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what happens when u need to change the useful life of an asset?

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  • Best Answer
    Posted on Jun 28, 2007 at 02:34 PM

    Hi

    Recalculation of depreciation is done in opened fiscal years in Asset accounting. according to the new useful life.

    Regards

    Javier

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    • Former Member

      After changing the useful life you such run transaction code AFAR -- recalculate values. That will "correct" the depreciation based on the new useful life. The next time that you run depreciation AFAB the correct depreciation will be booked.

  • author's profile photo Former Member
    Former Member
    Posted on Jun 28, 2007 at 02:33 PM

    If you change the useful life and not the Dep Key a few things could happen.

    the main thing to look at here, is how your Dep key are defined. If you had a useful life of say 10 days, and the Dep Key was linear 10% over 10 years, and you changed the useful life to 15 years, the dep would keep on going as normal.

    if however you hada dep key that would depreciate by the NBV of the asset, say 5% per year, then there will be some Dep posting differences.

    Also, if the useful life were to be changed in my example from 10 to say 5, then the asset would not be fully depreciated.

    hope this helps, if so set the message to answered and assign points.

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 29, 2007 at 10:18 AM

    Hi Madhu,

    Can you confirm if we have answered your question if so can you mark the thread to answered.

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