Correct depreciation claculation after change in useful life of asset-.

[Former Member]

Hi,

Need help on one asset issue where there is change in useful life of asset.

Orginal useful life: 4 years

Expired useful life at 2011 FY start:1 yr 1 month

NBV as on P7/2011- 10000

Now business wants to reduce total useful life to 2 years 3 months.

And wants system to calculate depreciation on current NBV/remaining useful life without having any implication on prior periods.

This is not possible in SL method so I tried to change depreciation key.

But system is recalculating depreciation for P1 to P7/2011 and posting difference in P8/2011 resulting in very large depreciation amount for P8 which is not acceptable.

Smoothing option will also not work as I donu2019t want to considered prior periods depreciation at all.

How to achieve depreciation calculation as:

Current NBV/Remaining useful life

=10000/7 months

Urgent help required on this issue as we are nearing our P8 close and want to complete this before 28th.

Thanks

[Former Member]

Hi,

I am not sure but check in Testing Client.

What is the impact if you change the Life in Asset Master and recalculated the dep again.

I think system will adjust the balance in coming period.

Regards

Shayam

[Former Member]

Hi,

I have already tried chaning useful life of asset. But system is calculating depreciation on APC and not on NBV. Afer checking other threads I have made changes to Multilevel method as well,

Where currenct configuration is: Base method 007, multilevel method 10 (where acq yr 9999 yr 999 per 12 base value 003) which I changed to base methof 011, multilevel method 10 (where acq yr 9999 yr 9999 per 12 base value changed to 24 and rem life is ticked) but still calculation is incorrect.

Is this because change in useful life is not at the beginning of fiscal year and it is in P8/2011.

Please can you suggest how to arrive at correct calculation?