on 05-19-2014 12:26 PM
Dear All,
In view of recent changes in the Company Act, my Client want to revised the Depreciation according to the Amendment. In case of Non Cotinuous Plant, the Requirement is as under-
As on 01.04.2014, the carrying value of the Asset is Rs. 80
Less Scrap Value of the Asset Rs. 5
Net Value of the Asset as on 01.04.2014 Rs. 75
Remaining useful life as on 01.04.2014 is 10 years
Depreciation Calculation for Double Shift = 75/10*150%=10.50
Depreciation Calculation for Triple Shift = 75/10*200%=14.00
Please guide and suggest how to do this.
Regards,
VS
Hi VS,
For Variable depreciation,
Go to OAYZ for the asset class and enter variable depreciation 50.0000.
And enter shift as 1 or 2 or 3 in time dependent tab.
Hope it solves.
Regards,
G.Sethuraman
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Hello Sethuraman,
Thanks for info..I have checked using variable depreciation portion = 50.0000 and shift factor as single shift -1 , double shift -2 and Triple shift 3, Its working with depreciation key based on useful life.
In my previous post, I have calculated depreciation % as = 100 - 5% / useful life for single shift. For two shift it is 1.5 and for three shifts it is 2. calculated fixed portion as single shift dep % / double shift dep %, then variable portion = 100 - fixed portion. and shift factors considered as 0-single shift, 1.01- double shift 3 - triple shift. it need more efforts and can be used only for assets acquired after 1.4.2014.
Thanks,
Ravindra Mahajan.
Hi Vinay
1. For reducing the scrap value from APC value before calculating depreciation, you must use Memo Value (SPRO > AA > Valuation > Amount specifications > Memo Value)
2. For calculating dep based on useful life, create a dep key based on useful life.. I am sure you know that
3. For accelerating depreciation based on Shift factor:
In the depreciation key (AFAMA or AFAMS), you have an indicator for Multiple Shift.. Allow that..You need to choose one of the options based on your requirement (to reduce the life of asset or just accelerate the depreciation)
In asset master screen layout, allow the field for Shift Factor to be maintained.. (Time Dependant Tab).. Once you maintain the Shift Factor there, the depreciation gets accelerated accordingly
Br. Ajay M
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Dear Ajay,
Thanks for your reply and guidance.
Point no 1 & 2 of your reply, already achieved.
Since, the Depreciation will be calculated on Remaining useful life on Balance Asset Value, therefore, I stuck up in deciding the Shift Factor and Variable Depreciation Portion. What value should be maintained in both field?. Below is the scenario-
As on 01.04.2014, the carrying value of the Asset is Rs. 80
Less Scrap Value of the Asset Rs. 5
Net Value of the Asset as on 01.04.2014 Rs. 75
Remaining useful life as on 01.04.2014 is 10 years
Depreciation Calculation for Double Shift = 75/10*150%=10.50
Depreciation Calculation for Triple Shift = 75/10*200%=14.00
Please guide me.
Regards,
VS
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