Thursday, December 20, 2007

Discover the Logic and Parameter Changes in the New Depreciation Calculation

As of mySAP ERP 2005, SAP has delivered a new depreciation calculation in Asset Accounting. This algorithm introduces new depreciation concepts as well as new functionality — period interval-based parameters and time-dependent depreciation parameters.

Key Concept

The new depreciation calculation available with mySAP ERP 2005 is 100% compatible with the older one. No configuration changes are required as part of this process and you do not need to migrate data, either. Included in this new calculation is a piece of functionality that now makes it possible to invoke changes to an asset’s depreciation calculation on a period basis. Several new Business Add-Ins allow further customization of the depreciation calculation.

As part of the functional enhancements in the mySAP ERP 2005 release, SAP has changed the underlying depreciation calculation that the Asset Accounting (FI-AA) subledger uses to depreciate fixed assets. The justifications for making such a fundamental change were to make the depreciation calculations easier to understand and to roll out new functionality that was required in various countries. Some of these country-specific requirements were related to their unique accounting rules and currencies. The main items SAP included in this release are:

  • Period interval-based calculation

  • Time-dependent depreciation parameters

  • Depreciation method changeover on period level

  • Base value determination on period level

  • New transaction type groups

  • New fixed asset depreciation trace

  • Improved handling of group assets and assets under construction

  • New Business Add-Ins (BAdIs) that allow greater flexibility and customer control over the depreciation calculation

Of these items, the first two — period-based depreciation calculation and time- dependent depreciation parameters — will likely be of the most interest to SAP users who have implemented FI-AA.

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