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Depreciation Configuration for WDV

former_member143179
Participant
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Dear Sir,

We are using ECC-6.0 and in our present system for Depreciation calculation on WDV method , we have created various Depreciation  for each % of depreciation rate .  As per company act 2013 Scedule-2 , now depreciation has to be calculated based upon the equipment useful life .

We have following scenario :

Say Asset procurement value is Rs 50,000

       Asset useful life is 10 years

       Depreciation is on WDV basis

       After 10th year , Asset residual value has to remain at 5% (i.e once Asset written down value reaches at Rs 2500 then no further Depreciation

       should   be charged)

       Depreciation should be charged from beginning of month , it means if asset is capitalized say on 20.06.2014 then Depreciation should be calculated

       from 01.06.2014

We request forum members to kindly guide me about the steps to be followed for configuring of depreciation key as per above scenario , here we shall not maintain any depreciation rate and it should be calculated by system itself based upon equipment life and last residual value .

With Regards

B Mittal

Accepted Solutions (0)

Answers (4)

Answers (4)

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Hi Expert,

What will be the reason if ARO3 and AW01N depreciation balance is not matching, if we find the difference how we can adjust the difference.

Note asset got retired.

Regards,

Hemachand

former_member221213
Participant
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Dear All,

Problem Resolved.

SAP has released the note (2052506 - India: Companies Act solution effective from 01.04.2014 - New Depreciation engine) for the same.

Regards,

Rohidas Shinde

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Hi Shinde,

Thanks for your reply.

i have implemented the the same note, i have a dought, once we implement this note base method will come automatically which was mentioned in the Sap note or we need to create base method.

Rgds,

Naru

former_member221213
Participant
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All the configuration changes required to create manually. (Base method, Period control, Multilevel method, Dep Key)

Regards,

Rohidas Shinde

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Hi Shinde,

Thanks you very much.......

issue Resolved.....

Please can you  confirm whether we have to maintain the scrap value percentage only at  asset master in depreciation key level, or anywhere we have to maintain.

Rgds,

Naru

former_member221213
Participant
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Hi,

You can maintain the scrap value by cutoff value key or by maintaining the percentage in asset master depreciation area.

For the new solution given by SAP for WDV depreciation key if you maintain the scrap value in asset master then it's working fine. but same is not working in case of cutoff value key.

I have already raise a OSS for the same, will update onces SAP reply receive.

Regards,

Rohidas Shinde

former_member221213
Participant
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This message was moderated.

former_member221213
Participant
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Hi,

Created Depreciation Key as below

Assign Cut of val Key to Dep Key.

Cut Off Value Key

SPRO → financial accounting → asset accounting → depreciation → valuation method → Further Settings → Define the Cutoff Value Key.



AW01N



Regards,

Rohidas Shinde


pankaj_pandey2
Active Contributor
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Hi Rohidas,

Your depreciation behavior is not WDV it is SLM.

Hi B.V.

Define Multi level method with method 24.

Define cut off key in order to define scrap %. Assign this key to depreciation key.

Rest configuration is as shown by Rohidas.

Check the same system will show give you the desired result.

Regards

Pankaj P

former_member221213
Participant
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Hi Pankaj,

I have created Depreciation Key as per you last post, but dep is calculated as per SLM only.

Dep value calculated is same in all years.

Multilevel Method

Depreciation Key

Asset Explorer - AW01N

Remaining Use full life 5 years & Residual Value is 5000.

=1-((5/100) ^ (1/5) ) = 45.072%

Net Book ValueDepreciation
100000.0045071.97
54928.0324757.15
30170.8813598.61
16572.277469.45
9102.824102.82
5000.00

Regards,

Rohidas Shinde

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Dear Shinde,

is the issue resolved? if yes please share the solution.

Regards,

Naru

former_member221213
Participant
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Hi,

Issue is not resolved.

Regards,

Rohidas Shinde

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Hi all

i am also facing the same issue as mentioned by Rohidas shinde ,

Please can anyone suggest.

Regards.

Naru

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Hi

use based method 0004, and multilevel method 24- net book value, you will get exactly which you mentioned the values.

but Here i have a query if we select dep to the day it wont work.

Regards,

Naru

former_member221213
Participant
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This message was moderated.

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Hi Shinde,

we are going for new implementation , in this case i can calculate the values in excel and assign the new depreciation key in the new system. is it required to show the depreciation as of today with old rates in the new system, i feel i can directly assign the new dep key and it will calculate the values automatically.

for this i can use the base method 0004 and in multilevel method i can maintain 24-Net book value.  i am getting the exact values with this....

Please suggest any changes required

Rgds,

Naru

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Hi Shinde,

we are going for new implemenation in next month,

Please can you suggest

Rgds,

Naru