Depreciation Query

[Former Member]

Hi All,

I have a depreciation area 20. and it only allowed to depreciate 30% over 6 years. What if i want is to automatically write off 70% of the aquisition value so that the asset is fully written off after 6 years.

Thanks

Imran

[former_member188826 · Accepted solution]

In case of an unexpected permanent reduction in the worth of the asset, you have to post as <b>unplanned depreciation</b>.

[Former Member · Accepted solution]

Thanks Sridhar,Since i am not much familiar in this area, I would be very pleased if you could let me know the steps i need to perform inorder to achieve this. Do i need to define the Base methods, Declining Balance, Maintain depreciation key?

Pl advise.

Best Regards

Imran

[former_member188826 · Accepted solution]

Use t-code ABAA. <a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/4f/71e8f8448011d189f00000e81ddfac/content.htm">The relevant documentation is here!</a>

[Former Member · Accepted solution]

Hi,

A write off can be carried out for 70% using a transaction for area 20 only. However every time an aquisition is made it has to be checked to see if it relevant to the area 20 write off and a manual posting carried out. If any aquisitions are missed and the writeoff posting not carried out this could cause problems later on.

What we want to do is automate this process so that when an aquisition is made the system identifies if it is relevant to the area 20 write off and posts the write off. In addition to this to be able to distinguish between the 70% write off and other write offs the 70% write off would have to show under a different column on the asset history sheet.

Thanks

Imran

[Former Member]

Any Clues to this query will be highly appreciated with points

Regards

Imran

[Former Member]

If you want to restrict the depreciation value to 30% of the asset value you can mention 70% as the scrap value in the field <b>Scrap Value %</b> in the depreciation area screen. Now the system calculates the depreciation equally for 6 yrs if you have choosen the Dep. Method to be SLM. You can written off Scrap value at the end of useful life of the asset.