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

Similar Messages

Useful life different bewteen straight line and declining balance

Have any one used different useful life between straight line and declining balance ?
Does it work correctly?
Thanks

HI,
Please check in the given path:
Financial Accounting ->Asset Accounting - Valuation- Determine Depreciation Areas in the Asset Class
Check here for your asset class, any value maintained in the fields useful life.
Mostly you enter default Useful life for each asset class.

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

Sum of the year digit method and declining balance method

Hi,
My Client want Deprecation methods Sum of the year digit and declining balance method for tax purpose. This requirement for Colombia Country.
Which Deprecation Area I activate and how will configure above two methods.
Regards
Venki

Sum-of-the-Years-Digits Method of Depreciation
Use
For each year of the expected useful life, the system notes the remaining useful life for the assets and totals the figures in each year. In each fiscal year, the remaining life is divided by this total in order to calculate the depreciation percentage rate for that fiscal year. This method leads to depreciation amounts that are reduced progressively by the same amount each period.
Since the remaining useful life is no longer defined after the end of the planned useful life, this depreciation method does not allow for depreciation after the end of the planned life. However, you can change to another method after the expected useful life has expired.
Acquisitions after the depreciation start year or post-capitalization will necessarily lead to a positive net book value at the end of planned life. For this reason, such transactions are not allowed when using the sum-of-the-years-digits method of depreciation. With this method, you have to handle subsequent acquisitions by creating sub-numbers. It is also a requirement that the acquisition year is the same as the depreciation start year.
Calculation :
Depreciation = APC * remaining useful life (current period) / total of remaining useful life (over entire useful life)
APC: 1000
useful life: 4
Total remaining useful life: 10 (= 4 + 3 +2 +1)
Depreciation 1st year = 1000 * 4 / 10 = 400
Depreciation 2nd year = 1000 * 3 / 10 = 300
Depreciation 3rd year = 1000 * 2 / 10 = 200
Depreciation 4th year = 1000 * 1 / 10 = 100
Declining-Balance Method of Depreciation
Use
For the declining-balance method of depreciation, the fixed asset is depreciated by a progressively falling rate. A constant percentage rate is calculated from the expected useful life and a given multiplication factor. This is multiplied with the falling net book value of the fixed asset. For mathematical reasons, the net book value will never reach zero using this method. You change over to straight-line or complete depreciation under these conditions:
Declining-balance depreciation < straight-line depreciation
Net book value < x percent of acquisition value
Net book value < fixed amount
Net book value < straight-line depreciation
The changeover method is specified in the internal calculation key.
Calculation :
Depreciation = net book value * percentage rate from expected useful life and factor
APC: 1000
Exp. useful life: 10
Net book value: 700
Multiplication factor: 3
Depreciation = 700 * (100% / 10 * 3) = 210
OR You can use following link
http://help.sap.com/saphelp_45b/helpdata/en/4f/71de3b448011d189f00000e81ddfac/frameset.htm
http://help.sap.com/saphelp_45b/helpdata/en/4f/71de3b448011d189f00000e81ddfac/frameset.htm
Regards,
ANJIREDDY
Edited by: ANJIREDDYA on May 8, 2010 12:09 PM
Edited by: ANJIREDDYA on May 8, 2010 12:10 PM

Reducing Balance Depreciation Rates

Hi All,
I need help in defining a depreciation method in the reducing balance method.
the requirement is the depreciation assets at 18.75% in the first year and then 37.5 % in the remaining life of the assets.
I will give further information if needed.
Thanks and Regards,
MPH

Hi All,
I need help in defining a depreciation method in the reducing balance method.
the requirement is the depreciation assets at 18.75% in the first year and then 37.5 % in the remaining life of the assets.
I will give further information if needed.
Thanks and Regards,
MPH

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

.

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

Change the depreciati calc methods from straght line to Decline bal methods

Hi,
We have company codes in india and Sigapore.In singapore we are following the Depreciaiton calculation methods is straight line method,but india we want to use the decline balance methods.
Please tell me how to change in order to set the deline balance methods in india company code and please tell me is there any problem for singapore comapny codes if i change the depreciation calcuation methods in india .
This is urgent issue.
Thanks,
Hani

Hi,
India & Singapore Comp codes diffrent:
1 - Change depreciation key in Asset Master.
If comp code one and asset diffrent:
1 - Identify Asset masters
2 - Change Dep Key in Asset master data through Substitution (Mass Change) / LSMW.
the above 2 scenarios system will calculate dep automatically.
Ex:
Ind Comp Till date using 10% dep kay (SLM) now change dep key (8%) WDV.
This changes are effect from current fiscal year bigining period onwards.
the adjustment amount calculate & post in next dep execution perion (Catch -up method)
the adjustment amount equally distribute to next available periods (Smoothing Method)
Regards
Viswa

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

Simplifying Straight Line Paths

Hey all,
new to the forum and really struggling with something at the moment, Using Illustrator CS4
I've imported a map from a DWG prepared in Archicad (vector based architecture software)
This map shows roads and buildings (they are paths in illustrator) and as you would imagine the roads are curved but rather than being drawn with curves they are composed of many many straight line paths and as I'm meaning to have a model laser cut from the Illustrator file I need to join these paths into longer paths so the laser cutting doesn't take forever.
As far as I can see it's fairly simple to simplify the number of anchor points on a curved path using the Object>Path>Simplify tool but simplifying multiple straight line paths that only have the slightest deviation in angle seems harder, or at least I can't work it out.
I have attached an image, The areas highlighted in green are examples of areas where there are too many paths and just one or two paths would be fine. It would be fine to either convert the paths to curved paths or just simply reduce the number of straight line paths that compose the curves.
Hope someone can help, Thx for your time
The

Apart from the current problem, you should take a look at the free plugin "Kartografie-Funktionen" if you do this kind of stuff regularly. http://www.ika.ethz.ch/plugins/index.html
It has a tool for simplifying paths, which works slightly different than Illustrator's

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.

How do you draw freehand lines like in Paint,I can only draw straight lines

Hi,
Im tryin to develop a page where people can practice writing foreign characters using a mouse, I can currently only get straight lines from my code and was wondering what i would have to do for my lines to follow the movements of the user? As this would be more helpful!
(is it some sort of FOR loop with a repaint() method occuring at a regular interval??)
Yours Thankfully
Raj

was wondering what i would have to do for my lines to follow the movements of the userKeep track of the mouse x and y coordinates starting with mousePressed, continuing with every detected mouseMoved and terminating on mouseReleased. As a new set of coordinates is formed, redraw and repaint!
;o)
V.V.

Photo Merge now creates straight line merges...

In the old days when I did a Photo Merge from Bridge I would find that the merged document would have multiple layers with masks that had quite irregular edges (as expected) and therefore smooth fills. Ultimately PS produced really good panoramas with VERY LITTLE EFFORT required.
Sometime recently, and I'm not sure which CC update it was, this all stopped working and now my merges have straight line edges and sharp non-graduated fills. Where the panoramas have straight lines in the shots or clear changes (like skylines) they jump at the merged edges and are not smooth.
What has happened? What am I missing? What new settings are required to use Photo Merge? I have checked all the obvious places in both BridgeCC and PhotoshopCC 2014 and nowhere does it mention any new controls. I have checked the various help videos and nowhere do they use any methods that I do not use. Why do they get smooth transitions when I am not?
Now I am using PSCC 2014 on a Windows 7 laptop with a smallish hard drive (SSD) and not a huge amount of room (20-30Gb drive available at most) but this wasn't a problem previously and even when I make more space available the problem persists. Am I going to have to wait until I am home and have access to my desktop with 32Gb RAM and TB of available drive? Hope that isn't the case as it will be 3 months away.
Now if this website would allow me I would add a JPG of the PS window to show the problem but it won't let me upload the file even though it is less than the 4Mb limit in size. Then we get back to entering this forum which required me to log-in to my Adobe ID 15 times before it let me start a discussion...

I've finally managed to get a screen shot into this forum.
I have deselected 2 of the frames to show the straight edges of the masks.
Now zooming in to the right hand join we see the skyline has an abrupt join...

How do put a straight line over an "o" such as in Roti Grille?

How do I get a straight line over a letter "o" such as in Roti Grille?
Thanks

PeterBreis0807 wrote:
Unless there is something else out there that I am unaware of, Roti grill is an Indian cooking method.
Why the accent is needed I don't know, I was unaware it used one.
One more time you read wrongly
The OP wrote "*Roti Grille*" not "*Roti Grill*"
In French rôti requires the accent and grillé requires its accent too !
Yvan KOENIG (VALLAURIS, France) jeudi 28 janvier 2010 22:31:33

Line items reduce the cut-off value by

Can anyone please let me know how to solve this issue. This is very critical. we get this error during posting revaluation amount in transaction code ABAW.
Line items reduce the cut-off value by 931.97
Message no. AA 632
Asset affected: 000000278578-0005
Diagnosis
The book value of the asset is below the the cut-off value in the amount of 931.97.
Procedure
Check your entries for the amount, transaction type and cut-off value specifications, such as memo value, scrap value or cut-off value percentage rate.
Really appreciate your help...
thanks,

Hi,
check cut-off value / percentage in your depr.-key
in <b>all</b> depr.-areas
and have a look here:
http://help.sap.com/saphelp_47x200/helpdata/en/4f/71dded448011d189f00000e81ddfac/frameset.htm
A.

Loan transaction - straight line or reducing balance method

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