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Ordinary depreciation is not calculated evenly after transfer within company code (ABUMN)

baars1
Explorer
0 Kudos

Hello Experts,

Can anybody help me to resolve this issue?

I have tried several things, but nothing worked so far.

When I transfer a existing main asset to a new sub asset (because of optimizing asset structure), the depreciation of the new sub asset is not evenly per period. The first periods are evenly, but the last or several last periods are  zero or less depreciation.

For example the new sub asset had 6 periods to depreciate from 01.02.2016, then only in 5 periods the depreciation is planned and the last depreciation is zero. I expected EUR 972 per period and 5833 for all six periods.

I am using depreciation key LINR.

I have transferred the existing main asset to a the new created sub asset with ABUMN.

The existing main asset is depreciated for several years and/or periods or just for one period, I get the same results.

The new sub asset is only for a few periods or for one or several years with some periods.

If I give the new asset only one or several years for depreciation, then the depreciation per period is evenly.

Example of the sub asset with the wrong depreciation per period:

Planned periods for depreciation where the last period is zero (period 7).

Details of depreciation key LINR

Thank you in advance for your thoughts!

Kind regards

Matthijs

Accepted Solutions (1)

Accepted Solutions (1)

former_member198650
Active Contributor
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Hi Matthijs,

When you did transfer posting the system had posted one month depreciation 7000/6=1167 and remaining 5 months depreciation system is showing as planned. System behavior is correct.

Regards,

Mukthar

baars1
Explorer
0 Kudos

Hi Ravi, Mukthar Ali,

Because I depreciated EUR 1167 on the original asset and I transferred to remaining NBV EUR 5833 to the new asset, I want to depreciate on the new asset in 6 new periods. So I expected the depreciation will go like:

First period  = period 2      = EUR 972

Second period  = period 3      = EUR 972

Third period  = period 4      = EUR 972

Fourth period  = period 5      = EUR 972

Fifth period  = period 6      = EUR 972

Last period    = period 7      = EUR 972

But instead it goes like the example:

First period  = period 2      = EUR 1167

Second period  = period 3      = EUR 1166

Third period  = period 4      = EUR 1167

Fourth period  = period 5      = EUR 1167

Fifth period  = period 6      = EUR 1166

Last period    = period 7      = EUR 0

Can you explain why this is not going as expected?

And is it possible te get it like this?

Thanks in advance.

Kind regards,

Matthijs

former_member198650
Active Contributor
0 Kudos

Hi,

In the sender asset, 1 month depreciation already charged. Due to this in the receiver asset the system got deducted from its useful life. Still if you want to calculate depreciation on 6 months, then change the useful life as 7 months.

Regards,

Mukthar

baars1
Explorer
0 Kudos

Hi,

Why do I have to fill in 6 periods for depreciation on the new asset and it will only depreciate 5 periods in the new asset because on the old asset 1 period is depreciated.

If I change the useful life to exactly 1 year, than depreciation is evenly per period. With the last period in the new year. If I use periods or year with periods, than the depreciation is not evenly anymore.

Appreciate your help!

Changed the useful life to 1 year and is not considering the depreciation on the old asset.

former_member198650
Active Contributor
0 Kudos

Hi,

Even if you change the useful life as 1 year, in that case also system is calculating depreciation for 11 periods only. It skips 1st period. Because it already charged in the sender asset.

Regards,

Mukthar

baars1
Explorer
0 Kudos

Hi Mukthar,

It's correct that the first period is not depreciated as is visible in the screenshot. It's not no visible, but in the subsequent year (2017) there is also a depreciation in period 1 for the amount of EUR 486.

In total the depreciation for a year is the same as for the total of a few periods, but with a year the periods are evenly depreciatied and with a few periods, the depreciation per period is not evenly in my case.

I do still not understand why this is.

Thanks again!

Regards,

Matthijs

Answers (1)

Answers (1)

Former Member
0 Kudos

Matthijs,


As per your screenshots system behavior is correct your APC value is 7000 EUR, and you done the value adjustment for 1167 EUR so the NBV is 5833 EUR and your useful life is 6 months. As you said if you have more than one year as useful life then it will calculates for all the periods accordingly.


Let me know if you need any further help.


Regards,

Ravi

baars1
Explorer
0 Kudos

Hi Ravi, Mukthar Ali,

Because I depreciated EUR 1167 on the original asset and I transferred to remaining NBV EUR 5833 to the new asset, I want to depreciate on the new asset in 6 new periods. So I expected the depreciation will go like:

First period        = period 2    = EUR 972

Second period  = period 3      = EUR 972

Third period      = period 4      = EUR 972

Fourth period    = period 5      = EUR 972

Fifth period      = period 6      = EUR 972

Last period      = period 7      = EUR 972

But instead it goes like the example:

First period        = period 2    = EUR 1167

Second period  = period 3      = EUR 1166

Third period      = period 4      = EUR 1167

Fourth period    = period 5      = EUR 1167

Fifth period      = period 6      = EUR 1166

Last period      = period 7      = EUR 0

Can you explain why this is not going as expected?

And is it possible te get it like this?

Thanks in advance.

Kind regards, Matthijs