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Different depreciation Key for one Asset class

Former Member
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Hi,

We have created one asset class 1000010 for Building...

Also, we have created 3 different types of depreciation key 101A (Useful life is 5 Yrs), 101B (Useful life is 10 Yrs), 101C (Useful life is 15 Yrs). Now how can we assign these multiple deprecation key to single asset class.


We don't want to insert manually "Dep.key" in Asset Master--> Depreciation tab.

OR we have to make 3 different asset classes to configure the depreciation separately.

Regards.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Anil,

This link may be useful

Regards,

GSR

Former Member
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Thanks for this useful link...but i have few doubts...i.e..

Asset Class for Building has 3 useful life i.e. 60, 30 and 3 Yrs.

Point 1:-- If we create diff. Depreciation key for 3 useful life...then how can we assign it to single Asset Class???

Point 2:-- In single Asset Class, we can assign only single Depreciation key.

If single Depreciation key could be maintain in asset class then at the time of Asset master creation, how determines which depreciation key would be shown.

For example...We already assign Depreciation key for 60 Yrs in Asset Class....but when we create Asset master for only 3 Yrs...it would be showing Depreciation key for 60 Yrs..not for 3 Yrs.

How can we fulfill this requirement???

Former Member
0 Kudos

Hi Anil kumar,

You dont need to create more dep key for each asset class.

Create one dep key based on useful life like mentioned in the link in previous post what I have mentioned and change only useful life of asset in asset master.

For example for asset class building create dep key with the clone of LINS.

Now If building 1 useful life 30 years and building 2 useful life 50 years then enter the relevant useful life in asset master. Depreciation will flow accordingly.

The above link contains detailed explanations please go through it once again, it has answers for your queries.

Hope it helps.

Regards,

GSR

Answers (2)

Answers (2)

former_member182098
Active Contributor
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Why do not you manually enter / over-write the life of the asset at the time of creation by using a single depreciation key.

Former Member
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Then no need to change the existing procedure...

Just use the Depreciation key LINR and change the useful life in Asset Master creation --> Depreciation tab.

Is it right???

former_member182098
Active Contributor
0 Kudos

Yes, you are right.

LINR is the depreciation key with the straight line depreciation.

It would work based on the life of the asset that you have maintained in the asset master record.

You can still use LINR, but use different life for different type of assets manually in asset master. It would still work in the same for all of them.

Former Member
0 Kudos

Thanks Ravi...for valuable support...

Now it depends on end user...how they will use this option...

Because this option has a little-bit loop itself. For example...by mistake user insert the year 5 inplace of year 3...then system not restrict to them...

Earlier we maintained the Depreciation Key in Asset Classes...then not an issue occurs...

former_member182098
Active Contributor
0 Kudos

In standard, it would not restrict.

However, you can write validation through GGB0 and assign to your company code in OB28. Then if the user is entering wrong life, then system would stop them.

Former Member
0 Kudos

Hi,

According to the option that you want that you dont want to manually enter the depreciation key in the asset master and the same should be directly coming through the configuration. This config for the automatic pick up of depreciation key from asset class is through T-Code OAYZ. But only single depreciation key can be assigned to a particular asset class. Now in your case an option that you can work out is that create 3 different asset classes for different useful life and then create the building asset according to the useful life and then the depreciation key will be assigned automatically.

But as per amendment in companies act, 2013 the depreciation is to be calculated on useful life basis. So an option is to assign depreciation key "LINR" to the asset class and then based on the useful lfie entered in the asset, depreciation will be calculated.

Regards,

Malhar.

Former Member
0 Kudos

We don't want to use different Asset Classes as per Depreciation key....

Anyway, is it correct process for make different Asset Classes as per Depreciation key???

In future, if again changes in Useful life, means now 3 useful life for Building Asset Class..and in future it changed to 5 useful life...then 2 more Asset class need to be create... i don't think...it is correct process..

Another option, as you discuss about Depreciation key "LINR",.... in it...if we maintain LINR in all Asset Classes then we need to change the useful life in Asset master --> Depreciation tab during creation...

Please guide...is it possible... if we use LINR key and maintain all useful life anywhere...???