cancel
Showing results for 
Search instead for 
Did you mean: 

Issue with change of useful life

Former Member
0 Kudos

Scenario: Asset useful life need to be reduced from 10 years to 6 years; Asset should be completely depreciated and additional capitalization
should be added to the asset.

Solution I tried:  

  1. Reduce the useful life of the asset
  2. Post unplanned depreciation on the asset to reduce the value of asset to zero
  3. Post additional capitalization on the asset
  4. Review the depreciation on the asset from asset values

  Issue: In the asset values: Even with the change of asset from 10 to 6 years and though there is still 3 years left on the asset, system is depreciating(additional capitalized value) the asset in 4 months intead of 3 years.

Does anyone has this issue?

Thanks!

Accepted Solutions (0)

Answers (1)

Answers (1)

former_member198650
Active Contributor
0 Kudos

Hi Aditya,

Which depreciation key are you using for asset? And also let me know what is the value date for additions. If possible, please share screen shot of the asset.

Regards,

Mukthar

Former Member
0 Kudos

Just for my testing, I posted less unplanned depreciation than additional capital. i.e. if the asset remaining capital is 100K, I posted depreciation only for 80K. Remaining 20K is depreciating in 4 months instead of 3 more years.

former_member198650
Active Contributor
0 Kudos

Hi Aditya,

Your using the depreciation key which is based on use ful life. As per key it will depreciate for remaining years i.e. 3 years and not on 4 months. If you want depreciate in 4 months, then you have to post unplanned depreciation for the same or change the use ful life for the asset accordingly.

Regards,

Mukthar

Former Member
0 Kudos

Hi Mukthar, system should depreciate for next 3 years 4 months. However it is depreciating everything in 4 months.

And yes depreciation key is based on useful life and it is still depreciating in first 4 months instead of 3 years 4 months

former_member198650
Active Contributor
0 Kudos

Hi Aditya,

Share screen shot of the depreciation key used for the asset.

Regards,

Mukthar

Former Member
0 Kudos

Hi Mukthar,

Step 1: I posted unplanned depreciation on the asset in current year

Step 2: Changed the life of asset from 40 to 12 year 4 months

Asset Aquisition date: 11/2013

Issue: After reducing the asset value by 124K, system is depreciating more in 1st year without considering unplanned depreciation.

Setup of depreciation key:ZLNR

former_member198650
Active Contributor
0 Kudos

Hi Aditya,

Here system wont reduce the unplanned depreciation while calculating the depreciation for current year. It will impact on next year onwards. So check the depreciation calculation for the current year in AW01N, here you will come to know how it calculates.

Regards,

Mukthar