How to limit depreciation amount when using double declining depreciation method?

[Former Member]

Dear community members,

Currently I am implementing the fixed assets module at several clients. For the greater part of it I found out how to setup / import data and to use the FA module. There is however still one requirement that I cannot seem to configure in B1.

In Belgium you are allowed to use the double declining method for fixed asset depreciation. The maximum depreciation amount is 40% from the acquisition value (APC). Sometimes the depreciation percentage is 66% (in case you would normally have a useful life of 3 years).

My FA has APC of 6000 and depreciation method is double declining method, with a percentage of 66% but it might not be greather than 40% of acquisition value

Year 1 APC 6000 -- Depreciation 2400 (=40%) -- NBV 3600

Year 2 APC 6000 -- Depreciation 2376 (=66%) -- NBV 1224

Year 3 APC 6000 -- Depreciation 1224 -- NBV 0

In SAP B1 it is possible to set a limit or threshold by using the factor on the calculation tab of the depreciation type. This is recalculated yearly against the NBV this does not comply to Belgian law/rules because we need to take the APC to calculate the maximum amount (the 40% limit).

Is there anyone who experiences the same problem? Is there another function I did not find yet which I could use to manage the above situation?

I have searched this forum, read the B1 help and also read the note on how to use the declining balance method in B1 but I cannot find a solution for this requirement.

Thanks in advance for your help.

Kind regards,

Tijmen Holt

[former_member205041]

Hi Tijmen,

I might ask you to check if the following menu point fulfill your requirements:

Asset Accounting (New)
-> Depreciation
-> Valuation Methods
-> Depreciation Key
-> Calculation Methods

=> Define Declining-Balance Methods

Here you can define:

Maximum percentage rate

This is the upper limit for the depreciation percentage rate.

If a higher depreciation percentage rate is produced from the useful life, multiplication factor or number of units to be depreciated, then the system uses the maximum percentage rate specified here.

Best regards

Bernhard

[Former Member]

Dear Bernhard,

Thanks.
I guess your answer is not regarding SAP Business One. I think i used the incorrect tags.

[Former Member]

Dear Bernhard,

Thanks.
I guess your answer is not regarding SAP Business One. I think i used the incorrect tags.