Asset Accounting Depreciation Key https://archive.sap.

com/discussions/thread/465379

Home (https://www.sap.com) / Community (https://www.sap.com/community.html) / Archives

(/) / Discussions Archive (/discussions) / SAP ERP Financials (/discussions/space/erp/financials)

Archived discussions are read-only. Learn more about SAP Q&A (https://go.sap.com/community/about
/questions-and-answers.html)

(https://www.facebook.com/sapcommunity) (https://twitter.com/SAPCommunity)

(https://www.youtube.com/c/SAPCommunities) (https://www.linkedin.com/company/sap)
(https://plus.google.com/+SAPCommunities) (https://instagram.com/sap/)

(http://www.slideshare.net/SAP)

Hi guys,
Privacy i am very new to this forum, just signed
(http://go.sap.com/about/legal/privacy.html) in. of Use (http://go.sap.com/corporate/en/legal/terms-of-
Terms
use.html) Legal Disclosure (http://go.sap.com/about/legal/impressum.html) Copyright (http://go.sap.com/about/legal
Can anybody please
/copyright.html) help(http://go.sap.com/about/legal/trademark.html)
Trademark me with the depreciation keys, if anyone can send(http://www.sap.com/sitemap
Sitemap me a document on how
/index.html) Newsletter (https://go.sap.com/registration/newsletter.html)
to configure a Depreciation Key from the Scratch. Also please tell me the difference among, Base

1 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

Method, Declining Method, period control method and their dependencies on each other.

(https://people.sap.com/mr.pg)

July 03, 2007 at 06:01 AM

0 Likes

Helpful Answer by
Guest (/discussions/message/3701078#3701078) , Sri P (/discussions/message/3701999#3701999)

Helpful Answer

Guest replied July 02, 2007 at 13:26 PM

Hey Saqib,

Welcome to the forum.

The depreciation key contains the value settings which are necessary for
determining depreciation amounts. It represents a combination of calculation
rules, which are used for the automatically calculated depreciation types

Ordinary depreciation

Special depreciation

Imputed interest

Features:You assign calculation methods to each depreciation key for the

actual determination of depreciation amounts.

You can define depreciation keys and calculation methods in Customizing for
Asset Accounting (Depreciation->Valuation Methods->Depreciation Keys).

Hope this helps. please assign points and let me know if you need anything
specific.

Rgds

manish

2 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

Mr. PG (https://people.sap.com/mr.pg)replied
(https://people.sap.com/mr.pg)
July 02, 2007 at 13:40 PM
Thanks Manish,

That was quite

infrmative, but i
need a step by
step configuration
document which
can help me
understand and
configure the
depreciation keys.
Please forward me
if you have any.

Regards

Sri P (https://people.sap.com/sridevi.p)replied
(https://people.sap.com/sridevi.p)
July 02, 2007 at 13:33 PM
Hi,

Depreciation key
helps in defining the
method and rate of
depreciation.

Base method is the

Stralight line method
of depreication

Declining is the
Written down value
method

Period control helps in

defining the period to
be considered for acq,
retirement, transfer etc

3 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

Configuration:

1. IMG-FA-Depn-Valuation Method Depn key Calculation method

a. Define base method 0014 (predefined)

b. Define declining balance method 001 (predefined)

c. Define multi level method

i. Give name, descry, validity

ii. Levels folder  Give acq year, year of usage, period per usage,
base value (WDV: 24; SLM:01), Percent

d. Maintain period control methods Give descry, qcquisition: 01;

Addtn,return..-01

2. IMG-FA-Depn-Valuation method Depn key-Maintain Depn key

a. Give descry; Check Period control accounting to fiscal year

b. Double click Assignment of calculation methods

i. Depn type: Ordinary;Pahse:1; Base Method: 004; Decl bal method: 001;
Period ctrl: 006; Multilevel method: as in 1c; Class:2  WDV

ii. ForSLM same as 2bi, but Multilevel method and class:1

iii. Activate

Regards,

SRidevi

<i>* Pls. assign points, if useful</i>

(https://people.sap.com/ragini.tiwari2)

Ragini Tiwari (https://people.sap.com/ragini.tiwari2)replied July 02, 2007 at 13:45 PM

In AA we have to define certain dep methods for dep calculation

purpose.Dep key is the combination of dep methods.

<b>Base method</b>:<u></u>In base method we define three things

1.dep calculation method

2.Dep type

3.Treatment of the end of dep

<b>Declining balance Method </b><u></u>:In this method dep % rate is

multiplied by a given factor.

4 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

<b>

<b><u>Multi level method</u></b> :In this method we define the rate of

dep.If it different at different stage we define different levels.A level, in this
sense, represents the period of validity of a certain

<u><b>Period control method</b></u> :In this method we specify the start

and end date of dep.

<u></u>

Mr. PG (https://people.sap.com/mr.pg)replied
(https://people.sap.com/mr.pg)
July 02, 2007 at 14:13 PM
Thanks Ragini,

That really helped

alot and i have
managed to
understand it to a
greater extent.

Now if any body

wants 10 marks
please come
forward with a nice
documentation for
confguring the
depreciation keys.

Thanks everyone

Helpful Answer

(https://people.sap.com/sridevi.p)

Sri P (https://people.sap.com/sridevi.p)replied July 02, 2007 at 15:10 PM

<b>Depreciation Key:</b>

Helps in identifying the method and rate of depreciation

<b>Define Base Methods</b>

5 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

<b>Transaction Code</b> SPRO

<b>IMG Menu Path</b> Financial Accounting - Asset

Accounting - Depreciation - Valuation Methods - Depreciation
Key - Calculation Methods - Define Base Methods

Predefined in SAP: 0014

<b>Define Declining balance Method</b>

<b>Transaction Code</b> SPRO

<b>IMG Menu Path</b> Financial Accounting - Asset

Accounting - Depreciation - Valuation Methods - Depreciation
Key - Calculation Methods - Define Declining balance Method

Predefined in SAP: 001

<b>Define Multi-Level Methods</b>

You define multi-level methods and then assign them to

depreciation keys. Each level represents a validity period for a
given percentage rate.

<b>Transaction Code</b> AFAMS

<b>IMG Menu Path</b> Financial Accounting - Asset

Accounting - Depreciation - Valuation Methods - Depreciation
Key - Calculation Methods- Define Multi-Level Methods

<b>Sample Configuration:</b>

1. Click new entries

2. Give Multilevel method: Any text & Description

3. Validity Start: 2: From Ord. depn start date

Double Click on 'Levels' folder

1. Click New Entries

2. Mention Acquistion year, year of usage, period per year

3. Base Value: If WDV: 24(Net book value); If SLM: 01(Actual

Cost)

4. Mention the percent of depreciation

5. Save

<b>Maintain Period Control Methods</b>

The system determines the start or end of depreciation based

on the asset value date of a transaction (of the acquisition or
retirement) using the period control methods.You define period
control and assign them to depreciation keys.

<b>Transaction Code</b> AFAMP

<b>IMG Menu Path</b> Financial Accounting - Asset

6 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

Accounting - Depreciation - Valuation Methods - Depreciation

Key - Calculation Methods- Maintain Period Control Methods

<b>Sample configuration</b>

1. Click New Entries

2. Follow the sequence and put the number

3. Give description

4. Acquistion: 01: Pro rata at period start ate

5: Addition, Return & Transfer: 01

<b>Maintain Depreciation Key</b>

<b>Transaction Code</b> AFAMA

<b>IMG Menu Path</b> Financial Accounting - Asset

Accounting - Depreciation - Valuation Methods - Depreciation
Key - Maintain Depreciation Key

<b>Sample Configuration:</b>

1. click 'New Entries'

2. Any text for depreciation key

3. Check Period control accounting to fiscal year

Double click 'Assignment of Calculation methods'

1. New entries

2. Depn Type: Ordinary

3. Phase: 1: From start of depn

4. Base Method: 0014; Declining Balance Method: 001

[Predefined]

5. Period Control Method: [As maintained in Tcode AFAMP]

6. Multi level method: [As maintained in Tcode AFAMS] -

Correspondign method for WDV/SLM should be specified

7. Class: WDV: 2 - Declining balance; SLM: 1: Straight line

8. Save

9. Go back, select ur depn key and activate

10. Save again

Regards,

Sridevi

Pls. award points, if useful

7 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

(https://people.sap.com/mr.pg)

Mr. PG (https://people.sap.com/mr.pg)replied

July 02, 2007 at 15:24 PM

Thanks Sridevi,

For such a detailoed answer, i

have already followed all the steps
and now i am stuck with different
issue and that is no matter when i
aquire the asset the system starts
calculating depreciation from the
start of the year.

I am using "02" option for

aquisition "Pro rata upto mid-
period at period start date", where
as i want the system to calculate
depreciation from the month in
which it is capitalized.

Thanks

(https://people.sap.com/sridevi.p)

Sri P (https://people.sap.com/sridevi.p)replied

July 03, 2007 at 06:01 AM

Hi,

In ur asset master, pls check

wheat is the date u have
given for 'Capitalized on'
field.

Also, in the 'Depreciation

area' tab, check what is the
'Depreciation calculation
start date' u have given.

Hope this will solve ur issue.

Regards,

Sridevi

8 of 9 28/11/2017, 12:06
Asset Accounting Depreciation Key https://archive.sap.com/discussions/thread/465379

<i>* Pls. assign points, if useful</i>

9 of 9 28/11/2017, 12:06