Bonus Depreciation with limits

[former_member601419]

Hello all,

we have created a depreciation key for bonus depreciation, that takes 50% bonus in the first year and we have this combined with key M200 that calculates 20%.

For the 2008 law for luxury cars we need to apply the bonus depreciation + regular depreciation but this cant exceed the max amount of 11600.

I can get the system to stop depreciating beyond 11600 by entering a value in OAW2 but i can only get this at the normal depreciation level. I need this limit to apply at the normal + bonus depreciation level

Any help will be appreciated

Thanks,

Zaid

[former_member601419]

solved

[Former Member]

I have this same problem. Can anyone answer this? Thank you for your help.

[former_member601419]

i have tried a lot and am yet to figure this out

[Former Member]

Hi Zaid,

You need to define max. amount at

IMG->financial accounting->Asset accounting->depreciation->valuation methods->calculation methods->define maximum amount methods

Here you define valid date, currency and amount.

Regards,

Joseph

[Former Member]

Hi Zaid,

My company wants to limit deprciation to $ 2960 for 2008 and no bonus depreciation for luxury cars, also they want $4800 for 2009, $ 2850 for 2010 and $ 1775 thereafter. How do we set up this in SAp.

I have defined company code, asset class, dep area, validity date and maximum value in OAW2 (maximum base value). What can be next step ?

I have defined percentage in multi level method 53 (AFAMS)

example: I have defined 10000 as maximum base value and 29.60 % for 2008 which will be first year of depreciation using 05 (limited replace ment value) as base vaue.

But still it is not working. what am I missing.

Regards,

Mark

[former_member601419]

Hello,

You are in the right direction. However your percentage isnt correct. The percentages should be as follows. The percentages below are from recovery year 1-5.

20

32

19.2

11.52

11.52

I got my values to enter in OAW2 by doing the formula

20/100* X= 2960 ( whatever the limit should be) and this is the value i applied in OAW2. Note this will only work for the asset class you enetered in OAW2 so make sure the asset you created in that asset class.

Regards,

Zaid

[Former Member]

Hi Zaid,

Thank you for your valuable advise. I have specified base value as 14800 to get limit of 2960 (20/100*14800) for first year. System is calculating correct depreciation, but as I am using half year convention, it is calculating half (2960/2=1480) for first year and another half in second half year.

Here are the calculation for depreciation

Year Depreciation

1 1480

2 3848 (1480+2368)

3 3788.80 (2368+1420.8)

4 2273.28 (1420.8+852.48)

5 1704.96 till the end of life

Business wants depreciation to be calculated yearly (instead of half year), even if we use half year convention. How can we ask system to calculate 2960 instead of 1480. I tried different configs, but nothing working for me.

Year Deprecaition

1 2960

2 4736

3 2841.6

4 1704.96

Thanks,

Mark

[former_member601419]

Hi

you need to use a period control as start of year( change the dep start date to start of the year and recalculate and test) that way you will get one years dep and you will get 1480*2= 2960. May cause problem with the expired useful life of asset as it will depreciate 6 months extra. You may need to note down these assets and change the expired useful life at the end

Regards,

Zaid

[Former Member]

Hi Zaid,

Business needs to use Half Year convention starting mid year. Also they want to have depreciation in the same fiscal year.

They need another key for mid quarter convention. So I hve to comeup with some solution for half year.

Thanks,

Mark

[former_member601419]

Hi Mark,

Its not possible to acihieve those results with half year. I convinced the business that they are getting the same dollar values with start of the year and they are satisfied with using start of the year. The other option would be a user exit.

Regards,

Zaid Azam