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author's profile photo Former Member
Former Member

Change depreciation in middle of the year

Hi,

I have following doubt. My client has executed deprciation till Sept 09 and now they want to change the depreciation rate in the depreciation key from 2% to 5%.

What would be the implicaiton of the changing this percentage?

Would it affect only new assets created henceforth in the system subsequent to this change?

If the existing assets would also be affected then in that case would the system post differential depreciation for the existing assets in the next depreciaiton run in October?

Please help

Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 04, 2009 at 10:33 AM

    Hi,

    Changing the dep key will have the following affect;

    i) If dep key is defaulted from the asset class then changing dep key in the asset class will affect all the assets under that asset class and the difference in dep due to the changes will be posted in the next planned posting run of dep.

    ii) Alternatively you can change the dep key of particular assets and will have the same affect as aforesaid.

    If your previous Asset FY is open then that too will be affected for changing the dep key of the asset class.

    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.

    Regards

    Monoj

    Edited by: MONOJ SARKER on Sep 4, 2009 4:08 PM

    Edited by: MONOJ SARKER on Sep 4, 2009 4:08 PM

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