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Apr 23, 2014 at 04:13 AM

Adjustment of Unplanned Depreciation in future periods

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Hi,

I had posted a thread on how to charge depreciation in advance and what will be the treatment of depreciation for the coming periods. I got the answer in below thread.

As per the suggestions given in the above thread, we need to shut down the asset after posting unplanned depreciation is not serving the purpose in my scenario.

We are charging depreciation on straight line basis. Which is 10% on acquisition price. Now, against the advance depreciation charged, we want the monthly depreciation to be reduced by the advance depreciation divided by 12 months for the year 2014-2015.

For example-

Particular Asset value as on date 5 crores.

Advance depreciation only for that asset 2.5 crores charged on 31.03.2014 to books.

Actual depreciation before charging the advance depreciation for that asset was Rs 260000.

Monthly depreciation after charging advance depreciation for that that asset from April month- 260000 - 113000=147000

Similarly from April 2014 till march 2014, the monthly depreciation for that asset would be Rs 147000.

Hence, this means, we are adjusting the advance depreciation down the 12 months of the coming fiscal year.

Please suggest, how do we apply this in sap.

Your suggestion will be highly appreciated.