on 04-10-2014 6:50 PM
Hello All,
I have been trying to figure out how the system come up with the percentage rate number for the depreciation areas?.
I have an asset that is being depreciated with half month setting for 3 out of 24 periods. I also did a depreciation to the day for the same asset for 45 days. The numbers don't match even though the base value is the same. Percentage rate on the depreciation to the day is much less than the half month depreciation. Can someone shed some light where to look at?
Any help is greatly appreciated. Thank you for your help.
AM
Hello,
Please check Depreciation key and Depreciation methods like multi level method, Decline balance methods , base method and period control method.
if possible plz share sap screens.
Thank you
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Hi Ravindra,
Thank you for your suggestion. I verified the depreciation methods assigned to the depreciation key, but still not able to figure out how the system calculates the depreciation percentage rate (e.g: 33.578656 and 42.105263 ). Below are the screen shots from the 2 depreciation keys. I copied Z21Q key from Z20Q which is a copy of M20Q (standard SAP) but Z21Q depreciation area has the "depreciation to the day" enabled. I want to calculate the depreciation from mid November, so in the mid month setting it will be 3/24 dep.period and on the day depr it will 47/365 dep.periods. The Amount calculated are way off for the same period based on the percentage rate.
Z21Q
Z20Q
Youa re using 200% declining balance method mid quarter convention. I assume this depreciation key is for US company codes. The formula in getting the depreciation rate is below.
Period Factor
Quarter | Period | Ord Dep start Date | Period Factor | Period Factor |
1 | 1-3 | 16-Feb | =(12-1.5)/12 | 0.875 |
2 | 4-6 | 16-May | =(12-4.5)/12 | 0.625 |
3 | 7-9 | 16-Aug | =(12-7.5)/12 | 0.375 |
4 | 10-12 | 16-Nov | =(12-10.5)/12 | 0.125 |
First year of the asset
Depreciation Rate = Asset Cost*(1/UL)*DecliningFactor*periodFactor
Declining Factor is 2 for double declining balance (on your case)
Declining Factor is 1.5 for 150% declining balance
On the next years
Depreciation Rate =NBV from previous year*(1/UL)*DecliningFactor
When the straight line is greater than the declining balance, your depreciation will change from declining to straight-line. This is called change over year.
Change over year = is the year when you change depreciation calculation from one method to another. Below is the year when depreciation change from declining balance to straight-line.
UL | Changeoveryear |
3 | 2 |
5 | 4 |
7 | 5 |
15 | 7 |
Hope this helps.
Thanks!
Jhero
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