Problem in useful life of the asset?

[Former Member]

Hi,

I don't know what and where it is going wrong so need your suggestion please:

We have created one new asset class and trying to check dep. in testing server but system is calculated dep. with useful life as 10 years only for all the assets I have created.

In OAYZ, I have just given the dep. key and the fields of useful life and period is blank for all the dep. areas. Also, tried with useful life 5 but result is same.

In Asset Master, I have mentioned the useful life as 5 years for all the dep. area.

The problem is system is system is showing the values based on useful life of 10 years, why I don't know what shall I do please suggest....

I have checked it by creating some of other assets as well with different useful lives but the result is same.

Please help!!!

Thanks in advance....

Regards

Nitin

[Former Member]

Hi,

According to me please check in the depreciation key configuration that in multi level method the base would be kept as 01 which indicates as Depreciation on acquisition cost and in the % of depreciation it would be 10% so system will complete the asset after end of 100% which is 10% each year suming up to 10 years. So the asset will be completed in 10 years.

Regards,

Malhar.

[Former Member]

Thanks to both GSR and Malhar......

my problem has been resolved.....

Regards

Nitin

[Former Member]

Hi Nitin,

It is a good practice to mention what way the suggestions has helped you and  mark correct answer or helpful answer  if the suggestion has helped you.

This practice will be helpful for someone who has the same problem looking at this thread can solve their problems themselves.

Regards,

GSR

[Former Member]

Hi Nitin,

If the depreciation is based on 10 years even if you have entered useful life 5 years then it means depreciation key is not configured as dep based on useful life.

It seems depreciation is based on explicit percentage which must be 10% in your case.

Check what dep key is assigned in Asset master and go to T code AFAMA, AFAMS for depreciation key settings.

If you still have doubts of how to go about it then attach screenshots of AFAMA,AFAMS.

Hope it solves.

Regards,

GSR