Posted by [IP Address: 194.170.168.236] 'Trips' on September 20, 2001 at 11:19:02 EST:
Hi!
When we change the life of an asset the in sap, it considers the past depreciation posted and does adjustment planned depreciation for the next period. Therefore for the subsequent months the planned depreciation is taking the original cost of acquisition as the base.
What my client requires is: When we change the life of an asset, for the remaining life of the asset, the depreciation calculated should be recalculated by taking net value as the base and the remaining life into account.
Example:
Say gross value of asset: USD 12,000
Life: 10 years
Depn: Straight line
So depn per month is USD 100
Say after 2 years (i.e. accumulated depn USD 2400, net value USD USD 9600) we change the life from 10 to 5 years.
So remaining life is 3 years now/
What SAP does is
It takes gross value as base and calculates planned depn for the new life. Here it would be USD 200 per month.
To take care of the posted depn, it proposes the adjustment entry in the next month.
What is desired is:
For the reminaing 3 years, the depreciation should be calculated using net value USD 9600 as the base. And so planned depn per month should be USD 3200/3 i.e. USD 1066.
What do I need to configure to get the desired result??
Thanks in advance,
Trips