recalculation of depreciation on change in depreciation methods

[Former Member]

hi

This is the situation as per indian accounting standard.

As per accounting standard if an organization change its depreciation method e.g from SLM to WDV or vise versa, system should recalculate the depreciation for all assets from first acquisition date. i am trying to explain the situation the following example:-

first acquisiton in assets X - 01.04.90

dep method - SLM

management decision to change depreciation method - SLM (old) WDV (new) as on 01.04.2007.

on this situation system should recalculate the depreciation from 01.04.90 as per WDV method and post the diffencial in april'07.

is above situation is possible in SAP. if yes please explain in detail. if not then what is the best possible way to meet this requirement.

regards

DD

[NathanGenez]

SAP does exactly what you are describing in your example... depending on the config of the depreciation keys of course.

If the key of an asset is changed from A to B, the the asset's values are recalculated using the new method for the open FY. If there is a difference in the planned amount, then it will be posted during AFAB.

There is some complexity here in terms of which depreciation key you are using and how it is setup so the change to the new key may not be immediately visible.

[Former Member]

Hi Nathan

Thanks for reply.

You are correctly mentioned that system will recalculate depreciation for open financial year. at this movement system doing this. but i want to recalcualte the same for closed period also.

presently we are on SLM method and want to move WDV. will be very thankful if you can gide me what necessary configuration required in deprication key to achive this. what are the other point need to consider while doing such changes.

please reply

regards

DD

[MarkusBredel]

Hi,

you can check if the solution provided with note 646691 applies to your requirements.

Regards,

Markus

[Former Member]

Hi Markus

Thanks for such a great information. it seems that my requirement will meet thur this note as neither my depreciation area is derived nor it has any implact on books. I will apply the same and will revert you with result.

thanks once again.

Regards

DD

[Former Member]

Hi

Please let me know what version of SAP you are using? If it is ECC 6.0, then this should be possible.

Please read this blog from Nathan Genez. This gives you a very good insight of this process of this can be achieved. Its a 4 part blog. But part 3will give you answers to your question.

Let me know if it helped.

Karthik C P

[Former Member]

Hi Karthik

thanks for reply and useful information. In blog Nathan is talking about change of depreciation without affecting posted values.

in our secnario, depreciation should calculate since first acquisiton of the assets and deferential should post in current period.

do you have any other clue on this situation.

please reply.

regards

DD

[Former Member]

Hi,

When youn change the depreciation key values in the lasts years will not be changed.

It is possible for the difference to make a Manual Value Correction with:

ABZU - Write-Up

ABAA - Unplanned Depreciation

Thisi is not working for all depreciation keys!

[Former Member]

Hi Paul

thanks for reply. the question i have put up is requrement of Indian Accounting Standard. You have given a good suggesation but think about the situation when you have thousand of assets and arriving of correct value for unplanned or wirite up amount will be very difficult.

request other member to look into it and suggest the solution.

regards

DD