on 2025 Jun 13 2:17 PM
Hi All,
We have two separate requirement as below.
Scenario-1
Asset depreciation is calculated based on useful life. But after change of useful life depreciation need to be calculated based on available NBV in the remaining useful life,
Example-
Asset:- Initial useful life- 7 years
Asset acquisition on 07.02.2025 for 20,000
As per UL 7 years depreciation has been posted for two periods, 238.09 per month.
Then UL changed from 7 years to 1 year and below is the impact in depreciation.
After that UL change from 7 years to 1 years and then depreciation calculated as 20000/12=1666.67.
but the requirement is depreciation to be calculated as below:-
Depreciation posted for two month--> 238.09+238.09= 476.18
NBV-20000-476.18=19523.82
So depreciation should be 19523.82/12=1626.98
Please let me know how can we achieve this.
Regards,
Amitava
Request clarification before answering.
Hi @AmitavaSaha
Did you check LINS depreciation key, it should have remaining useful life checked. Please check and make sure remaining useful life is checked for that particular depreciation key.
Regards
Vijaykumar
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For your requirement, you can use depreciation key LINS or copy LINS and create Z* Depreciation key.
Depreciation key LINS calculation is based on NBV and remaining useful life.
NOTE - Don't worry about LINS is straight line method. It will give result as per WDV remaining useful life only as calculation results will be same for both. You can test in Dev or Quality for checking,
Just check and confirm. This should work as per your requirement.
Regards
Vijaykumar
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Hi Vijay,
Thanks for your quick reply.
I have checked with LINS depreciation key, but it is not working. Still it is taking the Acquisition value as base value for depreciation calculation and not considering the NBV which comes after two depreciation posting of first two periods.
Regards,
Amitava
2 scenarios, 2 solutions:
# Once the Useful life is over, transfer it to another asset with expected life of 1 year..
# in the AS81 field, there's a field for Depreciation charged up to today (for running year: thats 2 months of depreciation expense accumulated you will mention)..
# in that case, the system will automatically adjust the calculation for the next 1 year..
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Thanks for your quick help and suggestion.
1st solution
Its a workaround which we can do if there is no other way to achieve the solution. Business doesn't want to transfer the value to other asset.
2nd solution
AS81 is for Legacy asset transfer, which we can't use in this case.
We are trying to achieve this with Depreciation Key, ig this can be achieved with any specific Base method in Multi level method.
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