Depreciation calculation-AFAB
Hello,
Dep start date : 25.09.2008
Asset aquisition : 29-.09.2008
Dep rate : 10%
While running AFAB, why system is calculating from 1 period i.e., Apr (Fiscal year is 2008) onwards. Dep should be calculated from 6 period i.e., Sep onwards.
And how Acc dep will be closed? at the year end shall we pass a JV like
Acc Dep A/c Dr
To Asse A/c
Can anybody pl let me know the logic behind this?
Regards
anifi
Hi Anifi,
See the help behind Smooting
If you set this indicator, the depreciation posting program calculates the periodic depreciation to be posted by distributing the remaining depreciation to be posted equally over the remaining periods of the fiscal year.
Otherwise the system calculates in each period (based on the total annual depreciation) the amount of depreciation that must be posted from the start of the fiscal year to the current period. The depreciation already posted is then subtracted from this amount. If too little or too much depreciation has been posted in previous periods, the system either makes up or reverses the difference in full during the next depreciation posting run using the catch-up method (depreciation for past periods in a lump sum).
When you use 1 month depreciaton for an asset, the depreciation is not in 1 Month but split over the fiscal year
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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
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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
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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Please note that J1INQ is NOT in use and this report has been withdrawn by SAP.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
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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.
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BapuHi JBC,
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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.
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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.
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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.
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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
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Depreciation posting AFAB - status canceled
Hi,
I run Depreciation posting AFAB as test run. Processing completed without errors.
Next I run AFAB .I have diagnosis
u201CThe last posting run in period 010 2009 was terminated by an error.
Before any more posting runs are performed, you must restart the posting
run for period 010 2009u201D
Next I executed AFAB using the Restart parameter. Process has again statusu201Dcanceledu201D.
In Job Log is written u201CLine item 001 already exists in document Company Code 10001111 2009u201D
I add, I executed change the year AJRW before them
Could any one please help on this error?
Rgds StenwaI've done it with REPEAT , my error:
Last posting run terminated (Restart in period 2009 010)
Message no. AA730
Diagnosis
The last posting run in period 010 2009 was terminated by an error.
Before any more posting runs are performed, you must restart the posting
run for period 010 2009.
Procedure
Start the posting run for period 010 2009 again using the restart
parameter. -
I uploaded the assets lasr dec.28,2008. Then i closed the asset fiscal year and carryforward the balances. Now, I want to run the depreciation in AFAB, but I can generate anything.
T E S T R U N was terminated Refer to the error log
No documents were created in this run .
I need to have the depreciation posted to have my balances accurate, Please help me gurus.Hi
Have u done the acquisition posting for the year 2009? please check.
I was encoutering the same problem (depreciation run results - no records selected - eventhough there are no errors), but when i did F-90 acq.posting for the asset created, I was encontered with error" You cannot post to asset in company code fiscal year 2009" - diagnosis: "A fiscal year change has not yet been performed in Asset accounting for the company code"
Then I run AJRW - Asset fiscal year change with year 2009 - removing Test run - after that I executed AFAB - depreciation run , system responded with posting details , hence I could post depreciation successfuly.
Hence please try the below:
1. check with posting F-90 with asset created in year 2009 - ensure the above error..
2. If system insists for a asset acct year change, do with AJRW
3. run AFAB
Please revert in case of further issues...
Thanks & Regards
Ravi Raghavan -
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
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