Base Value for Depreciation (SAP Library - Asset Accounting (FI-AA))

Base Value for Depreciation

Use

The base value for depreciation is closely linked to the selection of the depreciation calculation method . Since it is not logical to use every depreciation method with every base value, the base value is usually already determined by the depreciation method. The following base values are defined in the system:

Acquisition value

Acquisition value less unplanned depreciation

Half of acquisition value

Replacement value

Half of replacement value

Current net book value without special depreciation

Average net book value (see the example for the calculation in Calculation of Interest)

Average net book value without special depreciation

Current net book value

Accumulated ordinary depreciation

Accumulated special depreciation

Sum of accumulated ordinary and special depreciation

Limited base value (see below)

Your own base value based on a customer enhancement (AFAR0001) For more information, see the documentation of the customer enhancement (transaction SMOD.)

Since revaluation (refer to Special Valuation) takes place with reference to a specific point in time and not according to a period of time, the system does not calculate a mean value for the annual revaluation portion of the asset value when calculating the average net book value.

Features

Reducing Percentage Rate

By entering a percentage rate, you can reduce the base value for depreciation. For example, entering 50.000 results in the base value being reduced by half. This reducing percentage rate can be entered in the level definition of the multi-level method.

Limited Base Value

You can enter a maximum acquisition value as a base value for the calculation of depreciation. You enter this value in FI-AA Customizing ( Define maximum base value ). You can enter this limited acquisition value, like all other base values, as a key (05) in the definition of the multi-level method.

Limited acquisition value means that the system uses a given maximum amount as the base value. If the actual acquisition value of the asset is smaller than the maximum amount, then the system uses the actual acquisition value as the basis for depreciation. If the acquisition value of the asset is above this maximum value, the system depreciates from the maximum value that was set.

You can set a maximum base value per depreciation area and asset class in a given company code. In addition, you can set a time limit on it by entering a "valid to" date. This time limitation applies to the capitalization date of the asset, and therefore can only be set once for each asset. It is, therefore, not possible to assign different maximum base values to an asset in the individual years during its useful life.

Depreciation per Asset Value Date

The system lets you choose to depreciate acquisitions in the original acquisition year either starting from the depreciation start date or from the asset value date of the acquisition. If you choose the depreciation start date, the system carries out uniform depreciation for all acquisitions to an asset. If you choose the asset value date, the system depreciates each acquisition to the asset starting from the asset value date of the individual acquisition posting.