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Former Member
Jun 03, 2010 at 02:50 PM

No catch up Depreciation on additional cost postings.

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Currently, if we have an asset that has been going for a while (say 10% life expired), and we add value to it as a late cost, then that depreciation run plays catch up on the late psting and takes 10% additional depreciation on the extra cost that month.

This, I assume, is SAP standard practice, and one we have been using for a long time. However, our accounts department want to change policy on this, and have the lates value posted just spread over the remaining life (no catch up depreciation).

So, for example, if we had an asset with a 10 year life initially set up at £1000, then depreciation would be running at £100 PA.

If, after a year, we add an additional 900 cost, there would be 9 years left on a WDV of £1800, so we would want it to run at £200 a month for the next 9 years, with no catch up depn on the additional £900?

Has anybody done anything like this? Is it possible?

Some guidance would be appreciated?

Thanks

Graham