on 11-30-2006 3:25 PM
Hi,
The client here has assets which are going to use UOP depreciation keys. However, on one of these assets the depreciation rate per unit is not equal to the APC / total # of units available.
Instead they want to assign a fixed rate.
for example, if apc = $100 and total units = 10, then your depreciation rate per unit is $10.
however, they want be able to depreciate $11/unit.
They also want to be able to change this fixed rate whenever they want. So they might change it to $10.50.
is this possible?
Thanks,
James
Hi James,
You don't need to do manual depreciation. If you use transaction code <b>AO25</b>, highlight the "<b>Company Code</b>" and double click on the "<b>Depreciation Key</b>", highlight the depreciation key you want to change and double Click on the "<b>Number of Units</b>". You would see 5 columns (i.e. Year, Per., Total Units, Rem. units - Start and Period Unit).
Assume beginning of year 2006
<u><b>January Entries</b></u> would be:
Year = 2006
Per = 1
Total Units = $100
Rem. units - start = $100
Period Unit = $10
If in February the UOP depreciation is now $11, then
<u><b>February Entries</b></u> would be:
Year = 2006
Per = 2
Total Units = $100
Rem. units - start = $90
Period Unit = $11
Assume in March, the UOP depreciation is now $10.50, then
<u><b>March Entries</b></u> would be:
Year = 2006
Per = 3
Total Units = $100
Rem. units - start = $79
Period Unit = $10.50
and so on, until the Total Units is fully depreciated.
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hii Jacob,
After going thru your suggestion I want to know if there are multiple assets which have to be depreciated with different production units then in that case what will be the solution. for Ex let us take 2 assets one is having life of 100 units and 2nd is having life of 150 units and monthly production of units is also differnent say 5 units for first and 15 units for 2nd.
Then how one should go about it.
i think i figured it out.
either use the manual depreciation method or depreciation over remaining units of production
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
107 | |
12 | |
11 | |
6 | |
5 | |
4 | |
4 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.