Executing Depreciation and Transaction Simulation

Objective

After completing this lesson, you will be able to generate a depreciation forecast for a single and multiple assets

Simulation with the Asset Explorer

Overview of the Asset Explorer simulation, showing which asset-related values are displayed, including future NBV, simulated changes, and simulated transactions.

The Asset Explorer offers extensive functions for evaluating individual asset master records.

The table, Asset Explorer Functions, describes some of these functions.

Asset Explorer Functions

FunctionDescription
Asterisk "*" in the Subnumber fieldFor requesting a combined report for a main number and its subnumbers
Display dep. calc. functionFor displaying a detailed calculation of depreciation in the system
Posted values tab pageFor displaying the planned data for a fiscal year and the amounts actually posted to date
Preview functionFor creating a preview of how the values for individual assets change in simulated transactions and simulated depreciation terms

The Asset Explorer options are as follows:

  • Go to FI document.
  • Display depreciation calculation.
  • Go to related objects.
  • Call reports.
  • Go to master record.
  • Refresh functions for displaying changes made.
  • Call values with all subnumbers.

You can start various other asset reports from the Asset Explorer. You can create your own report variants for these reports by choosing Goto→Maintain Reports.

How to Use the Asset Explorer to Simulate a Depreciation Forecast for an Asset

DemoStart Demo

Depreciation Simulation Program RASIMU_ALV01

The graphic illustrates how different depreciation methods and asset lifespans affect operating profit and asset values, using simulation for business analysis.

Simulation, in this context, refers to an experimental change to depreciation parameters affecting the valuation of assets. You can apply this change to a single asset, the entire asset portfolio, or parts of the asset portfolio.

The figure describes the depreciation simulations using the standard report that the program RASIMU_ALV01 generates.

When you simulate the development of asset values, you can change all the important depreciation terms using a simulation version. You can also simulate the depreciation for future fiscal years.

Note

You can include depreciation for your planned capital investments in the forecast. To take advantage of this option, you manage the planned investment amounts as planned costs on an order or a project in Controlling (CO). By assigning depreciation terms and a planned start-up date of the order or project, you can display the future depreciation.

Simulation Version

Illustration explaining a simulation rule where straight-line depreciation is applied instead of declining balance depreciation for specific asset classes in a report.

Simulation versions allow you to simulate a change of depreciation logic.

For each area, asset class, and depreciation key, specify which depreciation key and useful life to choose as alternatives for simulation. The validity interval excludes assets with a capitalization date that lies outside the interval range.

Forecast Future Depreciation Amounts

ExerciseStart Exercise

Summary

  • Asset Explorer simulates depreciation and transaction changes.
  • Depreciation simulation program forecasts asset value changes.
  • Simulation versions allow experimental changes to depreciation logic.
  • Simulation can include planned investments for future depreciation.

Learning

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