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Change in useful life of assets.


Sub : Change in useful life of assets.

Our client is going for mass change in useful life of assets (increase the life from 7 to 10 years). They want us to change only for a company code, for certain asset class, and for certain assets with certain cost centers only. Under these circumstances we are developing a custom program to undertake the changes in the Master Table of Asset. This will change the useful life of the assets after checking all the above conditions.

For the said FY they have already run the depreciation for period 1 to 11, and depreciation for period 12 is due to be run. And they want us to re-run the depreciation for the past 11 periods with the new useful life. Now, our query is:

<b>a)</b> Will the system take the NBV ( net book value ) , on the opening balance of the FY, for calculating Depreciation?

<b>b)</b> Is there any provision where in I can re-run the depreciation for the period 1 to 11, for certain asset class, thereby also reversing the already posted values.

Also do let us know, if we will have to undertake any other changes or precautions.

Thank you in advance. Will assign points for valuable suggestions.

Thimmaiah B.M.

Former Member
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