Hi
We have a requirement from a client in changing depreciation policy from u2018Depreciate for full year in the year of capitalized of an asset and no depreciation in the year of disposalu2019 to u2018Depreciate proportionatelyu2019
Ex:
Existing:
Eg: even as asset is capitalized in 1st May 2011, we are charging (system has been set up) a five month depreciation charge at the May 2011 month end depreciation run.
New requirement:
As per the same example above, the system should charge only one month depreciation at the May month end depreciation run. And after that the normal depreciation charge monthly until end of useful life of the asset.
In order to accommodate this we have defined a new depreciation key and have changed the period control method as 01/01/01/01 for acq/add/ret/trn
As per the earlier depreciation key, the base value in the multi level method (001) is 24 u2013 Net Book Value. Therefore even when we defined the new key, the base was NBV with the above period control method. So the system would adjust the depreciation based on NBV/remaining useful life.
But the client wants the base value to be the acquisition value and to recalculate depreciation based on the new policy. But, when we assign the base method as 01 - Acquisition value in the multi level method, it doesn't calculate as intended.
Could any one pls help me as to how to accommodate this requirement?
Thanks
Dasuni