BPC 10 Capex and Depreciation Planning in BPC

[Former Member]

HI Gurus

I am building a prototype for Capex and depreciation planning and wondering if some one can guide me with best practices for this and help me understanding following:

1. If I am doing the CAPEX planning on Asset class level, do organizations generally go upto the asset level and if yes, how does the input schedules look like. and how this is integrated with P&L and cash flows.
2. How the depreciation is calculated (and how the selection for depreciation method is given) and how the accumulated depreciation is taken into account for Planning.
3. How the model in BPC is built to integrate the depreciation with Balance sheet and P&L.
4. How the actual data is taken into the ECC/BI (I mean, which standard data sources etc are used).
5. There are some starters kit available, how do we make use of them in BPC 10 (I have read that generally one has to do many changes to that to be usable on projects, so I just want to have a reference point from that).

Any ideas and suggestion for more understanding on this and any examples from BPC 10 NW would be great.

Regards

-SM

[Former Member · Accepted solution]

Hi Swati,

It is more common to to the planning at the asset class level. Doing planning at individual assets might be too tedious.
We can have the depreciation calculation using different methods, and depending on the user's needs, they can report on the appropriate depreciation calculation. So, the depreciation will calculated using SLM, and will be stored in one depreciation account. Similarly, the calculation for declining balance method can be stored in another depreciation calculation. Depending on the user's selection, we can display the appropriate account in the report. We can even have one asset following SLM, and another using the DBM.

Once the depreciation has been calculated, the data of this depreciation account needs to be pushed to the depreciation account in the BS. This can be achieved using the account transformation rules.

The starter kits can definitely be used to get the basic understanding and then you can improvise on that.

Hope this helps.

[Former Member · Accepted solution]

Hi Nilanjan

Thanks for the reply. I understand the process but at the moment I am looking for more clarity / example from technical point of view in BPC 10.

Can you also explain how would you achieve following in your reply:

"Depending on the user's selection, we can display the appropriate account in the report. We can even have one asset following SLM, and another using the DBM."

"... the data of this depreciation account needs to be pushed to the depreciation account in the BS. This can be achieved using the account transformation rules."

And would be very helpful if you can also let me know where can i have a look at the starter kit for BPC 10 NW for this.

-SM

[Former Member · Accepted solution]

Hi Swati,

Apologies for the delayed response.

You will have certain assets that will follow SLM and certain assets that will follow DBM. You can create this as a property. And based on this property value, you can have a script / ABAP to calculate the depreciation of the different assets.

Once the depreciation is calculated, it will be displayed in the PnL statement, and also in the BS report. You must be using 2 different accounts appearing in 2 different reports. You can use the account transformation rules to transfer the data from one account into another.

Hope this helps.

[Former Member · Accepted solution]

Thanks Nilanjan, This is exactly what I have done so far, till the point of using Account transformation rule, do you have any example of this to copy data from Dep account to Acc Dep account. Also, for these custom members, I have used EXP acct type.

In the application, I am using excel formula. In case I am doing this planning on monthly level, where Asset can be bought in middle of the year, and say, again after two months, how do you calculate the depreciation, do you have any example of script logic for that, where there will already be some dep. and I am again calculating it, I am thinking that it will overwrite the previous calculated values.

Thanks.

-SM

[Former Member · Accepted solution]

Hi Swati,

For the depreciation, are you maintaining separate depreciation accounts? Ideally this should be a flow. So, whenever, a new asset is added, the system will calculate the depreciation for that asset account. The depreciation for the other assets will remain intact.

Hope this helps.

[Former Member · Accepted solution]

Yes, so far I am using two separate accounts. Sorry for sounding like a noob but will appreciate if you can explain in detail what you are saying for Flow.

-SM

[Former Member · Accepted solution]

Hi Swati,

Depreciation will be calculated for individual asset classes. If you have 10 different asset classes, then you will need 10 different depreciation accounts, as well, to keep the depreciation values for each of the asset classes.

On the other hand, if we keep the depreciation in a separate dimension (flow dimension), then you will need only one member in the flow dimension. All the depreciation data will be maintained in the intersection of Depreciation (flow dimension) and the respective asset class account.

Hope this helps.

[former_member228878 · Accepted solution]

HI Nilanjan Chatterjee,

I have a query on Depreciation .

currently we have 10 assets classes and we have 10 accounts which stores the Deprecation amount of those accounts and here we have 3 different items which contains the same asset classes,

but here we are calculating the depreciation amount with the count of days not by months .

for example : Building is a asset class , 1000000 is the amount and depreciation key is 10% straight line method .so for the year the amount would me , 100000 , but here i will start booking the depreciation in middle of  year .. like the financial year wold be 2015 , so total days would be 365.

but if i plan in middle of year like 1st July of the year so , i have to book the Depreciation amount only from 1st july that means the depreciation amount would be 50000.

Key things :

Assetclass : Building :  total amount of asset clss 1000000

method would me Straight line method (10%)/ per year 100000.

i am not maintaining  any year calender 

the date selection from Local member only

but i am booking the depreciation in middle of year .

for this requriment is there any script logic or any BADI 

[Former Member · Accepted solution]

Hi Chandrakant,

I would suggest you to open a new thread for your query.