Create User-defined Depreciation Plan for Fixed Assets

This document explains how you create a user-defined template for depreciation of a company's fixed assets.

Outcome

A depreciation plan is defined for assets that have a fixed life span. It can be reviewed in (FAS055).

Connect a depreciation type in 'FA Type. Connect Depreciations Types' (FAS077/E) or 'Fixed Asset. Connect Depreciation Types' (FAS002/E).

Parameter table CSYTAB and tables FFDTBH, FFDTBD, and FFDTBP are updated.

The starting conditions in Configuring Depreciation of Fixed Assets must be met.
Value types must be defined in 'FA Value Type. Open' (FAS060).


Program ID/Panel	Field	The field indicates …
(FAS055/E)	Number of years	…the number of years the depreciation plan will last; that is, the life span of the asset. For the user-defined method, only the lifetime is entered here; that is, an asset with a life span of ten years in (FAS077) cannot be set to five years depreciation here.
(FAS055/E)	Distribution method	…in what format the depreciation should be entered for each year. The valid alternatives are: 1 = As a percentage 2 = As a unit.
(FAS055/F)	Percentage	…the percentage per period if alternative 1 is selected. The total percent entered must be 100.
(FAS055/F)	Unit	…the (optional) number of units used to calculate the percentage. A unit may be, for example, square meter. When you have entered the units per period, the shares are automatically recalculated to percentages. Both units and percentages are stored.
(FAS055/E)	Distribution unit	…an optional unit name used for the unit-based distribution. This field is only used for information purposes.
(FAS055/E)	Rolling 12 rule	…how the depreciation plan percentage or share is to be retrieved during the life time of a fixed asset set up with a user-defined depreciation plan. The valid alternatives are: 0 = Per fiscal year 1 = Rolling 12 months.

Start 'FA Depreciation Plan. Open' (FAS055)
Specify a depreciation plan ID. Click New.

The plan ID can consist of up to five alphanumerical characters.
On the E panel, specify the description (required) and name.
Specify the number of years the depreciation should last.
Select distribution method and specify a unit name when applicable. Press Enter.
Select 'Rolling 12 rule' if you would like to use the first year's depreciation percentage or share for the first 12 months of the depreciation plan and not only until the end of the first fiscal year. Press Enter.
On the F panel, specify the annual percentage or the number of units per year. Press Enter.