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Jul/09
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Configuration of new depreciation key


Requirement of new dep.key is as below.

  • Depreciation for 1st year – 60% of the value
  • Depreciation for second year and so on – 20% each year on straight line method

 

Example scenario: Cost: HKD 100,000

  • Depreciation for first year:
    HKD 60,000 (Cost HKD100,000 X 60%)
  • Depreciation for second year and so forth:
    HKD 8,000 (Cost HKD40,000 X 20%)

Can you please suggest how this depreciation key can be created?

 

The solutions are:

 

You can do it this using the ‘change over method’ in dep.key.

In depreciation key configuration ‘change over method’ field available. select the option with the useful life and do the same accordingly – SKS

 

Where do we specify depreciaiton rate in depreciation key? For strainght line method of depreciation with changeover. So where do I specify that for 1st year it is 60% and remaining years it is 20%?

 

In AFAMS transaction, i.e in Multi-Level methods select the multilevel method you are using and there you can state the percentages year wise.

You will be maintaining multi level method in AFAMS transaction and correspondingly the year and against the year the required percentage.

As you said you woudl like to maintain it for Depreciation key for straight line method – Multi level has to be maintained.

In the Maintain Depreciation Key (AFAMA transaction) in Assignment of calculation methods you assign the abobe mentioned multi level method against “Multilev.meth.” field. – Giridhar


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