(DEU) Setting Up Multishift Codes
To set up multishift codes, use the MultiShift Codes (MULTI_SHIFT_DEFN) component.
This topic provides an overview of multishift codes and lists the page used to define multishift codes.
Page Name 
Definition Name 
Usage 

MultiShift Codes 
MULTI_SHIFT_DEFN 
Enter rates by which depreciation should be increased based on the number of production shifts that an asset is used. 
German businesses can accelerate their depreciation by specifying usage across multiple production shifts. This increases the depreciable amount and reduces the useful life. This functionality was developed to satisfy German asset accounting rules. You can do so by establishing codes for each additional shift that indicate the rate by which annual depreciation should increase. Once you have defined these codes, you can select them for assets as they are added to the system. When you run depreciation, the Depreciation (AM_DEPR_CALC) application engine applies the rates to the depreciation calculations. As annual depreciation increases, the useful life of an asset decreases.
The following tables show the effect of multishift codes on depreciation amounts and useful life. In the tables, the example assumes that the asset has a cost of 1,000 EUR, a useful life of 10 years, and an inservice date of January 1, 2001. The end depreciation date is December 31, 2010. It is being depreciated by using the Straight Line method.
Example Without Multishift Rates
The following table shows depreciation with no multishift rates applied.
Year 
NBV 
Number of Shifts 
Factor 
Depreciation Amount 

Year 1 
1000 
1 
0% 
100 
Year 2 
900 
1 
0% 
100 
Year 3 
800 
1 
0% 
100 
Year 4 
700 
1 
0% 
100 
Year 5 
600 
1 
0% 
100 
Year 6 
500 
1 
0% 
100 
Year 7 
400 
1 
0% 
100 
Year 8 
300 
1 
0% 
100 
Year 9 
200 
1 
0% 
100 
Year 10 
100 
1 
0% 
100 
Example with Multishift Rates
In the following multishift operation, the Two Shifts Factor has been established as 50 percent and the Three Shifts Factor has been established as 100 percent. Annual depreciation therefore increases, and the asset's useful life decreases from ten years to seven years:
Year 
NBV 
Number of Shifts 
Factor 
Depreciation Amount 

Year 1 
1000 
1 
0% 
100 
Year 2 
900 
1 
0% 
100 
Year 3 
800 
2 
50% 
150 
Year 4 
650 
2 
50% 
150 
Year 5 
500 
3 
100% 
200 
Year 6 
300 
3 
100% 
200 
Year 7 
100 
2 
50% 
100 
Year 8 
 
 
 
 
Year 9 
 
 
 
 
Year 10 
 
 
 
 
Example with Multishift Rates by Accounting Period
The next multishift operation demonstrates multishift rates by accounting period:
^{Year } 
^{Period } 
^{NBV } 
^{Number of Shifts } 
^{Factor } 
^{Depreciation Before Multishift} 
^{Depreciation After Multishift} 
^{Depreciation Periods} 

Year 1 
0112 
1000 
1 
0% 
100 
100 
12 
Year 2 
0112 
900 
1 
0% 
100 
100 
12 
Year 3 
0109 
800 
2 
50% 
75 
112.50 
13.5 
Year 3 
10 
687.5 
3 
100% 
8.33 
16.66 
2 
Year 3 
11 
670.84 
3 
100% 
8.33 
16.67 
2 
Year 3 
12 
654.18 
3 
100% 
8.33 
16.67 
2 
Year 4 
0112 
637.5 
2 
50% 
100 
150 
18 
Year 5 
0106 
487.5 
2 
50% 
50 
75 
9 
Year 5 
0712 
412.5 
1 
0% 
50 
50 
6 
Year 6 
0112 
362.5 
3 
100% 
100 
200 
24 
Year 7 
0112 
162.5 
2 
50% 
100 
150 
18 
Year 8 
0112 
12.5 
1 
0% 
12.5 
12.5 
1.5 
Year 9 
0112 
 
 
 


 
Year 10 
0112 
 
 
 


 
Note: Zero or no accounting period denotes that the whole fiscal year uses the same number of shifts. Accounting period 1 to 13 indicates multishift operation applies only to that specific period. If you don't set up the fiscal year or accounting period, one shift operation appears by default.