Special Depreciation in an Asset's First Year 

Use

In the first year of a new asset’s useful life, you can depreciate 30% of its acquisition and production costs in full: It makes no difference which month you capitalize it in. For example, if you buy an asset for PLN 10,000, you can depreciate it in the first year by PLN 3,000, no matter whether you capitalize it in January, May or December (see also the example of an asset with straight-line depreciation).

In their first year, you can depreciate assets with declining-balance depreciation (and only these) using an alternative method, if it yields a greater depreciation amount than the 30% flat rate method just described. With this second method, you calculate depreciation at three times the normal depreciation rate, but only for the number of full months after you have capitalized asset (see example).

Activities

Customizing

As described in SAP Note 607975, activate the tax depreciation area so that it allows special depreciation, and create a depreciation key.

Periodic Processing

When an asset clerk carries out a depreciation run, the system automatically calculates special depreciation on the assets that you have assigned the depreciation key to.