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Nov 01, 2019 at 10:30 PM

Fixed Assets - Degressive method which changes for linear to calendar year

231 Views Last edit Nov 04, 2019 at 09:37 AM 6 rev

Hi Experts,

Please let me know if anybody had this issue and how to solve it.

  1. The fiscal depreciation in France uses Degressive method until the linear method start to be more interesting (higher value) than the degressive.
  1. SAP (with the following setup) calculates de the degressive method correctly:
  • Percentage: depends on the useful life of the FA. For example: 35 is for 5 years. 33 is for 6 years. During that period the percentage applicable during the useful life in the degressive is always the same.
  • Factor (not important): Random high value in order to not interfere with the calculation (France does not have this)
  • Changes automatically to Linear when the depreciation is more interesting.The linear method is calculated by the net book value (after the degressive method applied) divided by the remaining life

Example:

2. SAP does not do correctly the linear method because it calculates the linear with months and should be with years.

Example:

in green you can see the degressive method and in yellow you can see when starts to be linear.

In the 3rd year the remaining life is 21 months, and the calculation is: net book value / Remaining life

Correct calculation

2871 – ( 251+ 916,93+ 596) = 1107.7 / 2 years = 553/ 12 =46,08

Note: Although it’s 21 months of remaining life, the division needs to be done by year which does not happen with the degressive until the 3rd year.

SAP Calculation

2871 – ( 251+ 916,93+ 596) = 1107.7 / 21 Months = 52.71

Attachments

set-up.png (82.8 kB)