Full Depreciation in year of acquisition

[former_member312411]

Hello Team,

Looking for a DEP KEY which will depreciate the asset fully within the same year of acuqisition. We have LVA, which depreciates in same month, but we are looking for a  DEP KEY set up which can depreciate evenly within the same acquisition year.

Eg:

(Assuming Jan - December FY)

1. Asset bought in March for 15000, it should depreciate 15000 / 10 from March to December.

2. IF asset is bought in october for 6000, then it should depreciate 2000 every month till December.

Thanks

Km.

[Former Member · Accepted solution]

Hi Kishore,

I guess there is no standard solution for this other than(manual) what is mentioned by Sethuraman..

However, you may consider this workaround..

1. Define a separate Asset class for these Assets where you want the asset to be depreciated in the first year itself and default 1 year as Useful life of the asset

2. In OACS - Master data Substitution (Asset Accounting), write an exit to chnage the useful life based on first acquisition made in that asset.

3. Create Worklist of Asset for this Asset class

3. Execute transaction AR31 for mass change in the Asset master data. Ensure you execute this or schedule this to be executed before executing AFAB at the month end.

Hope this helps..

Best Regards,

Kavita

[former_member312411 · Accepted solution]

THanks Kavita. I am trying to find out if we can trick system using configuration itself since we have lots of options in DEP KEY set up.

[pankaj_pandey2]

Hi,

You candefine the depreciation key based on the fiscal year.

Define key based on useful life. Create the multilevel method. define period control as per your requirement, as the same would require for your case.

Hope this would help you.

revert if you have any querry.

Regards

Pankaj

[former_member312411]

Hello Pankaj,

Would be giving the business option to enter 1 as default useful life for all assets created for this. I too tried to tweak using mutiple method, but coudlnt figure out the way.

Let me know if you have more clarity.

Thanks.

[pankaj_pandey2]

Hi Kishore,

It works, i have done it . The requirement is same as you have to depreciate the asset within the finacial year.

Provide your method and relative things so that i can assist you.

Regards

Pankaj

[former_member312411]

Pankaj,

I tried doing different permutations in Multi level method like

1) Acq year - 9999, Year - 1, Per - 100%, Base Value 01

2) Acq Year - hard coding it, Year - 1, Per - 100%, Base Value 01

and so on.

Thanks.

[Former Member]

Hi Kishore,

Create a Dep key which will charge depreciation based on useful life of asset.

Then while creating asset give useful life as no.of months(1 to 12) based on the capitalisation date.

For example if asset bought on March give useful life as 10 months and if bought on October give useful life as 3 months.

Hope it clarifies.

Regrads,

G.Sethuraman

[Former Member]

Hello,

Based on useful life system calculate the depreciation for Assets.

use Depreciation key 0011.

i hope this answer meet your requirement.

Thank You.