Block of assets_IT depreciation

Hi
Has anyone configured IT depreciation with SAP ECC 6.0 EHP 5.
EHP 5 has better solution for IT depreciation. It has introduced the "Block" concept over "grouping of assets"
Thank you
Vedavatee

please post your question regarding EHP5 solution

Similar Messages

Profit Center blocked error in depreciation run

We are upgrading SAP system from 4.6 to 6.0. It was noticed that Profit Center blocked error is being captured in depreciation run test run in the upgraded version. In 4.6, this error is not being captured. Is this an enhancement in the upgraded version?

I have not search information about it. I found this change only positive. Now you have direct to solve the error (wrong profit center) and not later with the retirement. It is only when they block profit centers or assign an other profit center to a cost center that they have to contact asset accounting for changing the asset. In the old version the values on the profit center where wrong, now you have to correct them. I see this more as a bug in the old version that is solved now.
When you don't want this have a look to the error message and turn it of when that is possible, but then you accept that the vallues in profit center accounting are wrong

Block assets for depreciation run

Hi everyone,
Is there a way to put a hold on few assets in a company code from running depreciation, meaning I want the depreciation posting program (AFAB) to skip the selected assets (assets of my choice) for the current periods depreciation run? However, system should calculate depreciation for rest assets in that company. Please advice! Will surely award points for all your help
Thanks in advance,
Kumar

Hi Dominic,
I really appreciate your advice! But, is there anything else I can do to block the assets for depreciation other than checking the indicator Shut down? Because for the assets of my interest the field Shut down is suppressed in the screen layout rules. Please advice!
Thanks,
Kumar

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
Sathish

Hi,
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

Assets Under construction & Depreciation run

Hi SAP friends,
What is the meaning of Distribution & settlement in AUC.
While closing financial year we are running depreciation. After once run depreciation, can we run second time for same fiscal year. If yes does any impact on first run.How many times we can repeat run in same fiscal year?
reply will be awarded.
Thanks & regards
Amar

Hi,
1. Distribution & settlement :- Once u create a CWIP. U need to settle it means transfer the balance to gross block so that depreciation can gets calculated on the same.
In distribution u can settle same CWIP asset either line item wise or % wise to different gross bvlock assets. U have to give distribution rule for the same. According to ur rule the CWIP asset will get settled to gross blocks
2. U can do the repeat run of deprecition. This is useful if once planned run has ben done some changes happens in asset & depreciation change is there in the repeat run that change will get posted
hope this will help u.
Rgds,
Saurabh

AUC asset settlement

Dear All,
After settling the AUC asset to normal asset, values are not flowing into the group asset number which is tagged to the normal asset master data whereas under normal asset, values are flowing accurately.
Kindly give your suggestions over this.
Regards
Anuj

Hi Anuj,
What i feel is group asset is only for reporting IT Dep Values.
and also please also check the following settings for group assets:-
Asset grouping, depreciation etc) as per Indian IT act from SAP system
Country Version India comes with a report for calculating depreciation on
asset blocks (asset groups) as required by law for calculating a company's
taxable income.
Country Template
The country template for India comes with the following settings:
- Chart of depreciation
- Depreciation keys as per the income tax laws
Year-End Income Tax Depreciation Report
You use this report to calculate the depreciation on your assets and any
capital gains or losses according to the Income Tax Act.
To access the report, from the SAP Easy Access screen, choose *Accounting
(r) Financial Accounting (r) Fixed Assets (r) *Information
System* (r) *Reports
on Asset Accounting* (r) Taxes (r) Country Specifics (r) India
(r) *Year-End
IT Depreciation Report*.
Prerequisites
You can use the Customizing settings delivered by SAP in order to configure
Asset Accounting (FI-AA) with respect to the income tax depreciation area
and so that the report works correctly. For more information about what
settings to make, see the Release Note structure under FI (r) *Release Notes
from Country Version India Add-On* (r) *Customizing Settings for Income Tax
Act*. Given below:
Customization Settings relevant to Income Tax Act Description
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.
*Customization settings *
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 block that are prescribed under Indian tax
laws. They are as below:
*Depreciation Keys : *
1. IN1 - Tax Depreciation - 5% - India
2. IN2 - Tax Depreciation - 10% - India
3. IN3 - Tax Depreciation - 15% - India
4. IN4 - Tax Depreciation - 20% - India
5. IN5 - Tax Depreciation - 25% - India
6. IN6 - Tax Depreciation - 40% - India
7. IN7 - Tax Depreciation - 50% - India
8. IN8 - Tax Depreciation - 60% - India
9. IN9 - Tax Depreciation - 100% - India
The features of the keys supplied are as below:
Depreciation type: ordinary depreciation
Class: declining balance depreciation
Depreciation method: stated percentage
Base value: remaining book value with proportional value adjustments
Percentage rate: will correspond to the depreciation rate of an IT block
Period controls:
Acquisition: IT
Acquisition in following year: IT
Retirement: NL
Transfer: NL
9. For the asset classes corresponding to the IT blocks, default the
corresponding depreciation key for the depreciation area created for income
tax. (Reference Transaction Code: OAYZ). Use an infinite useful life e.g.
999.
10. Create a screen layout rule for depreciation areas (Reference
Transaction Code : AO21) in which the field group asset is mandatory.
11. While maintaining the other asset classes for the income tax
depreciation area, use the screen layout rule as in (j). (Reference
Transaction Code: OAYZ).
12. Create group assets using the asset class defined in (b), where each
group asset master record corresponds to an IT block. You will be able to
view only the income tax depreciation area for the group assets.
13. Maintain the following posting variants for the transaction types
normally used for asset retirements: 200, 210, 250, 260 (Reference
Transaction Code: OAYS) in the income tax depreciation area:
Treatment of retirement: balance revenue
14. Create individual asset master records, where for the income tax
depreciation area, you have to enter a group asset. Choose the group asset
depending to which IT block your asset belongs.
Note :
1. For individual assets, the system will not show any depreciation in the
income tax depreciation area.
2. For the group assets, the system will not display the book depreciation
area.
3. At the time of takeover of old asset data, create the group assets first
and specify the opening gross value and accumulated depreciation for the
income tax depreciation area. Then while creating the individual assets, you
have to specify the opening gross value and accumulated depreciation for the
book depreciation area only.
Features
Selection
Enter the asset numbers of your group assets and other selection data as
required.
Output
The system:
- Calculates the
depreciation on
each asset block
- Calculates any capital gains or
losses
If you deselect Test Run, the system also:
- Posts the depreciation to the income tax depreciation area
- Stores the capital gains amounts from the report in a table for your
future reference.
Calculation of Depreciation
Use
The program calculates the depreciation on each asset block according to the
Income Tax Act.
Features
Depreciation of Asset Blocks
The Income Tax Act requires you to depreciate all assets in blocks (in the
SAP System, called asset groups). In other words, you do not calculate the
depreciation on each individual asset. Instead, an asset group has its own
net book value.
The asset block's net book value increases when you add assets to it and
falls when you sell or retire assets. You also calculate depreciation on the
block's net book value. The depreciation rate depends on the asset block and
is prescribed by the government. Since an asset block may exist for a very
long time, as you add new assets to it, it has an unrestricted useful life.
For example, assume your company has four trucks. At the beginning of fiscal
20X1, the trucks have a total net book value, for income tax purposes, of
INR 300,000. At the end of the year, with no acquisitions and no
retirements, the net book value has not changed. The total depreciation on
all of the trucks is 10% of INR 300,000, or INR 30,000.
The total net book value of the block at the beginning of 20X2 is therefore
INR 270,000.
New Assets Held for Less Than 180 Days
If you purchase an asset less than 180 days before the end of the fiscal
year, you are only entitled to depreciate it at half of the normal rate of
depreciation. To continue the example, on 1 June 20X2 you sell a truck for
IN 30,000. On 31 March the following year, instead of posting INR 3,000
depreciation, you can only post half of that, INR 1,500.
The system handles this requirement by taking half the acquisition cost and
calculating depreciation on that.
Asset Retirements
When you retire an asset, you are not entitled to calculate any depreciation
on it in that fiscal year at all.
Calculation of Capital Gains or Losses on Sales of Assets
Use
The system automatically calculates any gains of losses on sales of assets
according to the Income Tax Act. Any gains or losses have to be taxed.
Features
If you sell an individual asset from a block, the value of the asset block
goes down by the sale price. For example, assume that you have an asset
block of trucks. On 1 April 20X2, the trucks' total net book value is INR
270,000. On 1 February 20X3 you sell one of the trucks for INR 50,000. At
the end of the year, the net book value before depreciation is therefore INR
220,000.
Capital Gains
If the sale of an asset causes the value of the asset block to fall below
zero, the amount below zero constitutes a capital gain under the terms of
the Income Tax Act. For example, on 1 April 20X3 the trucks' total net book
value is INR 198,000. On 1 December you sell a truck for INR 210,000. On 31
March 20X4 the system determines the asset block's net book value as:
INR 198,000 u2013 INR 210,000 = u2013 INR 12,000
This makes a capital gain of INR 12,000, which the system stores in a table
for your future reference.
The following year, the net book value of the asset block is set to zero.
Capital Losses
If you sell all the assets in a block, but the block still has a net book
value, the system posts this value as a capital loss. For example, if you
have a block with only one asset valued at INR 12,000, and you sell it for
INR 10,000, the net book value of the block is still INR 2,000, even though
there are no assets in it.
The system stores the capital loss amount in a table for your future
reference.
Regards,
Raghavendra.M
SAP-Practice
Edited by: Raghavendra Muchukota on Jan 23, 2009 11:31 AM

Block Depreciation Posting

Hi All,
We are having the scenario that we need to bolck the depreciation posting for a group of assets. But these assets are in different asset class.
How do we stop posting depreciation for assets in different asset class?
I request you to all kindly provide your values.
Thanks with regards,
Ran

Dear Mr.Saravanan,
Thank you for your comments and the scenario is, if suppose I change to 0% in the depreciation key and I believe that it will affect the whole assets which are assigned this depreciation key.
We do not want to get affect all the assets in the asset classes.
We want only block certain assets in different asset class.
Please advise in this regarding.
Thanks with regards,
Ran

Chart of depreciation is blocked in AuC class

While creating an internal order with a investment profile , I am getting the error " chart of depreciation is blocked in asset class"
Which settings needs to be changed to overcome this error?
Please advsie
regards,
Manohar

Hi Manohar,
i hope your error message might be Asset class is blocked in chart of depreciation, but it may not be " chart of depreciation is blocked in asset class".
In this case go to transaction OAPL and set the COD first.
Now go to transaction AM05 and unblock the asset class, which you might have blocked earlier.
Hope this will help.
Thanks,
Srinu

Blocking assets without allowing further depreciation

Hi,
Can any one explain as to how one particular asset can be blocked and also further activities of depreciation, retirement etc on that asset can be blocked.
Regards,
Anand

Hi Anand,
Refer -
Accounting>Financial Accounting>Fixed Asset>Posting>Retirement>Retirement w/revenue>
ABAVN-asset retirement by scrapping
narendra

Block the Asset for Depreciation Posting

Hi All,
Can anybody please tell me as to how to block the asset from depreciation posting. I need to stop the depreciaiton being posted to some assets.
Regards,
S.Suman

Tick the "DEACT" check box in depreciation area tab in asset master (AS02). This will deactivate depreciation posting to that perticular asset.
Harshal

Asset depreciation block

HI
Is it possible to stop depreciation some of the assets under one particular asset class?
can any one help me
Thanks & Regards
phaneendra
Edited by: phaneendra Reddy on May 6, 2009 8:18 AM

Hi
Go for shut down approach. But your depreciation key should allow shut down. check your depreciation key configuration
In asset master data
Go to time dependent terms,
Define the appropriate time interval for shutdown
Set the shutdown indicator
The system does not calculate the depreciation for the shut down period,
The useful life of the asset will increase to the extent of shutdown period.
When you remove the shutdown indicator, system automatically resumes the depreciation calculation.
Regards
Tanmoy

Income tax depreciation in india

Dear All,
How do we adress the income tax depreciation in India.
As we know the depreciation treatment for Income tax depreciation is a block concept...how do we adress that...
Could any one explain elaborately if possible...short and precise inputs are also most welcome...
Please help to resolve the issue
Sapfrido

Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.
Following limitations/restrictions are there in the existing process.
Limitations of Group Assets
Locking
Cap on the volume of transactions u2013 99,999
Limitations of Report J1IQ
Opening Balance Calculation
Depreciation Calculation for Assets acquired and Put to use for less than 180 days
Depreciation Calculation for different fiscal year variants
Assets Acquired and Sold in the same year
Asset Block Retirement by Scrapping
Asset put to use date capture
Report Formatting Issues
The solution for IT Depreciation Calculation is being revamped and the new solution shall be available in EhP5.
If you have further query about new solution better to contact SAP by raising the OSS message by using component -XX-CSC-IN-FI

Problem in Tax Depreciation Report

Dear all,
We are implementing Asset accounting for Tata capital. For tax depreciation area we maintained the setting for GL posting as(0= No values are posted in General Ledger). We had created the respecting depreciation keys and assigned in the asset master. The problem is, when i am running report of tax depreciation using transaction code J1IQ, it is not showing any data. It is displaying empty list.
Please guide us further, if any settings needs to be done
Thanks and Regards
L. Priyadarshini

Dear Priyadarshini,
Creating depreication keys and assigning in master may not serve your purpose.
Are you aware of the Asset Block concept in IT Act?
The depreciation in IT Act is calculated based on the total value of assets falling under one group, which is called "Gross Block" .
Eg:- Computers & Softwares comes under 1 block, so you need to create 1 group asset for every block in IT Act.
T-Code AS21, here you create 1 asset for every block in IT Act and maintain the depreciation keys for it, also enter the gross value and accumulated depreication in this for the entire block.
Now, this group asset number needs to be specified in every asset which you are creating in AS91,just double click on the depreciation area 15 (for IT Act) in the asset master you will get an entry screen where you have to specify the group asset number.
I think the report J1IQ is not used anymore.
Instead of that try giving the group asset number created for IT act, in AW01N or any other asset report for getting the values of Gross Block and Accum Dep as per IT Act.
Assign points if found useful.
Thanks & Regards
Sanjay Marathe
Edited by: Sanjay Marathe on Apr 29, 2008 12:51 PM

Repaint() - problems with queueing/blocking

hello,
im writing a game as an applet using awt, but i cant get the repaint() method to execute where i would want it to.
import java.applet.* ;
import java.awt.* ;
import java.awt.event.* ;     //depreciated
import java.util.* ;
public class matches_applet     extends Applet
                    implements ActionListener , MouseListener , ItemListener {
     // var declarations
     // init
     // reinit for starting new game
     // waiter for simulating "thinking"
     public void move( int srcX , int srcY , int destX , int destY ) {
          //check if vaild move...
               // mode : 1 = single player , 2 = mulitplayer
               // player: 1 = human , 2 = human/computer
               if (mode == 1 && player == 1 ) {
                    waiter() ;     //simulate computer player "thinking"
               //add move to list of done moves...
               System.out.println("repaint attempt");
               try {
                    Thread.currentThread().sleep(2000);
                    field.repaint();
                    Thread.currentThread().sleep(2000);
               } catch ( Exception e ) {}
               System.out.println("repaint succsessful");
               if (mode == 1 && player == -1 ) {
                    //send human move to ai...
                    //receive ai move
                    //write ai move to vars fromX , fromY , toX , toY
                    move( fromX , fromY , toX , toY ) ;
     // listeners
     // move invoked from mouseClicked( MouseEvent mouse ){}
     public class CentrePanel extends Canvas {
          @Override
          public void paint( Graphics g ) {
               System.out.println("repaint in");
               // paint stuff
               System.out.println("repaint out");
}now when i attempt to move a pawn, my console prints :
     repaint attempt
     repaint succsessful
     repaint attempt
     repaint succsessful
     repaint in
     repaint out
for the part inside the move.
insted it should print ( correct me if im wrong ) :
     repaint attempt
     repaint in
     repaint out
     repaint succsessful
     repaint attempt
     repaint in
     repaint out
     repaint succsessful
i know that the
if (mode == 1 && player == -1 ) {...}is blocking the queue, but i dont know how to get it not to.
thx for any answers in advance,
westernmagic
Edited by: westernmagic on Feb 1, 2009 5:36 AM

Pete_Kirkham wrote:
An alternative approach is to bypass the event queue and call paint directly with the components Graphics object whilst in the loop.
Pete[http://forums-beta.sun.com/thread.jspa?messageID=2065345]
thanks Pete.
@ admin/mod : feel free to close.
Edited by: westernmagic on Feb 1, 2009 1:26 PM

AU133 - Expense Account for Ord Depreciation could not be found for Area 58

Hi
I am working on ECC 6.0 Version. While running Depreciation AFAB in one our company codes, I am facing the Error No. AU133, Expense Account for Ord Depreciation could not be found for Area 58.
Whereas there is no this error for our Book Depreciation Area 01.
I have checked all the Accounting Assignments settings in AO90 and AO93. They are correctly maintained. I have no clues how to go about it.
I have also checked whether the Depreciation and Acc. Dep GLs are maintained as recon account. But they are correct only.
Please suggest any solution as we have to close the period.
Gemini

Same problem after upgrade from 4.6c.
The solution was to create the depreciation accounts in the company code - kind of strange, since all depreciation postings must be made as cross-company postings to a cc that (obviously) has the account and since it worked in the old "RABUCH"- version. It seems to be ok to just create the accounts and then block them for posting (to avoid posting to them by mistake).

Block of assets_IT depreciation

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