Depreciation posted wrong entry after change the depreciation key as per companies act

[former_member599430]

Dear Sapient

Scenario -

Asset no – 10700001908

Old key - Z024    (25%)

As per companies act new key (ZNE1-As per user full life) configured and assigned to asset – 10700001908

Capitalization date – 09.09.2010

Use full life as per new key – 3 years

Exp UL – 3 yrs. and 205 days

Error in calculation of depreciation -

System posted depreciation wrongly

Wrong entry posted by system mention below

Depreciation Reserve A/C Dr. xxxx

Depreciation A/C Cr. xxxx

Correct entry – Depreciation A/C    Dr. xxxxx

                              Depreciation Reserve A/C Cr. xxxxx

Waiting for valuable solution

[former_member198650 · Accepted solution]

Hi Sasanka,

As per your new dep. key the useful life is 3 years and also it calculates the depreciation based on use ful file. And the asset expired useful life 3 years and 205 days. As per your new dep.key the asset has posted with excess depreciation for 205 days . Hence it reverse the excess depreciation in the next depreciation run.

Regards,

Mukthar

[former_member599430 · Accepted solution]

Thanks fro reply

yes it is correct

[former_member198650 · Accepted solution]

Hi Sasanka,

If your issue is resolved, then close it.

Regards,

Mukthar