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Former Member
Sep 11, 2009 at 04:15 PM

Book Dep - Straight line - First Year - Half Year Dep conv

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Hello everyone,

My client has a specific requirement regarding dep calculation. We are in SAP4.7 and implementing fixed assets. We are using use Half Year dep convention on Straight line method for book depreciation. Country is US.

Our requirement can be explained through below scenarios. Let us say asset value is $5000 & book life 5 years and no scrap value.

a) If the asset is acquired before April 09, SAP calculates depreciation for 6 months using First Year Half Year conv (period control 004) & dep starts from July 09 onwards. July 09 to Dec09 equally. Dep amount in first year is 5000/5years = $1000. Half year dep is $1000/2 = $500 for 6 months. monthly dep is $500/6= $83.33. And dep starts from July 09.

Where as my client requirement is dep should spread equally over remaining months in first year (start from April 09 instead of July 09) and 6 months' dep amount remain same (ie., $500). so dep amount should be 500/9 months (April to Dec 09) = $55.55 per month from April 09.

b) If the asset is acquired in second half of the year, then system posts the catch up depreciation in the acquired month. For instance, asset acquired in Sep09 taking above asset value of$5000, then system will post catch up dep of July and Aug in the month Sep. Sep dep amount would be (July 83.33+ Aug 83.33+Sep 83.33 = 249.99)

Whereas client requirement is 6 months dep divided equally by remaining months. from Sep 09 to Dec 09 (4 months in this case). thus monthly dep wanted is $500/4months = $125 for each month from Sep 09.

Does anyone know what dep keys or parameters of dep keys take care of my client requirement? Any suggestions highly appreciated.

thanks

Sunil