Fixed Asset - Use a scrap value and depreciate to zero?

Financials (FI, CO, TR, EC)

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magals
Posts: 1
Joined: Tue Oct 02, 2012 9:50 am

Fixed Asset - Use a scrap value and depreciate to zero?

Post by magals » Tue Oct 02, 2012 10:12 am

Hello.

Our accounting policy for vehicles is to depreciate over 36 months to a scrap (resale) value. If after 36 months we still own the vehicle it should carry on depreciating at the same rate until there is no net book value.

For example:
Original value: $36,000
Scrap value: $18,000
Useful life: 36 months

Monthly depreciation: $500 = ($36,000 - $18,000) / 36

Therefore, after 3 years the asset would have a NBV of $18,000, and after the 3 years it should continue to depreciate $500 per month until it reaches zero NBV.

Is there a way to configure this in SAP? With our current setup it stops depreciating after 36 months. My only suggestion so far is to manually calculate a false useful life when we create the asset which is the period over which it should depreciate to zero (in the above example 72 months).

Many thanks.

Rhiannon
Posts: 2
Joined: Thu Nov 08, 2012 3:32 am

Re: Fixed Asset - Use a scrap value and depreciate to zero?

Post by Rhiannon » Thu Nov 08, 2012 4:06 am

Alternatively you could remove or amend the scrap value and re-life the asset if you do still have it once the 3 years is up.

slinkyjib
Posts: 293
Joined: Mon May 17, 2004 3:15 am
Location: 29 Acacia Road

Re: Fixed Asset - Use a scrap value and depreciate to zero?

Post by slinkyjib » Fri Nov 09, 2012 4:38 am

Forgive me as I'm a little rusty;
Assignment of Calculation methods (Transaction AFAMA) to the depreciation Key?

you can assign "phases" to your depreciation key.

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