Depreciation - WDV

Hello,
My client has one requirement regarding depreciation calculation.
For the first year depreciation has to calculate at 35% in WDV and from the second year on words  system has to calculate depreciation at 15% till end of the life.
How can we create this kind of depreciation key. Can we do it in multilevel? If any way suggest me.
Regards,
Sankar

Hi VVR,
While doing changes i am receiving the below error message.
1000 Z002 N 1 : There is no depreciation method to which the system can change over
Message no. ACRSL010
Diagnosis
In depreciation key Z002, you entered a changeover method other than 0 (that is, a changeover should take place). However, there is no entry for the next phase.
System Response
The data is not saved.
Procedure
Do one of the following:
Make an entry in the assignment table for phase 2.
Change the changeover method to 0 (= no automatic changeover).
The missing entry is in 1000 Z002 N 1 (chart of depreciation, depreciation key, depreciation type, depreciation phase).
Regards,
sankar
Edited by: Durgasankar.Innamuri on Jun 24, 2009 2:09 PM

Similar Messages

  • Tax depreciation - calculation of WDV

    Hi
    where do we configure the settings for calculating the WDV for income tax depreciation or it is preset in the system
    Regards
    Ajay

    Dear Nagesha,
    Please note that J1INQ is NOT in use and this report has been withdrawn by SAP.
    Please review the below note in this reference.
    738919 - IT Depreciation for Assets, India
    The solution for IT Depreciation Calculation is being revamped and the
    new solution shall be available in EhP5 SP02.
    The general availability of this report will be announced through this
    note.
    There is no alternative as of now for the same.
    Thanks for the understanding and co-operation.
    Have a Nice Day,
    if you are ok with the above info, then close this ticket.
    Manu
    Edited by: manucs on Dec 29, 2011 10:12 AM

  • Calculation of Asset Depreciation based on SLM or WDV

    Hi,
    In our group of companies, we are depreciating assets based on requirement with either SLM or WDV method.
    Generally as per my understanding, system is calculating depreciation based on class (where either Straight line or Declining  balance depreciation is maintained.) which has been maintained in depreciation key definition (Assignment of calculation  methods).
    I have observed that in some of depreciation key though  it is blank in Class, system is calculating correct  depreciation for either WDV or SLM method. Is there any other setting for selection of relevant depreciation method from which system is calculating correct depreciation?
    Thanks,
    Taral Patel

    Hi,
    I have seen base method of same depreciation key, in which below mentioned field values have been defined :
    Type of depreciation : Ord. Depreciation
    Dep. Method : Stated Percentage
    Dep. after planned life end : No
    Dep. below NB Value zero : No
    Curb : No
    From abovewhich field, system is bringing WDV as depreciation method into calculation?
    Thanks,
    Taral Patel

  • Recalculation of Depreciation (Change Over from WDV Method to SLM)

    Going for a change in  Method of Depreciatin from WDV to SLM w.e.f 01.04.2007.
    Creation of New SLM Depre.Keys
    New SLM Keys to be used in New Asset Masters
    In Old Asset Masters, Replacement of Old WDV Depre. Keys with new SLM Depre. Keys.
    Now, Need a guidance in respect of Recalculation of Depreciations.
    How shall i proceed ahead?
    Requirement is to Recalculate Depreciation from the Date of Capitalization as if SLM Method would have been in place from the beginning & to post the Differential Depreciation in the month of Aprr.,07.
    (i.e Diff.bet.Depre.posted as per WDV till 31.03.07 & Depre.Calculated as per SLM from the beginning till 31.03.07)
    Shall I able to Post Differential Depreciation to seperate GL A/Cs?
    Thanks & Regards...
    Ameya D. Mohoni...

    Hi
    In ABUMN - Tab Additional Details - You need to choose the proper transfer variant...
    if you choose Net Method - I think it would transfer @ 22500
    In the New asset master - choose a dep key which is based on Useful life....
    br, Ajay M

  • Recalculation of dep by change in depreciation methods from wdv to slm

    Dear all,
    advice me as per indian accounting standard. I am in great need for this solution.
    my scenerio
    we are on ECC 5.0.
    As per the standards if an organization change its depreciation method e.g from WDV to SLM or vise versa, system should recalculate the depreciation for all assets from first acquisition date. i am trying to explain the situation the following example:-
    first acquisiton in assets X - 4/1/2000 for 50,00,000/-
    dep method - WDV CALCULATED @ 13.91
    both PLANT -1, PLANT-2 are in the same company code 1000.
    in PLANT -1 - WDV METHOD
    in PLANT-2 - SLM METHOD are used
    up to 05.11.2007 the asset X is in PLANT -1 & dep is calculating @ 13.91 on WDV method.
    on 06.11.2007 the asset X is transferred from PLANT -1 to PLANT-2 in which SLM METHOD @ 4.75%
    is used.
    present scenario
    Depreciation is calculated up to november (8th period) of current year @ 13.91 on WDV method.
    on this situation system should recalculate the past depreciation from 04.01.2000 as per SLM method and post the surplus in dec'08. i.e, reduce the depreciation amount in the current year.
    is above situation is possible in SAP. if yes please explain in detail. if not then what is the best possible way to meet this requirement.
    Thanks & regards,
    Sandeep

    Yes Sandeep, Change the Depr key (Depr method). Run AFAR to see whether the system recalculates the Depr for atleast the current FY, if not for the previous FY's.
    Now Manually calculate the Difference in depr till last FY (WDV Depr minus SLM Depr) and post the difference amount thru ABZU transaction.
    Check to which account the ABZU post the excess depr.  You can post a rectification entry for the excess depr posted thru ABZU, if you want to transfer it from the existing account to the new account, for accounting purpose.
    Please follow these steps in an order & revert in case you still have any questions.

  • Depreciation is not getting calculated correctly

    Dear All,
    I have an issue with Issue with Cut off key. I have created cut off key with 10% scrap value and chosen scrap value deduction from Base value and maintained the same in Depreciation Key.
    I have done some acquisitions of Rs 1,00,000.
    Now, When I see, AW01N,  Depreciation is calculated for the first year on  Rs 1,00,000, which Rs 10,000. Only from 2nd year on wards, Depreciation is calculated on Rs 90,000, which is Rs 9000.
    Pls doubt is that why Depreciation is not calculated on  Rs 90,000, after deducting scrap amount. Pls clarify my doubt.
    Thanks
    Edited by: SRKRISHNA on Mar 7, 2012 12:09 PM
    Edited by: SRKRISHNA on Mar 7, 2012 1:26 PM

    Hi,
    Check your depreciation key wether it is SLM or WDV method, If it is WDV the system doing is correct.
    Thanks
    Laqsh

  • Calculation of Asset Depreciation

    Hi,
    could any one can help me to explain how this depreciation works for this asset below?
    Depr Key : LINK
    Base method : 007
    Declining Method : 001
    Multilevel Method : 003
    (This calculation method derived from SAP Standard)
    Useful Life : 5 years
    Exp Useful life : 15 years 1 month
    ord depr start date 01.12.1991
    until jan 2007 , NBV =0
    on Feb 10, 2007 => good issue= 42.750.000
                                  ord depr arise 10.830.000
    on Feb 24, 2005 => credit memo in acq year = 42.750.000
                                  ord depr arise only 8.550.000
    Differences between ord dep on Feb 10 and ord depr on Feb 24 causes error like this :
    "Transaction in area 01 contradicts the net book value rule  "

    Hi,
    I have seen base method of same depreciation key, in which below mentioned field values have been defined :
    Type of depreciation : Ord. Depreciation
    Dep. Method : Stated Percentage
    Dep. after planned life end : No
    Dep. below NB Value zero : No
    Curb : No
    From abovewhich field, system is bringing WDV as depreciation method into calculation?
    Thanks,
    Taral Patel

  • Config of Group assets - Tax Depreciation Calculation : India

    Dear Seniors,
    can you please explain the configuration of the Group assets and how exactly the tax depreciation calculation in India happens for the individual assets with scheme of entries.
    Thanks and Regards
    Sathish

    Hi,
    In India, depreciation on assets for the purpose of computation of net income as per the Income Tax (IT) Act 1961 is calculated over a block of assets instead of individual assets as allowed under the Companies Act 1956. Asset acquisitions and retirements are managed over the block level. The IT Act prescribes certain rates of depreciation to be used under the Written down Value (WDV) method over these asset blocks to compute depreciation.
    The following are the customization settings that may be followed in the R/3 system in order to manage your assets in the income tax depreciation area.
    1. Copy the standard chart of depreciation 0IN as provided by SAP and create your own chart of depreciation.
    2. Use the depreciation area 15 for the purpose of management of assets under the IT Act. Make it statistical in nature. (Reference Transaction Code: OADB). Do not check the box negative net book value.
    3. Specify that the Income Tax depreciation area takes over the APC from the book but not make it identical (Reference Transaction Code: OABC).
    4. Create an asset class for the purpose of income tax blocks. This asset class will be used to create only group assets. (Reference Transaction Code:  OAOA)
    5. Specify that the depreciation area for income tax can be managed only for group assets. (Reference Transaction Code: OAYM). This would mean that depreciation for this depreciation area would be computed only at group asset level.
    6. Specify that the asset class defined in (b) above will be used for creating group assets only. (Reference Transaction Code: OAAX)
    7. Two period control methods (IT and NL) have been defined in the system for determination of start or the end of depreciation calculation at the time of a fixed asset acquisition or retirement. You may use these period control methods while creating the depreciation keys for the purpose of IT depreciation.
    Calendar assignments have been made for the above mentioned period control methods in order to reflect valuation requirements as per the Income Tax Act (Transaction Code: OAVH). You may create your own period control methods depending on the fiscal year variant you use. The period control methods supplied are based on the fiscal year variant V3.
    8. Depreciation Keys: The following depreciation keys have been created in the system. They correspond to the income tax blocks that are prescribed under Indian tax laws. They are as below:
    Depreciation Keys:
    1. IN1 - Tax Depreciation - 5% -
    I Hope it will give you some basic guidance.
    Regards,
    Krishna Kishore

  • Accumulated depreciation does not mach during ABAVN

    Dear Gurus,
    I have an issue while asset scrapping through t. code ABAVN, the accumulated depreciation does not match.  what might be the reason??
    for example:
    Initial Data:
    APC: 1000
    Acc Dep: 250
    WDV: 750
    After scrapping through ABAVN, document generated as follows:
    APC Credit 1000
    Acc Dep Debit  275
    Loss on scrapping : 925
    Here why the accumulated depreciation differes in ABAVN??
    Secondly, when I tried to reverse the above entry (AB08) passed through ABAVN , the system does not allow me to do so.  (throwing the dump)
    Please help how to overcome this problem.
    Regards,
    babjee

    Hi
      Please check out the following funcionality
    Proportional Value Adjustments
    Based on the value date and period control, the system automatically determines the reference period for the retirement. The system automatically determines any depreciation (value adjustments) that is applicable to the part of the asset being retired, up to the reference period (retirement). The system automatically retires this depreciation at the time of the retirement transaction. This procedure guarantees that the percentage of the book value that is retired is identical with the percentage of the acquisition and production costs that is retired.
    Graphic: Determining Proportional Value Adjustments
    The system automatically posts the proportional value adjustments retired during an asset retirement. You can specify special transaction types for this automatic posting. You enter these transaction types in the Customizing definition of the retirement or transfer transaction types (Value adjustments function). These special transaction types for the proportional value adjustments are particularly important for group consolidations, so that the individual transaction can be identified as retirement of transfer.
    The standard transaction types delivered by SAP are already defined in this way. The system uses the transaction type 290 for proportional values with retirements. For transfers it uses transaction types 390/395 (transfer retirement/acquisition).
    Regards
    Jose

  • WDV to SLN

    Hi,
    Any specific precautions do we need to take before changing from WDV method to Straightline method of depreciation for an asset.
    thanks
    aman

    Hi,
    Thanks for replies, but my question was;
    For example;
    If an asset life is 10 years, and upto 09 years the asset was under WDV, and from 10th year onwards if I switch to SLN. Any precautions is required at this stage?
    Thanks,
    Aman

  • WDV in fixed assets

    Hi everyone,
    I need to customize the WDV for India. From what I read, it is a fixed percentage of the NBV.
    So, if the percentage is 20. and the acquisition value is 10000$, the first year, it should be 10000 * 20%.
    The second year would be the NBV * 20%.
    My question is how do I set up the system so that the depreciation should be applied to the NBV?
    Hope I am being cliear!.
    Regards,
    Maria Marta Porrone

    Hi
    Dep Key Controls:
    Base method
    Declining bal methd
    perd cont methd
    multi-level methd
    To calculate % use multi-level methd in your case WDV
    Base Method Decl Method Period Contl Multl level Method Change over methd
    0014 001 001 xx
    Acq year,     years       prd         Base value     percent
    9999                 1             -                  01               20%
    9999                 2                                 24               32%
    Thanks
    Anil

  • Wrong depreciation calculation for upload assets

    Hi
    I am uploading for US company with FY as Jan to December.
    I have to upload assets with value as on 31stJuly 2010. It means SAP should calculate depreciation from August 2010.
    Depreciation is on life basis
    One asset purchased on 01.11.2009 with Value $ 585.59. WDV as on 31st July is 355.21. Total life is 23months. In AS91, depn start date is 01.11.2009 with useful life as 01 year and 11 period. In expired life, its showing as 94 under period column.
    Now in asset transfer config, i gave the transfer date as 31.07.2010 and last period of depreciation in previous system, i gave it as 7th period of year 2010 (ie. July 2010)
    Now when i saw depreciation in AW01n for august 2010, it shows that remaining depreciation is fully written off in august 2010.
    Its not flowing to next month.
    Any idea why is writing off depreciation fully in next month itself

    Hi..
    After transfer old asset to new asset system automatically transfer all the balance to the new asset including depreciation Up to July
    After that please check in the new asset master in the depreciation area tab depreciation start date...it must be 1st August
    So based on that date depreciation will be calculate 
    I hope you will get some idea based on this suggestions.
    Thanks and Regards
    sudharshana vamsi

  • Sale value of group asset- sub asset more than wdv less than group total

    Hi,
    I am maintaining group asset for Income Tax Depreciation. All the asset under the same class is consider single asset for Income tax purpose. For eg value of Plant and machinery under Income tax is derived for all asset totaled together after depreciation for the year. Thus P&M is considered single asset for calculating I.T. Depreciation, even though it may contain 100 assets.
    For Income tax, for P & M class of asset depreciation for first year is with different rate and for rest years with different rate. Hence I have maintained sub asset for this group asset. Whenever a new asset is purchase, for income tax purpose it is recorded in the newly created sub asset number.
    The problem arises in sale of asset. When I am selling any machinery the sale value is deducted from the group value for IT purpose. In this case even though the value of sale is higher than the WDV of the individual asset it is adjusted in total. While configuring this in SAP I am facing following difficulties-
    1.     As the rate of depreciation is different for different years I am not able to maintain a single group asset. I have to create a sub asset. This facilitate the right depreciation calculation by different dep rate for purchases in diff year.
    2.     But as I am maintaining different Sub asset the sale value cannot exceed the balance of that particular asset, even though the total value in SAP for all the group assets is higher.
    3.     I can not allow having negative values. Negative values are not allowed to maintain in IT Records.
    Please help to resolve the issue.

    Hi,
    I am maintaining group asset for Income Tax Depreciation. All the asset under the same class is consider single asset for Income tax purpose. For eg value of Plant and machinery under Income tax is derived for all asset totaled together after depreciation for the year. Thus P&M is considered single asset for calculating I.T. Depreciation, even though it may contain 100 assets.
    For Income tax, for P & M class of asset depreciation for first year is with different rate and for rest years with different rate. Hence I have maintained sub asset for this group asset. Whenever a new asset is purchase, for income tax purpose it is recorded in the newly created sub asset number.
    The problem arises in sale of asset. When I am selling any machinery the sale value is deducted from the group value for IT purpose. In this case even though the value of sale is higher than the WDV of the individual asset it is adjusted in total. While configuring this in SAP I am facing following difficulties-
    1.     As the rate of depreciation is different for different years I am not able to maintain a single group asset. I have to create a sub asset. This facilitate the right depreciation calculation by different dep rate for purchases in diff year.
    2.     But as I am maintaining different Sub asset the sale value cannot exceed the balance of that particular asset, even though the total value in SAP for all the group assets is higher.
    3.     I can not allow having negative values. Negative values are not allowed to maintain in IT Records.
    Please help to resolve the issue.

  • Asset Depreciation Calculation when Fiscal Year are Different

    Hi,
    The client reporting company is in US and the company code is maintained with K4 fiscal year varient. (for common controlling area).
    Though the India entity follow K4, their depreciation calculation are based on V3 (April to March).  The real depreciation for their postings is based on their April to March calculations.  The depreciation is calculated on the WDV method and the net assets are calculated on the end balances of December where as it should be the April of previous year.  the eg. is
                                       Correct Calculation (Requirement)          SAP Calculation          
    Acquisition Value                                                33000.00     
    Accumulated Depre.                                                     14680.00     
    Net Asset Value - As On 1st April 2009          18320.00     
    Net Asset Value As On Dec 31st 2009          16400.04
    Depreciation Key     OS01     13.91%          OS01     13.91%     
    Depreciation Per Day     6.98               6.98          
    Net Asset Value - As On 1st April 2009          18320.00               18320.00     
    April'09     30     209.45          30     209.45     
    May'09     31     216.43          31     216.43     
    June'09     30     209.45          30     209.45     
    July'09     31     216.43          31     216.43     
    Aug'09     31     216.43          31     216.43     
    Sepr'09     30     209.45          30     209.45     
    Oct'09     31     216.43          31     216.43     
    Nov'09     30     209.45          30     209.45     
    Dec'09     31     216.43     1920     31     216.43     1920
    Net Asset Value as on Dec 31st 2009          16400.04          6.25     16400.04     
    Depre for Jan'10     31     216.43          31     193.75     
    Feb'10     28     195.49          28     175.00     
    Mar'10     31     216.43     628.35     31     193.75     562.50
    Net Asset Value as on Marc 31st 2010          15771.69     2548.31          15837.54     2482.46
    There are some BADI and user exit which determines my base value for depreciation calculation.  Should we have to use that or any standard solutions are available for this.
    Please let me know.
    Chandrashekar S A

    Wrong topic I think

  • Depreciation  for additional vaule

    Hi All
    While we are running depreciation in AFAB , for the asset additional vaule. In this connection System is not calculating dep  on capitailzed date for the additional value. This issue details are:
    1.Old asset value is 4,97,000, Capitailzed date is 14.02.2000,legacy asset upload to SAP system on 01.06.2008.
    2. For this asset we can add additional value of 100000 rs on 31.12.2008.
    3. We follow the 10% WDV method.
    We are trying to calculate depreciation for additional value and old asset value, but system is not considering the capitalization date for additional value.System  is calculating dep  one day  for additional value.
    User wants to calculate depreciation for  365 days for additional value.(100000)
    Anbody can access me to solve this issue.
    Regards
    G.K.Dharmendar

    Hi
    You just check either you have set the asset data transfer dates properly and it is ok then check while creating  legacy data through AS91 you have given the take over values in all dep areas, these 2 reasons may be causing just check and confirm.
    Regards
    T N R

Maybe you are looking for