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Depreciation method based on NBV

Sep 05, 2017 at 03:09 PM


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Dear Experts,

I need to set up depreciation method for tax depreciation based on useful life and Net Book Value in SAP ByDesign. I am wondering, how to set up such a type of calculation (see attached table).

Depreciaton in 1 year = Acquisition Value / Useful life (100 000 / 5 = 20 000); NBV = 100 000 - 20000 = 80000

Depreciaton in 2 year = (2 x NBV) / (Useful life + 1 - Number of years already depreciated) = (2 x 80 000) / (5 + 1 - 1) = 32000; NBV 80000 - 32000 = 48000

Depreciaton in 3 year = (2 x NBV) / (Useful life + 1 - Number of years already depreciated) = (2 x 48 000) / (5 + 1 - 2) = 24000; NBV 48000 - 24000 = 24000

And so on till NBV is 0 in 5th year.

Is there any possibility, how to configure such formulas in ByDesign? Or any possible solution, how to manage this?

Thank you for any help in advance.

Best regards,

Marian Plachy

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1 Answer

Harshal Vakil Sep 06, 2017 at 05:34 AM

Hello Marian,

Please check help center document : Using Depreciation Methods.

This will provide you details on available depreciation method categories.

You can then check for the available depreciation methods by clicking on respective country link in the same help center document

For example : clicking on Australia will open help center document : Depreciation methods - Australia.

In this document, Look for column Base calculation (This will Describe the depreciation method category and other details.)

I am not sure if there are such depreciation method already available in the system or not.



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Hi Harshal,

thank you for answer. And In case, when desired depreciation method is not available, is there any possibility to create new one and set formulas according my need? I know, that is possible to copy a template and adjust it, but I would need to modify more parameters (NBV multiplied by two and so on) to have a desired result. Do you know, if it is somehow possible?




Hi Marian,

As far as I know, I don't think you would be able to create formula for NBV. In Byd NBV is derived using acquisition cost and depreciation.

So NBV = Acquisition - Depreciation

and in Bydesign you can customize the Depreciation method but that only allows you to maintain Depreciation percentage, Period control method and so on.. system does not allow you to create a formula for NBV.

One of the option is to post these depreciation Manually.

If you are looking for depreciation method only and do not wish to post depreciation manually, then you will need to report this as incident to SAP (If the requirement is legal, Possibly with legal supporting document) for the feasibility or other possible solution which I might not be aware of. :)