derived depreciation

[Former Member]

what is the dervied depreciation?

[Former Member]

derived dep area derives its value form other dep areas.It is useful if when we want to calculate special reserve as the difference between tax dep and book dep.

We can use upto four real dep area while defining the formula for Derived dep.

One more imporatnt thins key of dep area should be larger than keys of real dep areas for ex 03 can be derived from real dep areas 01 & 02 but not form 04 & 05

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[Former Member]

Hello

Derived Depreciation Areas

Use

The "Derived Depreciation Areas" component makes it possible to determine new asset values based on asset values that have already been determined. The derived depreciation area uses mathematical formulas to determine values based on values in ‘real’ areas, such as the difference between depreciation in two depreciation areas. The system then manages these new values in the derived depreciation area.

Derived depreciation areas function the same as real areas in regard to reporting and value field display. You can also post the values of the derived areas to Financial Accounting.

Features

You define the formula for the derived depreciation area in FI-AA Customizing (Define depreciation areas). In the formula for a derived area, you can use up to four real areas. The arithmetic operations allowed are addition and subtraction. It is possible to mix the calculation rules. This includes using proportional values from real areas in the calculation.

When defining the formula, it is up to you to make sure it is reasonable. Make sure that the key of the derived area is larger than the keys of the real areas it is based on. A derived area "03" can be derived from the real areas "01" and "02" but not from areas "04" and "05."

You can also specify that the derived depreciation area is only for reporting. The system then does not subject the area to value checks (such as the check for positive/negative net book value).

When defining a derived depreciation area, keep in mind that the rules for remaining book value rule in the derived depreciation area can affect the depreciation in the real areas from which it is derived (see Characteristics of a Depreciation Area). Enter a modification area in order to specify which of the real areas this should be.

Be careful when using derived depreciation areas for group assets. In the formula for derived depreciation areas that are for group assets, you can only use depreciation areas that are also intended for group assets

Reg

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