Configuration of new depreciation key

[Former Member]

Hi Experts

I am working on configuring depreciation key for the first time and need your guidance.

Requirement of new dep key is as below.

a) depreciation for 1st year - 60% of the value

b) Depreciation for second year and so on - 20% each year on straight line method

Example : Cost: HKD 100,000

Depreciation for first year:

HKD 60,000 (Cost HKD100,000 X 60%)

Depreciation for second year and so forth:

HKD 8,000 (Cost HKD40,000 X 20%)

Can you please suggest how this depreciation key can be created or any provide any document to understand this.

Regards,

Santosh

[Former Member · Accepted solution]

Hi,

You will be maintaining multi level method in AFAMS and correspondingly the year and against the year the required percentage.

As you said you woudl like to maintain it for Depreciation key for straight line method - Multi level has to be maintained.

In the Maintain Depreciation Key (T.code AFAMA) in Assignment of calculation methods you assign the abobe mentioned multi level method against "Multilev.meth." field.

Thanks & Regards,

Giridhar.

[Former Member · Accepted solution]

Hi all

Thanks for all responses. I have one last query here. Can we define depreciation to be caculated based on number of days ? For example if the asset value is 100, and useful life is 3 years, depreciation should be 100/3/365*31 days.

Regards

Santosh

[Former Member]

Hi,

In T.Code AFAMS i.e in Multi-Level methods select the multilevel method you are using and there you can state the percentages year wise.

Thanks & Regards,

Giridhar Reddy.

[Former Member]

Hi Giridhar

Thanks a lot for response. I have a query on this.If i do not want to use mutli level method and just want to use straight line method with changeover key, could you please let me know where do we specify depreciaition rates.

Also we define all the methods viz.. declining balance, multi level method and base method in depreciation key. How will system know which particulr method of depreciation to be used for depreciation for an asset.

Any pointers on this would be very helpful.

Regards,

Santosh

[MarkusBredel]

Hi,

you can apply this with several methods. You could use declining-balance method, you could use stated percentage rates with a validity time (1 year, etc.) in the multi-level method.

Regards,

Markus

[Former Member]

Thanks all for response. I will check this and revert if there any queries.

[Former Member]

Hi all

Could you please let me know where do we specify depreciaiton rate in depreciation key.Say in above example, I am choosing strainght line method of depreciation with changeover. So where do I specify that for 1st year it is 60% and remaining years it is 20%/

Any pointers on this would be very helpful.

Regards,

Santosh

[former_member1290459]

Hi

You can do it this using the 'change over method' in dep.key.

In depreciation key configuration 'change over method' field available. select the option with the useful life and do the same accordingly.

SKS