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Fixed asset subsequent aquisition doesn't base on the NBV but the whole book value.

Dear Experts,

I've been through the configuarations of depreci.key and still have no clue of where the system calculate the depreciation. like the following:

1 Expected Results:

APC 24000 no scrapt value, 2 years of useful life, depreci = 1000/month. ( First depreci. start on the purchase month. )

Now that the normal depreci. run has completed for one month ( month 1 ) 1000. So then now NBV = 23000.

On month 2, the subsequent aquisition adds the extra 23000, so NBV is 23000+23000 = 46000, sill the remaining useful life is 1 year 11 months.

The expected depreciation of month 2 and following months should be: NBV46000/ months 23 = 2000.

2 The reality is:

My system evaluates the whole book value of the asset and re-adjust the depreciation.

It sees the assets as 46000 with 24 months useful life and considers the month 3 and following depreci. as 1916.67/month and re-adjust month 2 depreciation to 2833.33 ( 1916.67*2 - 1000 = 2833.33 )

3. I checked AFAMS the multilevel methods, it has base value " 24 "; In OABW, RevlDep for replacement value is set to blank; these two are the same with other company's configurations. But still I cannot get what the expected NBV to recal the depreci.

Could you help share some other places that have impact on the subsequent aqui. depreci?

Thank you!

Emma

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4 Answers

  • Best Answer
    Posted on Oct 29, 2019 at 12:04 PM

    The problem is resolved by the note 92925. It is to update the field T090NP-XBZDAT and there is wiredly no place for configuration in period control method.

    Thanks guys!!!!

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  • Posted on Oct 09, 2019 at 08:15 AM

    In AFAMS, Multi-Level Method, did you check the box "Remaining Life".

    Just check this box and see how the depreciation is being calculated. Better you try this in Test system.

    Thanks,

    NSK

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  • Posted on Oct 10, 2019 at 09:14 AM

    Dear Qun,

    If you want to see how system calculates depreciation when you change calculation methods, you can test various calculation methods in AW01N - Asset Explorer. Click on Simulation button. There, in Planned values tab click on Trans.Simulation button and you can simulate acquisitions and any other transactions. Note, these are simulation postings so you can use them in any client, they are not real postings. In a similar manner, you can simulate depreciation, so make changes in AFAMS, try changing base value to 23, save it and then look in AW01N the new calculation in simulated mode. You can try different base values and see how the systems behaves. See whether the system calculates depreciation based on NPV value at the start of the year and then if it posts an overall adjustment in period 12.

    Regards

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  • Posted on Nov 07, 2019 at 04:57 AM

    Qun Yang,

    Could you share to US your configuration in AFAMA TRANSACTION? I'm NOT GET the same result with this flag.

    Thank You,

    Luiz F. Carmo

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