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Deprreciation from useful life

My requirement is that: I want to define a depreciation key which will depreciate the asset based on the useful life of the asset.

(If I post an asset with 5 month useful life, the asset should be written off completely within 5 months i.e. if the acquisition value is 1000, the depreciation should be posted 200 each in the 5 months).

I have made the following settings:

Base method : 011 (Depreciation from useful life)

Decl. balance method : 001

Prd control method : 003

Multilevel method : 001 (0.0000%)

I assigned this key in the asset master and entered useful life as 5 months in the depreciation area. posted an acquisition for 1000. But when I view the depreciation details, it shows only 200 as depreciation in the first year. Again the net book value is showing as 800. It has not shown period wise depreciation as 200 each. Where I have gone wrong ?

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3 Answers

  • Best Answer
    Posted on Dec 11, 2011 at 05:12 PM

    Hi,

    Check settings in OAYR. Look for smoothning indicator..

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  • Posted on Dec 13, 2011 at 04:36 AM

    Period control = 001 not 003. check at AFAMP

    Srinivas

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  • Posted on Dec 31, 2011 at 05:27 AM

    I had not run deprciation for November month for the company code. Becaue of smoothing indicator, depreciation was also shown for November month. Thanks.

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    • Nikkitha,

      I can give you two different answers. One is with Declining method and an another one is with Straight line method.

      Declining Balance Method:

      In T-Code AFAMS the Percentage should be 100. Then the asset will be calculated with the correct planned values. or

      Straight line method: You can go head with straight line method for 5 months to depreciate the Asset. It will be depreciated exactly.

      I feel to go head with straight line method by confirming with the Client.

      Thanks,

      Damodar Naidu

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