Depreciation calculation - Acquisition value less unplanned depreciation

[Former Member]

Hello,

What I am trying to do is have ordinary depreciation calculate on the acquisition value of the asset less unplanned depreciation.  I saw a posting on SCN that says:

The following base values are defined in the system:

Acquisition value less unplanned depreciation

etc.

This seems to reflect exactly what I want to do but I don't know how to make SAP execute depreciation in this manner. 

How do I set up a depreciation key, or the asset, so that the depreciation is calculated on NBV that is the acquisition value less unplanned depreciation that is posted in the current period?

Example of what I want to do:

Straight line asset acquisition value - $5000

UL - 10 years

Expired UL - 1 month

Remaining UL - 9 years 11 months

Unplanned depreciation recorded in SAP - $41.67

Ordinary depreciation calculated on NBV of $5,000 - 41.67 = $4,958.33

Ordinary straight line depreciation calculation is $4,958.33 / 119 periods (9 years 11 months) = $41.67

Thank you for any insight you have,

Lisa

[10010]

Hi Ravi,

I have the same requirement. Do we have any solution on this yet?

Regards

Partha

[Former Member]

Sorry for the delay, I have been out of office.  Thank you for your responses.  I have done more testing and looked at config but it looks like we don't have special depreciation set up.  I have to wait for our technical team's availability to complete the config so I can retest.  I'll post again once that is complete to let you know the results and close the post in an appropriate manner.

Lisa

[former_member182098]

Hi Lisa,

This is the limitation of Unplanned Depreciation.

Even if you have recorded the Unplanned depreciation in the current year, Ordinary depreciation will still remain the same until the end of the year, only from the next year, you will see the reduction in the ordinary depreciation. This is the limitation of SAP and there is no work around either. Unfortunately, we may need to live with it.

I understand Special depreciation is for Tax purposes, however, special depreciation will take immediate affect and calculates the reduced ordinary depreciation.

Whatever depreciation key you create, it will not reduce the ordinary depreciation in this current year.

Kind Regards,

Ravi

[Former Member]

Hi,

I just imagine your scenario is the very basic one.

One deprecation key consists of

a) Base method ( for your case you can use 011)

b) Double-decline method ( for your case you can use 0001)

c) Period control method (Please select one or create one based on your requirement, you can use 001     to test and confirm)

d) Multi-level method - (For your case, create one multil-level method with just 1 level, and use the base value as 10 ).

(please note depreciation key can be very complex also, please test and confirm)

Please test and see.