Depreciation need to be calculated based on the NBV at the middle of fiscal year

[Former Member]

Experts,

My client requested to calculate the depreciation as follow:

APC=10,000; Useful life=5 years; Rate=0.4.

Fiscal year is Jan to Dec.

Basically it is DBM but seems SAP always calculate the depreciation of the year based on the NBV at the beginning of the year.

But my clients want the system to calculate the depreciation for next 12 months based on the NBV at the beginning of ordinary depreciation start month. In this example, based on NBV at the beginning of Apirl.

So first 12 months, monthly depreciation will be 10,000*0.4/12=333. And always depreciate 333 until March next year.

Then from April next year, monthly depreciation will be (10,000-10,000*0.4)*0.4/12=200, and always depreciate 200 until March 3rd year. and so on.

And for the last 12 months depreciation method will change from DBM to SLM to fully depreciate, and I'm OK with the changeover method.

Can anyone help to advice how to let the system to calculate the depreciation amount base don the NBV at the middle of a fiscal year?

Thanks.

S

[former_member205041]

Hi,

This should be possible with the multilevel method:

In the multilevelmethod you can specify the validity period for a percentage rate in calendar years.

In the multilevelmethod you can specify the percentage 30%

Base value 24 Net book value.

But this has to be tested first.

regards Bernhard

[Former Member]

Thanks Bernhard, but I believe by setting base value 24, the depreciation amount will always re-calculated based on the year-beginning NBV (Jan.), whereas my client wants the depreciation amount always calculated based on the NBV of every acquisition month (In this example, April).

What we done is to set the base value as APC (not NBV) and recalculated yearly rate and moved them into multilevel method.

Would be greatful if you have some other more simple solution on this...

thanks sie.

[former_member351125]

You need to create 3 phases of depreciation:

1. Declining balance, base method is APC - change method 1

2. Straightline: Base Method NBV - change method 5

3. Immediate depreciation: base Method NBV

Hope this hepls.

Thanks!

Jhero