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Former Member

Asset Accounting Depreciation Key

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.

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3 Answers

  • Best Answer
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    Former Member
    Jul 02, 2007 at 11:26 AM

    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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    • Former Member

      Thanks Manish,

      That was quite infrmative, but i need a step by step configuration document which can help me understand and configure the depreciation keys. Please forward me if you have any.

      Regards

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    Former Member
    Jul 02, 2007 at 11:36 AM

    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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    • Hi,

      In ur asset master, pls check wheat is the date u have given for 'Capitalized on' field.

      Also, in the 'Depreciation area' tab, check what is the 'Depreciation calculation start date' u have given.

      Hope this will solve ur issue.

      Regards,

      Sridevi

      <i>* Pls. assign points, if useful</i>

  • Jul 02, 2007 at 11:33 AM

    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 &#61664; 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 &#61664; 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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