Useful Life in Asset Master

Question

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

Answer 1

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