Hello All I have a Query Regarding Fixed Asset Module w.r. to Depreciations, In this I do a Acquistion of an Asset for a price of 120000 using straight line Depreciation over 120 months.In the Profile we get the correct values. Then After running Depreciation propsal & posting 1st month of depreciation,In the profile now what values we get is incorrect Values under the Profile the Depreciation Values Changes even though we have not made any new Acqusitions to this asset. Is there any Setting where by which this happens or is this change effecting from Other places or what , if any one here has had faced the same problem or has a solution to this place let me know at the earliest . Thanking all in advance. Deeps
hi deepak I created a FA in FA Master. Then i created depreciation profile called test - with Method - straight line, Drepreciation year - calender period frequency - MOnthly Then created a value model - test Depreciation - checked profile - test posting layer - current. service life 120 months (Calender Monthly) Group - test Asset acquired for rs 120000 on 10/07/2003 Depreciation profile - 31/07/2003 ---- 709.68 31/08/2003 ---- 999.99 30/09/2003 ---- 1000.00 " " 31/07/2013 ---- 290.33 Now when i posted Depreciation for this assest thru the FAD journal, thru proposal - Depreciation proposal - i got the journal line with credit for rs. 32.68 on 31/07/2003 instead of 709.68 shown in profile. but rest all are ok with 999.99 & 1000 only the last entry on is 967.75 which if my calculation are correct then should be 967.33 709.68 - 32.68 -------- 677.00 +290.33 (The last depreciated value — 31/07/2013)-- define the fiscal year till 2013. -------- 967.33 i did by posting the first 32.68 depreciation. then posted for 999.99 for 2nd month 31/08/2003 then made a depreciation proposal till 31/07/2013 got it right. Checked the profile it is also right Please do check it, & do tell me if i am wrong. regards vaibhav pednekar
Hello again, I am Totally new as regards to the functional part in Fixed Asset Module and I am talking abt Ver 2.5 , SO as far as I know Using the Straight Line method for Depreciation the Deprection Values remains constant unless a new acquistion is done under that asset. but I think so that the Deprecation Value changes as We do the Deprecation Posting if we are using Reducing balance Method for Dreprecation Calucation am I right or what please enlight me . what We have done is that for a Value Model say V_mdl1 in which the Depreceation uses Straight line Method we have included a another Value model say V_mdl2 in the Derived value model of V_mdl1 and V_mdl2 uses Reducing balance method . So my query is that does the Deprecation Value varies after every Deprecation posting because we have used Reducing balance method in the derived value model of the main Value model. thanking all in advance. Deeps
hi deepak, yes u r right - Reducing balance method also known as Writen down Value method- in this the depreciation is provided at a predetermined percentage, on the balance cost of asset after deducting the depreciation previously charged-- this is termed as written down value. Example – Cost of asset ------------------------- rs. 1,10,000 Estimated Scrap value ----------------- rs. 10,000 Cost of asset subjected to depreciation rs. 1,00,000 rate of depreciation ------------------ 10% The amount depreciation is aluclated Year Balance Cost of Asset Rs. Depreciation Rs. Written down value- wdv rs. 1 1,00,000 10,000 90,000 2 90,000 9,000 81,000 3 81,000 8,100 72,900 Please can u make me clear – 1. U have a value model V_mdl 1 – it uses straight line method 2. in V_mdl 1 u have a drevied value model V_mdl1 which is reducing usine reducing model. Now can u give me the reason why have u used this. I mean the purpose for it. i hope to help you & myself & others. regards vaibhav pednekar