Sub Asset depreciation not considering the main asset remaining life after changing the depreciation key

[Former Member]

Hi

Following is the requirement

Client has a main asset and subsequently some sub assets also. With initial depreciation key Straight Line Method 4.75% and useful life 21 years with a scrap value of 5%, both the main asset and sub asset was calculating the depreciation values correct within  a specific time frame.

Due to change in the Indian IT Tax structure a new depreciation key straight line method 7.5% and other factors created and updated in the main asset and sub asset. Now the issue is earlier the depreciation ending period which was sync is not so now. For main asset it is showing 2024 as the depreciation value closing and for sub asset it is increased one year 2025.Also i could see remaining life also extended one year.

Could you please support me in syncing the main asset to sub asset depreciation value closing same time period, suggest me if any config change need be done or any work around also welcome.

[Former Member]

Hi

For both main & sub asset all data are same except the acquisition year in the depreciation area tab

[former_member1229182]

What about the ordinary depreciation start date of sub and main assets in depreciation area tab?

Can you also send me the screen shots of depreciation area tab for both assets?

[Former Member]

Hi

Please find screen shots

[former_member1229182]

Thanks. Looks same.

According to the screen shots you have provided (including depreciation comparison) I believe the sub assets was capitalized in 2012 (The following year you capitalized the main assets)

So the depreciation has been started in 2012. And I noticed the new useful life has been populated correctly as well.

My understanding is, since you capitalized the sub asset after one year expiration of main assets the depreciation of sub asset was planned 1 more year than the main asset.

If you want to close the sub asset in the same time as main asset, try to add one year to the current expired useful life field in "Depreciation Area" tab.

[Former Member]

Hi

Checked all the possibilities, but not able to resolve the issue......

[former_member1229182]

Hi,

What is the expired useful life of main asset and the sub asset? Compare "Depreciation areas" Tab in both main and sub assets.

[former_member207754]

Hi Saravanan,

Please check the depreciation calculation start date.

[Former Member]

Hi

Depreciation Calculation Start date is the main asset date.

Also in the simulation mode in asset explorer i checked the date possibilities but there is no change.

[former_member205041]

Hi,

I think the system calculates base value / remaining useful life.

Base value is most probably net book value.

regards Bernhard