depreciation calculation as the useful life change for IFRS purposes

[Former Member]

Hi sap gurus,

we have defined a depreciation key as "IFRS",

the base method : 0011 - Ordinary: percentage from useful life

the level we defined is : U01 with the values of

"9999" "999" "0" "ref value: 03" the other fields blank.

this depreciation key works fine,

however when we change the useful life after a period of time, the calculation is wrong.

for example an asset has such values

APC : 12.000

useful life : 10 years

after 2 years

accumulated dep : 2400

Net book value : 9600

at this point when we change the useful life from 10 years to 8 years;

the system calculates yearly deprectiaon as follows :

12.000 / 8 = 1500

however we want the system to calculate the yearly depreciation as

Netbook value at the time of change / remaining life

9.600 / 6 = 1.600.

[ajaycwa1981 · Accepted solution]

Hi Ahmet

In Multi Level Method U01, I guess your Base Value should be 24 and I guess you have ticked "Rem Life"....

With this setting, the depreciation is always calculated as NBV / Remaining useful life....I remember that I used it once...

Br, Ajay M

[Former Member · Accepted solution]

hi Ajay,

if you use 24, the system does what you said.

NBV / remainglife,

but in this scnerio, yearly calculated depreciation changes every year because, as time pases the NBV and remaing life changes.

however my need is somehow different. I want the system calculates the depreciation like 03 or 01. but the calculation should be based on not APC, it should be based on NBV.

[ajaycwa1981 · Accepted solution]

Hi Ahmet

Thats what I said.... Each year the calculation will be based on NBV i.e. reduced value as well as reduced life....

In 1st Yr, it will be 12000 and 10 yrs - So 1200 Dep

In 2nd Yr, it will be 10800 and 9 Yrs - S0 1200 Dep

In 3rd yr, it will be 9600 and 8 Yrs - S0 1200 again....

If you use 24, the dep would be same 1200 as now... if it is based on "Rem Life" in Multi Level Method

Or you can transfer the asset using Net Value transfer variant to another asset... The new asset will have 9600 as the Value.. you can maintain 6 yrs as life and then proceed as desired...

Br, Ajay M

[Former Member · Accepted solution]

Thanks Ajay,

i tried 24 (NBV) with "remaining life indicator" and it worked.

thank you so much. i give points.

but i should be sure at year changes and also calculate using end of period (for ex. after 2010 06 period). i have a solution for this but have not tried it yet.

[Former Member · Accepted solution]

Hi,

please explain the procedure, my requirement is depreciation on useful life time.

asset value is 100000, depreciation is SLM method, now depreciation every year is

10000

10000

10000

10000....

how can i configure

regards

sri

[former_member587343 · Accepted solution]

may you please be kind to take a look at my issue and give me the answer

https://answers.sap.com/questions/12671100/asset-depreciation-based-on-apc.html