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Jan 20, 2016 at 08:40 PM

New Depreciation Area - Depreciation Calculation

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Hi. I am not a functional guy, so I might be asking something many of you already know, but I can't figure it out... so here I go.

My tax department wants to create a new depreciation area for California (let say area 41), it will be similar to another depreciation area (let say 40), but some asset classes will have different depreciation key and most of the asset classes will have different useful life.

I was able to create new depreciation area by copying area 40.

I used OADB, OABC, OAYZ and AFBN to create, activate and open new depreciation area.

My problem is existing asset is depreciating based on area 40 instead of 41.

How can I change, so that area 41 is depreciate based on useful life of 41?

Example:

Asset 101 was 1/1/2010 at $100,000.

Useful life of area 40 is 10 years.

So, fiscal year 2016 (Jan 2016) starting netbook value is $40,000 and ordinary depreciation is -$60,000.

Now, depreciation area 41's useful life is 20 years.

What tax department want to see is depreciation based on 20 years...meaning

fiscal year 2015 starting netbook value should be $70,000 and ordinary depreciation should be $-30,000.

Is this possible?

How can I achieve this?

Thanks for any help you can give.

John