Change in deprection key

[Former Member]

Hello SAP expert,

Hope you can help, Currently in SAP 4.7 Enterprise I am trying to create a depreciation key that will do the following.

Currently we have assets that have been depreciating straightline over 4 yrs to 15% residual value.

This month (period 10) we want to change the depreciation for existing assets to start depreciating from net book value to zero for the remainder of usefull life.

I have managed this except the first period (10) is calculating a catchup amount, what do I have to do so that period 10 and subsequent periods are smoothed out without the catchup.

ie Netbook value (period 9)/remainder of usefull life.

Regards Steve Dunford

[dominic_holdstock · Accepted solution]

Hi Steve,

The only way to do this would be to transfer all assets with ABUMN to new assets in period 10.

The only options without doing this are immediate catch-up or catch-up smoothed over remaining periods. No catch-up is not possible.

regards

[Former Member · Accepted solution]

Thankyou for your helpfull answer,

Do you know precise settings for catchup smoothed over remaining life. (4.7 enterprise)

Kind regards Steve

[dominic_holdstock · Accepted solution]

Hi,

The catchup smoothing is not over the remaining life, but over the remaining periods of the current year.

eg asset is fully written down to 15 % BV =12000 and therefore in current year so far 0 depreciation.

In Period 10 you change the key and life so that remaining life =2.

No Smoothing

Period 10 5000 Depr.

Period 11+12 500 Depr. each period.

With smoothing.

Each period 2000 depr.

Regards

[Former Member · Accepted solution]

Hi again,

Thankyou for your reply, I think I now understand the pricipal of smoothed vrs not smoothed.

PS I have found a dep key that will produce result NO smoothing.

in order to produce result WITH smoothing, do I configure this in IMG or is it just a case of manipulating usefull life.?

Regards Steve