What is the purpose of Remaining Useful life :
Some of the Assets should be depreciate for 4 or 5 Years. In this case it is not required to create a Dep Key in the system to calculate a Depreciation. In this case system automatically calculate based on the Use Ful Life assigned in the Asset Master Record.
For Ex :--> If the Useful life of the Asset 5 Yrs then system ll calculate 20% depreciation automatically.
-->If the Useful life of the Asset 4 Yrs then system ll calculate 25% depreciation automatically.
Where is the configuration part fr this Useful life :
In Multi-level method, check box needs to be selected.
How it ll work :
Case 1 : If the Asset Useful Life is 5 Yrs & The Asset Value would be 10,000
Sol) Then system ll calculate 2000 Deprecation Per Year & it ll post in the books of accounts
Case 2 : If the Asset Useful Life is 5 Yrs & The Asset Value would be 10,000
| Asset Captivation Date |
1.03.2012 |
| Ordinary
Deprecation Start Date |
1.03.2012 |
| Asset Value
Date (Transaction Date) |
1.03.2012 |
| Useful Life
is |
5 Yrs |
Sol) In this case also system ll calculate the Deprecation as per as the first Case
Case 3 :
If the Asset Useful Life is 5 Yrs & The Asset Value would be 10,000
| Asset
Captilisatin Date |
1.03.2012 |
| Ordinary
Deprecation Start Date |
1.03.2012 |
| Asset Value
Date (Transaction Date) |
1.10.2012 |
| Useful Life
is |
5 Yrs |
Sol) In the above situation, there was a different between the Asset Capitalization Date & Asset Value Date. System ll always calculate the Depreciation based on the Value Date. So here the Capitaliation Date & the Value date would be different. In this case system ll adjust the entire deprecation the below way
| Asset
Value |
10000 |
| Year Wise Depreciation |
2000 |
| Month wise deprecation |
166.6667 |
| April |
0 |
| May |
0 |
| June |
0 |
| July |
666.6667 |
System ll post entire 4 months depreciation in July itself. Since the Asset transaction happens at July & the Capitalization Date would be April 2012.
The 4 months appear as a Expiry Useful life in the Asset Master Record.
