Close Depreciation after end of Useful life

[Former Member]

Hello expert,

I have a trouble of asset; before write here I checked in the other discussions but I didn't find nothing.

My requirement is to calculate the depreciation on the useful life.

At this moment I use the following setting:

on Base method:

          -     Depreciation calculation method -- > percetage from useful life

          -     Treatment of end of depreciation -- > yes at Depreciation after end of planned life

The calculation is correct, infact, if a change the Useful life the system calculate the correct value but I have a problem with the odd years (for instance with the useful life "3").

With the previus setting I have the following sistuation

		Acqu. Value	Ord. Depr.	Net book value	Cur
2013	10.000,00	10.000,00	3.333,33-	6.666,67	EUR
2014		10.000,00	3.333,33-	3.333,34	EUR
2015		10.000,00	3.333,33-	0,01	EUR
2016		10.000,00	0,01-		EUR
	10.000,00		10.000,00-		EUR

I would like to close the depreciation after the end of useful life; in this case I want close the last year

		Acqu. Value	Ord. Depr	Net book value	Cur
2013	10.000,00	10.000,00	3.333,33-	6.666,67	EUR
2014		10.000,00	3.333,33-	3.333,34	EUR
2015		10.000,00	3.333,34-		EUR

Could you help me?

regards

Alessandro

[Former Member · Accepted solution]

Hi,

Standard dep key "LINS" itself will satisfy your requirement.

It is always better to use standard dep key but if you have any other specific requirement then you can create your own dep key and use the following corrections to meet your requirement.

Tick the remaining useful life check box and enter "24" in base value in Multi level method(T code AFAMS)

Regards,
G.Sethuraman

[Former Member · Accepted solution]

Hello,

thanks in advance for the advide.

If I use the standard Dep Key I will have the following wrong situation:

2014  3.333,33-

2015  3.333,34-

2016  3.333,33-

If I Tick the remaining useful life check box and enter "24" in base value in Multi level method(T code AFAMS) I have the same previus situation.

2014  3.333,33-

2015  3.333,34-

2016  3.333,33-

regards

Alessandro

[Former Member · Accepted solution]

Hi,

It seems total 10000 is posted as depreciation so no further dep will be posted in 2017.

It seems correct what is the issue in it.

Regards,

G.Sethuraman

[Former Member · Accepted solution]

Hello,

the requirement is to have major depreciation at the end of useful life and the business want this kind of depreciation:

2014  3.333,33-

2015  3.333,33-

2016  3.333,34-

regards

Alessandro

[Former Member · Accepted solution]

Hi,

In that case, copy LINS and modify the following.

1)Remove Rem.life indicator

2)Enter the base value as "01".

Hope it solves.

Regards,

G.Sethuraman

[former_member351125]

Can you provide the screenshot of your depreciation key?

[Former Member]

[Former Member]

Hello,

with this kind of setting I have the following situation:

2014  3.333,33-

2015  3.333,34-

2016  3.333,33-

regards

Alessandro

[Former Member]

This message was moderated.

[Former Member]

This message was moderated.

[Former Member]

Hello,

maybe my test could mislead because I did it in the previus year; below the test correct year.

	Acqu. Value	Ord. Depr.	Net book value	Cur
2014	10.000,00	10.000,00	3.333,33-	6.666,67	EUR
2015		10.000,00	3.333,33-	3.333,34	EUR
2016		10.000,00	3.333,33-	0,01	EUR
2017		10.000,00	0,01-		EUR
	10.000,00		10.000,00-		EUR

I would like to close the depreciation after the end of useful life; in this case I want close the last year

		Acqu. Value	Ord. Depr	Net book value	Cur
2014	10.000,00	10.000,00	3.333,33-	6.666,67	EUR
2015		10.000,00	3.333,33-	3.333,34	EUR
2016		10.000,00	3.333,34-		EUR

Seem that the solution is on "the treatment after the end of useful life"

regards

Alessandro

[Former Member]

Alessandro,

    Try to specify the end of the life scrap value for it to stop depreciating below the original value of the asset.

   Regards,

     Brahmam 

[Former Member]

Hello,

where is this kind of setting?

Perhaps is a good advice.

regards

Alessandro

[Former Member]

This message was moderated.

[Former Member]

This message was moderated.

[Former Member]

I tried to make this change, but the system shows me the following message

"  AE ZLIN N 1 : Check the treatment after the end of useful life

Message no. ACRSL018

Diagnosis

In multi-level method Z02, you entered acquisition value or replacement value as the base value. For these base values, you should enter depreciation after the end of planned life,so that the system can, for example, depreciate to a book value of zero. Due to rounding or post-capitalization, these base values may leave a net book value after the end of the useful life. Without your entering a treatment for the end of depreciation, this net book value cannot be written off.

Procedure

Use a base method, in which the 'depreciation after end of planned life' indicator is set, in the depreciation key; and/or enter changeover method 5 (changeover after end of planned life) and a changeover key in the assignment of the depreciation key. The incorrect entry is in AE ZLIN N 1 (chart of depreciation, depreciation key, depreciation type, depreciation phase). "

It seems that I should have two Phases for my Dep. key in order to maintain the treatment after the end of useful life.

regards

Alessandro

[Former Member]

Hi,

Please check the box for "Rem Life" in the multi level method. It would post complete depreciation over the useful life of the asset.

Regards,

Ravi Kumar

[Former Member]

Hello,

if i set this indicator the system make a wrong calculation becouse in the second year it calculate 10000/2 year= 5000

regards

Alessandro