Re: WDV Depreciation for remaining life

Hi Sethuraman

Thanks for your answer. You have rightly mentioned depreciation key LINS. But I believe this key is for Straight Line Method. I require similar key which calculates depreciation rate under WDV/reducing balance method.

Also I am getting error while changing depreciation key to LINS

Enter a depreciation key with 'depreciation by days' such as CA03 Message no. AB720

Example: Net Book Value 100 on 31.03.2014

Residual Value 5

1. Remaining useful life 10 years

=1-((5/100)^(1/10)) = 25.89%

2. Remaining useful life 9 years

=1-((5/100)^(1/9)) = 28.31%

3. Remaining useful life 8 years

=1-((5/100)^(1/8)) = 31.23%

This rate calculation is required per day basis. So incase of remaining life is 10 years and 85 days, WDV rate should be calculated in such a way so that only residual value is remaining after remaining useful life.

Thanks for explaining Worklist and substitution. It will be very useful.