Declining Balance depreciation setting

[Former Member]

Hi there,

We are going to roll out to new company which used double declining method in their previous system. I have tried to configure new depreciation key as double declining method as below but the monthly depreciation is incorrect.

APC: 1,000,000

use life: 4 years

dep key class declining balance

base method = Ordinary: percentage from useful life

declining factor = 2

multilevel method: base value = NBV

rem.life = yes

Though I have set the base value as NBV over the remaining life, the system proposed the monthly planned depr as 41,667 for the whole first year.

(1,000,000 / 48 * 2 )

How do we able to configure to get below result??

APC: 1,000,000

use life: 4 years

month 1 = ((1,000,000 - 0) / 48 * 2 ) = 41,667

month 2 = ((1,000,000 - 41,667) / 47 * 2 ) = 40,780

month 3 = ((1,000,000 - 82,447) / 46 * 2 ) = 39,894 and so on..

Really grateful if somebody can help up with some clue.

Thanks Thanks,

Kawi

[Former Member]

Hello Kawi,

perhaps you already know the solution, but let me tell you that what you need - different depreciation amount for each month is not easy stuff and SAP doesn't have a standard solution - the declining depreciation is on annual base and within the year, the depreciation is constant. Only the annual depreciation differ.

I had similar case in previous project, when I had to implement declining depreciation per quarter for Ukraine. According to their requirements, the depreciation should be calculated anew for each quarter, that is, four times in a year. The solution came from SAP Ukraine. They have sent a document describing what has to be done, but it was a part of the Ukrainian add-on. If you still want, I can send you 2 files - the first one describing what has to be customized and how, and the other one - the source code itself. You will need to sit down with a developer and change the source code so that to calculate the depreciation not on quarter but on monthly basis.

Regards, Lyubomir

[Former Member]

Hi

Currently, I have configured for Declining Balance Method, But the annual deprecation is comming same for all year. I am using stated percentage. Please advise.

[Former Member]

Hi

Currently, I have configured for Declining Balance Method, But the annual deprecation is comming same for all year. I am using stated percentage. Please advise.

Thanks in advace

Jeet