Fixed Assets Periodic Depreciation: Business Process and Important Terms

An overview of the fixed assets depreciation and the meaning of the below important terms:
Acquisition Production Cost (APC)
Residual Value
Depreciation Basis
Depreciation Expense
Accumulated Depreciation
Depreciation Methods / Keys
Depreciation Areas
Parallel Accounting
Parallel Currencies
Links:
IFRS 16 and 38 bit.ly/3wP3sDt
Depreciation Methods bit.ly/3XXm7J3
Support the channel and get access to Member exclusive content:
/ @abdullahgalal

[@raybuttigieg1343]

Abdullah, can you please confirm how you stored the depreciation basis of 4,800 differently from the acquisition value of 5,000. Is this by specifying a different base value method in the depreciation key? Is the planned future residual value stored on the asset master?

[@AbdullahGalal]

The residual value

[@raybuttigieg1343]

@@AbdullahGalal Thanks. so I found the scrap value field ANLB-SCHRW in the depreciation area specific settings in the fixed asset. But then I notice that the planned depreciation is not reduced over the life of the asset. Only in the final year is planned depreciation adjusted to leave the scrap value remaining. so in your example, I assume you have used a specific base value rule in the Multi-Level method to reduce the planned depreciation across the entire useful life of the asset?

[@raybuttigieg1343]

Figured it out. Had to define a cutoff value key and assign it to my depreciation key. In the cutoff value key, there is the indicator to reduce the base value by the scrap value. Thank you @AbdullahGalal for giving me the inspiration to figure this out, for despite working with SAP fixed assets for nearly 20 years, I never had the need to use this functionality before.

[@AbdullahGalal]

Thanks a lot @Ray for coming back with your findings, I'll pin your comment in case others face the same issue. Excuse me for the late reply, I always use a filter when checking comments to only show the ones I've not responded to but will no longer do this :)

[@gouravbose8105]

@@raybuttigieg1343 Hi Ray, have a quick question on depreciation computation logic by SAP. What is the Differences between base method 0007 V$ 0011 in which scenario we use one of the other? Secondly how these base methods are interlinked with Multi-level method base value?

[@SP-vg8ih]

Amazing trainer who explains complex functionalities in simpler form in order for us to understand it clearly. Many Thanks Sir!

[@Hers245]

Abdullah, thank you.🎉

[@MeditationMusicMovies420]

I subscribed because of worth full content

[@AbdullahGalal]

welcome on board

[@gouravbose8105]

Hi Abdullah, I have a quick question? Difference between base method 0007 V$ 0011 in which scenario we use one of the other? Secondly how these base methods are interlinked with Multi-level method base value?

[@AbdullahGalal]

Always difficult questions Gourav 😀 I would check the configuration of both methods to understand the difference from the parameters

[@slocktv27]

what app for making the presentation sir?

[@AbdullahGalal]

I use Camtasia for recording the screen and Adobe Premier for editing