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Economic depreciation based on unit-of-consumption for airline company

Aug 16, 2017 at 12:39 PM

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Hi,

I need to find how to calculate depeciation for +/- 300 assets. The assets are part of an airline company and needs to be depreciated based on a number of unit of consumption (e.g. number of flying hours). Every year, between 20 and 50 assets following new depreciation rules need to be created.

The depeciation key unit-of-production (STCK) seems to answer the way how the depreciation should be calculated. I was able to create a new depreciation key based on STCK and I can maintain the figures in AO25 and indicate how many units have been consumed each period but I cannot create 300 depreciation keys for my 300 assets. The consumption is different per asset and I cannot regroup them. On top of that I cannot ask the end-user to create a new deperciation key as soon as they do have a new asset with different rule.

How do you manage economic depreciation for these types of assets and also how do you take over legacy assets following these unit-of-consumption rule?

I currently use S/4HANA 1511.

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2 Answers

Bernhard Kirchner
Aug 29, 2017 at 01:43 PM
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Hi Sabine,

Your question is not quite clear for me.

The specifications are made in the Depreciation Key. You don't need 300 depreciation keys for 300 assets. You need one or a few keys.

https://wiki.scn.sap.com/wiki/display/ERPFI/Depreciation+calculation+with+base+method+Unit-of-production

https://help.sap.com/saphelp_47x200/helpdata/en/4f/71de6f448011d189f00000e81ddfac/frameset.htm

best regards

Bernhard

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Hi Bernhard,

Please see my answer below

Thanks

Sabine

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Sabine Janssen Sep 08, 2017 at 04:21 PM
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Hi Bernhard,

Thanks for your answer. I already checked the wiki link you provided in your answer and tested that depreciation key. The depreciation key works but I have so many different data to enter that I think I need as many depreciation key as asset. Let me explain again what I am looking for.

The second link you provided doesn't work.

The requirement from my client is that for each asset number (an asset represents a plane), the quantity used during the month is filled out in an Exel spreadhseet and based on this information, the economic depreciation can be properly calculated and booked. Each year, the units that have been used (=number of hours the plane flies) and the total units might be different and the same is applicable to each period. The plane can either be used for passengers or to transport freight and flies more or less hours depending on the season,depending on the customer, depending on the route.... Each plane might have different rules.

Here below you could see an example of a table of consumption for an asset acquired in 2017 and that should start depreciation in june

If the client acquired another plane with some other schedule to fly then we have another table to fill in. Behind each depreciation key I have only one table which can be defined for the number of hours the plane flies

How do we depreciate so many assets based on so many flexible quantities if I can only store one table behind one depreciation key?

How do we take over assets having that kind of depreciation rules in their legacy system to carry on depreciation in SAP?

One option could be that we keep an Excel spreadsheet with all the calculated quantities and that we create our assets with a depreciation key MANU and manually post the calculated amount. But this is a heavy process based on the number of planes they are dealing with.If we want to make the life of our client a bit more easy, then we will have to develop a program or LSMW to generate the manual posting based on the Excel spreadhsheet.

DO you have any idea about how we could proceed with economic depreciation?

Thanks

sabine

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