cancel
Showing results for 
Search instead for 
Did you mean: 

asset accounting

Former Member
0 Kudos

7) HI MASTERS ,

I NEED DETAILED INFORMATION WITH SOME LIVE EXAMPLE ABOUT THIS .

WHAT IS SMOOTHING AND CATCH UP METHOD , IN WHICH SITUATIONS WE USE IT?

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
0 Kudos

Hi,

In general, LVAs are fully depreciated in the year of purchase or in the period of acquisition. This can be achieved by using the special depreciation key GWG and the expected useful life of 1 month (period). In order to ensure that depreciation is fully posted in the acquisition month during the monthly depreciation posting, activate the catch-up method for the depreciation posting run.

============================================

The system supports two different procedures for distributing the forecasted depreciation over the posting periods.

Catch-up method: Using the catch-up method, the system calculates the posting amount in this period as the difference between the planned depreciation and the depreciation posted up to this period.

Smoothing: Using the smoothing method, however, the system distributes the difference between the forecasted annual depreciation and depreciation already posted, to the remaining posting periods.

Hope this helps. please assign points.

Rgds

Manish

Former Member
0 Kudos

Hi

smoothing means the above differed amount will be adjusted equally in the remaining periods in the current fisacl year.

catch up means the above differed amount will be adjusted in the current period only.