Sap Note 2052506, 2066260 and 2069378 not calculating WDV as per Indian compnies act

[Former Member]

Hi Experts,

I have follow following steps for implement SAP note 2052506 for WDV calculation as per Indian companies act -

1. check business function EA-FIN is activated.
2. open the BAdI 'FAA_DC_COUNTRY'. Remove the 'Within SAP' indicator temporarily from the BAdI definition.
3. Create implementation with the name 'FAA_DC_COUNTRY_IN'
4. open the BAdI 'FAA_EE_COUNTRY'. Remove the 'Within SAP' indicator temporarily
5. Create implementation with the name 'FAA_EE_COUNTRY_IN'
6. Implement SAP Note 2052506, 2066260 and 2069378
7. Create Base Method Key “INWB” under conuntry specific method
8. Declining- Balance Method key
9. Create Period Control Key “INP”
10. Create Multilevel Method Key “INM”
11. create Depreciation key “ INWD”
12. Assigning new depreciation key in asset master with new intervel
13. recalculation and check of Depreciation and check through t- code AW01N

There is no calculation for WDV in AW01n

Regards

[Former Member · Accepted solution]

hi

Both are active but still no calculation ....

Regards

[Former Member · Accepted solution]

Hi

Then you need to check ur config once again whether it is as per sap note or not and ensure that in multilevel method INM (as per sap note 2052506) ensure that rem life tick is not there.  It is calculating correctly in our system.  

Regds

[Former Member · Accepted solution]

Hello Aravind,

With new BAPIs for India, the sytem is calculating Depreciation. However, I have a doubt:

1. Depreciation is being calculated at a rate different than what will come in WDV. eg. For remaining life of 2 years 235 days (with 5% Scrap Value) as per me the Dep rate should be 67.85. However the system is calculating Dep at 58.53%

Please correct my understanding if wrong.

2. As for config:

- I have not put any cut off value key. (System is correctly taking NBV as the Base Value)

- Manually inputting 5% scrap percentage in Asset Master

- Removed the "Remaining Life" indicator as suggested above.

Asset has a Life of 5 years, Useful life remaining as on 01.04.2014 is 2 yrs 235 days. Expiring on 22.11.2016

Please guide.

[Former Member · Accepted solution]

Please ignore. System is calculating correctly. It seems because the n (remaining useful life) is in denominator of the exponential, in my excel calculation- when part of year is involved. So a small decimal change is causing a big change to the total %.

Also, changed the Dep after planned life in Base method to Yes (correction from aforesaid config).

[former_member222896 · Accepted solution]

Hi Nitin,

I have done setting same as above but but depreciation not computing as obove.

Can you pls tell about new BAPI require for this.

Thanks,

[nitin_jain35 · Accepted solution]

You can ask ABAP resource to implement note# 2052506, as it has manual steps for ABAPer. The BAPIs mentioned in the said note contains the calculation as per WDV method. Also you won't be able to do it, as it requires application of Product Key.

[Former Member]

hello,

resolved through re-implement BAPI.

Thanks to alll

Regards

Monika

[former_member222896]

Hi Monika,

After BAPI implementation system will calculate as per company act formula for WDV with useful life as below.

If any one done this calculation in depreciation key than pls share with me.

[nitin_jain35]

Hello Raj,

This is formula used in depreciation calculation
as per note number 2066260. Please see this if it can help you:

        IF remaining_useful_life < 1.

          depreciable_amt = ( Net_Book_Value – Scrape_Value ) * Days_In_FY / Remaining_Useful_Life_In_Days. 

          lv_percent = depreciable_amt / Net
Book Value.

        ELSE.

          lv_percent = 1 - ( ( Scrape_Value / Net_Book_Value ) ** ( 1 / Remaining_Useful_Life ) ).

        ENDIF.

This is essentially the same formula as used in India for WDV rate calculation (same as the formula given by you). In SAP instead of year calculation, it follows day calcullation if "Dep to the Day" is selected in Dep Key.

There however will be little difference in amount as calculated by SAP and in Excel, whenever the useful life is part of year. This is because the n (remaining useful life) is in denominator of the exponential (to the power). So a small decimal change, due to rounding, will cause a big change to the total rate of Dep.

[former_member222896]

Hi Nitin,

Have you done this because i have implemented note but not able to calculate company act formula for depreciation.

lv_percent = 1 - ( ( Scrape_Value / Net_Book_Value ) ** (1 / Remaining_Useful_Life ) ).

Thanks, Rajesh

[former_member222896]

Hi Nitin,

I got remark line in Note as below so that it's not working in old assets.

REMARKS:

• The solution is valid only for New depreciation engine.

[nitin_jain35]

Hello Raj,

Please check if you have EA-FIN activated in your system, as it is pre-requisite for the said note. Also please go through the note completely (goes for implementation of any note in SAP).

[former_member222896]

Hello Nitin,

If we implement this note successfully than system will calculate written down depriciation or SLM depriciation ?

Can you pls tell me system will calculate as option A or Option B method ?

Option "B"			Option 'A"
Base amt	useful life	Depr amt	Base amt	useful life	Depr amt
1000	5	200	1000	5	200
800	5	160	800	4	200
640	5	128	600	3	200
512	5	102	400	2	200
410	5	82	200	1	200
328	5	66
262	5	52
210	5	42
168	5	34
134	5	27
107	5	21
86	5	17
69	5	14
55	5	11
44	5	9
35	5	7
28	5	6
23	5	5
18	5	4
14	5	3
12	5	2
9	5	2
7	5	1
6	5	1
5	5	1
4	5	1
3	5	1
2	5	0

Thanks,

[Former Member]

Hi

Same problem I faced earlier.

If you have done the config correctly from functional side as per SAP Note 2052506 the pl ensure activation of the following Badis from technical side.

1. FAA_DC_COUNTRY_IN

2. FAA_EE_COUNTRY_IN

You get correct planned dep as per WDV method, if both above are active.  Technical team might have forgotten to activate them.  You can check/by displaying the same in SE19 in classic Badi Implementaion.

Regds