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Wrong Ordinary Depreciation Calculation when Unplanned Depreciation

former_member182098
Active Contributor
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Hi,

Purchased an asset on 01.12.2009 with 10 years of life (120 months) for 120000.

On 02.12.2009, posted an unplanned depreciation (transaction type group 84)

Fiscal Year is April to March.

The system calculates depreciation of 1000 per month for 4 months from 01.12.2009 to 31.03.2010 (total 4000)

120000 / 120 months = 1000 per month

From 01.04.2010, the system calculates depreciation on 96000 / 116 months (120 - 4) = 828 for remaining 116 months.

However, I would expect the system to calculate:

100000 / 120 months = 833 for 120 months from 01.12.2009

The system is considering the unplanned depreciation at the end of the year to calculate depreciation for the future years (months)

However, I would expect the system to reduce the amount of unplanned depreciation from the gross book value and calculate the depreciation on net book for the remaining life of the asset.

Is there a way that I can achieve this.

Thanks in advance for your time.

Regards,

Ravi

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Answers (2)

Answers (2)

former_member221515
Active Contributor
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First of all, i am unable to know where Rs.100000 and Rs.96000 came. I thing Rs.120000 you gave by mistake.

Anyways, If Rs.100000 is acquistion cost (and not 120000), you need to change basevalue in multi level method.

Steps:

Go to AFAMA. Check multilevel method used in the depreciation key you are using.

Now go AFAMS and chech the basevalue that multilevel method is using. Base value should be '01' if the depreciation needs to be calculated in acquistion value.

Second trouble you have is that the life is getting reduced (like previously it was 120 months, now its 116 months)

For this go to SPRO --> Financial Accounting (New) --> Asset accounting --> Depreciation --> Depreciation key --> Calculation methods --> define base method.

Select appropriate base method you are using in concerned depreciation key. Check if there is tick in "Reduce use life at FY end"

If tick is there remove the tick.

former_member182098
Active Contributor
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Hi,

120000 is the acquisition value.

100000 is because on we have entered unplanned depreciation of 20000 (120000-20000=100000)

The depreciation started calculating from 01.12.2009 (April-March Fiscal Year) = 120000 / 120 months = per month 1000 for 4 months, which comes to 4000. (100000 - 4000 = 96000)

I have checked the settings that you have mentioned. All of them are in place in my current system. Still the issue persists.

Thank you very much for your time.

Regards,

Ravi

Former Member
0 Kudos

Hello,

wow... it is a such complex calculation depre planning.

well, it supposed SAP on the right track to calculated depre to the end of the year (asset is calculated and being plan for one fiscal year and so on) based on accounting procedure.

if you found the answer not in this forum please let us know.

Thanks