Depreciation from asset capitalization date for straight line method(combined depreciation to the day)

[Former Member]

Hi everyone:

I have a question concerning the depreciation. Our customer wants to have the asset depreciation beginning from the asset capitalization date,  use the straight line method. I have tried for the traditional straight line method by fiscal year and the depreciation to the day, but neither of two methods couldn't meet the needs.

For example, the asset capitalized on Nov 4, 2015, useful life for one year, the APC value is 12000. In Nov 2015 the depreciation is for 27 days, and in Nov 2016, the depreciation will be 3 days.

The expected calculation is:

Nov 2015:  12000/360*(30-3)=900

Dec 2015--Oct 2016:  12000/12=1000

Nov 2016:  12000/360*3 = 100

Is there any solution or suggestion for this ?

[former_member198650 · Accepted solution]

Hi,

In the multi level method of the dep.key of the asset, change the validity start as from capitalization date, then it will calculate from that date.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukthar,

First of all, thank you for your response.

As you said, I changed the multi-level method of the dep. key, made the validity start from the capitalization date. But as a result, when I create an old asset with AS91, it always requires to enter the expired useful life and period. And I can't skip this error message no matter I enter any useful life and period. And i can't get into the takeover value entry screen.

For the example i mentioned in the question, the asset capitalized on 11.04.2015, and depreciated from the same day. Let's say the takeover date is 12.31.2015. So i imputed the expired useful life 0 and period 2. This always led the error message. Do I forget to change some configurations? 

Thank you in advance for your message.

Regards,

Shane

[former_member198650 · Accepted solution]

Hi Shane,

Check the dep.area screen layout, here you have to check the field status of expired useful life in years & period.

Regards,

Mukthar

[former_member188063]

Hi Shane,

I came across the below note which discusses the issue. Never tried myself, please go through it may shed some light on the topic.

2166606 - Depreciation Calculation for Fixed Assets - Month or Day

Regards,

Sudhakar*

[former_member188063]

Hello,

I think you need to select Dep. to the Day (Depreciation calculation to exact day) check box in AFAMA transaction as well.

Regards,

Sudhakar*

[Former Member]

Hi Sudhakar,

Thank you for your advice.

Actually, I have already tried to select the Dep. to the day check box in the Dep.day, but it gave me the result which i don't expect to. The dep will calculate by the real calendar days for each month. For example, it will depreciates 31 days in Jan, March, May..., 30 days in April, June, Sep... and 29 days in Feb 2016.

What I need is for the capitalization month of the asset, it depreciates the real rest days after capitalization(actually 30-3=27 days in Nov 2015 for the example above), and for other month excepts the last month of the useful life, it depreciates uniformly(which equals to the APC/12 for the example). And for the last period,it depreciates the days before the capitalization date( in the example, it depreciates 3 days in Nov 2016).

Do you have some idea for that? Thanks in advance.

Regards,

Shane