Announcement:
wanna exchange links? contact me at sapchatroom@gmail.com.
Posted by
Admin at
Hi
Have you tried creating a multi level depreciation method which calculates
5 % depreciation for 14 years and then probably at a different percentage
until the end of the estimated life of the asset.
In this connection , please note that you usually switch over to straight
line from declining balance method. However, your requirement is the other
way around. This is a mathematical fallacy and is not usually resorted to (
not only in SAP but also in any accounting related to asset depreciation ).
The reason for starting with declining balance method is to depreciate more
during the initial years ( a new asset is fully functional and does not pose
much problems during initial years and therefore it is a wise idea to
depreciate more during initial years).However, declining balance method of
depreciation rarely ever depreciates in full the asset within a a finite
period ( viz. the estimated life of the asset ) . Therefore , the net book
value of such asset usually cannot reach 0 within the estimated life of the
asset. It makes sense to change the depreciation key (at an optimal point of
time ) from declining balance method to the straight line method and write
off the asset in full within the estimated life of the asset.
Your requirement does not seem to be logical to meet with the criterion
mentioned above since you seem to start with striaght line method and move
over to declining balance method. It would be prudent to do it the other way
around. Please check with your client about their exact requirement and
the logic behind it.
Cheers
VidhyaDhar
| | | ---------------Original Message---------------
From: tejasaaa
Sent: Friday, February 11, 2011 1:48 AM
Subject: Different Depreciation Rate for different Periods
Hi Sapgurus,
We have legal requirement which is as follows :
1) Asset purchase 11/02/2011 for Rs. 10000/= and it can depreciated at fixed Rate on Straight Line Method till it reaches its net book value 30 % (3000)
For Eg.
Purchase on 11/02/2011 for Rs. 10000/=
It should depreciated fixed Rate @ 5% so 500/= per year and it should depreciated upt o 70 % of total value
so 7000/500 = 14 Years.
So Net Book Value = 10000 (Minus) 7000 : 3000/=
2) As soon as it reaches Net Book Value of Rs. 3000/= it will be depreciated at another rate.
For Eg.
In 15th year it reaches Net Book Value 3000, now from that period onwards it will be depreciated at 7% Written Down Value not 5% Straight line Method. |
| __.____._ Copyright © 2011 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| |  VidhyaDhar
SAP Accounting Top Contributor
Contributed the most posts in a group for a month to earn a Silver Achievement Most Popular White Papers
In the Spotlight  _.____.__ |
