Create New Deprecation key

[Former Member]

Hi

I want to create New Deprecation key. Please tell me step by step t-code for that.

Thanks & Regards,

Hemant Maurya

[Former Member · Accepted solution]

Hi

TC: AFAMA

Path: - SproImgFinancial AccountingAsset AccountingDepreciationValuation MethodsDepreciation Key--Maintain Depreciation Key

Go to New Entries

Give Depreciation Key and Name

Select Period Control According to Fiscal Year check box

Select Depreciation to the day check box

Acq Only Allowed Capitalization Year :No

Double Click on Assignment of Calculation Method

Go to New Entries

Give Depreciation Type as Ordinary Depreciation

Phase as From The Start of the Depreciation

Base Method 0014 (Ordinary Explicit Percentage (After end of the Life))

Give Declining Balances Method 001

Give Period control method

Give Multi Level Method

Give Class - STRait Line Depreciation/ Declining balance method

Go back Two Times

Activate the depreciation key

Save

Regards

Shankar

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Hi,

Multilevel method can be created through TC: AFAMS

Use

Base methods for certain depreciation calculation methods (Stated percentage and Total percentage in concessionary period) use either a total percentage rate or a periodic percentage rate to calculate depreciation. You can divide these calculation keys into as many levels as you like. A level, in this sense, represents the period of validity of a certain percentage rate. This percentage rate is then replaced by the next percentage rate when its period of validity has expired.

ACQ.YEAR: Valid to vintage year

This is the asset year of acquisition up to which this entry is valid.

YEARS: Validity period in years

You can specify the validity period for a percentage rate in calendar years in this field.

Example:

Start of the validity period: capitalization date

Period of validity: 5 years

Percentage rate: 5%

=> For assets, which starting from the capitalization date are no older than 5 years, a cut-off value percentage rate of 5% applies.

PERIOD: Validity period in months

You can specify the validity period in calendar months for a percentage rate here.

BASE VALUE: Base value key for depreciation calculation

Along with the standard base values supplied by SAP, you can also use your own base value. You define this user-specific base value using a customer enhancement (user exit) that has already been set up.

REM.LIFE: Indicator: Calculate percentage from remaining useful life

Set this indicator, if you want the system to determine the periodic depreciation percentage based on the remaining life. This indicator only makes sense for depreciation keys in which the base method uses the "percentage from the useful life" depreciation calculation method.

You should be aware that when you calculate depreciation over the total useful life, the system rounds depreciation if you have set up rounding in the depreciation area and the base value is the acquisition value. This rounding is necessary in order to reach a net book value of zero.

Example:

The straight-line method of depreciation can be used over the total useful life of the asset, or over the remaining useful life. In the first case, the acquisition value or the replacement value serves as the base value for depreciation calculation. In the second case the net book value is the base value. The difference between the two methods is seen in the treatment of subsequent acquisitions and post-capitalization

Regards

Shankar

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Hi

If you see in my earlier response for creation of depreciation key, i have asked to select one check box as "Depreciaon to the day". It calculates the depreciation according to the days.

shankar

[Former Member · Accepted solution]

Problem Solved Thanks Lot Mr.Shankar

[Former Member]

Thanks Lot

[Former Member]

This message was moderated.