Mulitple shift depriciation

[Former Member]

Hi!

I trying to post multiple shift for a particular i have entered the shift factor in the time dependent data. apart from this what else to be done.

thanks

raj

[dominic_holdstock]

Hi,

In TRX AFAMA check what the depreciation key settings regarding Multiple shift

are.

These can be:-

a) Increase in Depr. & Expired life

b) Increase in Depr & No change in Life

c) No effect

d) Default from Co.Code.

If case d) in TRX AFAM_093B check the defaults for the Co.Code and Dep Area.

Kind regards

[Former Member]

Hello

The following fields are provided for these instances in the asset master record:

Multiple-shift factor (time-dependent)

Variable portion of depreciation (dependent on depreciation area)

Shutdown indicator (time-dependent)

Multiple-Shift Operation

You can calculate increased depreciation due to multiple-shift operation for all types of depreciation except unit-of-production (unit-of-production depreciation is by definition 100% variable). You take this increased wear and tear on the asset into account using the following method:

Specify the variable depreciation portion as a percentage rate in the detail screen for the depreciation area. You can enter a different percentage in each depreciation area. Depending on the maintenance level you have defined, you make this entry in either the asset class or the asset master record.

Enter a multiple-shift factor in the time-dependent data in the asset master record. This shift factor is multiplied by the variable portion of ordinary depreciation.

The total depreciation amount is then calculated as follows:

Depreciation amount = fixed depreciation + (variable depreciation * shift factor)

Expired Useful Life

In the definition of the depreciation key, you can specify for multiple shift use whether

Both depreciation and the expired useful life should be increased

Only depreciation should be increased and not the expired useful life

Neither depreciation nor the expired useful life should be increased

Multiple-Shift Operation for Assets with Declining-Balance Depreciation

For assets using declining-balance depreciation, the system increases depreciation amounts during the declining-balance phase of depreciation, based on the multiple shift factor and the variable portion of depreciation. However, depreciation is only increased up to the maximum percentage rate that is specified in the depreciation key.

Shutdown

If an asset is shut down for a given period of time, you can suspend the depreciation as follows:

Define the appropriate time interval in the time-dependent data for the asset.

Set the shutdown indicator in the asset master record for this interval.

Use a depreciation key that allows shutdown, in the depreciation areas concerned.

The system does not calculate depreciation during the time period of the shutdown. The useful life of the asset increases by this length of time. When you remove the shutdown indicator, the system automatically resumes the calculation of depreciation.

Reg

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