Depreciation variances between periods

[Mark_W]

We are using a depreciation key with straight line depreciation, and we are not expecting to see variances between periods. How do these work? 

[Mark_W · Accepted solution]

The asset needs to be rounded at the end of the year, so the system first calculates this and the difference in the rounding is added to the first period. 

Then for each subsequent period the depreciation is worked out and rounded up or down accordingly, so that for the remaining periods the asset reaches a rounded figure for net book value at the end of the year. It is normal system behavior. 

You can read more about these settings in the SAP help guide

https://help.sap.com/viewer/3e5fcf2c768746049b5627bd5a42f720/2011.500/en-US/ef48d253913e4608e1000000...

Number of digits when rounding

This setting defines how many digits are used in rounding for the depreciation calculation of the percentage.