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Hourly Depreciation on Assets

Former Member
0 Kudos

Hi,

One of the company in my current project is in aviation training & pilot licencing. Company owns single engine aircrafts used for training.

The body of the aircraft & engines are seperatly capitalized. As per the aviation guidelines world wide, engines of aircrafts are required to be depreciated based on the fying hours because the trading (sale/purchase) of these engines is done based on how many hours the negine is used for flying. After every 2000 hours these engines are required to be changed.

In this company, once the student enrolls for completing his flying hours, the hours are noted & manually depreciated in legacy.

Can anyone let me know how to calculated & post the hourly depreciation in this case.

Thanks & Regards,

Ajay Gupte

Accepted Solutions (1)

Accepted Solutions (1)

kim_khan
Participant
0 Kudos

Hi Ajay

Unit-of-production depreciation is based on the output-related use of the asset. When you specify a total expected output or a total expected number of units (In your case 2000 hours), and the exact output per period (no.of hours taken by a student to complete his training) or exact unit of production output figure per period, the system determines the resulting depreciation for each period. You enter the output or number of units at the level of the depreciation key.

Hope this piece of info is helpful to you.

Regards

KIM Khan

Former Member
0 Kudos

HI Kim,

Thanks for your reply & apology for too late reply.

I have configured the Dep. Key based on the Unit of production. Total output is 2000 hours, but this out output is irrespective of fiscal year. Secondly, periodic usage is not fixed.

Considering the same example, a student may come any time to use his flying hours. There are some months where in the aircraft usage is zero. So where do I have to mention the actual usage for the period before I execute the depreciation run?

Thanks & Regards,

Ajay Gupte

Former Member
0 Kudos

in this case,

please try Manual depreciation method.

Manual depreciaton uses a special depreciation key MANU. In that case there is no automated depreciation calculated on the asset. You have to calculate the depreciation by yourself and post it to the asset with transactions (e.g. Tcode ABMA).

Former Member
0 Kudos

HI,

Manual Dpreciation method is one of the option open. I want to have a automated method where in I can key in the actual periodic usage & the depreciation is calculated.

Regards,

Ajay Gupte

Former Member
0 Kudos

Hi Ajay,

you can do that in transaction code S_ALR_87009161 - Define Unit-of-Production Depreciation.

Regards,

Sayujya

Former Member
0 Kudos

HI Sayujya,

Will it be a right idea to give a authorization of this T code to user - AO25? This can only be changed if the client is a modifiable else it is not allowed to make any changes.

Regards,

Ajay

Former Member
0 Kudos

Hi Ajay,

It is basically dependent on your client setting in SCC4.. if client status is 'P' then system will allow you to perform current settings. i.e. for client with status 'P' system will not ask client in modifiable mode (Applicable only for Environment --> Current Settings in SAP Easy Access screen)..

It works perfectly fine with transaction S_ALR_87009161 even in production. So, it will be very right even if you give authorization of this Transaction to user..

Regards,

Sayujya

Former Member
0 Kudos

HI Sayujya,

I tested it with BASIS consultant by making the status as P.... It worked... Thanks a lot Sayujya...

Regards,

Ajay

Answers (1)

Answers (1)

kim_khan
Participant
0 Kudos

Hi

You can try to use either of the depriciation methods for calculating depriciation based on the hours of usage. (Unit-of-Production Depreciation or Depreciation Over Remaining Units of Production).

Regards

KIM Khan

Former Member
0 Kudos

Hi Kim,

Can you please clarify more on your point. How to make system understand on the usage of the engine?

Thanks & Regards,

Ajay Gupte