Change of depreciation key

[Former Member]

Hi,

I have created an asset and the capitalization date for that is 02/15/2008.

Now due to some reason, i have to change the depreciatin key for depreicatin area 14 and 16 which we use for Tax purpose.

I want to know if i change this how system will behave. Whether system is going to calculate the depreciatin from the capitaliztion date or the date from when we made the depreciation key changes.

Please can anyboday help me out on this.

Regards.

[Former Member]

Change in depreciation terms will effect the depreciation calculated for open Fiscal Years.

In your case you have the Tax depreciation areas which will not generate FI postigs.

System will recalculate depreciation from the start of the current fiscal year, if your FY is Jan to Dec' it will recalculate from Capitalization date. If your FY is Apr to Mar it will recalculate the depreciation for the current year from April.

In either case the difference will be shown in the current period.

[Former Member]

Hi Kumar,

I have recently change my depn start date from 1.7.07 to 1.3.08. and we are having FY Apr-Mar

you are right that the adjustment is being recalculated from Apr onwards and prorate to the end of useful life.

Is there any way to make catch-up adjustment being posted to May instead, since our Apr already close.

We are using catch-up method.

CL

[Former Member]

Hi Kumar,

I have recently change my depn start date from 1.7.07 to 1.3.08. and we are having FY Apr-Mar

you are right that the adjustment is being recalculated from Apr onwards and prorate to the end of useful life.

Is there any way to make catch-up adjustment being posted to May instead, since our Apr already close.

We are using catch-up method.

CL

[Former Member]

HI,

The behaviour depends on the version you are using.

Prior to i.e <= 4.7EE the diffrence in depreciation is posted in the current period that is open.

If your version >= ECC5.0 then, the bhaviuor is same as long as the component E-FIn is not active.

If the EA-FIN is active then, the system doesn't calculate the diffrence and the calculation effects from the date of change from the effective date given for the dep.key.

Reward if useful.

Sarma

[Former Member]

Hi,

In the depkey you might have specified the dep type and phase.

You also have a option to specify the dep start date against the dep key in the asset master.(AS02).Based on the date you enter in the asset master,the dep gets calculated.

Regards

Aravind

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