Calculation Methods (Control Functions) 
Calculation Methods (Control Functions)
Use
The system uses calculation methods for the calculation of depreciation and imputed interest. You assign calculation methods to
depreciation keys. The calculation methods provide the parameters for the depreciation calculation program.The calculation of depreciation is controlled by the calculation methods, the control parameters that are entered in depreciation keys, and the
cutoff value keys.Features
You maintain each calculation method separately, and then assign it to a depreciation key. Since the individual calculation methods are independent of each other, you can use a given calculation method in more than one depreciation key. As a result, you do not have to define a large number of new calculation methods in order to maintain a number of depreciation keys that function similarly.
The individual calculation methods, with the exception of the base method, are dependent on the chart of depreciation. This means you can represent your country-specific depreciation requirements by means of calculation methods that are chart-of-depreciation-specific. The system helps you to choose the right methods by only offering methods for selection that apply to your given chart of depreciation. You can also enter default values for depreciation areas and company codes.
The following graphic provides an overview of the control functions of calculation methods.
Calculation Methods
The standard calculation methods are an integral part of the system and cannot be altered. If you need to modify a calculation method for legal or business reasons, copy the calculation method and make the alterations to the copy. The key of the calculation method that you create has to begin with X , Y or Z.
Any changeovers to other calculation methods during the duration of depreciation are defined in the depreciation key.
Calculation Methods
Calculation Method |
Control Parameters |
| Base Method | Depreciation type (ordinary or special depreciation, interest) Depreciation calculation method (for example, Stated percentage) Treatment of the end of depreciation |
| Declining-Balance Method |
Declining-balance multiplication factor, maximum and minimum percentage rate |
| Maximum Amount Method |
Maximum amount, currency, validity date |
| Multi-Level Method |
Validity date or period, levels, base value, calculation of percentage or remaining useful life, reduction of base value |
| Period Control Method |
Period control for acquisition, subsequent acquisition, retirement, transfer |
Refer also to the system long text documentation for the control parameters of the individual calculation methods.
Activities
If you need your own calculation methods, define them in FI-AA Customizing. Choose Depreciation ® Valuation Methods ® Depreciation Keys ® Calculation Methods.