Depreciation Plan Calculation Control

Abstract

In this document, the process of simulating depreciation plans for fixed assets is described.

Background

Depreciation plans for fixed assets can be recalculated in 'FA Depreciation Plan. Create Automatic' (FAS800). This will update the depreciation plans for the fixed assets based on the selection made for ‘Fixed asset ID’, ‘Depreciation type’, ‘Fixed asset type’ and ‘Fixed asset group’. This will have an immediate effect on the future depreciation of each of the included fixed assets.

In some situations, it can be helpful to be able to simulate a recalculation of the depreciation plan without actually performing an update and affecting future depreciations. This could for instance be useful when a correction has been installed or a general parameter has been changed, to check which effect it will have on the depreciation plans. For this purpose, you can use the functionality for simulation of depreciation plans for fixed assets that is available in 'Depreciation Plan Simulation. Select Op' (FAS845).

Limitations

The simulation functionality is not available for the Czech market, due to unique parameters and updates for this market.

Follow these steps

  1. In (FAS845), a simulation of depreciation plans can be started by selecting 'Operation' 8='Simulate' for a selection of 'Fixed asset ID', 'Depreciation type', and 'Fixed asset type'. Click 'Next' or press Enter to start the simulation.

  2. When the simulation run has finished, a record for each fixed asset that has been included in the run will be found in 'Depreciation Plan Simulation. Open' (FAS840).

  3. If option 11='Periods' is used in (FAS840), you will reach 'Depreciation Plan Simulation Periods. Open' (FAS841), where the depreciation plan is displayed for the fixed asset. Each period in the depreciation plan is displayed as a row in the list, and for each period you will find the simulated values to the left and the current depreciation plan to the right. If there is a difference between the simulated depreciation plan and the current depreciation plan, this will be indicated in the 'Dif' column. If there is a difference for at least one row in (FAS841), this will also be indicated in the 'Dif' column for the entire fixed asset in (FAS840).

  4. You can use 'Operation' 4='Delete' in (FAS845) to delete an earlier simulation for a selection of 'Fixed asset ID', 'Depreciation type', 'Fixed asset type', and 'Fixed asset group'. Click 'Next' or press Enter to start the deletion of the simulation.

  5. The function keys F14='Delete simulation' and F15='Simulate' can be used in (FAS840) to open (FAS845). In this situation, all selection fields will be available except the field for 'Operation' which will be defaulted to 4='Delete' (if F14 has been used) or 8='Simulate' (if F15 has been used).

  6. A simulation can be rerun for a specific fixed asset by using option 9='Simulate' in (FAS840). This will open (FAS845), where all selection fields are protected. To start the simulation for the fixed asset, click 'Next' or press Enter.

  7. A simulation can be deleted for a specific fixed asset by using option 20='Delete simulation' in (FAS840). This option will also open (FAS845), where all selection fields are protected. To start the deletion of the simulation for the fixed asset, click 'Next' or press Enter.

  8. In (FAS840), there is a status field for each fixed asset in the list. This field indicates the simulation status of the fixed asset:

    10 = Simulation in progress

    20 = Simulation completed

    40 = Deletion of the simulation in progress

    In the situation where a simulation run (or deletion run) does not finish correctly, for instance if a power outage would occur, the fixed asset that was last processed will end up in the simulation status 10 (or 40). As options 20='Delete simulation' and 9='Simulate' are only available for fixed assets in the simulation status 20, you can use option 21='Force status' in (FAS840) to manually reset the simulation status to 20. After that you will be able to delete or rerun the simulation for the fixed asset.

Flowchart

Outcome

When a simulation has been run for fixed assets in (FAS845), you can compare the simulated depreciation plan (in the FFADSP table) with the current depreciation plan (in the FFAHIS table) for each fixed asset in (FAS841). If you approve of the simulated depreciation plans, you can use (FAS800) to update the depreciation plans for the fixed assets. When an update is performed via (FAS800), the FFAHIS table is updated and the new depreciation plan will be visible for the fixed assets in ‘Fixed Asset. Depreciate’ (FAS010).

If the depreciation plan of a single fixed asset is to be updated, you can also use the function keys F18='Cancel' and F14='Calculate' in (FAS010) to delete the current depreciation plan for the fixed asset and then recalculate it. This will also result in an immediate update of the FFAHIS table.

Setup

  • A depreciation type must be defined for the fixed asset in 'Fixed Asset. Connect Depreciation Types' (FAS002) before a simulation of the depreciation plan can be started in (FAS845).
  • You can personalize the sorting order used in (FAS840/B) and (FAS841/B) if you wish to filter on for instance fixed assets with a difference between the current depreciation plan and the simulated depreciation plan. You can do your changes in 'Sorting Order. Open' (CRS022), which can be opened directly or by pressing F4 twice in the 'Sorting order' field in (FAS840/B) or (FAS841/B). By adding a selection field under 'Filter Control' in (CRS022/E) you will get the possibility to filter on that field in the header of (FAS840/B) and (FAS841/B).
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