AA Multilevel method

How should the below be setup in multilevel method for depreciation key
Asset ABC cost $5000 with 3 years useful life.
Year 1 = (5000 x 20%) + (5000 x 80%)/3 years
Year 2 = (5000 x 80%)/3 years
Year 3 = (5000 x 80%)/3 years
In plain words, in the first year the asset should be depreciated for upto 20% straight and the rest 80% should be divided equally during its life of 3 yrs.
Any clarification will be appreciated.
Thank you

Hello Krishna,
this can easily be done with depreciation key using both Ordinary depreciation and Special depreciation. You have to customize the system in such a way, so that first Special depreciation should be calculated and posted in AOBK.
The depreciation key should have 2 lines:
1 Ordinary depreciation - Linear, based on Remaining UL (customized in the Multilevel method)
2 Special depreciation - base method 0026 - Explicit percentage - and in the multilevel method you should put the percentage itself - 20% for the first year.
Thus the system will calculate 20% in the first year first, and after that it will distribute the remaining 80 % for the whole useful life, including the first year. I think it is this that you want.
Of course, you need to set put the GL accounts for Special depreciation in AO90.
Regards,
Lyubomir

Similar Messages

What to do for automatically change over of PHASE from 1 to 2 in case of multilevel method of depreciation.

Hi all
As per the statutory requirement we want to maintain Multilevel method of depreciation in which we have maintained two phases given as below-
Dep/int.
phase
base method
decl. bal method
prd cont
mutilev. Method
change. Me
change over % rate
ordinary dep
1
ZMR1
0
001
Z02
2
0.3
ordinary dep
2
0011
0
001
001
0
0
Because asset need to depreciate upto 70% of its net book value on the basis of SLM percentage base as per phase 1.
After that it must shift to phase 2 ,where depend upon remaining useful of that asset , balance value of asset need to be spread over.
But while testing in, it is not automatically shifted to phase 2 directly once asset reaches its 70% (ie.once condition given phase one get exhausted)
Then pls guide me what to do for automatically change over of PHASE from 1 to 2 ??
Thanks and regards
Manjusha G.

Hi Manjusha,
To meet your requirement, you have to mention changeover in T code AFAMA-changeover method "2" and the changeover % 70 and in second line you can give phase 2 changeover within planned life and give your depreciation methods after changeover.
Refer the sample screenshot.
Hope it solves..
Regards,
G.Sethuraman

Multilevel Method

Hello SAP Gurus
First let me thank Dominic Holdstock who has been very helpful not only to me but to others also in providing very valid solutions. He provided me the solution for this problem also which is given below but somwhow It didnot worked and I being new user of this SDN.SAP doesnot know how to inform him and let him know. Maybe I was doing something wrong.
Ok the problem is like this
One Country requirement is that its depreciation should start depreciation after deducting Salvage value of 10% and then depreciate that 10% left over salvage value in the end and within another 1 year. I will give an example to make you guys understand more.
Suppose Acq Value is 24000 Salvage value 10% Useful Life 2 years
Depreciation Base Value : 21600
So Depreciation per month is 900.
Salvage value is 2400 and that is to be depreciated after 21600 depreciation is achievedand after useful life of 2 years is ended.
Dominic advised to go with Multilevel method which makes sense.
Please advise me with your experience how to assign the values in Multilevel. Your this help will be appreciated
Thanks

Dominic
I really appreciate your help. I worked through Multilevel method only. Please note that my requirement is almost same to the example you guided but slighlty different. I have 10% Cut off value but this 10 % remaining value has to be depreciated after end of useful life within one year. Suppose 1200 is the remaining value then every month it should depreciate 100.
So in my case I donot have to Assign cut off value key because it will contradict the requirement. i will explain what I have done
I defined two multilevel methods.
First one Z01. In this method I assigned value like this
Acq year 9999
Validity 999
Base Value 01
Reduction :10
and then Second Multilevel method I assigned is Z02
Acq Year 9999
Validity ; 1
base Value ; 24
Rem Life : Checked
Second line
Acq year 9999
Validity 999
Base Value: 24
reduction 100
Then in dep key I assigned this way
In first phase 1 From the start of Depreciation
I asigned Multilevel method Z01 and Changeover method no 5 Changeover after end of useful life
In the second phase Changeover with planned life
I assigned Z02 in multilevel method
Please note that in both the phases I assigned Base Value 0011 which is Percentage from useful life.
But it is not working. It is taking out 10% but not depreciating in the end the remainig 10%
Please note That I also tried assigning no 2 in change over method and assigning 10% in changeover rate. But results are not as desired.
Dominic please advise me with you good knowledge in this how to resolve. it will be very nice of you if youe let me know where I am going wrong and what steps to be followed.
Thanks for your help man
Take care

Fixed Asset and Depreciation method in SAP B1 2005B

Hi All,
I want to know what is the method by which we can do depreciation for fixed asset in SAP Business One 2005B.
Looking for a postive response from all.
Regards,
Kawish

Hi Kawish,
The system supports the following forms of depreciation:
u2022Ordinary Depreciation
u2022Unplanned Depreciation
u2022Special Depreciation
And for the depreciation methods:
Straight-line
Immediate writeoff
multilevel method
declining-balance method
special depreciation
You can get more helpful documentations through partner portal:
Solutions-> SAP Business One-> Solution Overview-> Documentation
Resource Center-> SAP Business ONe Add-ons 2005-> Fixed Assets
Regards,
Candice Ren
SAP Business One Forums Team

Reduced balanced method error

Hi Friends,
one of my company using the Declining balanced method.
For computers we want to depreciate 40% in every month.In the configuration under multi level i set the 40% but when i run the depreciatio showing the straight line method amount. Please help me i missed the any configuration.
thanks,
Hani

Hi Friend,
Please check the configartion in AFAMS, select your line item , then click on the levels button, in this one you have cheose Acquestion year,year,periods,base value(24 its WDv method),and % rate given are not check it.
i think another mistake is availble.as your expalnation
multilev.method : S1(Which is i configured above under multilevel method)
Class : Decling -balanced depreciation
Change method : No automatc changeover
*Multiple shift : increase in depreciation,no increase in exp.useful life
(it is wrong i think,take this one increase in depreciation,increase in exp.useful life)*
Scrap value : Cutoff value is ignored
Shutdown : yes
Regards
Mastan Reddy N
Edited by: Mastan R reddy on Nov 30, 2011 12:04 PM
Edited by: Mastan R reddy on Nov 30, 2011 12:21 PM

Depreciation method for depreciation reintegration

Hello Guys,
I have a question on depreciation reintegration.
Businss Case:
Supposing that we have a given asset 2xxxx capitalized on 01.03.2009 and current period is 6 (and amortizations have been posted until period 5 included).
In most of the cases, our company scraps, sales or transfers its assets on an asset value date anterior to the current period, for example 01.04.2009.
How can I configure depreciation reintegration???
From my point of view, I need to focuse on depreciation method and on depreciation key (T_code AFAMA).
Do you have any idea witch of the following method should I focused on?
Base method?
Thanks for your comments.
Regards,
Karim

Assign this key to an asset and check it in your asset explorer if it depreciates fully within its useful life.
You can also add some config in your existing depr key..
in line 1.. select change method = 5,
add another line w/ ord depre, phase=2, Base method=017, multilevel method=002 and that warning message will go away.
check again in asset explorer if this is what you want.

Base method and base value

Dear forum,
I would like to seek advice on the above.
I do not sure what is the difference between base method and base value in multilevel method.
What is the difference between these 2 base?
Thanks

Hi,
If you go ti AFAMA nd chosse a depr, key you can see the base Method as one component of the key.
Here is defined:
- Type of depreciation
- Dep. method and
- Treatment of end of depreciaion
If you take a look at the "multilevel method (also in AFAMA) you can see the base value.
The value used as the basis for the calculation of depreciation.
Regards Bernhard

Dep Method D

I am trying to activate the depreciation key for WDV - 5%. But error thrown is:
"Entering percentage not allowed for dep. method D"
How to rectify the error. What is "dep method D"

check oss note 419661
You use a depreciation key in the customer name range for SAP enhancement AFAR0002, that is, you use a depreciation key X, Y or Z*. When you assign a multilevel method to the depreciation key, the system terminates the process with error message ACRSL005 "&3: Entering percentage not allowed for dep. method &" and you cannot carry out the activation.

Calcualtion methods in AA

Hi all guru's
what is the use of calcuation methods??
1. base methods, declining balance method, maximum amt method, multlevel method, maintain periode control method???
why it assing to one depreciation key??
could you explain me???
regards
ss

Hi Supriya,
All will be used to calculate depreciation on particular Asset
Base method: Base method of the depreciation key for calculating depreciation or imputed interest.
Declining Balacne method:
A multiplication factor for determining the depreciation percentage rate
An upper limit for the depreciation percentage rate
A lower limit for the depreciation percentage rate
Multilevel Method:
Each level represents a validity period for a given percentage rate.
Maintain Period control Method:
Assign period control keys to the period control methods for:
Acquisition transactions
Subsequent acquisitions
Retirements and transfers
And so on
Best Regards
Ashish Jain
Message was edited by:
Ashish Bohara

Asset Depreciation Key

Dear Gurus,
I am facing an issue with setting up a depreciation key.
The principle is the following / 15% / year - 1st year 7.5%
No NBV < 0
Period control // everything to be calculated 1st day of the year
I have tried to do something with multilevel method - but I think I am missing something.
Enclosed, screenshots...
Thank you all for your ideas and your help.

Hi,
Define multi level method for the dep.key as shown below.
Then the depreciation for the asset as shown below..
Regards,
Mukthar

Change in Useful life of asset in mid year, but the previous posted depreciation should not be changed

Dear Experts,
I have a requirement in one of my client, We need to extend the useful life of asset in mid of an asset fiscal year and the depreciation which was posted in the previous should not be changed.
Requirement:
Useful life of asset is to be extended after completing depreciation for 4 years and in-between the current asset fiscal year. Provided the present asset value has to be taken as the new book value of the asset and the depreciation posted henceforth to be posted based on the new asset value till the remaining useful life.
Previously posted depreciation should be unchanged.
Analysis:
1.      The fiscal Year followed - October to September.
2.      The useful life of asset will be changed, and the depreciated value posted till 31/mar 2014 will have the old depreciation value ( based on the original acquisition value)
3.      The Depreciation key used in of type LINR (linear), depreciation value will be calculated based on the Book value till the asset value becomes ZERO at the end of useful life of the asset.
4.      We can change the useful life of the asset at the end of a Asset fiscal year say FY- 2014, if this is done the existing configuration will take the Book value of the asset at the end of the Fiscal as the asset value and the new depreciation will be calculated based on the new useful life of the asset. The asset value will become ZERO at the end of the newly changed Useful Life.
5.      But the requirement is that the useful life of the asset will be changed exactly half way in between existing Asset fiscal (i.e., 31/03/2014), if this is done system will change the depreciation value based on the new useful life ( since the Dep Key is LINR), but the depreciation value will change from the fiscal start say October 2013 to September 2014 ), which will not satisfy the requirement of the client. Since the depreciation which is already posted from October 2013 to March 2014 should not be changed.
Note:
1. We are not willing to retire the asset and create a new asset with the remaining book value as asset value and start depreciation.
Kindly let me know if the requirement can be fulfilled without retiring the asset.

Dear All,
This requirement has been completed.
1. I created New Multi level valuation method with base 26 ( Net book value w/o Revaluation ).
2. New depreciation key was created and the above method was assigned to it. I never changed the Base method.
3. new interval was created in the depreciation area, with this created dep key and extended the useful life of the asset. The depreciation was calculated according to the requirement.
Originally the asset had useful life of 5 Years, I changed the asset useful life to 8 years now with new Depreciation key 2001.
Depreciation was already posted to the asset till 04- 2013 for an amount of 148.27 SAR.
Net Book value carried forward to 2013 = 1575.56 SAR
Depreciation already posted till 4th period =   148.27 SAR
Current Net book value after useful life extension           = 1427.29 SAR .
Now the new depreciation key 2001 with Multilevel method 201, will take this Net-book value as Asset value and will depreciate along the useful life of the asset till it becomes zero.
Planned depreciation of 2013 ( remaining 6 months) = 166.24 SAR
Planned depreciation of 2014 = 225.96 SAR
Planned depreciation of 2015 = 225.96 SAR
Planned depreciation of 2016 = 225.96 SAR
Planned depreciation of 2017 = 225.96 SAR
Planned depreciation of 2018 = 225.96 SAR
Planned depreciation of 2019 = 131.25 SAR
Total      = 1427.29 SAR ( the Asset value becomes zero at the end of its remaining useful life.
The previously posted depreciation from 01.01.2013 to 30.04.2013 was untouched.

Asset A/c'g- group assets

Dear frds,
Pls explain me the **only Group Asset Configuration - GL A/c's - Asset Creation- ** steps and also the fields what we have to give in the steps. I will assign points to U. Need each & every step & field.pls watch the following and give me.Pls dont give the links.
1.Copy Ref CODor Dep Area.
2. Delete other than Book Depn & Spl Tax dep.
3. Asset Class( A/c det,screen layouts,no range).
4. What GL a/cs should create?
5.Assgning the GL a/c's which fields we have to give.
6.Determine Dep area in Asset class - which check box I have to select.
7.----
8.----
9.----
10.----
11.----
12. AS21- which fields i have to give.
13. wher I have to link the Normal Asset to the group Asset ?
14.----
15.----
Thanks in advance.
Rajan.

follow these steps,
1. copy chart of dep: t.code : fc08
2. delete depriciatin areas
3. assign to company code; oaob
4.specify account determination, create screen layout rules
5.define number ranges; as08
6.define asset class ; oaoa
here you have to give no ranges, account determination for all asset classes.
7. determinine depriciation areas in asset classess; oayz
now you have one idea about your asset configuration. now before further, create your gl accounts for each asset depriciation, gl for asset loss, gl for asset profit on sales.
8. now you have to assign accounts for postings; a090
goto each account determinatin and assgin relavent gl accounts in all cloums
9. specify document type for posting depriciation
10. specify rounding figures of net asst book value/depriciation; oayo
11. define screen layouit for asset master data, depriciation areas, define base methods, multilevel methods etc.,
12.you have to maintain period control methods for dep run and maintain depriciation keys
13. now you should have one asset, so create one asset maser record; t.code as01, post the purchase transation by f-90
14. now you have to run the depriciation by t.code AFAB
GOTHROUGH AL THESE SETTINGS
before that decide abut your asset classes, create gl a/cs and then start from the first step,
regards,

Error message AA119 while creating asset master through AS01

Hi
while creating asset master (AS01), i am getting following error:-
Depreciation key M003 not allowed (Check your entry)
Message no. AA119
Diagnosis
Depreciation key M003 is not defined.
System Response
Processing is terminated.
Procedure
You have the following choices:
Use a defined depreciation key (use input help).
Define a depreciation key in Customizing ("change" pushbutton) and activate the key.
I have done following in configuration:-
1) No change in base method
2) copied multi level method from standard key "011" to "M03" and maintain vlaue as - Acquisiton year - 9999, Years - 999, Validity period in month - 12, Base value key as - 01and depreciation % as 10
3) No change in Period Control Methods
4) Copied standard depreciation key "GL20" as "M003" and maintain the multilevel method as "M03"
5) save the configuration
6) Activate the depreciation key by selecting depreciation key and clicking on Activate button on top of the screen
7) Import the configuration
now while creating asset, depreciation key M003 is appearing in drop down list but getting above error. but if I tried with depreciation key GL20 (which is standard depreciation key) system accepting the input
In target client, depreciation key display in Active stage.
please revert if anybody has any clue to come out from above problem.
Regards
DD

Dear All Foram members
Thanks for your response.
I got the solution and now problem has been resolve.
Initially i have maintain Scrap Value as Default Value from Company code and Depreciation Area in Depreciation Key (AFAMA) and I was getting the error. But now I have change the Scrap Value as CutOff Value is ignore and problem gets resolve.
But still do not understand the relation between the erro and Scrap Value assignment. Any Idia. It will be helpful for other members also.
Thanks Pankaj, Madhu and Paul...........
Regards
DD

Creation of asst -- Error - Message no. AA198

hi,
I am trying to create a asset. But i am getting the error as "The multi-level method of phase N1 in depreciation key ZAPR has not been correctly maintained for acquisition year 2009." and "Correct the multi-level method of depreciation key XXXX". Can anybody suggest how to rectify this error? Thanks.
Regards,
S.Sumana.

Hi Sumana,
First set your COD with OAPL.
Then go to AFAMA and select your dep key
And double click on assignment of calculation methods
Here check, which multilevel method is assigned to your dep key
And double click on multi level method field (you will be derected to multi level method config screen)
Double click on levels
Here check what you have given for the fields acq Year, years, periods
Normally they should be 9999, 999, 12.
Hope this may help you
Thanks in advance
Srinu

Creation of Depreciation key

Dear All,
When i am creating Depreciation keys...i am giving various methods which i defined...but when i am saving
the depreciation key i am getting following warning...
1000 CA06 N 1: Percentage rate required for depreciation calculation method P
Diagnosis
You have to enter at least one percentage rate in multi-level method C06. This is required in combination with depreciation calculation method P in base method IND1.
System Response
Data is not saved.
Procedure
Use a different base method or a different multi-level method, or enter a percentage rate. The incorrect entry is in 1000 CA06 N 1 (chart of depreciation, depreciation key, depreciation type, depreciation phase).
Will there be any impact when i am doing my transactions......
Please help to resolve the issue
Sapfrido

Dear,
Sapfrido.
When you maintain P as Stated Percentage in your BASE METHOD it is need to maintained the percentage for the specified key in your Multilevel Method , So in accordance with your mentioned one criteria system will carry out depreciation calculation.
Hope this will help you to understand.
Please revert if you need clarification.
Regards,
Pankaj Bhalerao.

AA Multilevel method

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