We have an asset where depreciation was calculated with possitive value and posted ex: in the month of august for $427,236. as per the depreciation key the asset is going to retire on July but, an addition to the asset (asset Transfer) was posted ( $8).
It appears that SAP is not calculating depreciation accurately when there is a combination of 2 events, for a specific month:
the month the asset is planned to reach NBV $0
an addition to this existing asset is done.
Appendix 1 is an example of an asset investigated.
Dec 2010 value is :
Cost: $12M; NBV: $571K
Life 12 years, rate 8.33%
Planned depreciation for 2011: min ($571K, ($12M*.0833))
Then $571K, NBV $0 to be reach in July 2011
we can see that monthly depreciation is calculated as expected until July, the month reaching $0NBV.
However there is a reversal of $427K ⚠️ in August.
We have been able to understand how SAP has calculated this reversal amount.
On July 12, there is an addition of $8. In the calculation loop, SAP will normally use the $8 as the base value, and calculates the incremental depreciation for the rest of the year.
Can some one help in undestanding the logic behind the depreciation calculation?
Edited by: Rambo21 on Nov 4, 2011 2:34 PM