Catch-up and Smoothing methods in Asset Accounting

In SAP we are having 2 methods Catch-up (Default) and Smoothing

Catch up means for example there is an asset having the value of 120000 ( 10% SLM dep.) you didn't carry out depreciation for this asset for 2 periods (Rs.1000 per month as per dep.key) if you run the deprecition in the third month system depreciates the 3 months deprecion (Rs.3000) and posts in the 3 month.

Smoothing means the deprecition for the 2 months(Rs.2000) is divided by the subsequent periods here it is 10 periods (12-2) and posts in these periods. (2000/10 = 200)

To activate smoothing use TCODE: OAYR and select the check box Smoothing.