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How to accelerate the depreciation posting for the desired usefull life

Posted on Oct 06, 2010 at 09:00 PM 611 Views

Hi,

we are having issues in accelerating the depreciation on some assets, we want these assets to depreciated based on the revised usefull life

For example: if the asset CAP date is 01/01/2009 with usefull life 3 years

we change the useful life on assets from 3 years to 2.5 years (As we want this asset to fully depreciate in May 2011), how can we do with out using ABAA. these assets should be fully depreciated on the desired period as mentioned above.

We don't have smoothing turned on, but system is not calculating correctly, either it is fully depreciating the total amount earlier or later than expected period.

any help is truely appreciated.

Thanks

Smitha

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  • author's profile photo Ajay Maheshwari
    Ajay Maheshwari
    Posted on Oct 07, 2010 at 04:31 AM
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    Hi Smitha

    In case of dep based on useful life, depreciation is calculated on the basis of Net book value @ start of the year and remaining useful life.

    If the asset cap date is in previous year, then a change of useful life in 2010 will not change the depreciation of the past years and hence the Net Book Value at the start of the year

    In my opinion, you will need a Unplanned depreciation as well to achieve the desired result of zero value in May 2011...

    Another option is to create a new asset and do the asset transfer..

    Regards

    Ajay M

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    • Former Member Ajay Maheshwari
      Oct 07, 2010 at 06:07 PM

      Hi ,

      I am sorry we actually went live in June 2010, we reconciled legacy data to SAP until june 2010. the suitation i was talking is not one time issue on assets, we have to accelerate the depreciation posting for some assets in case if we plan to close the stores, etc.,

      is there any place in the system where we can mentioned remaining usefull life to depreciate on existing asset?

      We try to use Expried usefull life but AFAR t.Code didn't work.

      Please advice,

      Thanks

      Smitha

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