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Shorten depreciation period for part of asset which is later acquired

Former Member
0 Kudos

Hello,

I have an asset, of which the depreciation started January 1st 2007, depreciation period is set for 60 months, and each month EUR 15.000,-- is depreciated. Depreciation ran for 17 months now, perfectly.

Now I had to transfer an assets value to this asset. The transferred amount is also depreciated over 60 months, allthough I want to depreciate it over the remaining 43 periods.My depreciation amount should be higher than.

Is there any way to do this, how do I shorten the depreciation period for this "additional asset value" or how do I make the depreciation amount being higher than calculated by the system ?

Please advise,

Regards,

Roy

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Answers (1)

Answers (1)

Former Member
0 Kudos

Hello Roy,

which postingdate & assetvaluedate did you use for the transfer. Have you carried out the posting with "01.01.2008" or "01.01.2007"

As far as I can see Posting & valuedate 01.01.2008 should be the solution for your problem.

Best regards

Horst

Former Member
0 Kudos

As posting and value date the same date was used (25/06/2008). Correct me if I'm wrong, but I should have used value date 01.01.2007 instead, so that the depreciation would have been devided over 60 periods, starting from 01.01.2007? What happens to the 19 periods missed then?

Please advise.

Roy

Former Member
0 Kudos

Hi Roy,

something's strange.... When did you execute your last depreciatin run? in 04.2008?

If you use postingdate/assetvaluedate 01.01.2007 the whole depreciation for 2007 and 2008 will be recalculated. You have to start a repeatrun for 2007 and deprun 05.2008 will post the differences for 01-04 2008.Assuming 2007 is not closed...

If you use postingdate/valuedate 01.01.2008 the depreciation of 2008 will become higher - the (missed) dep from 12 periods will be distributed to the rest of the usefull live. Furthermore the differences from 01 to 04 will be posted in 05 - if depreciationrun 04.2008 is executed.

If 25.06.2008 is used the system distributes the dep from 19 periods to the rest of the usefull live. The differences from 01 to 05 will be posted in depreciationrun 06.

I assume that the depkey calculates "pro rata" and settings of periodcontrol for transfers start at the beginning of the month.

Quite confusing... I know.

The best way is to check the impact of p ostingdate/assetvaluedate is entering the postings in a testsystem with the same asset.

1. Carry out posting 01.01.2008

check impacts / depreciation schedule

cancel posting

2. carry out posting 25.06.2008

check impacts / depreciation schedule

cancel.

Best regards

horst