on 07-02-2007 11:59 AM
Hi guys, i am very new to this forum, just signed in.
Can anybody please help me with the depreciation keys, if anyone can send me a document on how to configure a Depreciation Key from the Scratch. Also please tell me the difference among, Base Method, Declining Method, period control method and their dependencies on each other.
Hey Saqib,
Welcome to the forum.
The depreciation key contains the value settings which are necessary for determining depreciation amounts. It represents a combination of calculation rules, which are used for the automatically calculated depreciation types
Ordinary depreciation
Special depreciation
Imputed interest
Features:You assign calculation methods to each depreciation key for the actual determination of depreciation amounts.
You can define depreciation keys and calculation methods in Customizing for Asset Accounting (Depreciation->Valuation Methods->Depreciation Keys).
Hope this helps. please assign points and let me know if you need anything specific.
Rgds
manish
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In AA we have to define certain dep methods for dep calculation purpose.Dep key is the combination of dep methods.
<b>Base method</b>:<u></u>In base method we define three things
1.dep calculation method
2.Dep type
3.Treatment of the end of dep
<b>Declining balance Method </b><u></u>:In this method dep % rate is multiplied by a given factor.
<b>
<b><u>Multi level method</u></b> :In this method we define the rate of dep.If it different at different stage we define different levels.A level, in this sense, represents the period of validity of a certain
<u><b>Period control method</b></u> :In this method we specify the start and end date of dep.
<u></u>
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<b>Depreciation Key:</b>
Helps in identifying the method and rate of depreciation
<b>Define Base Methods</b>
<b>Transaction Code</b> SPRO
<b>IMG Menu Path</b> Financial Accounting - Asset Accounting - Depreciation - Valuation Methods - Depreciation Key - Calculation Methods - Define Base Methods
Predefined in SAP: 0014
<b>Define Declining balance Method</b>
<b>Transaction Code</b> SPRO
<b>IMG Menu Path</b> Financial Accounting - Asset Accounting - Depreciation - Valuation Methods - Depreciation Key - Calculation Methods - Define Declining balance Method
Predefined in SAP: 001
<b>Define Multi-Level Methods</b>
You define multi-level methods and then assign them to depreciation keys. Each level represents a validity period for a given percentage rate.
<b>Transaction Code</b> AFAMS
<b>IMG Menu Path</b> Financial Accounting - Asset Accounting - Depreciation - Valuation Methods - Depreciation Key - Calculation Methods- Define Multi-Level Methods
<b>Sample Configuration:</b>
1. Click new entries
2. Give Multilevel method: Any text & Description
3. Validity Start: 2: From Ord. depn start date
Double Click on 'Levels' folder
1. Click New Entries
2. Mention Acquistion year, year of usage, period per year
3. Base Value: If WDV: 24(Net book value); If SLM: 01(Actual Cost)
4. Mention the percent of depreciation
5. Save
<b>Maintain Period Control Methods</b>
The system determines the start or end of depreciation based on the asset value date of a transaction (of the acquisition or retirement) using the period control methods.You define period control and assign them to depreciation keys.
<b>Transaction Code</b> AFAMP
<b>IMG Menu Path</b> Financial Accounting - Asset Accounting - Depreciation - Valuation Methods - Depreciation Key - Calculation Methods- Maintain Period Control Methods
<b>Sample configuration</b>
1. Click New Entries
2. Follow the sequence and put the number
3. Give description
4. Acquistion: 01: Pro rata at period start ate
5: Addition, Return & Transfer: 01
<b>Maintain Depreciation Key</b>
<b>Transaction Code</b> AFAMA
<b>IMG Menu Path</b> Financial Accounting - Asset Accounting - Depreciation - Valuation Methods - Depreciation Key - Maintain Depreciation Key
<b>Sample Configuration:</b>
1. click 'New Entries'
2. Any text for depreciation key
3. Check Period control accounting to fiscal year
Double click 'Assignment of Calculation methods'
1. New entries
2. Depn Type: Ordinary
3. Phase: 1: From start of depn
4. Base Method: 0014; Declining Balance Method: 001 [Predefined]
5. Period Control Method: [As maintained in Tcode AFAMP]
6. Multi level method: [As maintained in Tcode AFAMS] - Correspondign method for WDV/SLM should be specified
7. Class: WDV: 2 - Declining balance; SLM: 1: Straight line
8. Save
9. Go back, select ur depn key and activate
10. Save again
Regards,
Sridevi
Pls. award points, if useful
Thanks Sridevi,
For such a detailoed answer, i have already followed all the steps and now i am stuck with different issue and that is no matter when i aquire the asset the system starts calculating depreciation from the start of the year.
I am using "02" option for aquisition "Pro rata upto mid-period at period start date", where as i want the system to calculate depreciation from the month in which it is capitalized.
Thanks
Hi,
Depreciation key helps in defining the method and rate of depreciation.
Base method is the Stralight line method of depreication
Declining is the Written down value method
Period control helps in defining the period to be considered for acq, retirement, transfer etc
Configuration:
1. IMG-FA-Depn-Valuation Method Depn key Calculation method
a. Define base method 0014 (predefined)
b. Define declining balance method 001 (predefined)
c. Define multi level method
i. Give name, descry, validity
ii. Levels folder  Give acq year, year of usage, period per usage, base value (WDV: 24; SLM:01), Percent
d. Maintain period control methods Give descry, qcquisition: 01; Addtn,return..-01
2. IMG-FA-Depn-Valuation method Depn key-Maintain Depn key
a. Give descry; Check Period control accounting to fiscal year
b. Double click Assignment of calculation methods
i. Depn type: Ordinary;Pahse:1; Base Method: 004; Decl bal method: 001; Period ctrl: 006; Multilevel method: as in 1c; Class:2  WDV
ii. ForSLM same as 2bi, but Multilevel method and class:1
iii. Activate
Regards,
SRidevi
<i>* Pls. assign points, if useful</i>
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