Create new multi-level method
- Execute transaction AFAMS
- Click on 'New entries' button
- Assign 3-letter code (suggestion, use Z code to distinguish from SAP standard), enter description
- Enter validity start - for most entries, will be from ordinary depreciation start date
- Do not choose 'Dep. by fisc. year' unless periods are assigned by day in config (highlight field and click F1 Help for more information)
- Double-click on 'levels' on the left portion of screen
- Click 'New entries'
- For year enter '9999' (this enables a start year of any year)
- For first year depreciation, enter 1 in Years column, can also have periods in Per column
- Choose base value - typically 01 (acquisition value), but requirements can differ
- Enter percentage. Percentage can have up to 4 decimal places.
- Enter following years on next lines. If multiple years have the same percentage, enter the highest number. Example: 1st three years are the same, enter '3' in the Years column for the first entry.
Create depreciation key
Execute transaction code AFAMA
Determine similar depreciation key (LINA will work in most cases)
Copy this key using copy icon next to 'New entries' button
Double-click on Assignment of calculation methods to review settings
Substitute new multi-level method for existing method
Review other methods and period control, and other steps
- Click on New entries button
- Enter DepType 'Ordinary Depreciation', Phase 'Changeover after end of useful life', Base method 0017, Decl balance method 001, prd control 007, Multilevel method 045, Multiple shift 'Increase in deprec., no increase in exp. useful life"
To ensure complete depreciation regardless of rounding errors, add calculation method at end
Arrow back and change changeover method on previous method to 5 'Changeover after end of the useful life'
In one case we were creating an accelerated version of MACRS 5 year. This required a new multilevel method. Since the depreciation amount for the first 6 months was different from the following year, I created two new multilevel methods. I set the 'validity start' on the second method to 'from changeover year, and in the depreciation key set the change method to 7 'Changeover when net book value percent less or same as x%' and then entered the appropriate percentage in the next column.
These are the resulting calculation methods:
Dep./int. Phase Base metho Decl.-bal. Prd cont Multilev.m Chnge. met Changeover
Ord.depreciation1 0012 001 004 Z04 7 40.0
Ord.depreciation2 0012 001 001 Z4A 5
Ord.depreciation3 0017 001 007 045