AW01N Depreciation calculation
Hi All,
We have a requirement on Calculation of tax depreciation for countries US & CA(Canada).
We are using 2 depreciation areas : 10 - MACRS
11 - AMT .
The total acquisition amount is divided as special & ordinary depreciation. ex : total acquisition : 2000. half will go to special depreciation : 1000 and remaining half will go to ordinary dep : 1000. If the asset life time is 3 years, the ordinary depreciation amount (1000) has to be distributed to 3 years and has to depreciate accordingly. For these we have to calculate period-wise depreciation. how to calculate depreciation period-wise as in AW01n it showing year-wise depreciation..
All the other depreciation ares : 01(Book) & 31(Group) are showing in the table ANLP up to current year. But these dep.areas (10 & 11) are not showing in ANLP table.
Plz help me if anybody knows the process.
Thanks
Dear Ramesh
Thanks for your reply. However, i need the comments from you, shall we change the useful life ? what are all the steps? Is there any side effects with in your perview.
Kindly comment
Regards
Anilkumar
Similar Messages
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Depreciation calculation error
hi experts,
i need to calculate the depreciation for an asset for 365 day, but it is calculating for 335 days only,when i click on depreciation calculation in AW01N,there it is showing that depreciation periods is 366/335;
why it is showing like that,y it is calculating for 335 days only,where i need to check and clarify the error
thanks & regards
suman.b
Edited by: sumanchinna on Sep 30, 2011 2:06 PMhi there,
its probably because the date you are giving is i.e 12/26/2007 and because its a mid period calculation, based on the yr defined for that compcode after the first 15 days it calculating as next months which is 01/01/2008 ie going into next yr which is not open.
hope it helps..if it is then please assign points
regards
Jay -
Depreciation calculated on credit memo is more than its own value
Hi,
We have noticed that the depreciation calculated on credit memo is more than its own values.
please refer the screen shot below:
24.05.2010 108,044.64 120 Goods receipt 108,044.64- 0 USD
24.05.2010 108,044.64 120 Goods receipt 108,044.64- 0 USD
24.05.2010 108,044.64 120 Goods receipt 108,044.64- 0 USD
09.06.2010 128,064.75 120 Goods receipt 128,064.75- 0 USD
22.06.2010 110,601.38 120 Goods receipt 110,601.38- 0 USD
22.06.2010 7,346.35- 105 Credit memo in acquis. year45,337.47 0 USD
22.06.2010 7,346.35 100 External asset acquisition 45,337.47- 0 USD
Please let us know the possible reasons...
Thanks a lot..Hi,
Here are the details:
Depreciation start date:21.11.2004
Operating readiness: 23.12.2004
Asset value date: 16.08.2010
useful life: 01 period
Kindly tell me know in case you need further info
Thanks..
Edited by: FI User on Oct 21, 2010 9:47 AM -
Tax depreciation - calculation of WDV
Hi
where do we configure the settings for calculating the WDV for income tax depreciation or it is preset in the system
Regards
AjayDear Nagesha,
Please note that J1INQ is NOT in use and this report has been withdrawn by SAP.
Please review the below note in this reference.
738919 - IT Depreciation for Assets, India
The solution for IT Depreciation Calculation is being revamped and the
new solution shall be available in EhP5 SP02.
The general availability of this report will be announced through this
note.
There is no alternative as of now for the same.
Thanks for the understanding and co-operation.
Have a Nice Day,
if you are ok with the above info, then close this ticket.
Manu
Edited by: manucs on Dec 29, 2011 10:12 AM -
Indian Income Tax Depreciation Calculation
Hi
Can any of you please explain/tell me where are the exact SAP configuration settings for the calculation of depreciation calculation as per Indian Income Tax Act by meeting below requirements as per Section 32 of Indian Income Tax Act:
1. If the Asset is being purchased and used in a Financial Year for 180 Days or below 180 Days - Depreciation has to be calculated 50% of Annual Depreciation.
2.If the Asset is being purchased and used in a Financial Year for more than 180 Days - Depreciation has to be calculated 100% of Annual Depreciation.
Waiting for your valuable reply.
Thanks and Regards
P.V.S.R.GuptaBut if I follow your suggestion of taking Period Control Method 04, it would calculate 1/2 Year Depreciaton only
No. If the asset is in use for >180 days, then it's acquisition date must therefore occur in periods 1-6 which will set the depreciation start date to the beginning of the year. This will result in a full year's worth of depreciation.
If the asset is in use for <180 days then the start date is set to mid year which results in only 6 months worth of depreciation to be posted.
All of this can be adjusted per your FYV and on a yearly basis if the FYV is year dependent in the asset period control calendar assignments table.
I'll be the first to admit that I don't know the statutory requirements of India but I know how FI-AA works and can't think of an alternative solution for you.
-nathan -
Depreciation calculation for Indian Tax Depreciation Area - Fixed Assets
Can any one of you kindly advice how to setup the Multi levels methods and Period controls for Tax Depreciation key in Indian Tax Depreciation area.
My Leading ledger Fiscal year: Jan u2013 Dec (Year dependend)
And Non-leading ledger (India) Fiscal year: April u2013 March (Year dependend)
I was able to post correct depreciation for leading and non-leading ledger Depreciation areas with a stated percentage. But the calculation of Tax depreciation area is incorrect.
As per client requirement, Tax depreciation area is setup only reporting purpose and no Depreciation posting.
Required Depreciation Calculation for Tax Depreciation Area:
For Acquires & Additions,
Rule1:
If it is >=180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation as stated percentage. Eg: 10%
Rule2:
If it is <180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation of 50% on stated percentage. Eg: Stated percentage is 10%, then it should be 5%.
Early responses will be appreciated.
Thanks much for the help.
Regards,
BapuHi JBC,
please search this Forum, I think basic questions about Indian tax depreciation have been asked dozen of times in this Forum here. You should find some answers in earlier threads.
Regards,
Markus -
Depreciation calculation for Indian Tax Depreciation Area
Can any one of you kindly advice how to setup the Multi levels methods and Period controls for Tax Depreciation key in Indian Tax Depreciation area.
My Leading ledger Fiscal year: Jan u2013 Dec (Year dependend)
And Non-leading ledger (India) Fiscal year: April u2013 March (Year dependend)
I was able to post correct depreciation for leading and non-leading ledger Depreciation areas with a stated percentage. But the calculation of Tax depreciation area is incorrect.
As per client requirement, Tax depreciation area is setup only reporting purpose and no Depreciation posting.
Required Depreciation Calculation for Tax Depreciation Area:
For Acquires & Additions,
Rule1:
If it is >=180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation as stated percentage. Eg: 10%
Rule2:
If it is <180 days (as per Non-leading ledger Fiscal year) the system should calculate depreciation of 50% on stated percentage. Eg: Stated percentage is 10%, then it should be 5%.
Early responses will be appreciated.
Thanks much for the help.
Regards,
JBCHi JBC,
please search this Forum, I think basic questions about Indian tax depreciation have been asked dozen of times in this Forum here. You should find some answers in earlier threads.
Regards,
Markus -
Tax depreciation calculation - India
Hi,
For calculating Tax depreciation for India, we use group assets in asset master (dep area 15).
SAP standard report J1IQ is obsolete and can not be used.
How to calculate tax depreciation for India.
Requirement for India tax depreciation is :
An asset is put to use < 180 days, depreciation will be 50% of the depreciation rate for that asset (say dep rate is 15%, depreciation will be 7.5% of the asset value.
If asset is put to use > 180 days, depreciation will be 100% of the depreciation rate for that asset (say dep rate is 15%, depreciation will be 15% of the asset value).
J1IQ is obsolete.
Most of the consultants are facing this problem.
What is the solution???????????Dear Nagesha,
Please note that J1INQ is NOT in use and this report has been withdrawn by SAP.
Please review the below note in this reference.
738919 - IT Depreciation for Assets, India
The solution for IT Depreciation Calculation is being revamped and the
new solution shall be available in EhP5 SP02.
The general availability of this report will be announced through this
note.
There is no alternative as of now for the same.
Thanks for the understanding and co-operation.
Have a Nice Day,
if you are ok with the above info, then close this ticket.
Manu
Edited by: manucs on Dec 29, 2011 10:12 AM -
Config of Group assets - Tax Depreciation Calculation : India
Dear Seniors,
can you please explain the configuration of the Group assets and how exactly the tax depreciation calculation in India happens for the individual assets with scheme of entries.
Thanks and Regards
SathishHi,
In India, depreciation on assets for the purpose of computation of net income as per the Income Tax (IT) Act 1961 is calculated over a block of assets instead of individual assets as allowed under the Companies Act 1956. Asset acquisitions and retirements are managed over the block level. The IT Act prescribes certain rates of depreciation to be used under the Written down Value (WDV) method over these asset blocks to compute depreciation.
The following are the customization settings that may be followed in the R/3 system in order to manage your assets in the income tax depreciation area.
1. Copy the standard chart of depreciation 0IN as provided by SAP and create your own chart of depreciation.
2. Use the depreciation area 15 for the purpose of management of assets under the IT Act. Make it statistical in nature. (Reference Transaction Code: OADB). Do not check the box negative net book value.
3. Specify that the Income Tax depreciation area takes over the APC from the book but not make it identical (Reference Transaction Code: OABC).
4. Create an asset class for the purpose of income tax blocks. This asset class will be used to create only group assets. (Reference Transaction Code: OAOA)
5. Specify that the depreciation area for income tax can be managed only for group assets. (Reference Transaction Code: OAYM). This would mean that depreciation for this depreciation area would be computed only at group asset level.
6. Specify that the asset class defined in (b) above will be used for creating group assets only. (Reference Transaction Code: OAAX)
7. Two period control methods (IT and NL) have been defined in the system for determination of start or the end of depreciation calculation at the time of a fixed asset acquisition or retirement. You may use these period control methods while creating the depreciation keys for the purpose of IT depreciation.
Calendar assignments have been made for the above mentioned period control methods in order to reflect valuation requirements as per the Income Tax Act (Transaction Code: OAVH). You may create your own period control methods depending on the fiscal year variant you use. The period control methods supplied are based on the fiscal year variant V3.
8. Depreciation Keys: The following depreciation keys have been created in the system. They correspond to the income tax blocks that are prescribed under Indian tax laws. They are as below:
Depreciation Keys:
1. IN1 - Tax Depreciation - 5% -
I Hope it will give you some basic guidance.
Regards,
Krishna Kishore -
Wrong depreciation calculated for base value 04 + EA-FIN activated
Hi,
after activating EA-FIN, depreciation for assets using base value 04 (= half of replacement value) is calculated wrong.
While AW01 for a particular asset shows depreciation values based on the FULL replacement value (like it would be base value 03) AW01_AFAR (the u201Coldu201D asset explorer) shows the correct depreciation for base value 04.
The wrong base value can also be seen using the "display depreciation calculation" button in both transactions.
There are no enhancements for base value determination active.
I didnu2019t find any SAPNET notes nor SCN entries regarding this case, any ideas?
Best regards, ChristianFor what it's worth, I did a search and didn't find anything either.
It sounds like you've already tried this, but if the base value (the actual $$ value) is different in the trace on both tcodes then you have a problem. I would be sure to recalculate the values when you enter AW01 and AW01_AFAR to ensure that it's correct before looking at the trace.
The formula for the replacement value is:
( u_ganlc-kansw + u_ganlc-answl +
u_ganlc-kmafa + u_ganlc-mafav + u_ganlc-zusma +
u_ganlc-mafam + u_ganlc-mafal +
u_ganlc-kaufw + u_ganlc-aufwv +
u_ganlc-aufwp + u_ganlc-aufwl ) / 2 .
I'd look at ANLC for the asset and do the calculation yourself to confirm the value.
You've probably done all of that so I predict an OSS message in your future !
-nathan -
Depreciation calculated wrongly
Hi guru's,
we are using SLM method and given 33.33% dep.but system calculating 33.2895% for this depreciation amount not matching with user file.any one tell me why this happen?
Thanks
RaviHi
The system calculates the Depreciation based on the Useful Life.
As said by you , the system is calculating as 33.2895% , you want it to calculate it as 33.33%.
In Configuration Activate the Rounding for Depreciation Calculation , then you will get the desired.
Cheers
Venkat -
Asset Depreciation Calculation when Fiscal Year are Different
Hi,
The client reporting company is in US and the company code is maintained with K4 fiscal year varient. (for common controlling area).
Though the India entity follow K4, their depreciation calculation are based on V3 (April to March). The real depreciation for their postings is based on their April to March calculations. The depreciation is calculated on the WDV method and the net assets are calculated on the end balances of December where as it should be the April of previous year. the eg. is
Correct Calculation (Requirement) SAP Calculation
Acquisition Value 33000.00
Accumulated Depre. 14680.00
Net Asset Value - As On 1st April 2009 18320.00
Net Asset Value As On Dec 31st 2009 16400.04
Depreciation Key OS01 13.91% OS01 13.91%
Depreciation Per Day 6.98 6.98
Net Asset Value - As On 1st April 2009 18320.00 18320.00
April'09 30 209.45 30 209.45
May'09 31 216.43 31 216.43
June'09 30 209.45 30 209.45
July'09 31 216.43 31 216.43
Aug'09 31 216.43 31 216.43
Sepr'09 30 209.45 30 209.45
Oct'09 31 216.43 31 216.43
Nov'09 30 209.45 30 209.45
Dec'09 31 216.43 1920 31 216.43 1920
Net Asset Value as on Dec 31st 2009 16400.04 6.25 16400.04
Depre for Jan'10 31 216.43 31 193.75
Feb'10 28 195.49 28 175.00
Mar'10 31 216.43 628.35 31 193.75 562.50
Net Asset Value as on Marc 31st 2010 15771.69 2548.31 15837.54 2482.46
There are some BADI and user exit which determines my base value for depreciation calculation. Should we have to use that or any standard solutions are available for this.
Please let me know.
Chandrashekar S AWrong topic I think
-
Dear All,
Our depreciation policy is to depreciate asset from the day of purchase till the day of sale (day of disposal is also included).We are following daily convention basis for 365 days i.e the depreciation is calculated on daily basis with straigh line method.Now we are facing issue system is not calculating the depreciation on the day of disposal otherwise all depreciation calculation is correct please suggest in this regard.
Regards
NaveedThe problem with the @SLN function is that it only works across the dimension tagged as "Time". Planning apps typically have a separate year and period dimension, so this function doesn't help us much. You basically have to create your own depreciation calculation.
To do this, create a moving sum using the @MOVSUMX function (using the TRAILSUM option). Then divide this moving sum with the depreciable periods (which will obviously vary by asset class).
You can only do this for "new" assets. Most fixed assets systems can feed you the projected (future) depreciation on "existing" assets. Then you can add your depreciation on new assets (that you've just calculated) to your depreciation to existing assets to get total depreciation.
Hope this helps,
- Jake -
Day Wise Depreciation Calculation Issue
Hi Team,
I have an issue regarding day wise depreciation calculation. I have selected Dep for the Day check box and it is calculating day wise depreciation but here it is taking as 366 days for base it should be 365 days (2011 is we have only 365 days) do ineed to change any settings from Asset accounting side? Entire year wise depreciation is correct but if i see month wise there is small difference due to 366 days. How can i control this setting?
Regards,
NagarajuHi,
2012 is a leap year. Therefore 366 days.
regards Bernhard -
Asset depreciation calculation for prevous year when legacy data transfere
Hello,
Asset Legacy Data transfer has made as on 31.12.2006. so, for the first period asset depreciation calculation has done wrongly i.e. on the first period of 2007. but it was not noticed at that point of time, now after 2 years, the cumulative difference is coming out very big.
for 1st period, in Asset Value Tab of AS03, for period 01 , 2007 when i am checking right now it shows for dep. Area 01 right now that Amt to be post (14.48) instead of that in the next line for Dep. area 20 and in the next line it shows, Amt. to be posted ( -0.28). hence, for next period only differnce amount is posted in G/L side instead of actual it should be posted as 14.76.
so, now because of this error, my G/L and AA sides are not matching up.
eventhough i post manual reversal entry via FB01, when i will run ABST2 there will be problem.
if i run manual unplanned depreciation, then will my problem of not matching of Asset side and GL side will be solved. ?
also, please provide suggestion from your end in order to solve this issue.
Thanking you for your help.
Jigs.We cannot post any depreciation to previous fiscal year 2008 as no planned depreciation is envisaged for the previous year 2008. The transfer date for Legacy asset data transfer is maintained as 12/31/2008 and takeover values are uploaded accordingly. Hence, 2009 is a first year for Asset Accounting of the company code.
However, Depreciation posting program checks for previous period log while executing for the current period. The logs are stored in u201CTABAu201D table. For new company code there will not be any entries in TABA table.
Due to missing functionality, System is checking for previous year depreciation posting logs even though the current fiscal year is first year for planned depreciation and giving error message AA 687.
As per SAP Note 144441 this error can be rectified with the help of correction program ZACORR_TABA_ENTRY_CREATE.
Steps to Rectify the Error:
1. Copy correction program from SAP Note 144441 into SAP System.
2. Execute the program with transaction code SA38
3. Check the values in test mode
4. If the table is updated with documennt number , remove the test mode tick and execute again
5. Execute the deprecation
Edited by: Ramesh Reddy Nalamada on Jul 25, 2009 1:17 AM
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