Configuring Depreciation Keys for Revalued Assets 

Use

SAP provides predefined depreciation keys and their underlying elements. To comply with Australian accounting standards for asset depreciation, create a new depreciation key from the delivered depreciation elements and other additional elements. The new values are depreciated over the remaining useful life of the asset without an adjustment occurring for depreciation in previous periods in the fiscal year of the revaluation, based on fair value accounting principles.

Prerequisites

You have created asset classes.

Procedure

       1.      Create the calculation methods as follows:

                            a.      Define a base method for revaluation in Customizing for Financial Accounting (FI) by choosing Asset Accounting ® Depreciation ® Valuation Methods ®Depreciation Key ® Calculation Methods ®Define Base Method.

Make the following entries:

Field	Enter/Select
Type of Depreciation	Ord. depreciation
Dep. Method	Percentage from the useful life
Reduce Use. Life at FY End	Leave this field blank
Dep. After Plnd. Life End	No
Dep. Below NBValue Zero	No
Curb	No

 

                            b.      Define a multi-level method in Customizing for FI by choosing Asset Accounting ® Depreciation ® Valuation Methods ® Depreciation Keys ® Calculation Methods ® Define Multi-Level Methods.

Make the following entries:

Field	Enter/Select
Validity Start	2
Acq. Year	9999
Years	999
Per	Leave this field blank
Base Value	24 (NBV)
Percent	Leave this field blank
Rem. Life	Select this field

 

A multi-level method is not required but it contains the indicator for the allocation of depreciation over remaining life, which is integral to the subsequent calculation of revalued assets according to Australian accounting standards.

                            c.      Define a period control method in Customizing for FI by choosing Asset Accounting ® Depreciation ® Valuation Methods ® Depreciation Key ®Calculation Methods ® Define Period Control Methods. Choose the period control indicator 01 (pro rata at period start date for all) for all transaction groups.

       2.      Create a depreciation key based on these three calculation methods in Customizing for FI by choosing Asset Accounting ® Depreciation ® Valuation Methods ® Depreciation Key ® Maintain Depreciation Key.

       3.      Assign the calculation methods to the depreciation key.

       4.      Set the status of the depreciation key to Active.

 

For more information on depreciation keys, see Depreciation Keys.