cancel
Showing results for 
Search instead for 
Did you mean: 

Set up dep key -Percentage based 1st 2 years and then rem. useful life based considering scrap value

gitank_sharma
Explorer
0 Kudos
81

Hi All,

How can we set up the below depreciation key in SAP ?

Acq Value - 20,000 , Scrap (Residual) Value = 5,000 , Useful life = 5 years

First 2 years , the depreciation is based on percentage i.e. 17.5%

1st year dep = 20,000*17.5% = 3500

2nd year dep = 20,000*17.5% = 3500 

from 3rd year onwards - it becomes based on remaining useful life

Net book value of asset after 2nd year = 20,000-7,000 (1st 2 years dep - 3500+3500) = 13,000 

Scrap Value = 5,000

Depreciation for remaining 3 years = 13000-5000/3 = 2,666.67

How can we achieve it in a standard way ? I believe we need to use changeover method but not sure which option to use. The screenshot of depreciation calculation is attached.

Kind regards

Accepted Solutions (0)

Answers (0)