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Technical Depreciation

Technical Depreciation

Owned by Lango: Language and translation manager
Last updated: Sept 06, 2024Version comment
2 min read

The process for technical depreciation is carried out through a wizard to change the purchase value of the contract and is in principle the same as the process of technical valuation. The user will use that particular wizard.

Differences:

  • In step 2/3, enter the value of the technical evaluation with a minus sign

  • CZ localization only (Luxury Tax):

    • The system evaluates whether it is a depreciation that has an impact on the unclaimed part of VAT. The criteria for the unclaimed part of VAT are as follows:

      • Handover Date in Contract => "VAT Limitation Valid From" (set in OneCore Settings) and

      • Financing Type= Operative Leasing and

      • Catalogue Group Course Code has "Maximum price for VAT"<>0

      • The value of the "Calculate limitation for VAT" field in the Financed Object Metod Usage table (if the value is YES, then it meets the criterion for the unclaimed part of VAT)

    • Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)=< Maximum price for VAT from the group of the object catalogue card and at the same time there is no calculation input for the unclaimed part of VAT in the original contract

      • Then it continues.

    • Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)=< Maximum price for VAT from the group of the object catalogue card and at the same time there is a calculation input for the unclaimed part of VAT in the original contract

      • It then displays the message: "Technical improvement is not possible due to legal restrictions."

        • And won't let it go any further

    • Purchase Price Excl.VAT+Amount of Technical Valuation (Excl.VAT)> Maximum price for VAT from item catalogue group

      • It then displays the message: "Technical improvement is not possible due to legal restrictions."

        • And won't let it go any further

  • The calculation input will also be based with a minus sign

  • The change in the purchase price will be included in the repayment schedule with a minus, i.e. it will reduce the principal balance

  • If it is also included in insurance, the insured value in the new insurance contract will be reduced by the value of the technical improvement.

Example Depreciation on OL with entering a negative amount for additional equipment. The system writes:

  • Negative line to additional equipment

  • Negative Calculation Input

  • Corrects the acquisition price in the contract header

  • As well as the prices of the item and equipment:

  • terminates the property insurance policy and establishes a new one at a reduced insured value

  • And it recalculates the contract – it creates a new SPK.