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Former Member
Nov 26, 2009 at 03:25 PM

USA - Depreciation keys for MACRS Half-Year convention

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Hello,

We have some assets that use half-year convention to calculate the tax MACRS.

For example:

Aquisition date 22.09.2009

Aquisition value 7,127 USD

Depreciation start date 01.10.2009

Use life 7 years

The table of depreciation percents:

Year 7 years

1 14.29%

2 24.49%

3 17.49%

4 12.49%

5 8.93%

6 8.92%

7 8.93%

8 4.46%

The depreciation method is declined balance and change over to Straight line according with the depreciation amount.

I tried to define the multi-level method using this table.

But I didn't receive the expected result.

By manual calculation, I must receive for the first year:

7127/7 = 1018 (depreciation amount per year).

Depreciation amount for OCT, NOV, DEC 2009 must be: 1018/3 = 339.38 USD.

But SAP calculate 1018*3/12 = 254.54 USD

Another problem is that the SAP takes in consideration the first year from OCT 2009 until SEP 2010 and is not correct.

Did somebody define the Half-Year convention MACRS in SAP?

Thanks in advance

Alina