Asset: changeover method at end of useful life

[former_member358421]

Hi,

I try to understand how depreciation key is working at the end of the useful life of an asset.

The depreciation key I am currently testing is straight line (with "dep. to the day") and has the following characteristics:

Base meth / Decl / Perd ctrl / Multi l / Changeover method

N Ord.depreciation 1 0011 / 001 / 002/ 012 / 5

N Ord.depreciation 2 0007 / 001 / 002/ 012

• Base method 0011: % from useful life

• Base method 0007: % from useful life (after end)

• Declining method 001: 0%

• Period control method: 002 means

/04 (first year convention at 1/2 year start date)

/06 ( at start of year)

/02 (pro rata up to mid-period at period start date)

/02 (pro rata up to mid-period at period start date)

• Multi-level method: 012 (validity from ordinary depreciation start date) with level

Acq. year / Year / Period / Base val / Rem. life / Reduct.

9999 / 999 / 12 / 01 / 0,0000 / 0,0000

The asset I am looking at uses the depreciation key described above and has the following characteristics:

capitalization date: 17.01.2005

ordinary depreciation start date: 17.01.2005

useful life : 3 years

APC value: 7.031,57

Accum. deprec. till end 2007: 6.928,83-

Posted depreciation in January 2008: 102,46-

Nothing else will be posted in 2008. The asset is nearly fully depreciated in 2008 but the remaining value 0,28 will be depreciated in 2009. Why is the leftover sent to 2009? I thought the depreciation will continue after January 2008 because of the changeover method "5".

Could anyone help me on this issue?

Thanks

Sabine

[Former Member · Accepted solution]

Hello,

The Base method 0007 is responsible for the dep posted after the end of usefull life.

Check the tab Treatment of planed life end. If this yes the system continue the dep after the life .

Regards

Ravi

[former_member358421 · Accepted solution]

Hi Ravi,

Thanks for your answer. I have choosen the base method 0007 because it does carry on depreciation after the end of the useful life (Tab"treatement of end depr = yes) and I do want to reach NBV = 0

But why in my example, the system stops depreciation for 11 months (the system stops in January) and only continue in the following year after the end of the useful life?

Any idea?

Regards,

Sabine

[former_member358421 · Accepted solution]

HI Ravi,

I think your point was right. If I delete the second phase of my deprciation key and I change the base method of the first phase from 0011to 0007, then the left over is depreciated in the following month of the same year.

Thanks

Sabine