Asset Accounting

[Former Member]

Hi All,

What is smoothing and depriciation cycle in Asset accounting?

Thanks & Regards,

Rohini...

[Former Member]

<b>Depreciation Posting Cycle</b>

You determine the depreciation posting cycle by entering the length of time (in posting periods) between two depreciation posting runs. This means that a setting of 1 indicates monthly posting, 3 means quarterly posting, 6 means semi-annual, and 12 means annual (for a fiscal year version with 12 posting periods). When you start a depreciation posting run, you have to enter the period for which you want it to be carried out.

You do not have to keep strictly to this posting cycle. You can also choose an unplanned depreciation posting run using an indicator in the initial screen of the depreciation posting program. When you set this indicator, you can skip over several periods, and post the total depreciation for all of the skipped periods in one period. You might need to do this, for example, if you carried out legacy data transfer during the fiscal year. This method enables you to post all

depreciation up to the transfer date at one time.

[Former Member]

Hi

<b>Smoothing:</b> Smoothing is a procedure for distributing the fore casted depreciation over the posting periods.Under this method the system distributes the difference between the forecasted annual depreciation and depreciation already posted, to the remaining posting periods.

Example

Acquisition posted in period 5 12000

Depreciation start in period 1

Planned annual depreciation 1200

Deprec. posted up to period 5 0

Remaining periods, incl. period 5 8

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

<b>Depreciation Cycle:</b> it determines the interval period between two dep. posting run.for example indicates monthly posting, 3 means quarterly posting, 6 means semi-annual, and 12 means annual (for a fiscal year version with 12 posting periods).

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[Former Member]

Hey!!

Copy my reply?? For what??

[Former Member]

i didn't copy u r reply for u r kind information.By the time I saved my reply u r was already saved.When i m busy in replying i cann't see other replies hope u knw this

[Former Member]

Hi,

u already asked this question before!!!

<b>Smoothing</b>- 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 = 0

Remaining periods, incl. period 5 = 8

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

Regards.

[Former Member]

Hey,

How about depriciation cycle?

Regards,

Rohini...