Skip to Content
avatar image
Former Member

Asset depreciation calculation

Hi Group,

I am working on the investment/cost projects where i am using the investment project/project systems and plant maintenance modules.

My asset under construction is getting created from the project and then when i set the WBS status as TECO then i am converting the AUC into completed asset.

Now my questions are:

1. Suppose my aaset life cycle is 10 years, then how to capture the depreciation and the to find the asset value after 10 years. Detailed approach including the config part will be reallly helpful.

2. If we carry maintenance on the asset, then how this cost is captured. Whether it is captured on asset or any other source. If we want to capture it on asset, then is it possible? If yes what are the settings for the same.

Waiting for the reply please.



Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • avatar image
    Former Member
    Mar 07, 2008 at 10:43 AM

    Hi Raghu,

    Firstly, once the settlement of AuC to Asset is done (also known as Capitalisation), the Project can be closed.

    The calculation of the useful life of the Asset and the depreciation will be taken care in Asset Accounting Module. It has series of cycles which have depreciation run, periodic depreciation posting, annual depreciation posting etc (T.Codes: AFAB, AJRW, SM35 etc). Pls look for documentation on Asset Accounting Module.

    Regarding your query on the maintenance of Assets -- The Assets need to be maintained as Equipments, Functional locations in PM module. Appropriate Maintenance Package will assigned to maintenance strategies which in turn will be assigned to the equipments. The cost incurred due to this maintenance would be posted to respective cost centres, WBS elements etc..

    Hope this clarifies..


    Add comment
    10|10000 characters needed characters exceeded