The following conditions apply for this example for changeover after end of the planned useful life:

• Depreciation start: July 01, 1999
• Useful life: 5 years
• End of planned useful life: June 30, 2004
• Acquisition and production costs: 100
• Depreciation method: straight-line, percentage rate based on useful life, base value 100% of acquisition and production costs
• Changeover after the end of planned useful life: percentage rate based on useful life, base value 50% of acquisition and production costs

This results in the following course of depreciation:

1999: 10 (100/60*6)

2000: 20 (100/60*12)

2001: 20 (100/60*12)

2002: 20 (100/60*12)

2003: 20 (100/60*12)

2004: 18 (100/66*12) or 2000: 10 (100/60*6)

2005: 10 (50 /60*12)

There is no changeover in the year 2004. Instead, the planned useful life is internally increased by 6 months, and the old method is still used. The system acts in this fashion, since the system determined that this method allowed for depreciation below zero and after the end of the useful life. If you want the other option, you have to change the base method so that calculation of depreciation is only allowed to the end of the useful life and depreciation below zero is not allowed.

A transaction with an asset value date up to June 30, 2004 will be subject to the calculation method of the old phase. A transaction with an asset value date after July 1, 2004 will be subject to the calculation method of the next phase, as a result of the changeover method.