on 05-09-2013 8:24 PM
Hi SAP Experts,
I want to know is there any possibility that we can use different rates of depreciation for each period or each year in Asset Accounting.
e.g. for January 2013 - 18%
February 2013 - 22%
March 2013 - 25%
April 2013 - 15% and so on.
Can you use Multi-level methods to accomplish this or is there any other configuration available?
Please share your expert views.
Regards,
CS
Hi,
Regarding your issue, I think the changes in Depreciation Rate periodically may be handled through configuration in 'Define Declining-Balance Methods' in SPRO. i havent worked on such changing the rate of depreciation but you can try on this. The value in the system can be correctly picked up if you use the base of Calculation as NBV and not SLM.
Regards,
Malhar.
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Hi Satendra
Yes, you can do that with multilevel-methods but it is a bit strange. What is the business scenario?
Regards
Javier
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Hi Javier,
Thanks for your reply.
We have a scenario as follows in the form of points.
1. There are two Ledgers and two depreciation areas e.g area 01 - for leading ledger i e. IFRS and area 02 - for non-leading ledger i.e. Indian GAAP.
2. FY Variant for leading (IFRS) ledger is January to December and FY Variant for non-leading ledger (Indian GAAP) is April to March.
3. There are some assets in non-leading ledger (India GAAP) which are to be depreciated using WDV method at 10% (suppose).
4. For April month Depreciation in non-leading ledger, system is considering base value at the beginning of the Fiscal Year of leading ledger i.e. NBV as on 1st January, 2013. But as in non-leading ledger Fiscal Year starts on 1st April, system should take the NBV as on 1st April for depreciation calculation for April, May, June and so on. Thus depreciation values are coming wrong for April, May.... and so on. Please note depreciation method is WDV method.
e.g. Asset Acquisition as on 1st Jan 2013 = 100000 INR
Depreciation for period 1st Jan 2013 to 31st March 2013 = 2467.75 INR (10% of NBV for 90 days). This value is in FY 2012 as per non-leading ledger FY Variant.
Depreciation for Jan, Feb and March 2013 (FY 2012 as per non-leading ledger) = 849.32, 767.12 and 849.32 respectively. All these values are correct till March 2013.
Now NBV as on 1st April (i.e. beginning of FY 2013 for Non-leading ledger) = 97534.25 INR (100000 - 2467.75)
So, Depreciation for April 2013 should be calculated on 97534.25 i.e. = (((10*97534.25)/100)/365)*30 = 801.65 INR
But system is calculating on value of 100000 i.e. = (((10*100000)/100)/365)*30 = 821.91 INR
Similar is the case for May, June and so on in Non-leading ledger.
So, I need help to accomplish this scenario where system should consider value at the beginning of Fiscal Year in respective Ledgers as base for depreciation calculation.
Regards,
CS
Message was edited by: Satendra Chaudhary
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