How to configure multiple shift wise depriciation?

Depreciation for Multiple-Shift Operation and Shutdown 

Increased depreciation is often calculated for assets that are used in multiple shifts. Often no depreciation is calculated for assets that are shut down. The following fields are provided for these instances in the asset master record: 

• Multiple-shift factor (time-dependent)
• Variable portion of depreciation (dependent on depreciation area)
• Shutdown indicator (time-dependent)

You can calculate increased depreciation due to multiple-shift operation for all types of depreciation except unit-of-production (unit-of-production depreciation is by definition 100% variable). You take this increased wear and tear on the asset into account using the following method: 

Specify the variable depreciation portion as a percentage rate in the detail screen for the depreciation area. You can enter a different percentage in each depreciation area. Depending on the maintenance level you have defined, you make this entry in either the asset class or the asset master record. 
Enter a multiple-shift factor in the time-dependent data in the asset master record. This shift factor is multiplied by the variable portion of ordinary depreciation. 
The total depreciation amount is then calculated as follows: 

Depreciation amount = fixed depreciation + (variable depreciation * shift factor)

The following example shows the depreciation amounts for an asset with 1000 annual depreciation, and 60% variable portion: 

shift factor 0: 400 + (0 * 60 * 1000/100) = 400 (only fixed portion)

shift factor 1: 400 + (1 * 60 * 1000/100) = 1000 

shift factor 2: 400 + (2 * 60 * 1000/100) = 1600 

shift factor 3: 400 + (3 * 60 * 1000/100) = 2200 

Expired Useful Life

In the definition of the depreciation key, you can specify for multiple shift use whether

• Both depreciation and the expired useful life should be increased
• Only depreciation should be increased and not the expired useful life
• Neither depreciation nor the expired useful life should be increased
• Using these options, you can ensure, for example, that depreciation is increased during the declining-balance phase, but that the straight-line phase after the changeover continues until the end of the planned useful life. 

For assets using declining-balance depreciation, the system increases depreciation amounts during the declining-balance phase of depreciation, based on the multiple shift factor and the variable portion of depreciation. However, depreciation is only increased up to the maximum percentage rate that is specified in the depreciation key. 

Shutdown - If an asset is shut down for a given period of time, you can suspend the depreciation as follows: 

• Define the appropriate time interval in the time-dependent data for the asset. 
• Set the shutdown indicator in the asset master record for this interval. 
• Use a depreciation key that allows shutdown, in the depreciation areas concerned. 
• The system does not calculate depreciation during the time period of the shutdown. The useful life of the asset increases by this length of time. When you remove the shutdown indicator, the system automatically resumes the calculation of depreciation. 

• The calculate shutdown indicator is set in the interest calculation key.
• The no interest if no depreciation is planned indicator is set in the depreciation key.
• There is no planned depreciation amount for the entire fiscal year. 

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