IAS & useful life change

[atif_farooq]

Hello Guys:

According to the IAS when an asset's useful life (currently with straight line depreciation) is changed we have to distribute the "net book value" (remaining depreciation to be posted) between all the remaining months in the same proportion.

Currently, SAP standard calculates the depreciation as the difference between the posted depreciation throughout the previous months and the amount that should have been depreciated with the new useful life, and it assigns this calculated amount in the current month when the useful life is changed. I have checked that the remaining depreciation to be posted can be distributed equally over the remaining periods of the fiscal year by marking the "smoothing" flag through transaction OAYR per company code, but we need this amount to be distributed over all the remaining periods for the new useful life (not only over the current fiscal year).  Can someone please shed some light on it.

Thanks

[atif_farooq · Accepted solution]

Resolved by adding new depreciation interval with date of change if useful life and new life.

[Former Member]

Hi,

According to me the requirement of distributing the differential amount in the remaining months of useful life is not possible. The maximum possible option is to use the functionality of Smoothing wherein the differential amount will be smoothened in the remaining period of the current fiscal year only.

Regards,

Malhar.