Useful life Depreciation should start from the acquisition period - issue

[Former Member]

Dear All,

My user purchased one asset through F-90 as below:

Asset Value : 5000

Useful life : 5 yrs

Asset Value date : 25-02-2009

While checking in T-Code: AW01N in COMPARISON tab, the system is showing the value as below:

Year - Acqui.Value - Ord. Dep - Net book Value

2008 - 5000 - 200 - 4800

2009 - 5000 - 1200 - 3600

2010 - 5000 - 1200 - 2400

2011 - 5000 - 1200 - 1200

2012 - 5000 - 1200 - 0

My user wants the depreciation calculation as below:

Year - Acqui.Value - Ord. Dep - Net book Value

2008 - 5000 - 167 - 4833

2009 - 5000 - 1000 - 3833

2010 - 5000 - 1000 - 2833

2011 - 5000 - 1000 - 1833

2012 - 5000 - 1000 - 833

2013 - 5000 - 833 - 0

We are using Depreciation as per useful life.

Please guide me to change the settings.

Regards

JS

[Former Member · Accepted solution]

JS - What is your fiscal year? The system is calculating 4 x periods for depreciation, where your user only wants 2 x periods for depreciation. You need to check the Ordinary Depreciation start date on the asset.

Kylie

[Former Member · Accepted solution]

Thanks for immediate response,

My Fiscal year 2008 (1st April to 31st March).

Depreciation starts from 01-02-2009 (acquisition was on 25-02-2009) and it is monthly depreciation.

As per my point of view, even though the acquisition was in middle of the fiscal year, system consider the whole year for the depreciation and as per my client requirement, the depreciation should be monthly basis not yearly basis, for example:

Year - Acqui.Value - Ord. Dep - Net book Value

2008 - 5000 - 200 - 4800

2009 - 5000 - 1200 - 3600

2010 - 5000 - 1200 - 2400

2011 - 5000 - 1200 - 1200

2012 - 5000 - 1200 - 0

in the above table the system starts to calculates the depreciation from Feb 2009 but it consider the whole year as the acquisition year i.e.,

2008 as the 1st year

2009 as the 2nd year

2010 as the 3rd year

2011 as the 4th year

2012 as the 5th year

But my client needs to calulate on period basis not on year basis i.e., if it is for 5 years then the system should caluclate depreciation as 5 x 12 = 60 months, please see the below details to get more clarity:

Year - Acqui.Value - Ord. Dep - Net book Value

2008 - 5000 - 167 - 4833

2009 - 5000 - 1000 - 3833

2010 - 5000 - 1000 - 2833

2011 - 5000 - 1000 - 1833

2012 - 5000 - 1000 - 833

2013 - 5000 - 833 - 0

in the above table the depreciation calculation is as below:

2008 it caluclated for 2 months / periods

2009 it caluclated for 12 months / periods

2010 it caluclated for 12 months / periods

2011 it caluclated for 12 months / periods

2012 it caluclated for 12 months / periods

2013 it caluclated for 10 months / periods

and the total calculation is for 60 months/periods.

hope it clarrify you:

Regards

JS

[Former Member · Accepted solution]

Hi JS

That's truly bizarre. Have you checked the depreciation settings in config? The only thing that I could think of is that the period control may be incorrect.

1. Determine Period Control on your Depreciation Key

IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Maintain Depreciation Key

2. Check settings for Period Control

IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Maintain Period Control Methods

Check the value against Acquisitions.

Kylie

[Former Member · Accepted solution]

Hi,

Start Validity of depreciation (AFAMS) from 02, choose 01 in afamp . In afamado not tick day wise depreciation and follow straighline depreciation.

Warm Regards

[Former Member · Accepted solution]

Hi Kylie

My Config settings are as below:

Determine Period Control on your Depreciation Key

IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Maintain Depreciation Key

i have activated the check box for Period Control according to fiscal years.

And in assignment of Calculation:

Dep Type : ord. depreciation

Phase : From the start depreciation

Base Method : 0005

Decl.Bal.Methd : 001

Prd. Contrl : 001 (01/01/02/02)

Multi. Level : 001

Class : Decline - Balance Depreciation

Multi. Shift : Increase in Depreciation and expired useful life

Scrap Value : Consideration is controlled by cutoff value key

Check settings for Period Control

IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Maintain Period Control Methods

Prd. Contrl : 001 (01/01/02/02)

Please guide me am getting struck for 2 days.

Regards

JS

[Former Member]

Resolved