Smoothing and catch up method set up in posting rules for depreciation posting for a depreciation area.
For example based on dep key,
Depreciation for each period is Rs.100,
Total periods in a year : 12
Asset is created in period 1.5.2008 and
ordinary depreciation start date from the 1.1.2008
when you select smoothing method entire depreciation for the fiscal Rs.1200 is divided by 8 periods (including 5th period) and posts Rs.150 each for all the periods 5 to 12.
ie. (Total depreciation - Depreciation already posted)/ No of periods including current period
((100*12) - 0)/(12-4)= 1200/8= 150 for each period
In catch up method, Depreciation posted as below:
((100*5)-0) = 500 is posted in current period and in remaining periods, it will post Rs.100 per period as it is.
I hope you understood the concept
Hi,
Forecasting is the first step in the requirements planning cycle. Smoothing is one of the forecasting methodologies that can be used to forecast need at the location/article level.
Types/levels of smoothing:
- Simple exponential smoothing (constant model)
- Linear exponential smoothing (trend model)
- Seasonal exponential smoothing (seasonal model)
- Trend seasonal exponential smoothing (multiplicative seasonal component- Winter/Holt model)
- Trend seasonal exponential smoothing (additive seasonal component- Winter/Holt model)
- Linear regression (ordinary least squares) All forecast strategies are based on statistical forecast procedures and, therefore, on forecast models that mathematically qualify the period of historic data. The exponential smoothing methods (exponentially weighted moving average) are currently the most widely used time series methods. In addition, many clients create their own forecasting methods using user exits. These forecasts can then be used to drive replenishment as well as update other planning modules.
Smoothing algorithms provide a means of identifying significant patterns in sets of orientated data, eliminating local perturvations within the observations and predicting patterns of orientated data in places which lack observations.
I hope it will help.
If helpful, please assign points.
Regards,
Manju
hi radha
this concept will come in asset accounting,
1.smoothing:if you select this button OAYR the depreciation posting program calculates the periodic depreciation to be posted by distributing the remaining depreciation is posted eqally to the remaining periods of the fiscal year.
2.catchup:In this method remaining depreciation is posted in one peiod.
still your not clear give me ur mail id i will send examples
Regards
Ramana
Hi Ramesh,
Really it is help full answer i will assign points to you, i have one more doubt
I have scenario like this
clint has purchased asset in 2005 use ful life is 8 years dep calculated till 31.03.2007 now client is chanign dep method from declining blance to slm
and he wanted to reduce use full life also from 8 years to 6 years is it possible how can i apply smoothing method or how sap reacts
Please help me
Thanks
Radha
Hi Ramesh,
It will calculate dep for 2008,2009,2010 but here life also changing from 8 yers to 6 years how sap will react
Ex: asset value is 80000 life is 8 years
3 years it has cal dep 30000 and client is reducingreasset life from 8 to 6 years
3 years alsredy completed
50000 should post in 3 years with different dep method is it possible?
it is very impotant please help me
Thanks
Radha
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