Depreciation to be calculated on Net book value
I have an Asset class which consists about 250 assets and need to change the method of depreciation, such that the end of useful life of the asset the scrap value remains at 30%.
The assets are being charged at 10% percent on a st-line method basis, and the asset have undergone dep for a period of 5 years for the fiscal period Jan- Dec
As on 01.04.2011 the Net Book Value(NBV) should be taken for calculation, and at the end of useful life of the asset the scrap value should be 30% of the value as on 01.4.2011
I have used the method of assigning the Dep-cut off value key, and also have used new interval period in the Dep area to have this new calculation, but my base amount is still being calculated at the Acquisition value(APC) as against the NBV required.
Atif Farooq replied
You can proceed as under
Configure depreciation key as
Dep. Key : XX03
Base method 0011
Decl.-bal. method 001 = 0.00x / 0.0000% / 0.0000%
Prd cont 004 = 01/01/11/11
Multilev.meth. X03 = 9999 / 999 / 12 / Base Value: 24 / Percentage: 0.0000 / Checked u2018Rem. lifeu2019 / Reduct:0.0000
Check this and revert back.