FA Depreciation

[isb]

Hi List,

I try to set up new depreciation method which will use the following formula:
"Year to Date NBV / Actual Remaining Asset Life period"
It is clear for me how to calculate "Year to Date NBV", but I am not able to find any acceptable solution (or formula element) to calculate "Actual Remaining Asset Life period". Below is an example:
Original Asset Cost - 120,000 USD
Asset Life - 12 months
1-st Month Depreciation - 10,000 USD

In second period additional cost is posted to FA - 50,000 USD. FA life remains the same - 12 month
2-d Month Depreciation should be calculated as follows:
(Original Cost + Additional Cost - Accumulated Depreciation) / Actual Remaining Asset Life period.
(120,000 + 50,000 - 10,000) / 11 = 14,545.46

Does anybody have similar requirement which is implemented? I will appreciate any idea.

 

[elway]

Hi Ivan,

you could consider the following approach:

use a "spare" field in F1201 such as FAARPC (Replacement Cost) or FAARLC (Last Year Replacement Cost) which elements can be used in customised depreciation formulae;

these can be entered into each asset record manually or by using the F1201Z1 table in "Change" mode [Note you must also include in the upload all existing field data not being changed for the assets];

create a new depreciation rule using this new formula;

amend the depreciation methods for the assets to use the new rule [if there are lots of these, it might be worthwhile using the R12822 UBE to update the assets to use the default method for the accounting class(es) involved, having first changed the depreciation default itself];

I recently used this to implement a customised depreciation calculation for several hundred assets, using the Grid|Import function to transfer the data in from Excel to P1201Z1.

HTH