Shift wise Depreciation - Plant and Machinery India

[former_member569131]

Hi Exports,

How to configure Shift wise depreciation for Plant and Machinery in SAP Byd.

As per Companies Act 2013 depreciation percentage will be taken from useful life and gross amount of fixed assets.and it will change every month.

Here is an example -

Bought one Cutting machine on Oct 14 2018 for Rs.3,00,00,000 and put to use on the same day. Salvage value is 5% and useful life is 15 years. Practicing WDV Depreciation method.

Depreciation percentage calculation formula :

=1-((Salvage value/Gross asset amount)^(1/useful life))

=1-((1500000/30000000)^(1/15)) =18.10%

For One Shift = 18.10%

For Two Shifts = 18.10%+50% of One shift = 27.15%

For Three Shifts = 18.10%+100% of One shift = 36.20%

For Oct month 18 days Machine was used Out of that 10 days One shift, 4 days two shift, 4 days three shift.

So Average shift for the month is 24/18 =1.33 shifts.

Average depreciation rate for the month is 18.10*1.33=24.073%

Gross amount for depreciation = 2,85,00,000/-

Depreciation for Oct 2018 (18 days) is 338341.07/-

After One month, For depreciation calculation In Gross amount less depreciation amount for the last month and take the remaining amount.

=1-((1500000/29661658.93)^(1/15)) =18.04%

Kindly advice.

Regards,

Gurumoorti Hegde