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Depreciation - Period Factor for 2nd year

Former Member
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I have setup a multi-level method to depreciate tax books based on a % basis based on two phases as shown below. Phase 1 to take 50% depreciation of acq.value in year 1 and then take a constant percentage in subsequent years. However, 2nd year depreciation does't seem to be correct. I expect the 2nd year value of $1620 based on 20% in the below example. The first year and all other years are computed correctly except system computing 2nd year incorrectly with 19.25%. Please see the screen prints below.

However, system is picking up period factors of 0.08333 and 0.91667. I expect a percentage factor of 1%. I checked the period control and I couldn't find any errors.

Any suggestions/Thoughts??? Thanks

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Answers (1)

Answers (1)

former_member205615
Contributor
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Hi

Per information provided, I am afraid that the symptom happened becuase the depreciation start date is not at the start of Fiscal year.

Coud you check the tab 'paramter' of AW01N and the parameters used in year 2017's depreciation calculation?

Regards
George

Former Member
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Hi George,

Thanks for getting back to me.

The start date is picked up correctly based on period control 06 which is 04/04/2015 (1st day of FY year 2016). Please see the screen print below.

The system is picking up the correct start date 04/04/2015 on asset master, but system thinks the date is 04/02/2015 and hence is incorrectly calculating 2nd depreciation.

Please refer the depreciation terms screen print and scroll to right to see the start date.

1. We don't have 445 period control flipped on for this Area

2. We don't have Time Dependent Dep. Key controls flipped on for this Dep. key (Dep.fiscal year).

3. The Method control switch for start of depreciation (Validity Start from Ordinary Depreciation Start date.)

4. I posted with an Acquisition related Trans type 100


I appreciate any thoughts/suggestions.

Thank you!

former_member205615
Contributor
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Hi

Per the informaton provided, this issue likely is caused by the relevant setting of fiscal year variant. please go through below settings and see if there is anything wrong:

1, T-Code: OB28 to check if fiscal year variant is defined 04.04 as the first day in 2017

2, T-code: OAVH to check the mapping

3, T-cd:OA84 to generate the period control rule again for 2017

4, T-cd:AFAR to recalculate depreciation on company code level

Then check if the depreciation terms can be determined correctly.

Regards
George

Former Member
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Thanks for the feed back. The issue has been resolved.