Asset Accounting

[Former Member]

Hi All,

What is smoothing and depreciation cycle in asset accounting?

Thanks & Regards,

Rohini...

[Former Member]

Hi,

Smoothing

- Using the smoothing method, however, the system distributes the difference between the forecasted annual depreciation and depreciation already posted, to the remaining posting periods.

For example,

Acquisition posted in period 5 = 12000

Depreciation start in period = 1

Planned annual depreciation = 1200

Deprec. posted up to period 5 = <b>0</b>

Remaining periods, incl. period 5 = 8

Deprec. to post per period(5-12) = period 5 to period 12 = (1200-0)/8 = 150

Regards.

Message was edited by:

Bird

[Former Member]

Hi Rohini

Here is the link from SAP help on this topic

http://help.sap.com/saphelp_47x200/helpdata/en/4f/71dbdb448011d189f00000e81ddfac/frameset.htm

Thanks

Ashok

Assign points for useful answer

[Former Member]

Hi,

When you are using smoothing the open depreciation amount will be posted in the last fiscal year in 12 periods.

Example end use full live 31.03.2007 open depr amount 12.000. Then in period 1 to 12 there will 1.000,00.!

When you use a depreciation key depreciation immediate it twill posted to from that period up to period 12 months and not immediate!

Paul