3391518 - Difference Between Planned Useful Life And Remaining Useful Life In Straight Line Depreciation Method

You are using the straight-line depreciation method, and you noticed that straight line depreciation formula equals to (purchase price – salvage value) / useful Life. You hope to understand what the difference between planned useful life and remaining useful life is.

SAP Business ByDesign

1. Go to Fixed Asset work center.
2. Go to Fixed Asset View.
3. Search for fixed asset ID: AAA.
4. Edit master data, and you can see it is using the depreciation method: L011 Str.-line from rem.life nbv to 0.

Depreciation is calculated automatically based on the asset's planned useful life and the depreciation method.

Useful life: Determines the total number of years and accounting periods a fixed asset is estimated to be in service.

Remaining useful life: When choosing the straight-line depreciation of the net book value over the remaining useful life, the depreciation rate is determined for each year from the remaining useful life.

You can further refer to the example 4 in the help doc: L011 Str.-line from rem.life nbv to 0.

This is the system design.

straight-line depreciation method, planned useful life, remaining useful life , KBA , SRD-FIN-FA , Fixed Assets , Problem