Purpose
The valuation of leasing-relevant products can change over time. Thesame applies to the expected value of a product at the end of the leaseterm. The change of the expected value is based on market observations.
You can modify (value adjustment, special depreciation) lease items thatcontain products that are affected by such changes.
The amount of the write-off is limited to the difference between the EOLresidual value that was calculated previously and the current value.

Prerequisites
When you choose an item for a write-off, the system initially determineswhether a write-off is allowed. It does so based on the object profile,which is defined via the item category. Please make sure that you havedefined the Customizing for the definition ofthe object profiles correctly.
In addition, you must have activated your contracts.

Selection
The selection includes the following parameters:
Interval or set of transaction numbers
End of lease as interval
External product name (product ID)
Product category
Sales organization
Distribution channel
These parameters are linked with a logical AND operator.
The Simulate Pricing Date field can also influence the quantityfound. Depending on the value you defien in this field, other conditions- such as a different residual value - may be found. If the residualvalue calculated here does not differ from the residual value calculatedwhen the lease was created, or the residual value calculated here hasalready been reached through previous write-offs, no furtherdepreciation is possible, and the item is excluded from the selection.
The Percentage Depreciation field defines the amount of thewrite-off relative to the following difference:
(Residual value calculated during lease creation) - (newlycalculated residual value)
You can adjust this value later during online processing; the systemperforms the write-off with the defined percentage immediately duringbatch processing.
In addition, during batch processing, you can define whether the systemshould actually perform the write-off or merely write the results to thecorresponding spool request.

Activities
Online processing
After you enter the search and simulation criteria at the first level,the system displays a list of the determined items for which write-offscan be performed. If any errors occur, a list with the individual errorsappears in the upper portion of the screen.
You can now select which items you want to write off. Then chooseExecute to copy the items to the next screen.
The system displays a list containing the following data for each item:

• Previously calculated residual value

Newly calculated residual value
Difference between these two residual values
Previous write-offs
Possible write-off (value adjustment)
Residual value after value adjustment
The latter field is determined using the percentage described above. Youcan change the value in this screen.
Choose Execute to trigger the write-off
Batch processing
During batch processing, the system performs the write-off with thespecified percentage immediately, provided you did not start a test run.The list described under "Online processing" above is written as a textto the corresponding spool request during the batch run.