depr key

[Former Member]

we have a depreciation key where assets are depreciated by 95% of their value and 5% is treated as salvage value. Now it is necessary that the same asset immediately after the depreciation of the 95% during the useful life needs the 5% to be depreciated over the next 5 years.

How should I setup the new depreciation key as i need to calculate depreciation on 5% of the net value and for the 5 yrs after the useful life and apply it on an existing asset.

Any clarification will be appreciated.

Thank you

Krishna

[Former Member · Accepted solution]

HI Krishna

I am not sure whether my suggestion holds good. You attach a depreciation key and change the ord.start depn date with a new date

But please test it in Devlopment or quality server before testing in Produciton Client.

Regards

Chandrasekaran

[Former Member]

Set the Dep Key as you would any other in terms of cycles, the amount it depreciates and so on.

For example you may have an asset with a life of 10 years, therefore after 10 years currently it deps upto 95%.

What you now need to do is to copy your original Dep Key but after the first 10 years at say 9.5% for 10 years, have the next 5% at 1% per year for 5 years.

It is best to create new Dep keys otherwise there may be some funny balances being created in your next Dep run.

[Former Member]

I am trying to setup the depreciation key with a changeover method but it is not working as expected. cansome one give a detialed setup for the above.