Change in Depreciation Key and Valuation for old Assets

[Former Member]

Hi,

I have an Asset whose details are as follows,

Useful Life : 999 years (Created by default)

SLM depreciation Rate :10% per annum.

Aquisition Value : Rs. 10,000

I have posted depreciation for the past 2 years. i.e. Rs. 2,000.

Now because of a new policy, we have decided the following,

Useful Life: 5 years (This change is done in the Master data)

The management wants the remaining depreciation (upto 95%. i.e. 95-20 = 75%) to be posted over the period of remaining useful life. i.e. 3 years.

I created new depreciation keys and Munti level valuation methods, in which i have selected the 'Remaining Life' box.

However when i calculate the depreciation for the first period in this year, the amount posted includes the "amount over and above 10% for the previous periods also". Hence the amount posted for the first period after the change alone is different. Please advise how can i have uniform depreciation over all the remaining posting periods.

Thanks,

Safi

[Former Member · Accepted solution]

Hi,

Use a depreciation key that is using a base method with depreciation over the net book value.

When you working in ECC6 and have activated EA-FIN then you can create a new time interval for your depreciation rules

When you have depreciation for 10/5 years it is better to depreciation key LINR, there is no reason to use 10% or 20%