Hi SAP Asset gurus,
Good day!
We would like to request your inputs on below scenario regarding depreciation behavior after changing the useful life of an Asset.
We have an asset which Useful life is 5 Years and users have a requirement to extend its useful life from 5 years to 10 years.
We tried to simulate and extend the useful life however; user’s expected new ordinary depreciation after extending the useful life is not the same with the SAP system.
User expects that after changing the useful life, the system must re-calculate the new depreciation from NBV as of June 2014 while the SAP system calculates based from the NBV in the beginning of the Year.
User’s intended depreciation calculation:
NBV of Asset after Depreciation of June 2014: 430,000.00
Remaining useful life as of Depreciation of June 2014: 103 periods
Intended depreciation: 430,000/103 = 4,174.76
Ordinary dep. for 12 periods: 4,174.76*12 = 50,097.12
SAP Calculation:
NBV of Asset in the beginning FY 2014: 460,000.00
Remaining useful life as of beginning of FY 2014: 106 periods
Sap calculation: 460,000/106 = 4,339.62
Ordinary dep. for 12 periods: 4,339.62*12 = 52,075.47
As per our simulation, it seems system’s calculation of depreciation is based from the NBV of the asset in the beginning of the year.
Useful life: 5 years / 60 Periods
Net Book value start: 600,000.00
Ordinary Depreciation Start: February 2012
Depreciation run posted for FY 2012: 2 Periods Feb – Mar
Depreciation run posted for FY 2013: 12 Periods April – Mar
Depreciation run posted for FY 2014 – 3 Periods April – Jun
Year end Asset Accounting closing - 2013 Closed
With this, may we have your advice if the users expected depreciation is possible in SAP system?
Hoping for your kind inputs on above scenario.
Thanks,
Nel