Seasonal Depreciation - 1st year 50 %, 2nd 30% and 3rd 20% - only 4 months

[Former Member]

Hello Guys,

I have a question regarding a depreciation key which has to be set up. I would be grateful for any reply from your side.

1. The fiscal year in the company code has 12 periods (Jan-Dez)

2. The asset shall only be depreciated 4 months per year (Jan, Feb, March and December)

3. The amount of depreciaction shall be:

a) 50% from the aquisition value in the first year

b) 30% from the aquisition value in the second year

c) 20% from the aquisition value in the third year

4. The depreciation posting shall only take place in the months Jan, Feb, March and December

Example:

An asset which is capitalized for 1000 Euro on the 01.06.2008 will start the depreciation on 01.12.2008 and the amount which has to be depreciated is 125 EUR.

Side caluculation:

I) 1000 * 50% = 500

II)500 / 4 = 125 EUR

My question would be if you have any idea how to set it up.

I have the correct assignments in the calendar assingment so the depreciation only takes place in those months. But the amount of what is being depreciated is always calculated wrong.

Refering to the example from above the depreciation in my case would start on 01.12.08 but the amount is only 1/12 from 500 and not the 125 EUR.

Thank you very much in advance for your reply.

Best wishes,

Justus

[Former Member · Accepted solution]

Hi,

You can create an depreciation key (TC AFAMA) with Define Multi-Level Methods methods. (TC AFAMS)

In her you say

period 1 to 3 12,5% depreciation

period 5 to 11 no depreciation

period 12 12,5% depreciation

period 13 to 15 to 7,5% depreciation.

....

....

It is important that the depreciation start date is 01.01..... This you can set up with period controle rule (TC AFAMP)

[Former Member · Accepted solution]

Hello Paul,

thank you very much your quick reply. But unfortunately it is still not working. I would be thankful if you could comment on the settings:

AFAMS:

Acq Year Per Base Val Percent

9999 1 1 01 12,5

9999 1 2 01 12,5

9999 1 3 01 12,5

9999 1 4 01 0

9999 1 5 01 0

9999 1 6 01 0

9999 1 7 01 0

9999 1 8 01 0

9999 1 9 01 0

9999 1 10 01 0

9999 1 11 01 0

9999 1 12 01 12,5

and the same for year 2 and 3 with 7,5 % and 5,0%

AFAMA

Dep Type: Ordnary Depriciation

Phase: From the start of dep

Base Method: 0014

Prd Cont: all settings 06 (all colums with entry "At the start of the year")

Multilev.meth: see setting above

Multiple Shift: Increase in dep. and expired useful life

Scrap value: Cutoff value is ignored

OAVH

W2 Winter Season with Period version version flagged 2008 1 28 3

W2 Winter Season with Period version version flagged 2008 2 28 6

W2 Winter Season with Period version version flagged 2008 3 35 9

W2 Winter Season with Period version version flagged 2008 12 35 12

When I create and capatilize an asset (1000 EUR) the depreciation value is only 125 EUR and not 500 EUR.

Which setting forces the system to post only in the months Jan, Feb, Mar and Dez?

Thanks for your reply.

Best wishes,

Justus

[Former Member · Accepted solution]

Hi I have set up a test case in our sandbox and it is working:

Multilevel method From ordinary depreciation start date.

Levels

9999 0 3 01 150,0000

9999 0 11 01

9999 0 12 01 150,0000

9999 1 3 01 90,0000

9999 1 11 01

9999 1 12 01 90,0000

9999 2 3 01 60,0000

9999 2 11 01

9999 2 12 01 60,0000

In depreciation Key use base method 0012

the percent is based on year is now 50 * 3

Paul

[Former Member · Accepted solution]

Hello Paul,

thank you very much for your reply.

You are right, with your current setting the system calculates 500 EUR depreciation per year.

But when capitalzing the asset in June it shoud suggest only depreciation of 125 EUR in December and not 500 EUR.

And when capitalizing in March the system should post 125 EUR in March and another 125 EUR depreciation in December.

But with the current setting always 500 EUR are calculated - independent from a capitalization in march or june and the capitization always takes place in August.

Thank again for your reply.

Best wishes,

Justus

[Former Member · Accepted solution]

Hello Paul, I saw solution you provided for seasonal depreciation and I have a similar case where I need to depreciate 50% from Jan thru April and the remaining 50% from May thru Dec with a useful life of 5 years. I have created a depreciation key and multilevel method like this:

9999 1 01 01 2.5

9999 1 02 01 2.5

9999 1 03 01 2.5

9999 1 04 01 2.5

9999 1 05 01 1.25

9999 1 06 01 1.25

9999 1 07 01 1.25

9999 1 08 01 1.25

9999 1 09 01 1.25

9999 1 10 01 1.25

9999 1 11 01 1.25

9999 1 12 01 1.25

Then same for the next 4 years.

Unfortunately it's not working, by any chance do you know what is wrong on my setup?

thanks so much,

Juan Vargas