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Depreciation key calculating unreliably for complex assets

Sep 07, 2017 at 06:52 PM

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Former Member

Hi experts,

My client requires a deprecation key that depreciates in a straight line throughout the life of it's assets. The depreciation of assets should be calculated from when it was capitalized. The key should work out the depreciation for future periods for the duration of the life of the asset, comparing it's expected depreciation to what has already been posted, whereby it will do a catch up to account for the difference and then post depreciation as normal.

The key works as expected but for more complex assets, such as revaluations. Here there are some issues including; the key works as expected until the last couple of years of useful life, whereby depreciation jumps to triple the charge. In other scenarios, the depreciation calculates as expected until the last couple of years until which it stops, leaving net book value forever.

Have you any inkling as to why these issues are occurring?

The key is set up in the following way:

Transaction AFAMA:

  • Maximum amount: N/A
  • Cutoff val. Key: N/A
  • No ord. depreciation with special depreciation: N/A
  • No interest if there is no depreciation planned: N/A
  • Period control per fiscal year: N/A
  • Period control per fiscal year: N/A
  • Do not reduce depreciation in shortened fiscal year: N/A
  • Acq.only allowed in capitalization year: N/A
  • No. of places: 0

-

  • 2.Assignment of calculation methods:
  • DepType: Ord. depreciation
  • Phase: From the start of depreciation
  • Base method: 0007
  • Decl.-bal.method: 001
  • Prd cont: 001
  • Multilev.meth.: ****
  • Class: Straight-line depreciation
  • Chnge. Method: No automatic changeover
  • Changeover%rate: 0.0
  • Multiple shift: Increase in depreciation and expired useful life
  • Scrap value: Consideration is controlled by cutoff value key
  • Shutdown: Yes

-

  • 3.Base method: 0007 (Ordinary: percentage from life (after end of life))
  • Type of depreciation: Ord.depreciation
  • Dep. Method: Percentage from the useful life
  • Reduce use.life at FY end: NO
  • Dep. After plnd.life end: Yes
  • Dep.below NBValue zero: No
  • Curb: No

-

  • Decl.-bal method: 001
    Dec factor: 0.00
  • Max perc: 0.0000
  • Min. perc: 0.0000
  • Prd cont: 001
  • Acq: 01
  • Add: 01
    Ret: 02
    Trn: 02

-

  • Multilevel.meth.: ****
    Validity start: From ordinary depreciation start date
  • Dep.by fisc year: No
  • Levels:
  • Acq.year: 9999
  • Years: 9999
  • Per: 12
  • BaseVal.: 01
  • Percent: 0.0000
  • Rem. Life: No
  • Reduct.: 0.0000

Edit: spacing

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1 Answer

Bernhard Kirchner
Sep 08, 2017 at 11:53 AM
0

Dear customer,


The base value "02 Half of acquisition value" includes the indexed acquisition values (revaluation), but the base value "01 Acquisition value".
This could be the reason.

best regards

Bernhard

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