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Former Member

Asset Accounting

Hi All,

What is smoothing and depreciation cycle in asset accounting?

Thanks & Regards,

Rohini...

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3 Answers

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    Former Member
    Aug 20, 2007 at 09:43 AM

    Hi,

    When you are using smoothing the open depreciation amount will be posted in the last fiscal year in 12 periods.

    Example end use full live 31.03.2007 open depr amount 12.000. Then in period 1 to 12 there will 1.000,00.!

    When you use a depreciation key depreciation immediate it twill posted to from that period up to period 12 months and not immediate!

    Paul

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    Former Member
    Aug 20, 2007 at 09:56 AM

    Hi Rohini

    Here is the link from SAP help on this topic

    http://help.sap.com/saphelp_47x200/helpdata/en/4f/71dbdb448011d189f00000e81ddfac/frameset.htm

    Thanks

    Ashok

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    Former Member
    Aug 20, 2007 at 10:24 AM

    Hi,

    Smoothing

    - Using the smoothing method, however, the system distributes the difference between the forecasted annual depreciation and depreciation already posted, to the remaining posting periods.

    For example,

    Acquisition posted in period 5 = 12000

    Depreciation start in period = 1

    Planned annual depreciation = 1200

    Deprec. posted up to period 5 = <b>0</b>

    Remaining periods, incl. period 5 = 8

    Deprec. to post per period(5-12) = period 5 to period 12 = (1200-0)/8 = 150

    Regards.

    Message was edited by:

    Bird

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