In the Czech Republic and in Slovakia, certain legal requirements necessitate the use of a special depreciation calculation method.

To help you meet these requirements, SAP supplies the Declining multi-phase depreciation CZ depreciation calculation method. This depreciation calculation method determines depreciation using complex logic. In the first year of use, depreciation is calculated using the formula:
"base value (e.g. net book value) / useful life"

Starting with the second year of use, the system uses the formula:
"2 * base value / ((useful life + 1) - expired useful life)

The Declining multi-phase depreciation CZ depreciation calculation method also uses a special depreciation logic when assets are modernized: This logic takes effect as soon as you post a subsequent acquisition using a particular transaction type to an asset that uses the Declining multi-phase depreciation CZ depreciation calculation method. The system then automatically sets the depreciation changeover year in the asset master record (in the detail screen for the depreciation areas), and changes the calculation formula for depreciation. The system uses this formula after the changeover:

In the changeover year: 2 * base value / complete useful life (from depreciation start)

After the changeover year: 2 * base value / (complete useful life - expired useful life starting from changeover)

You control the setting of the changeover year using an indicator in the definition of the transaction type. The system sets the changeover year if the changeover year field is still blank in the asset master record. Another requirement is that changeover method 0 is entered in the calculation method used.