2138926 - Calculation of Depreciation Shows Different Amounts Than Expected

SAP Knowledge Base Article - Public

2138926 - Calculation of Depreciation Shows Different Amounts Than Expected

Symptom

The Acquisition Cost for Fixed Asset XXX is 123, the Useful Life is ABC Years, the Depreciation Method is L010 - Str.-line from acq.value to 0.
You expect that the system calculates the depreciation as follows: Acquisition Cost divided by the number of years of Useful Life resulting in the same depreciation amount for each year of the Useful Life.

Instead the system calculates depreciation amounts you do not understand.

Reproducing the Issue

  1. Open Fixed Assets Work Center
  2. Select Fixed Asset XXX and click on Edit - Values
  3. Navigate to the tab Depreciation Overview
  4. You can see the calculated depreciation for FA XXX for each year of the Useful Life

Cause

The depreciation is calculated in accordance with the rounding rules in the work center Business Configuration:

  1. Open Business Configuration work center
  2. Select the activity Fixed Assets Valuation View
  3. Navigate to the tab Rounding Rules
  4. You see that for the Net Book Value the Rounding Rule Arithmetic Rounding has been maintained*

 

Example: 

Acquisition Cost of FA XXX: 803,32 EUR
Useful Life: 10 Years
Depreciation Method: L010 - Str.-line from acq.value to 0

You expect that the depreciation is calculated as follows:

Acquisition Cost 803,32 EUR divided by 10 Years Useful Life = 80,33 EUR per year of useful life.

 Instead the system calculates the depreciation as follows:

Year 1: 81.32 EUR
Year 2: 81.00 EUR
Year 3: 81.00 EUR
Year 4: 81.00 EUR
Year 5: 81.00 EUR
Year 6: 81.00 EUR
Year 7: 81.00 EUR
Year 8: 81.00 EUR
Year 9: 81.00 EUR
Year 10: 74.00 EUR

Explanation of those amounts:

Acquisition Cost 803,32 EUR divided by 10 Years Useful Life = 80,33 EUR per year of useful life.
In accordance with the rounding rules this amount is rounded to 81,00 EUR per year of useful life.
The Cent amounts are added to the depreciation amount of the first year of useful life: 81,32 EUR.
For year 2 - 9 the depreciation amount is 81,00 EUR.
To achieve the net book value of 0,00 EUR, the depreciation amount for the last year of useful life is 74,00 EUR.

Resolution

 This is the expected system behaviour.

 *These are the standard settings when the system is delivered to customers

Keywords

KBA , SRD-FIN-FA , Fixed Assets , How To

Product

SAP Business ByDesign all versions