Custom depreciation key Public cloud 2% declining balance: IFRS Chart of Depreciation

[Kunal_G]

Dear Team,

Our customer has an internal reporting requirement to calculate depreciation on certain assets using 2% & 15% declining balance method. And the customer is using IFRS as chart of depreciation.

We have filled the expert configuration template for custom depreciation keys - the expert configuration template outlines that we can only use the existing declining balance method & calculation methods within the same chart of depreciation where the custom depreciation key is being requested.

However, we cannot find any existing declining balance method in IFRS Chart of depreciation with 0.02 and 0.15 declining factor and neither there is a possibility of changing the factors of an existing declining balance method. 

Does it mean achieving the above requirement is not possible within Public Cloud? Anyone with similar requirement and how did you address to fill this gap?

Please suggest.

Regards,

Kunal

[Chris1973]

Hello @Kunal_G 

Thank you for your question.

Your observation is correct. In your scenario it is not possible to create completely custom declining balance methods if they do not already exist in the available method catalog. The expert configuration template in Public Cloud does not permit you to change the declining factor or edit existing methods within the chart.

Alternatively, you can:

• Request a new method from SAP through the customer influence channels if this is critical to your business but this would be a long-term solution.
• You may handle special calculations outside SAP by using analytical or reporting tools or you can maintain a parallel local asset ledger.
• The Private Cloud and On-premise environment permit custom methods and full flexibility. You may consider this if is a persistent business requirement.

Consult Depreciation Keys for more details.

Best regards

Chris