New Depreciation Engine 

Use

In Japan, companies have to fulfill certain country-specific requirements regarding the depreciation of assets. The localization of the New Depreciation Engine for Japan enables companies to meet these requirements. In particular, the solution provides the following functions to comply with Japanese legal requirements:

●     Depreciation Keys

Three new depreciation keys are delivered for Japan. These keys contain specific depreciation rates published by the Japanese tax authorities.

●     Depreciation Method Switch

A new depreciation key is delivered for assets whose depreciation method is changed from the declining-balance method to the straight-line method. Parameter data is also copied after transfer postings.

●     Over-Depreciation

Over-depreciation could occur when acquisition production cost (APC) and investment support are managed separately in each depreciation area and the timing of their postings is different. The system checks the total net book value of an asset (APC and investment support) to ensure that it does not violate the scrap value of the asset.

●     Asset Impairment

The asset master data includes a tab page for impairment so that depreciation can be calculated after impairment, using the new depreciation keys based on the Japanese-specific formular for depreciation rates and base values.

 

For more information, see the individual function documentation.