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According to SAP Help on Asset Depreciation:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4 4/07d0d565e15921e10000000a155369/content.htm
Time-Dependent Depreciation Terms Locate the document in its SAP Library structure
Starting Values:
Acquisition value: 10000
Useful life: 5 years
Annual depreciation: 10000 / 5 = 2000
Effective on July 1 of year 01 of the useful life, you change the useful life to 4 years. The system recalculates depreciation:
Acquisition value: 10000
Useful life 4 years
Annual depreciation: 10000 / 4 = 2500
The system calculates the depreciation amount for the year 01 as follows:
Periods 1 to 6: 2000 x (6/12) = 1000
Periods 7 to 12: 2500 x (6/12) = 1250
From these totals, the system calculates annual depreciation of 2250.
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After 4 year of depreciation, total depreciation amount will be $9750. The asset remains $250. Can anyone help me to understand what happens with remaining amount?
Thanks & regards,
Kite
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