Depreciation on remaining useful life

[former_member686872]

Hi,

My requirement is that if any addition made in existing asset the depreciation is not calculating on reamaining lfe.

for exp:  if asset is purchased in 2000 the useful life is 10 year. so in 2010 the asset value will be zero.

but if any addition added in 2005, the depreciation should calculate on remaining 5 years.

but system is not calculating properly.

stating the base method is take on % based. i have created one depreciation key with useful life.

after changing depreciation key also the calculation is showing wrong.

kindly help me to solve this issue.

Thanks in advance

[Former Member]

Hi,

According to me this behaviour of system is standard behaviour, it will post planned values for 5 years depreciation on addition of asset in the year in which the new asset is acquired. In this case the solution is to create new Sub Asset for the main asset usign T-Code AS11 and thenmaintain the things as per your requirements. This is nothing but creation of new Asset only.

Regards,

Malhar.

[Former Member]

I have same issue

[former_member686872]

Hi ,

I have attached my configuration doc.

kindly help me to resolve this issue

[pankaj_pandey2]

Hi

Don't put Base method 24 give 01. Also unchecked remaining useful life check box.

Regards

Pankaj

[Former Member]

Hi Preeti,

Thanks for your details document.

In your new depreciation key BD00, most of cofiguration is correct, except Base method.

Please choose another base method or change base method 1011 setting.

The Dep. Method currently is "Started percentage", please change to "Percentage from the useful life".

And, check the asset value again.

Regards,

Julie

[Former Member]

Hi Preeti,

In this case, I think the new depreciation amount is calculated for 10 years. It depends on your depreciation key.

Please check its calculation whether like below:

Example:

- In the beginning of 2000, you bought asset with NBV 12,000$ in 10 years useful life. It means depreciation per year is 12,000$/10 = 1,200$ and asset value will be zero by the end of 2009.

- In the beginning 2005, the asset have been calculated for 5 years

+ Your accumulated depreciation is 1,200$*5 = 6,000$

+ NBV is 12,000$ - 6,000$ = 6,000$

If you add asset value 18,000$, the system will re-calculate depreciation as below:

= (12,000 + 18,000)/10 = 3,000$/year

The different dep. amount from year 2000 to 2005 need to be added is (3,000 - 1,200) * 5 = 9,000$.

So, the plan depreciation for years:

2005: 3,000$ + 9,000$ = 12,000$

2006 - 2009: 3,000$

[Marssel700]

Hi,

your planned depreciation will take the start depreciation date and useful life. Could you share this information?

regards