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author's profile photo Former Member
Former Member

Dep calculation

Hi Experts,

we have one asset value 500000 (acq value) use full life is 17 years 6 months.

dep key- ABC (Tick on remaning life) dep of the day.

can you please help me to understand how the sytem calculate the dep in the system. on what basis system calculate the dep.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 18, 2011 at 09:52 AM

    Dear Aadi,

    The depreciation key contains the value settings which are necessary for determining depreciation amounts. It represents a combination of calculation rules, which are used for the automatically calculated depreciation types

    Ordinary depreciation

    Special depreciation

    Imputed interest

    Depreciation key is made up of Base Method , Define Declining - Balance Method, Deine Maximum Amount Method, Define Multi - Level Methods , Maintain period control method. Where each of above plays significant individual role.

    Depreciation keys are defined at the level of the chart of depreciation. Therefore, they are available in all company codes. With the help of the depreciation keys defined within a chart of depreciation, you can set up the chart of depreciation with uniform depreciation terms based on the special rules for valuation in an economic area (country, geographical region and so on).

    The standard charts of depreciation in the R/3 System contain depreciation keys that are predefined to meet country-specific depreciation needs.

    You can divide the duration of depreciation into several phases in the depreciation key. If you enter a changeover method for one of these phases, the system changes over to the next phase as soon as the event specified in the changeover method occurs. Then the system uses the type of depreciation calculation that is specified for that next phase.

    I hope this help you to understand functionality !

    Regards,

    Pankaj A Bhalerao.

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    • Former Member Former Member

      Dear Aadi,

      First of all sorry for the late reply.

      Any period control methods entered in the depreciation key are ignored for the entire useful life of the asset. This applies to all transactions (acquisitions, retirements, and transfers). The system always uses the asset value date as the depreciation start date.

      Yes, SAP will calculate the depreciation per day basis !

      I hope you understand the functionality, if you have any doubts feel free share - you are welcome !

      Regards,

      Pankaj A Bhalerao.

  • author's profile photo Former Member
    Former Member
    Posted on Aug 18, 2011 at 08:57 AM

    This message was moderated.

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