Changing the Depreciation Key

[Former Member]

Dear Experts,

Can you tell me the impact of changing the depreciattion key from Straight line method to UOP and vice versa?

[Former Member]

Hi

Changes in Dep key

If you change dep key for book dep, values will be changed it will effect the balance sheet

You can change dep kep for Income tax, values will be changed but it wont effect balance sheet, coz it is used for Tax authority purposes

Anil

[Former Member]

Hi,

Changing depreciation key will have following effects...

When smoothing is not active

1) It will recalculate depreciation from the original depreciation start date and will catch up in the next depreciation run for all the closed periods and

2) For the subsequent periods, depreciation will be calculated as per new depreciation key.

When something is not active,

1) It will spread the delta depreciation for the remaining useful life of the year

However, if you happen to open a closed year (OAAQ) after changing the depreciation key, for any reason, the system will expect you to post the delta depreciation for that year before closing that year. (I experienced this while changing the useful life and I guess, it is applicable for any change in depreciation terms)

Rds,

Anil

[ajaycwa1981]

Hi

Impact will be that Depreciation of all open Fiscal Years will be recalculated... i.e. if last FY is open in Aset accounting, you would see a unposted Planned dep in there after this change

AND

for current year you would see a delta depreciation posting in next depreciation run

br, Ajay M