specially dedicated for this asset class ?
Thanks a lot for you helping
Hello FI CO IST TAIS Projects
I have a doubt about your need.
I had the same issue for Italian plan for my client and the need was not exactlly the same.
In fact there is 50% depreciation to apply but not for whole value of asset.
Italian governement has defied asset classes and defined also rate to be applied for their depreciations.
For example for one given asset classe governement will say : the depreciation should be 35% per year with 50% depreciation reduction.
This mean that
Year 1 : 35 - 50% = 17,5%
Year 2 : 35%
Year 3 : 35%
Year 4 : 12,5%
I checked this with my accountant and he confirmed that the rule is right.
Please ensure your need is clear and let us know. my be my accountant has made a mistake.
If the need is as i explained, please see my answer to Asheesh Bhatia
Hope it will help you.
Regards
Mohammed
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Mohammed - you are correct, but if you assume that you could have asset classes with 35%, 40%, 20% etc depreciation from year 2 onwards, then you end up creating many ML methods and many Dep Keys. Right? And that is exactly what I was trying to avoid, as long as the 2 assumptions that I listed above were valid.
Thanks
Asheesh Bhatia
Bhatia, you are right.
My answer was for the specific case of italy where depreciation pourcentage is dependent on assete class. in this case you have to create 1 DK/MLM for each asset class.
Your solution is better if you use common purcentages for several asset classes
Thank you
Regards
Mohammed
Hello,
When we implemented Poland and Italy, this is how we did it too. However, on some more thought, you might actually be able to create just 1 key, with two new ML methods which should suffice your requirement for all classes as long as rules remains that same, that is:
1. 50% depreciation in the 1st year
2. % from UL from year 2 on wards.
Try the below process:
1. Create a Depreciation Key Phase 1, with ML methos Zxx with 50% depreciation in year1. Changeover method = 2 (Changeover when net book value percentage reached) and changeover % = 50.1 (Note: I actually wanted to use 50%, but apparently SAP changes over only when the NBV is less than 50%, and not less or equal to)
2. Create phase 2 as a simple % from UL. This would need a new ML method Zx2
Below are the screen from our test system and also the result.. On the face of it, it appears to work, though what we used in our implementation was what Stefen recommended.
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Hello Asheesh Bhatia
I think you don't need to create 2 phases for depreciation key.
All customizing can be done by using ML Methode.
I customized it for my client to apply legalrequirements for italy and it work fine.
The purpose is to apply 50% reduction for depreciation during the first year.
For example : one class must have 35% depreciation per year.
Then, the depreciaiton plan should be :
Year 1 : 17,5% (35 - 50%)
Year 2 : 35%
Year 3 : 35%
Year 4 : 12,5%
Depreciation key customizing
ML method Customizing
Depreciation
Regards
Mohammed
thanks steffen for your answer
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Hi,
for Italy we have done it as you described. Creation of different multi level methods and assigning them to different depreciation keys for the different useful life.
Regards,
Steffen
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