Wrong calculation : Useful Asset Life

[Former Member]

Hi,

We have recently configured Useful Asset Life. Scenario is like this:

Before change, there were some Assets, in which Useful Life & Period field values were BLANKED under Depreciation Areas.

After change i.e from dep. of asset on % basis to Useful life,system shows Useful Life - 8 Yrs & Period is 0.

Now issue is that system is unable to calculate correct remaining useful life as a result of which system calculates wrong remaining dep. value.

For your reference Plz find Screen shot of the same:

Regards

[Former Member]

Hi,

According to me as per the screen shot attached of AS03 T-Code, the remaining depreciation should be bifurcated in 3 years. As the depreciation for 2 periods are already posted in the system so the variance of the depreciation of that 2 periods will be posted in the 3rd period. e.g. If the Depreciation that was posted is 100Rs per month and now after change in depreciation key the depreciation is changed to 120Rs per month then for the current year the depreciation for period 1 and 2 which is already posted is of 100Rs and the 3rd period depreciation will be 160Rs (120+20+20) and then the rest period depreciation will be 120Rs. After the change in depreciation key kindly go to T-Code AS02 --> Edit Tab --> Recaculate values.

Regards,

Malhar.

[former_member198650]

Hi Anil,

Have you selected "remaining life" check box in the multi level method of the depreciation key? If not select it.

Regards,

Mukthar

[Former Member]

Thanks...

In Depreciation Key, 2 multilevel methods are used i.e.

1....001...(0.0000%)

2....003...(APC, any life)

But as you suggest, "remaining life" check box should be selected...it's applicable for both multilevel methods....

Please see the attached screenshot...(in it, Remaining Life checkbox selected only for 001 multilevel method)

[former_member198650]

Hi Anil,

After change the depreciation key & its useful life, have you run the t.code.AFAR for the asset. If you have run, then share how much depreciation it is calculating.

Regards,

Mukthar