Interest calulation method for asset accounting

[Former Member]

Hi,

I have a problem with the calculation of depreciation and interest for a particular asset class. The assets are financial leases. The depreciation key defined is LEAS. The following are the attributes of this key:

Dep/int--

---

phase-base met--dec-bal--prd cont-mult lvl--chn ov

Ord.depreciation--- 1

---

0011

---

001

---

006

---

001--

---

5

Ord.depreciation--- 2

---

0002

---

001

---

003--

---

003

Interest -

---

1--

---

0028

---

001

---

003--

---

010

An example of an asset is:

Aquisition value: 1041552.71 (as migrated on 01.04.2007)

Ordinary dep already posted: 56243.88

Net book value: 985308.83

Scrap Value:729086.90

Useful life: 50 years

Expired useful life: 9 years 1 month

Remaining useful life: 40 years 11 months.

Depreciation start date: 28.03.1998

Interest calculation start date:30.03.1997

Depreciation calculated by the system:6261.83

Interest calculated in the year:15682.68

I'm not able to undersatnd on what basis the system calculated the interest. I will be thankful if anyone can help me resolve this. An early reply will be greatly appreciated as I'm facing major problems due to this issue.

Thank you in advance for the help,

Lakshmi

[Former Member]

Hi,

In the depreciation key interest is configured hence the system is calculating the interest. Is it a asset migrated from Legacy system.

As per your Business process how the interest is getting calculated? Can you elaborate on this?

Thanks

Murali.