It is important, both from the point of view of management accounting and for the balance sheet, to plan the course of development of fixed assets.

A standard report is therefore available for forecasting and simulating future depreciation. This report can simulate depreciation not only for assets that are already capitalized, but also for planned capital investments. To determine the types of objects included in the report, you enter the appropriate selection indicators in the initial screen of the simulation report.

For capitalized assets, the report forecasts future depreciation on the basis of the APC and the depreciation terms entered for the asset. For planned investments, the report uses the plan values or budget values. The depreciation terms in this case are the depreciation simulation terms you entered specifically for the forecast.

The general reporting functions, such as sort versions and the option for a totals report, are also available for the depreciation forecast. You can also enter a simulation version for replacing depreciation terms before running the report. Under Info system in the Asset Accounting (FI-AA) application menu, you can define an unlimited number of simulation versions. You can then carry out a depreciation forecast using changed depreciation terms.

Your entry of the report date in the initial screen of the report determines the fiscal year up to which the simulation will be carried out.

The report displays the following values:

• The book value at the start of the year

• The cumulative transactions affecting APC, up to the beginning of the current fiscal year

• The transactions affecting APC in the current fiscal year

• The planned ordinary depreciation and other depreciation in the current fiscal year

• The planned net book value at the end of the year

• The planned interest in the current fiscal year and the cumulative interest up to the beginning of the current fiscal year