Reducing Asset Useful life

[Former Member]

Hi,

Is it posssible to reduce the useful life of the asset which is maintianed in its master.

This asset is already purchsed and depreciation for three months have already be runned.

Now, if possible, after reducing the useful life what will be the effect on depreciation.

Thanking You,

Parin

[Former Member · Accepted solution]

Hi,

Yes you can change the useful life of the assets.Now coming to your 2nd question regarding the effect of changing the useful life of the assets,I would say that it depends upon how you are calculating depreciation i.e. whether the dep calculated based on useful life or on the basis of percetange.In the case of dep based on useful life, reducing the life will increase the depreciation amount and if you have already posted the depreciation say for first two periods of the fiscal year then from the next planned period onwards the system will calculate new depreciation and the short fall for already posted dep will be adjusted in the period 3.

But incase of dep calculated on the basis of percentage there will be no effect on the quantum of dep calculated.

With best wishes

Monoj

[Former Member · Accepted solution]

Hello Monoj,

I have such a request from one of my customers and I have found your post.

But, what exactly do you mean by percentage?

In our system the depreciation is usually calculated as percentage from useful life.

In this case, which will be the effect on depreciation in the following months after the change of the useful lifes and how do I spread the remaining depreciation only in future periods without affecting other past periods.

Thanks for yor reply.

Daniel.

[Former Member · Accepted solution]

Hi,

In SAP dep percentages are derived in two ways.Either your dep key is assigned to a multilevel method based on useful life where from the system will derive the percentages or you can explicitly mention your percentage rate in the multilevel method and assign the same to your dep key.So far as percentages I have mentioned is the explicit percenatges mentioned in the multilevel method.

In ECC 6 you can calculate depreciation on periodical basis i.e. you have the option of changing the depreciation key or useful life at any period which will not effect the prior posted periods.Display the assets vide AS02 and then go to your depreciation area wherefrom double click your depreciation area.You will find more interval button at the end the of the screen.Cick it and then enter your new interval.Once the interval has been specified, the new UL can be entered.

With best wishes

Monoj

[Former Member · Accepted solution]

Hi,

AS02, when i double click the depreciation area, I found the useful life field is greyed out, how can i change the useful life ?

[Former Member]

Hi

You can change the Useful Life of an Asset after you post the Depreciation.

The Acquisition amount will be calculated as per the reduced Useful Life and the depreciation amount will that is to be posted extra for the past 3 months will be adjusted in the next immediate period.

Regards

Venkat

[Former Member]

Hi,

You can change the useful life of the asset in Asset Master. The effect would be that for the extra amount you post manual depreciation for the current month and from the next month it would be adjusted/posted according to the depreciation key.

Thanks,

Giridhar.