New depreciation rates to be applied and calculated for assets with Retrospective effect

[Former Member]

Dear Experts,

My client wants to change the depreciation rate from old to new rate and post depreciation for the current fiscal year.

The depreciation has been run for 2013 fiscal year and the new rates has been applied to all depreciation keys to be calculated for the new year.

We have changed the depreciation keys and the planned values are calculated correctly for the current year with new rates.

When they run the recalculate depreciation the system posts the difference value in the last fiscal year. But the client wants the rates to be updated in the current fiscal year.

Their requirement is to run the new depreciation with retrospective effect so that the new rate is applicable from date of asset acquisition which includes previous years. How to recalculate depreciation and apply the new rate retrospectively for all years beginning from the date of acquisition.

Kindly provide your valuable inputs on this issue.

Regards    

Ramprasath Iyer

[former_member182098]

If you are using straight line method, change the life of the asset on the asset master.

The system would recalculate the depreciation with retrospective effective and will be adjusted in your next depreciation run.

[Former Member]

Hi Ravi,

       But 95% of assets are depreciated using the WDV method. In this case how to calculate the WDV with new rate retrospectively.

Regards,

Ramprasath

[former_member182098]

Create different depreciation keys according to the WDV percentages and change the depreciation keys on the asset master data, please check them in your test system.

[former_member198650]

Hi,

You have maintained the depreciation key with maintain validity. If yes, then you remove it and change the dep.key for the asset.

Regards,

Mukthar