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Former Member

Depreciation to be calculated on Net book value

Hi,

I have an Asset class which consists about 250 assets and need to change the method of depreciation, such that the end of useful life of the asset the scrap value remains at 30%.

Current Process:

The assets are being charged at 10% percent on a st-line method basis, and the asset have undergone dep for a period of 5 years for the fiscal period Jan- Dec

Requirement:

As on 01.04.2011 the Net Book Value(NBV) should be taken for calculation, and at the end of useful life of the asset the scrap value should be 30% of the value as on 01.4.2011

I have used the method of assigning the Dep-cut off value key, and also have used new interval period in the Dep area to have this new calculation, but my base amount is still being calculated at the Acquisition value(APC) as against the NBV required.

Please advise

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2 Answers

  • Best Answer
    Posted on May 17, 2011 at 06:40 AM

    Dear:

    You can proceed as under

    Configure depreciation key as

    Dep. Key : XX03

    Base method 0011

    Decl.-bal. method 001 = 0.00x / 0.0000% / 0.0000%

    Prd cont 004 = 01/01/11/11

    Multilev.meth. X03 = 9999 / 999 / 12 / Base Value: 24 / Percentage: 0.0000 / Checked u2018Rem. lifeu2019 / Reduct:0.0000

    Check this and revert back.

    Regards

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    • Former Member

      Hi,

      Thanks for your inputs on this issue, i did try your method, but my asset still gets calculated the same way, and where exactly do i configure, such that i have 30% percent of my book value, do i still have to define a cut-off value key and assign it to the dep.key that you have asked to define.

      thanks

      Gnaesh

  • Posted on May 19, 2011 at 09:02 AM

    Hi Ganesh,

    One comment is to assign 'Net Book Value' to base value for the respective multi-level method then assign it to the corresponding depreciation key.

    Kind regards,

    John Chin

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