Depreciation key - Straight line method

Hi,
I have an asset with ord deprecition start date on 1.7.07. After the financial year close on 31.3.2008, we have change the ord. depn start date to 1.3.2007. Now, the adjustment is being admortised to the asset useful life (3 years) instead of catch up on the next posting run. Asset is having depn key NBV/remaining useful life with catch up method.
My accountant do not want to perform any write-up nor unplanned for this asset. We suspect something might be wrong at the depn key setting.
How to create a depn to enable the adjustment posted on the next run with straight line depn NBV/remaining useful life.
Can anyone tell me what is the parameter to be set for each of the following,
Base method
period control
multilevel
changeover
Thanks,
CL

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Setup one depreciation key

Hi Gurus,
I have a scenario as below:
1) Define one depreciation key that allow user to specify any of the useful life during asset master data creation
2) Based of the useful life entered in the asset master data help to calculate planned/posted depreciation automatically
Instead of define all the posibility depreciation key, may I know if there is any flexible way that I could setup to cater for above scenario?
Pls advise and guide with sample example.
Thanks & regards,
Loi

Loi,
1) Define one depreciation key that allow user to specify any of the useful life during asset master data creation
    - During the creation of Asset Master data, you have the option to manually input the asset's useful life
    - If you want SAP uatomatically derive the useful life base on the asset class, you can maintain in in tcode OAYZ
      Chart of Depreciation
      Asset Class
      Depreciation Area
      Deprciation Key
      Useful life
      Period
      Layout
2) Based of the useful life entered in the asset master data help to calculate planned/posted depreciation automatically
     - the planned depreciation will be automatically calculated base on the depreciation key (straight line/declining balance) also useful life is a factor
     - Base on the planned depreciation, actual depreciation will be posted to the asset when you execute "Depreciation Run" program tcode AFABN.
Instead of define all the posibility depreciation key, may I know if there is any flexible way that I could setup to cater for above scenario?
If you have existing depreciation key that will satisfy your depreciation calculation requirement, no need to create new one.
Thanks!
Jhero

Loan transaction - straight line or reducing balance method

Hi all,
i have a question here. It is regarding interest rate instrument product in SAP-TRM.
For interest rate instrument/ loan product can we set whether the interest can be charged either on straight line method or reducing balance method?
Your soonest feedback is highly appreciated.
Thanks.

Hi,
Both are supported. For straight line method you can choose the Interest Form - Amount and for Reducing balance method choose - Fix or Variable Rate option in interest structure.
Regards
Prasad AV

Depreciation Key for Capital Leasehold Improvement

Hi Everyone
I need your help in creating the depreciation key for the Capital leasehold improvemnet assets. I need to specify a specific percentage rate for each period of the first year to calculate depreciation (if asset is acquired in period 1, rate x. If asset is acquired in period 2, then rate y and so on). From year 2-39, it is a constant rate of depreciation.
I created a multilevel method by specifying that year 1, base level 01, rate is 2.461
Year 39, base level 01, rate is 2.564.
I assigned it to the depreciation key with Base method 0012, Period control 002, and the multilevel method that I created. When I post an asset acquisition and use this key for Asset, the amounts for year 1 & 2 are not correct. Second year is taking part of percentage from the first year and the first year is trying to calculate the depreciation for the whole year despite the fact that asset was capitalized in February.
Can someone help me with step-by-step details to create this key?
I appreciate your help.
Thanks,
Shalu

Resolved myself

The multi-level method of phase N1 in depreciation key IN2 has not been

Hi Sap Guru
below error is coming when giving group asset number in depreciation area 15 while creating asset code AS01
"The multi-level method of phase N1 in depreciation key IN2 has not been correctly maintained for acquisition year 2011" anyone has any idea why it is so.
thanking you advance
Rajesh

Hi
Go to AFAMA - Dep key
Select Dep key you have given and select details button
You will find
Dep type
Phase----select From ordinary dep start of dep
Base methd
Declining methd
Prd contl
Multilev methd
Class
Change methd
Multilple shift
Scrap value.
Thanks
Anil

Remaining Value for Straight-line Depreciation

Hi Experts,
I am using straight-line depreciation for 36 months.
The asset value is $198,168.64, I notice that the calculated monthly depreciation is
sometimes $5,504.68 and sometimes $5,504.69 (I think it is due to rounding issue).
However, after 36 months, the total deprecation is only $198,168.63, leaving a $0.01 balance at the asset.
This $0.01 balance was not depreciated in the 37th month,
and I need to manually run an unplanned deprecation to eliminate the $0.01.
Is there any settings that can remove the $0.01 balance automatically?
Thanks,
Urchin

Hi,
Why dont you try ABAVN transaction?
Go to AR01
And position the cursor on all the effected assets and click on *create worklist8 button in th eapplication tool bar.
(CtrlShftF8)
Thanks,
Srinu

What is Class in Depreciation Key

Hi SAP Gurus,
Can anyone pls tell me how a depreciation key takes depreciation rate.In AFAMA you will find 1. base method 2. decl-bal method 3. Prd Cont & 4.Multilevel Method.
There is a field, named Class where straight line is selected. Here are 3 options available in the drop down menu a) Straingt Line depreciation b) Decling balance depreciation and c) other depreciation.
My question is if a depreciation key is assigned to an asset class, which rate of depreciation it will take as there are 4 methods defined in the depreciation key it self.
Can anyone elucidite me on this pls.
Regards,
Anirban Bardhan
<b></b>

Hi,
In dep.key the four methods play different roles to compute depreciation.
The rate we will specify in multi level method.
For example-
Depreciation key controls:
a. the rate of depreciation - Multi level method
b. the start of depreciation - Period control method
c. the base value of depreciation - base method
d. the end of depreciation -do
e. allowing depreciation after useful life do
Hope it helps you.
Regards,
Murali

[Urgent]Depreciation key

Dear all,
I need your help urgently.
Please give me any advice for this issue.
I would like to create a new depreciation key for the following case.
Currently, we are using a asset
1) fist acquisition date (2007,10.1), Useful year(4 years) , value 10,000$
2) Second acquisition date (2011.09.30), change useful year(4y -> 8y) , value 10,000$
3) Depreciation key : class straight-line base method(0011), decl-bal method(001), prd cont(11/11/11/11), multilev(001)
4) Depreciation What I want
YEAR 1st ACQ
2007Y 417 (10,000$/4y/12m*2)
2008Y 2,500 (10,000$/4y)
2009Y 2,500 (10,000$/4y)
2010Y 2,500 (10,000$/4y)
2011Y 1,875 (10,000$/4y/12m*9)
YEAR 2nd ACQ
2011Y 638 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y / 12m*3))
2012Y 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)
2013Y 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)
2014Y 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)
2015Y 1914
I will give you all reward as much as I can.
Thank you very much for your assistance in advance
Best regards,

acquire the asset first
now your book value becomes equal to the new aquired asset + book value of the previous asset ok?
now see
AFAMS for every year maintain a percentage and enter per year . calculate the % of depreciation you want in year and enter value.ok? maintain for every year.
maintain base value book vaue i.e 24
now go to base method configuration screen
for 0011 base method change the method to p stated percentage
ok?
now afama
base method 0011
dec balnc method 001
prd control 001
multilevel method: one defined by you
class :straight line
goto as02
give dep key
chage life to 8
run afar to recalculate dep
and run dep and check in test run
test it and give feed backs
regards
rohit
Edited by: ROHITBALI on Nov 22, 2011 2:04 PM

Link-Group Asset Class, Depreciation Area & Depreciation Key

Dear Experts,
I am new to FI-AA Customization & have a basic query about Group Asset Concept.
I am working on Ecc 6.0 & for Country India.
I want to create Group Asset for calculation of Depreciation as per Income Tax Act. Hence there is just one Depreciation Area (for Group Assets) , but the Depreciation keys are different. E.d IN1, IN2 etc. (Country Version India)
Now the questions are :
1) Do we need to create different Asset Class for different Group Assets or to create just 1 Asset Class for all Group Assets.
E.g. I want to calculate Depreciation As per income Tax Act on Gross Block of Building, Furniture & Fixture, Motor Car, Vehicles etc. So I need to create separate Group Asset Class for each one of above or just to create one Group Asset Class.
2) If we need to create just one Asset Class for all Group Assets; how to maintain a Depreciation Key in OAYZ as there are more than 1 Depreciation Keys?
3) is there any other method / functionality to calculate Depreciation as per income Tax Act or Group Asset is the only functionality?
Thanks & Regards,
Reshma

Dear,
Reshma.
Looking at your Questions let us take explanation for Group Assets :-
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In these depreciation areas, it is then possible to make an assignment to a group asset. You make this assignment in the specifications for the depreciation area in the asset master record. When you post an acquisition to this kind of asset, the system duplicates the line items from this depreciation area on the given group asset.
2 ) According to me you have to create different depreciation keys for Group Asset classes. Assign the Depreciation keys to your newly created Group Asset Classes in OAYZ and make sure you are deactivating 01 area which is Book Depreciation area.
3 ) As far as I know this is the only functionality available to handle Group Assets. How ever SAP does not have any standard Group Assets functionality. SAP does not supply asset classes to be used solely for group assets. It is we have to determine as per varying Business Process.
I hope this will clear your doubt makes you to understand. Please revert back for further clarification. Welcome you.
Regards,
Pankaj A Bhalerao.
Edited by: pankaj_ab on Feb 3, 2010 8:26 AM

Is there a way to draw a straight line from one point to another?

Is there a way of drawing a straight line from one point to another please?

Yes. First click on this icon:
Now select the line drawing icon:
Now press a shift key and drag your mouse on the image to draw a straight line.
These instructions are for Windows system so you need to adapt the method for Macs. I can't afford to by an Apple Mac!!!!!
Good luck.

Depreciation Key change

Hi
Emergency request***********
Recently I had a requirement for change of depreciation key in the asset classes in depreciation areas 01- book depreciation to calculate straight line depreciation as the old depreciation key was not doing as requested. This was asked to configure for new assets. But, Now when the depreciation key is updated for all the assets and the depreciation is calculated very high and the deprecation is posted for that period.
I know there is no way we can reverse the depreciation values posted for this what I have done is I updated the old depreciation key in asset classes and done the AFAB repeat depreciation run for the period for which values are posted but still this not updating.
Can any one help me how to over come this issue...
Thanks
Srinath

Hi Bernhard,
Let me explain you once again,
recently the request for change of depreciation key so, what I have done is created a new depreciation key and assigned depreciation key in asset class.
Old depreciation key: ABCD
New depreciation Key is : XYZ1
I changed with new depreciation key in Asset class but this is not updated in the assets but the values have changed for all the assets for that asset class.
so, even when I put back the old depreciation key in the asset class and update this is not bringing any difference in the asset and when I re run the depreciation in AFAB this is not making any changes.
Thanks
Srinath

FR straight-line depr by day & decl-balance by period & derived area

Hi experts,
In ECC6 for a French company, we have configured an asset class as following:
- depreciation area 01 - using a depreciation key with straight-line depreciation to the day
- depreciation area 02 - using a depreciation key with declining-balance by period
- depreciation area 03 - derived area 02-01 ; as we do not want to have any depreciation calculated in area 03 if accumulated depreciation in area 01 is higher than depreciation area 02, we have configured area 03 with only negative net book value accepted.
These settings comply with legal requirements in France.
This configuration was working in R/3 versions, but does not work anymore in ECC6. We are blocked by the message AA087 "The depreciation area 03 cannot be processed, because it was not transferred to the function module for breaking down the derived depreciation area." We can resolve this by setting the indicator "Area for reporting purposes only" on depreciation area 03 but then this calculates depreciation regardless on whether accumulated depreciation in area 01 is less or more than accumulated depreciation in area 02.
I suppose this problem must have been met in France several times since ECC6 is available but I could not find any discussion or OSS note on this. I am therefore looking for someone who has already faced this issue and has found a configuration setting, an OSS note or an acceptable workaround.
Many thanks.
Regards,
Xavier

Hi Bernhard,
OSS note 1161265 enables me to do what I wanted.
I have actually configured 5 areas:
01- IFRS - straight line depreciation by period
02- Local book accounting - straight line depreciation by day
03- 2-1
04- Local tax depreciation - declining-balance by period
05- 4-2
I have assigned the area usage 1 to area 03 and the area usage 2 to area 05. Area 03 is configured as accepting any net book value and posting, area 05 as only accepting negative net book value and is statistical.
I don't have message AA 087 any more when creating the asset. And if area 05 has a NBV positive, then depreciation in area 04 is adjusted and nothing is therefore calculated in area 05.
So it seems to work. Thanks!
Regards,
Xavier

Create a Depreciation Key

Hello Gurus,
I have the following scenario -
An asset bought in 1999 has a useful life of 20 years and an initial value (amount) of 1000 euros. In 2009, its depreciation starts and the accumulated depreciation SHOULD be equal to 500 ( straight line depreciation i.e. ( 1000-(1000*10/20) ) ). This means that the value of the asset after these 10 years should be 500 euros.
The PROBLEM is that when the depreciation starts, after 10 years, the asset keeps its original value of 1000 euros i.e. accumulated depreciation is equal to 0. This is not correct.
I need to customize the correct depreciation key to do this.
Any suggestions?
Thanks alot in advance,
Christine

Hey
Did you solve the dep. prolem ? I am having the same problem.
I am trying to partialy transfer a FA from his current class to another one with a different life time (from 30 to 12 years ) using the ABUMN.
The asset was bought in 2009 and was wrongly associated to a building class which has a 30-year lifetime, now I need to tranfer it to the correct class which has a 12-year lifetime. I'm having two problem when I review the transfer process:
1) SAP is not calculating and charging the difference between the wrong depreciation rate expense and the correct one in the P&L, so my the net book value still incorrect.
2) SAP is not considering the time already depreciated to calculate the remaining life-time. It's considering the transfered asset as new for depreciation time purpose.
I need help!!!
Thank you
Gizele

Which depreciation key is eligible for mid-month convention in SAP?

Dear Experts,
I am looking for the depreciation key for mid-month convention for USA in SAP standard system.
Do you know what key is for this convention?
Thanks.
BR,
Chris Kim

Dear sapfincon,
Thank you for your comment.
When I looked at those depreciation keys, LINA/LINK/LINR, those period control are 007 or 008.
In case of acquisition for those period controls, "007" has "04" (First year convention at half year start date) and "008" "01" (Pro rata at period start date).
I don't think these "04" and "01" stand for mid-month convention.
I assume the period control "02" (Pro rata upto mid-period at period start date) is for mid-month convention.
What do you think about this?
Thanks again.
BR,
Chris Kim

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

Depreciation key - Straight line method

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