Adjust remaining useful life

[Former Member]

Dear SAP Experts,

I have the following requirement and would like to get your advice if there is any better way to set the configuration , instead of manual update in the remaining useful life.

Acquisition cost @July 2014 : $12,000

Depreciation start date : Jul 2014

Useful life : 10 years (120months)

Depreciation cost : $100/month

Net Book Value @Nov 2015 = Acquisition cost - depreciation cost for 17months (Jul 14 to Nov 15) = $10,300

Additional cost @Dec 2015 : $6,000 (Y)   --> different year from acquisition year

Revised Cost : NBV @Nov 2015 + Additional cost (Y) = $16,300

Revised Depreciation : Revised cost / (120months - (17months + 1month) = $159.80

The current configuration as below.

Base method : 0011 (ordinary percentage from useful life)

Multilevel method : per 1, base value 24 , rem.llife active

Smoothing : active

To calculate the revised depreciation with additional 1 month, I have tried to change the remaining useful life in asset master data

from 17 months to 18 months.

My question : Is there any other better solution, instead of updating the remaining useful life manually ?

Appreciation your input and advice.

Thank you.

Lynn

[former_member198650]

Hi Lynn,

You can also increase the useful life of the asset.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Thanks for the input.

I am thinking if there is any other way , whether it can be done through the configuration, instead of manual update in the remaining useful life / useful life.

Regards,
Lynn

[former_member198650]

Hi Lynn,

System will update useful life in the asset master automatically, if you maintain useful life in the asset class in OAYZ.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Actually, the useful life has been maintained in OAYZ.

The question I refer to is more on how the system could change the expired useful life/remaining useful life (with additional month), instead of manual change.

When the cost adjustment is posted on Dec, the system will need to adjust the expired useful life with additional 1 month (from 17 months to 18months), so remaining useful life (120months-18months).

By default, system will base on the expired useful life as 17 months, instead of 18months.

Thank you.

Lynn.

[former_member198650]

Hi Lynn,

In this case system won't change the life of the asset. Either you have to change it manually or create a sub asset for subsequent acquisitions.

Regards,

Mukthar

[Former Member]

Hi Mukhthar,

Since the configuration is not able to handle the case automatically,

Is it a common practice to open the field "remaining useful life' to be updated manually ?

Thank you.

Lynn.

[former_member198650]

Hi,

You cannot directly change the remaining life, because the field is not available to change even you set the field status as optional. Instead you have to change the useful life of the asset, then system will automatically adjust the remaining life. Yes, it is a common practice to change the life.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Sorry, I meant the expired useful life.

If the Useful life : 10 years (120months), I would need to add 1 month to the expired useful life (17months --> changed to 18months) if the system could not have the logic to automate the addition 1 month to the expired useful life.

So, what is the benefit / consideration if we change the expired useful life , instead of useful life?

Which one is the common practice ?

Regards,
Lynn

[former_member198650]

Hi,

Are you able to change the field remaining use life for the asset?

Regards,

Mukthar