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Dep Key - 100% DEP IN CURREN FISCAL YR

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

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 02, 2012 at 02:58 PM

    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

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    • 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

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