Asset depreciation based on APC

[former_member587343]

Dear Experts

According to standards the useful life of buildings has changed and i have to change them from 15 to 25.i have a building capitalized and depreciated for some months by considering 15years as it useful life and after some months in next year i have to change the useful life life to 25.I want the system to recalculate the depreciation by APC value but it takes the first year remaining value(book value) and depreciates it for the useful life of 25.how can i make the system takes the APC value and recalculate the depreciation as its useful life has been 25 from the first day.

[former_member198650]

Hi Zahra,

System will post the delta depreciation for all open periods only. If you want the impact from back period, in that case post the delta depreciation by ABZU for write up excess depreciation or ABAA for post excess depreciation .

Regards,

Mukthar

[narasimhulu_konnipati]

In the Multilevel Method, what is the base value you selected? Is that 01 (APC Value) or 24 (Net Book Value). Check this in AFAMS

To depreciate on the base value, you should have selected 01 (APC Value). Please check and confirm.

[former_member587343]

i changed it to 1 but it didnt work properly.the amount calculated in second year is different with what i think it should be.

the APC value of the building is 3071204150 and in first year of acquisition it has depreciated as follows:

in month 7 to 11 its depreciated in each period by price of 10237347 and in month 12 the useful life has changed from 25 to 15 which made the system post the depreciation 51186736 so the total amount of depreciation in first year has become 102373472.

then in next year in first 9 month the depreciatin amount is 17062245 and then in month 10 the useful life has changed from 15 to 25.and the adjusted plan depreciation in each following month is as below:

10--->49097481 (positive)

11--->10446272(negative)

12-->10446272(negative)

and overal depreciation in this year is 125355271.

i think as the depreciation method is streightline so in each year the depreciation amount should be (3071204150/25=122848166)that for first 6month if the useful life were not changed it would be 61424083 which is 40949389 less than what it is.then in next year based on your saying if it was going to amend this difference and post the depreciation for the difference of first year and the second year that i think it should be 81898777.if im right your way is not what i want.Do u have any idea?