Planned useful life in periods

Hi,
What is the use of Planned useful life in periods in Asset master in depreciation area.

Together with planned life in years is used to represent total life of an asset. For i.e. if your asset total life is 7.5 years, you will enter number seven in planned life in years and 6 in planned lilfe in periods.
regards

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Useful Life in Asset Master

Hello
We have created one fixed asset with a capitalization date as 20.10.2004.
In the Depreciation Areas, we have given the Depreciation Starting Date as "01.01.2008"
and rate of Depreciation is 16.21%
userful life maintained in the master data is 5 Years
Total Asset Acquistion value is 85.04$. System calculated the depreciation till 20.10.2009 from 01.01.2008 @ 16.21%. After that, the system is not calculated the depreciation from 21.10.2009.
Based on the above points, our understandings are as follows:
(a) System considered the capitlization date + useful life period for depreciation calculation. Hence no planned depreciation is appearing in AW01N from 21.10.2009
(b) System considered the rate of depreciation based on depreciation key (16.21%) even thou, the useful life is maintained as 5 years
Does my observations are correct ? please comment
Besides, we need the following suggestions from you
Does it possible to increase the useful life in the fixed asset master (since, the life period is not expired and finance wants to consider the depreciation amount from 20.10.2009 onwards till the asset exprie)
If yes, what is the step by step procedure to carry such changes ?
Kindly revert
Regards
Anilkumar

youare saying corret But you should be follow some rules for calucation of deprecation
System considered the capitalization date + useful life period for depreciation calculation not only this
the system should be consideration the depreciation key , useful life , periods , ordinary depreciation for calculation depreciation and in depreciation areas tab in asset master we have to maintain like 1depreciation key 2.useful life 3.periods 4. ordinary depreciation start .if we give ordinary depreciation start date 21.10.2009 system will be calculated depreciation 21.10.2009 onwards. then only system can run depreciation plan wise in AW01N .
first we give the ordinary depreciation start date in depreciation area tab in asset master .system automatically will calculate depreciation from these date on words.
here Depreciation key determines for calculating the depreciation amount which controls the base method , period control method ,multiple method , decline balance method.
which is possible to increase the useful life in asset master and also we can run depreciation from 20.10.2009 onwards till expire asset
for this configuration
1.Go for AFAMS multiple method and give the parameters such as acciquistion year , periods
2.we have to activate depreciation key in AFAMA
3.in as02 in depreciation area tab here we have to give the depreciation key , useful life , periods , ordinary depreciation start date
I hope this is very useful
With regards /G chandrababu
Edited by: chandra babu on Dec 29, 2009 10:33 AM

Asset master data no "Expired useful life".

Hi expert.
Today our user tell me ,system need her that to enter the filed (ANLC-NDABJ/NDABP) of * expired useful life in year /period * in depreciation area tab . otherwise not allow to save the data.
And i found, all of asset capitalized period on 2011.12 and the start depreciation period on :2012.01 ,the Expired useful life year/period is null and requirement to input the value.
when we enrty the expired useful period.
Expired useful life 000 000 calculated by system (Check)
Message no. AA910
My question:
What's reason and how to fix it ?
Thanks,
Regards,Alex

Hi,
Usually Expired life will be displayed in Asset master once the acquisition. If your capitalization date is in the previous fiscal year (in your case: 2011.12) and in the next period you will able to see asset expired period as 01 period(assume next fiscal year is starting from 2012-01).
I guess you should maintain your capitalization and ordinary depreciation date one and the same

Decimal places are not permitted for asset useful life

Dear SAP experts,
I need to post a new net book value on a new depreciation area 50 for fixed assets. The new deprecation for depreciation area 50 will start in July 2011 on all existing (also fully depreciated or to be disposed) assets with a different useful life unlike the book deprecation for depreciation area 01. The depreciation method for depreciation area 50 is straight line.
I have a requirement to assign the new useful life for the depreciation area 50 which may contain decimals, for example 5.5 years. Basically, I need to depreciate the asset for the remaining 6 months of 2011 and the entire 2012 to 2016.
SAP does not allow decimals on asset useful life (Decimal places are not permitted, Message no. 00011).
Have you come accross a similar situation? How can that be managed via depreciation methods and keys?
Please advise.
Thank you in advance,
Inna

Hi Inna,
You can define your useful life of 5.5 years for the depreciation area 50 as follows:
Useful life : 5
period : 6
here, useful life(5) represents 5 years and period(6) as 6 months which gives you 5.5 years starting depreciation from Depreciation calculation start date.
Kind Regards,
Mehul

Problem in useful life of the asset?

Hi,
I don't know what and where it is going wrong so need your suggestion please:
We have created one new asset class and trying to check dep. in testing server but system is calculated dep. with useful life as 10 years only for all the assets I have created.
In OAYZ, I have just given the dep. key and the fields of useful life and period is blank for all the dep. areas. Also, tried with useful life 5 but result is same.
In Asset Master, I have mentioned the useful life as 5 years for all the dep. area.
The problem is system is system is showing the values based on useful life of 10 years, why I don't know what shall I do please suggest....
I have checked it by creating some of other assets as well with different useful lives but the result is same.
Please help!!!
Thanks in advance....
Regards
Nitin

Hi Nitin,
If the depreciation is based on 10 years even if you have entered useful life 5 years then it means depreciation key is not configured as dep based on useful life.
It seems depreciation is based on explicit percentage which must be 10% in your case.
Check what dep key is assigned in Asset master and go to T code AFAMA, AFAMS for depreciation key settings.
If you still have doubts of how to go about it then attach screenshots of AFAMA,AFAMS.
Hope it solves.
Regards,
GSR

Useful Life in Assets

Dear Experts,
What is the useful life we should enter when we migrated the asset from Legacy system to a new SAP Environment?
The useful life should be as per the legacy system or should it be the remaining useful life?
Thank you.

Hi,
Please refer to this thread:
Assets Useful Life and Period
Best Regards, Lawrence

Depriciation key and useful life periods in asset master should in display mode only

Hi all
At the time of creation asset master AS01 we are given the Asset class, company code and similar of asset (1) then we click enter button we will get Create asset: master data screen here in general tab we enter the description and in time dependent tab we enter cost center manually
But
When we click on Depreciation tab here the Depreciation key and use life fields are automatically come with Dep.key(ABC) and use life(15) (Because we maintained in OAYZ)
Here user have a chance to change the Dep.key(ABC) and use life(15).so my requirement is these two fields are display with only display mode .
User don’t have chance to modify this.

Hi Anil,
The screen layout for Asset and its depreciation tab are different. You have to make these fields as Display only in the screen layout. This can be done using T-Code AO21. Below are the screenshots for the path and screen layout for your reference. This should solve your issue
Regards
Pankaj Pareek

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 useful life change

Hi,
I have asset with useful life 10 years. Expired useful life 5.3 years.
I am trying to change useful life to 5.6 years so that i can depreciate asset fully in coming 3 periods. Net book value should be ZERO after 3 months, and in Asset explorer also planned depreciation should be shown for 3 periods.
if i enter 5.6 years in useful life, the depreciation is calculating for 5.6 years and in planned also showing for 5.6 yrs instead of for 3 periods.
Below are the depreciation key parameters:Depreciation key 1st phase from the start of depreciation
Base method 0007 Ordinary depreciation from useful life
period control 007 01/06/02/02
Multilev.meth.    045    APC, any life
Chnge. method 5 change over after end of the useful life
Please help
Thanks
Hari

Hi,
1) Please see in AW01N in Parameters the following indicators:
Useful life     010 / 000
Exp. usefl life 005 / 003
Remaining life 004 / 007
If you change the Useful life is should be:
Useful life     005 / 006
Exp. usefl life 005 / 003
Remaining life 000 / 003
2) The depreciation will be corrected as a result of changing useful life.
How it is corrected?
It depends on your setting sin OAYR (smoothing or catch-Up). Please see following threat:
Smoothing- explaination.
3) You have created a change over method:
"5 Changeover after end of the useful life"
So, the depreciation changes into second phase:
Of you make the second phase similar to depr. key DG20 or DG30, the asset will be fully depreciated, after end of useful life.
But: the change over can only happen after end of a fiscal year.
Regards Bernhard

Increased useful life

Hi,
We made some repair costs to our building, and we decided to capitalize the repair costs to value of the building. Also we decided that repair works incresed/prolonged useful life of this building. We want that NBV and capitalised repair costs would depreciate during the remaining + prolonged periods, i.e.
Initialy useful life was 30 years, after 20 years when we made repair it was 10 years remaining, and we decided that repair prolongs useful life additional 5 years, so in total 15 years.
How to adjust remaining useful life in order to claculate depraciation for the rest period plus additional period smoothly? Because system recalculates depreciation of previous periods and posts positive values and than negative, but we want calculate smoothly for the whole rest depreciation period with negative depr. values.
Please help!

Maybe I have described not so clear my problem. Because it is realy important for us I try to describe more detail:
According to our internal accounting principles of fixed assets, when
we made essential subsequent acquisition, e.g. we made repair works of
the roof of our building; we have to add those costs to initial
acquisition cost of the building, and to prolong useful life of the
building. And depreciation calculation must be calculated in this way:
Initial acquisition cost 1.000.000 monetary units (MU);
Initial useful life 40 years;
Monthly depreciation was: 1.000.000/40/12 = 2.083 MU;
After 20 years we made subsequent acquisition amounting to 200.000 MU
and prolonged useful life additionally 10 years.
So in our accounting books planned monthly depreciation after
subsequent acquisition must be as follows:
(500.000 + 200.000) / 30 / 12 = <b>1.944</b> MU,
500.000 MU net book value at subsequent acquisition day = 1.000.000 /
20
30 years = remaining 20 years + prolonged useful life 10 years
But the system calculates in this way:
Recalculates depreciation of past 20 years and posts difference with
positive depreciation value to current year planned depreciation:
1.000.000 / 40 / 12 - 1.000.000 / 50 / 12 = 2.083 - 1.667 = 417 MU,
417 * 20 * 12 = 100.000 MU
And only after that in planned future fiscal years system posts
negative depreciation. For example we made subsequent acquisition in
December of 2006:
Period      Depreciaiton, MU
2006/12    +100.000
2007/01     -2.222
2007/02     -2.222
             -2.222
2036/12     -2.222
Posting like above are completely inconsistent with our internal
accounting principles. We need to avoid positive depreciation postings
at all.
We need postings as follows:
Period        Depreciaiton, MU
2006/12      -1.944
2007/01      -1.944
2007/02      -1.944
              -1.944
2036/12      -1.944
How to configure depreciation of subsequent acquisitions and prolonging
of useful life according to our needs?

Useful Life in Dep Key "to the day"

Hi,
we have two depreciation areas one for IN gaap and the other for US GAAP. In GAAP has depreciation keys with "to the day" feature and the US GAAP has depreciation keys created with useful life feature.
Now the issue is since useful life has got no role in the case of IN GAAP, whenever we create asset we press enter enter and the same usefule life as per US GAAP get copied in the US GAAP also as it has no relevance for calculation.
The problem is that if i enter only period 1 as useful life for US GAAP( meaning that the asset is to be fully depreciated in one month for US GAAP purpose) and the same period 1 is entered in IN GAAP. then for IN GAAP my full asset is getting depreciated in 6 months wheras the depreciation key assigned to it is 13,91 wdv method( with to the day tick).
I changed the period 1 and made it 999 for IN GAAP purpose and tested it in test system and then system is showing correct values.
Can anyone throw some light on this issue as to why it is changing in case of useful life when the dep to the day is ticked in depreciation key.
Regards,
SAPFICO

..

New Depreciation to start from Mar (not Jan) after change of useful life

Hi
Does anyoe has any solution or will there be changes to SAP B1's Fixed Asset?
Let me explain the full scenario as below:
1) Customer has Fixed Assest which has useful life of 25 years, i.e. 300 months.
2) The assets has been depreciated for a few months, e.g from July 2008 to Mar 2009. In FA Master Data, it shows the remaining useful life is 294.
3) From Mar 2009 onwards, the management decides that the userful life is to be 30 instead of 25. The past depreciated value is to remain. The new depreciated value is to be effective from Mar 2009 onwards.
Changes Done
1) In Fixed Asset Master file, under the General tab, a change has been made to the Useful life from 300 to 360. The remaining life is auto-change to 354.
2) Re-run the depreciation for Mar 2009.
3) The new depreciated value is re-calculated from Jan 2009 onwards and the adjustment is posted in Mar 2009.
What is required is that Jan 2009 to Feb 2009 should remain the original depreciated value. The new depreciated value should be adjusted from Mar 2009 onwards.
Please advise is there any solution or proposals.
Example
Asset value = 518749.95
Useful life = 300
Remaining Useful life = 294
Monthly Planned Depreciated Value = 1729.17, Dec Planned Depreciated value = 1729.13
After Changes Done
Asset value = 250000
Useful life = 360
Remaining Useful life = 354
Monthly Planned Depreciated Value = 1436.09, Dec Planned Depreciated value = 1436.06
Required
Asset value = 250000
Useful life = 360
Remaining Useful life = 354
Jan and Feb Planned Depreciated Value = 1729.17
Mar 2009 onwards, Planned Depreciated Value = 1404.95
Calculation = (518749.95 - 20750 - 3458.34)/352
where 20750 is the depreciated value for 2008 and 3458.34 is the depreciated value for Jan and Feb 2009.
Thanks
Siew Yuen

Hi Yatsea
Let me explain the full scenario as below:
1) Customer has Fixed Assest which has useful life of 25 years, i.e. 300 months.
2) The assets has been depreciated for a few months, e.g from July 2008 to Mar 2009. In FA Master Data, it shows the remaining useful life is 294.
3) From Mar 2009 onwards, the management decides that the userful life is to be 30 instead of 25. The past depreciated value is to remain. The new depreciated value is to be effective from Mar 2009 onwards.
Changes Done
1) In Fixed Asset Master file, under the General tab, a change has been made to the Useful life from 300 to 360. The remaining life is auto-change to 354.
2) Re-run the depreciation for Mar 2009.
3) The new depreciated value is re-calculated from Jan 2009 onwards and the adjustment is posted in Mar 2009.
What is required is that Jan 2009 to Feb 2009 should remain the original depreciated value. The new depreciated value should be adjusted from Mar 2009 onwards.
Please advise is there any solution or proposals.
Example
Asset value = 518749.95
Useful life = 300
Remaining Useful life = 294
Monthly Planned Depreciated Value = 1729.17, Dec Planned Depreciated value = 1729.13
After Changes Done
Asset value = 250000
Useful life = 360
Remaining Useful life = 354
Monthly Planned Depreciated Value = 1436.09, Dec Planned Depreciated value = 1436.06
Required
Asset value = 250000
Useful life = 360
Remaining Useful life = 354
Jan and Feb Planned Depreciated Value = 1729.17
Mar 2009 onwards, Planned Depreciated Value = 1404.95
Calculation = (518749.95 - 20750 - 3458.34)/352
where 20750 is the depreciated value for 2008 and 3458.34 is the depreciated value for Jan and Feb 2009.
Thanks
Siew Yuen

Changing useful life of an asset

Hi All,
Client wants to change the asset's useful life from 4 years to 3 years. Also previous depreciations should not get affected due to this. The new recalculated value of the asset should be spread over the remaining useful life and depreciation amount should also be recalculated accordingly. Do we have such functionality in SAP version ECC4.6?? or we need to post the depreciation manually going forward?? I have tried smoothing method but this is also not helping me out.
Please advice if we can do something in it.
Many Thanks,
Parul

Hello Parul
Sorry but this functionality is only available as of release 6.0 if you have the
new depreciation engine activated. Note 965032 will provide you more details. In
particular section 4. c) Managing time-dependent depreciation parameters:
With the new depreciation calculation, you now have the option to
change depreciation terms during the fiscal year. This means that
the changed parameters are included in the calculation always
from the period for which the period is also valid.
The following depreciation terms can be maintained   time-dependently on the   fixed asset:
- Depreciation Keys
- Useful life
- scrap value/scrap value percentage rate
- variable depreciation portion
Regards
Javier

Changing useful life an asset and its impacts

Hi Gurus,
if we change the useful life of an asset, what are the steps do we follow ? do we need to post the write up first and then change the useful life ? can you detailed the steps and impacts on this change with exapmles.. pl
Venkat Rajesh Kumar

Hello Parul
Sorry but this functionality is only available as of release 6.0 if you have the
new depreciation engine activated. Note 965032 will provide you more details. In
particular section 4. c) Managing time-dependent depreciation parameters:
With the new depreciation calculation, you now have the option to
change depreciation terms during the fiscal year. This means that
the changed parameters are included in the calculation always
from the period for which the period is also valid.
The following depreciation terms can be maintained   time-dependently on the   fixed asset:
- Depreciation Keys
- Useful life
- scrap value/scrap value percentage rate
- variable depreciation portion
Regards
Javier

Asset to get the assets in which useful life was chnged.

Which Asset table will capture the changes made to the asset useful life in the asset master data.I mean i should be able to get assets in which the useful life was changed in any speciied period.

Hi,
change documents you can see as follows:
Go tto asset master datta (AS03 or AW01N) - Environment - change document.
regards Bernhard

Planned useful life in periods

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