Showing results for 
Search instead for 
Did you mean: 

Depreciation Calculation Issue

Active Contributor
0 Kudos


Currently the assets are depreciated on straight line basis on net book value for remaining useful life of the assets.

We are following SORP requirements in UK for revaluation.

Asset is purchased on 01.04.2009 for 120000. Current Values as well as Historic costs are 120000. (Gross Book Value)

Life time of the asset is 10 Years (120 Months). The depreciation planned for each month is 1000.

Now the asset is revalued below historic cost on 02.04.2009 at 100000. As per SORP requirement, if the asset is revalued below historic cost, then over and above the historic cost, must be posted as unplanned depreciation. We have posted the revaluation of 20000 by using AB01 as unplanned depreciation. We have posted this as unplanned depreciation, but NOT as revaluation, because of SORP requirement.

Currently the system is still calculating the depreciation of 1000 GBP per month.

Whereas client expects the depreciation of 833 per month. (100000 GBP / 120 months)

How can the system calculate the depreciation at 833 GBP instead of 1000 GBP per month. This problem only happens when I post a transaction as unplanned depreciaation.

Any valuable inputs will be highly appreciated.

Thanks in advance.



Accepted Solutions (0)

Answers (2)

Answers (2)

Active Contributor
0 Kudos


You need to increase the useful life to 12 i.e 10 years remaining + 2years already passed. The the system will calculate the correct rate. Alternatively you can transfer the asset to a new asset with useful life of 10 years.



Former Member
0 Kudos

Hi Ravi,

I am not fully familiar about the SORP requirement in UK, but is any chance that can you use ABZU 'Write Up' with NEGATIVE sign. instead of unplanned depreciation?. This would adjust the fixed asset acquisition value down in -20000, and then the SAP will recalculate future depreciation based on the new Fixed asset value of 100000. (proportion of 833 per period for 10 years)

Doing manual unplanned depreciation the system understands that for an external reasonn and a given period of time the Fixed asset depreciation had to be adjusted, but still SAP continues to use tha original acquisition value as base amount for future depreciation.

Hope this helps.