Dep Key - 100% DEP IN CURREN FISCAL YR

[former_member588855]

Dear Experts,

I want a depreciation key where 100% depreciation is charged off in straight line basis in the year of acquisition itself in the balance period of the fiscal year.

For eg. if a asset is purchased in June 2012 for Rs. 3000 then Rs. 300 should be charged off equally from June2012  - March 2013.

Presently the depreciation key (enclosed for your reference) which I have defined the depreciation is charged 100% in the period of acquisition only. I want to bifurcate the same in the fiscal year for balance period.

Kindly help.

Regards

Divraj Agarwal

[Former Member]

Hi Divraj,

Please make a multilevel method (AFAMS) with life 0 years and 10 months and

Tick- Remaining Life. and do not give any percentage in this key. It will depreciate the asset in 10 months with equal value. accordingly make a new depreciation Key  (AFAMA) and assign this multilevel method there.

Best Regards

Ruksana

[former_member588855]

Hi Ruksana,

Thanks for your reply.

I need to confirm one thing you have mentioned to give 10 months in multilevel method but my requirement is that the asset purchased in any period should get depreciated 100% in the balance periods of the fiscal year.

Does your config will meet the requirement ?

Warm Regards

Divraj

[Former Member]

Hi,

Balance period is June2012 to March 2013 i.e. 10 months (period). this will work. Deprication key is based period (10 months), all value will be reversed in 10 months only.

Regards

Ruksana

[former_member588855]

You didn't get me. What if the asset is purchased not in June but in October. I dont want a create a dep key everytime.

[Former Member]

Dear Divraj,

Actually I explained wrongly, create a depreciation key with time basis (as explained earlier) and don't put years and period in multilevel method (AFAMS) method.(and if period is mandatory in AFAMS put anything, but master data's life or say period (as01) will supercede it.)

Give life of the asset as per the remaining period in FY in AS01. This will do the job.

e.g. if in march period put 1yr, if in December period put 0 year 4 month.

Though I believe you are not happy with the  Low value functionlity in SAP as it reduce the 100%value in very first period of aquisition, right?

Best Regards

Ruksana

[former_member588855]

Its not working. Still the whole dep i.e. the cost of the asset is getting charged off in the period of acquisition itself.

[Former Member]

Dear Divraj,

System calcualte only monthly depreciation in this case, please check if you have selected yearly depreciation in config.

Regards

Ruksana

[madhusoodanan_ramachandra]

Hi Divraj,

By default, 100% depreciation is (LVA depreciation key) charged in next depreciation run.  However, you want this to spread across remaining periods in the same year.  This can be addressed as below.

1) This can be handled manually by assigning depreciation from useful life and manually change the useful life. Or

2) Activate the setting "smoothing" in OAYR and you can assign LVA depreciation key in the asset master.  This will spread depreciation to remaining periods in the same year.  The risk here is, the depreciation for all the assets will be spread across till the eoy.  It means, if the asset is retired in middle of the year, the depreciation will keep on getting posted till the year end.

Best Regards,

Madhu