Maximum Amount Method 

Use

You use the maximum amount method to specify the maximum amount up to which the system should calculate depreciation until a certain calendar date. In this way, you can meet those legal requirements, for example, that allow depreciation for certain assets only up to a set amount. During the specified time period, the system calculates depreciation only until this amount is reached.

The maximum amount method does not function in the same way as a maximum base value for depreciation. With such a maximum base value, depreciation is based on a limited acquisition value, which may be below the actual acquisition value, being used from the start as the base value for depreciation. In contrast, the system calculates depreciation without any dependency on the acquisition value when a maximum amount method is used. As soon as the maximum depreciation amount that you entered is reached, the system stops calculating depreciation.

You enter the maximum amount method in the depreciation key.

Activities

If you need maximum amount methods, define them in FI-AA Customizing. Choose Depreciation ® Valuation Methods ® Depreciation Keys ® Calculation Methods.

You also specify there whether the maximum amount applies to annual depreciation or accumulated depreciation.