Other Features of Depreciation Key
Use
The depreciation key offers further settings for depreciation calculation, in addition to the settings already discussed.
Features
No Ordinary Depreciation with Special Depreciation
You can specify that the system does not calculate ordinary depreciation if there is special tax depreciation. This means ordinary depreciation is set to zero.
No Interest If No Depreciation is Planned
You can specify that the system does not calculate imputed interest unless depreciation is also calculated.
Period Control According to Fiscal Years
You can specify that a given depreciation key, for selected company codes and fiscal years, uses period controls that are different from those in the period control method.
This may be necessary, for example, when depreciating according to US law, if you only apply the mid-quarter convention to acquisitions in specific company codes or fiscal years.
Depreciation to the Day
You can specify that the system performs the depreciation calculation to the day. The period control rules in the calculation method are thereby deactivated for the entire life of the asset.
The system takes the 29th of February into account only if there were transactions for the asset during this leap year. If there were no transactions during a leap year, the annual depreciation for the year is the same as in a normal year.
This special handling meets legal requirements in France.
Depreciation Calculation in Shortened Fiscal Years
You can specify that depreciation is not reduced in shortened fiscal years, even if settings were made to that effect in the depreciation area at company code level.
Acquisitions Allowed Only in Capitalization Year
You can specify that the system only allows acquisitions in the year in which depreciation started for the asset. This may be necessary for technical reasons when you use sum-of-the-years-digits depreciation, for example. You may also want to use this function for your own internal, organizational reasons.
Number of Places for Rounding
You can specify the number places to which the system should round the percentage rate for depreciation calculation.
Depreciation Class
You can classify the depreciation key. This characteristic can be used as a selection criterion in reporting.
Multiple Shift Use
You can specify that the system calculates increased depreciation due to increased wear and tear on assets during multiple shift use.
Affect of Scrap Value on Base Value for Depreciation
You can specify how the scrap value influences the base value for depreciation (for example, by reducing the base value).
You need this setting only in the following case: You have a depreciation key with different phases, each with different calculation methods, and you want the treatment of the scrap value to also be different in each phase. Normally the treatment of the scrap value is the same in the depreciation key throughout the useful life.
According to Federal Income Tax law (§350) in the USA, scrap value has to be handled differently in the declining-balance phase of depreciation than after the changeover to straight-line depreciation.
Calculate Shutdown
By specifying shutdown periods in the master record, you can have the system suspend depreciation during shutdown periods.
Refer also to the online long texts for these functions in the system.