How to stop planned depreciation calculation?

[Former Member]

Dear all,

I need to stop system from calculating the planned depreciation while I post unplanned depreciation and change the depreciation key and change depreciation useful life.

The problem is system automatically calculate the planned ordinadiry depreciation due to the unplanned depreciation posted and changing of depreciation key.

In asset master data on the "Time Dependent" tab I have selected the "Asset shutdown" checkbox. Any idea why system still calculate the planned depreciation eventhough I have selected the "Asset Shutdown"?

Any missing step that I need to perform to prevent system from calculating the planned depreciation?

Thank you very much for your kind assisstance.

rgds,

Dahlia

[MarkusBredel · Accepted solution]

Hi,

check that your depreciation keys consider shutdown.

Regards,

Markus

[Former Member · Accepted solution]

Hi Markus,

Thanks for the reply. Unfortunately I have searching but unable to find any field in depreciation key that indicate whether to consider shut down or not.

I am looking at AFAMA - Maintain Depreciation Key and I can't find such functionality.

Can you please kindly provide more detail information, how do I set the depreciation key to consider shut down?

Thanks

Dahlia

[MarkusBredel · Accepted solution]

Hi Dahlia,

go to AFAMA -> mark the depreciation key -> click Assignment of calculation methods -> optional if you have more then 1 depreciation phase: double click on the phase you want to change. In the bottom part of the screen there is a drip-down box with options how to consider shutdown.

Markus

[Former Member · Accepted solution]

Thanks Markus,

I have updated the Shutdown field to "Yes" on depreciation key. But after this update, when I am at the AS02 changed asset, system does not allow the usage of that depreciation key. Error message is the depreciation key does not exist.

I suspect the shutdown field on depreciation key is to indicate that this depreciation key no longer can be used? And when I do the changing of depreciation useful life, the "planned ordinary" depreciation is still automatically calculated by system

Thanks for your patient. Any other aspect that I have to look into to activate the asset shutdown?

Hope you have a nice weekend.

rgds,

Dahlia

[Former Member · Accepted solution]

Hi Dahlia,

Go back to tc AFAMA and click on generate from the depreciation key. The key is yet not active

Paul

[MarkusBredel · Accepted solution]

Hi,

as Paul stated activate the depreciation key. Leave AFAMA with F3 then and confirm the safety popup which asks if the changes shall be saved again with YES. Then it shall work.

Markus

[Former Member · Accepted solution]

Thanks a lot Markus & Paul,

Yes, currently after activation, I can use the updated depreciation key with the shutdown field = YES.

However, the planned depreciation still automatically calculated by system after I posted un-planned depreciation.

So I still having problem where the asset shutdown doesn't stop the calculation of planned depreciation.

Hi Kumar,

Unfortunately I can't follow the suggestion to change the remaining asset useful life as the asset need to continue depreciated after I posted the un-planned depreciation.

I thank you all for the kind assisstance.

rgds,

Dahlia

[MarkusBredel · Accepted solution]

Hi Dahlia,

you should get more detailed in your information. Is it possible that you use smoothing to post depreciation? In that case shutdown does not calculate after unplanned depreciation, it simply distributes the planned depreciation to all open periods in a fiscal year.

Is the planned annual ordinary depreciation correct now after shutdown is considered?

Maybe some figures would help to get a better picture of the situation.

Regards,

Markus

[Former Member · Accepted solution]

Thank you very much Markus, I do really appreaciate your kindness.

The requirement come from my users in China. There is a changes of asset depreciation useful life and base amount from the authority.

Originally: straigh line with 5 years useful life and base amount 90% from acquisition cost to be depreciated.

New regulation: still straigh line but useful life change to 3 years and base amount to be 100% from acquisition cost. Total depreciation amount differences between this two method must be posted in dec'08.

Sample an asset with acquisition value $12,000 with first depreciation posted on feb'2006.

Monthly depreciation amount = 12,000 * 0.9 / 60 (because base amount only 90%)

= $180

As of dec'08: accumulated depreciation = $ 6,300 (already 35 months depreciated * $180 per month)

If using the new regulation, the monthly depreciation will be: 12,000 / 36 (base amount 100%)

= $333.33

Total depreciation for 35 months = $11,666.67

Goverment Regulation:

Total differences that has to be posted into dec'08 = $11,666.67 - $6,300

= $5,366.67

As of Jan'09 the monthly depreciation should be = $333.33

To fulfill the above requirement I plan to do the following:

1. Shutdown asset period start from 31.12.2008.

2. Change depreciation key to 100% base amount in dec'08.

3. Post unplanned depreciation $5,366.67 in dec'08.

4. Close Fixed asset year 2008

5. Change depreciation useful life into 3 years.

The only problem that I have is after changing depreciation key, and after post un-planned depreciation system automatically calculate a plan ordinary depreciation. Therefore I need to stop the calculation of planned depreciation.

What do you think? Do you have any suggestion on how to fulfill the above requirement? I open to any suggestion that might be different from the plan steps that I mentioned above.

Thanks a lot. Hope to hear from you.

Rgds,

Dahlia

[MarkusBredel · Accepted solution]

Hi Dahlia,

frmo my understanding you have the following issue now. You shutdown the asset, let´s say for period 12. But this means implicitely that there are 11 periods open where the asset is not shutdown. In this case you have to be careful if you change the depreciation key to a different base value.

Because the asset will be recalculated for the complete fiscal year. This means that the changed base value will have effect on the open periods where the asset is not shutdown also.

Hence I would keep the base value to the original one, as long as 2008 is open. At the moment you close it, you can change the depreciation key respectively the base value determination.

I hope I did not misunderstand facts.

The functionality to change depreciation parameters time-dependent is available as of release ECC 6.0, when you activate the new depreciation calcualtion functionality. This would make some of your requirements easier to solve. You can find more information about this new functionality in note 965032 or Nathans Blogs.

Regards,

Markus

[Former Member]

Hi,

This is only a suggestion. I have not explored. Put the useful life of an asset to the end period.

i.e., consider for eg. an asset has a useful life of one year and you have posted depreciation for 6 six months and next 6 months you dont want to post. In this case the useful life is 1 year can be changed to 6 months.

Try this option.

Rgs