Hi experts,
There should be information of the asset. e.g. useful life, method of depreciation, date of acquisition.... so, when we are revising the useful life, we need to amend/update it in IFS. Can anyone show me how to change useful life and salvage value in the middle of the assets life time without affecting previous depreciation values?
Best regards,
Theja
+3
Hi Theja.
I believe you just go to object books and change the values. That should only affect the future depreciation calculations.
Piotr
Hi Theja.
I believe you just go to object books and change the values. That should only affect the future depreciation calculations.
Piotr
Hello
You must rephrase your question maybe. Piotr is right, previous depreciations will not be affected. Which means your previous transactions will not be updated.
Can you please share depreciation method detail for the object?
Thanks
+3
Unless the starting principle is one of the less commonly used in Europe (beginning of year, middle of year, half year) I believe. In this case, it is logical to me that the valid estimated life is the one which is on the object book the moment the depreciation is calculated, and it does not matter what it was before the depreciation was calculated.
@Thej, I have assumed that you already have past depreciation proposals posted. We need to see the depreciation method details as Furkan has said.
Please see below details.
I have object 2 . It’s original salvage value is 200, 000. However, it changed to 400,000 after 3 months. Then, depreciation charge for first 3 months were 26,250.00 . the depreciation charge after 3 months would be 25,406.12
26,250.00 = (6500,000-200000)/20
New carrying value after 3 months = 6500000- 26250*3 = 6,421,250
Depreciation charge for balance period = 6421,250/20 years- 3 months = 25,406.12
But, system takes 400,000 salvage value from the acquisition date.
Depreciation prior to salvage value change
Depreciation after salvage value change
So , the system calculated the depreciation after salvage value change incorrectly. As above, the correct value is 25,406.12.
The depreciation method is as follows.
I hope this information will help you.
Best regards,
Theja
+3
I think I understand your problem now.
However, this is a straight-line method, therefore it always uses the current value (MOD.ACQ.VAL in your case) and the current estimated life and salvage value. Salvage value is what it is going to be your net book value after 20 years.
The current depreciation is slightly higher that you might expect, but it is the straight-line calculation. I think the last depreciation for the 240th period will be slightly lower and will be presented as residual value. The net book value will be 400K which is what you want.
Maybe you should consider using one of these different methods:
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