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Unplanned depreciation useful life not correct

orhan_
Explorer
0 Kudos
293

Hey all! 

I have a question. I have a query regarding unplanned depreciation and how it affects the useful life on the coming years of depreciation. 

Let's just take an example so it is easier for you to understand my issue.

01.01.2024: An asset is acquisitioned for the value of 1 000 000 EUR. The useful life of this particular asset is 30 years and based on that the depreciation is calculated. The asset is set to be depreciated for 33 333 per year during 30 years, and it will end 2054.

01.01.2024: We decide to do an unplanned depreciation of 200 000 EUR reducing its value. My question here is why in "comparison" tab the depreciation for the upcoming years is not changed? It will still depreciate 33 333 EUR, which will result that end of life will be earlier than 2054. 2048 will the end of life be for this asset.

Please support me on this. Is there any configuration that is wrong and why is it not adjusting the upcoming years for depreciation? I use depreciation key LINK (straight line from acquisition value).

Skärmbild 2024-04-01 163237.pngSkärmbild 2024-04-01 163309.png

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Ryszard_Beleć
Active Participant
0 Kudos

Hi

Check Base value key for depreciation calculation in Multilevel Method of your deprecation key

 

ryszard_belec_1-1712560367068.png

 

regards

Ryszard