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,
JBC

Hi 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

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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,
Bapu

Hi 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 for Malaysia

Hi Guys,
We have a requirement to calculate Tax Depreciation for Malaysia with reference to the Capital Allowance.The scenario is like this:
For Asset Class say Office Equipments Initial Allowance is 20% and Annual Allowance is 10%
That means depreciation will be calculated @20% on the acquisition value immediately upon acquisition for one time. Again depreciation @10% per annum will be calculated on the acquisition value for the entire useful life of the asset from the date of acquisition.
Example: Asset is capitalised at MYR 10,000 on 1.1.2010
First Initial Depreciation would be: 20% on 10000= 2000
Annual Depreciation for 2010 would be : 10% on 10000= 1000 and this will be same for next 8 years.
Depreciation Method is SLM
In this case changeover should happen within the year.
Can you please suggest how to create a depreciation key in SAP for this.
Early respponse would be appreciated.
Regards,
Chandra

Hi Chandra,
Have you found the solution for this scenario?
Thanks

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, Christian

For 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

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

Wrong depreciation calculation for upload assets

Hi
I am uploading for US company with FY as Jan to December.
I have to upload assets with value as on 31stJuly 2010. It means SAP should calculate depreciation from August 2010.
Depreciation is on life basis
One asset purchased on 01.11.2009 with Value $ 585.59. WDV as on 31st July is 355.21. Total life is 23months. In AS91, depn start date is 01.11.2009 with useful life as 01 year and 11 period. In expired life, its showing as 94 under period column.
Now in asset transfer config, i gave the transfer date as 31.07.2010 and last period of depreciation in previous system, i gave it as 7th period of year 2010 (ie. July 2010)
Now when i saw depreciation in AW01n for august 2010, it shows that remaining depreciation is fully written off in august 2010.
Its not flowing to next month.
Any idea why is writing off depreciation fully in next month itself

Hi..
After transfer old asset to new asset system automatically transfer all the balance to the new asset including depreciation Up to July
After that please check in the new asset master in the depreciation area tab depreciation start date...it must be 1st August
So based on that date depreciation will be calculate
I hope you will get some idea based on this suggestions.
Thanks and Regards
sudharshana vamsi

How to skip depreciation Calculation for one year

Hi Experts
I got requirement from One of My Client.
Scenario:
Fixed Asset Value: 100000
Useful life: 10 years
Per year depreciation: 10000
Asset Purchase date: 01.04.2014
Depreciation posted up to: 31.03.2015
Depreciation not required from date: 01.04.2015 to 31.03.2016
Again Depreciation Start date: 01.04.2016 based on life of the asset.
Question: As per above information From period 01.04.2015 to 31.03.2015 not required any depreciation posting for this we assigned Asset shutdown in asset master data. if deselect the asset shut down check box again it considering for depreciation.
As per my scenario we don't want whole one year depreciation.
Regards
Madhan Mohan

Hi
you should to add two interval in the asset master data under shut down tab " on main asset No. only "
the first interval in start form 01.04.2015 and click on shutdown box beside this interval.
and create another one from 01-04-2016 and remove he asset tick on shut down to allow the asset to operates again after the shutdown period elapsed ..
Regards
Mahmoud EL Nady

Tiered Tax calculation for Sales tax

Dear Experts,
Can someone guide me how to configure the following tax code:
For the 1st 5K, the tax rate should be 6.5%; and
For any remaining amt. above 5K, it should be 6%.
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Any guidance would be highly appreciated.
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Duties are not calculating for new tax code

hello all,
I have some tax codes through which i am able to calculate the BED and so on. now BED rate has been changed so have created new tax code, but with that code BED is not calculating only SHEC is calculating.
What could be the reason for this pls explain me.
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Murali

Hi,
Please check whether you have maintained the Tax % Rates of the new Tax Code in the particular condition records.
With Regards
Sagar

Re: Calculation for Freight tax in Purchase Order

Hi All,
Please help me in this issue.
Presently my client is using following scenario.
Suppose the freight amount including tax is 500 INR ,The tax is 7 %.
At present the SAP is calculating ax in the following manner.
Amount Excluding Tax: 500/1.07=467.29
Tax = 500-467.29=32.71
Now they want the tax to be calculated in the following manner
Amount Excluding Tax: 500*0.93=465
Tax = 500*0.07=35
The conditon types used are:
ZBX9:Gross Price Formula
ZWVS: Input tax manulaly: %age
ZS12Transport: Value
Please help me to do the changes as required.
Regards,
vivek

HI Pankaj,
Thanks for your response. Can you try to bit explain me what you are saying.
& show me where I have to maintain the settings.
Regards,

Wrong base amount calculation for entry tax

Hi,
We want to capture entry tax in PO with condition type ENT1. The issue appearing for the condition is that the Base value calculated to calculating the ENT1 is (Base Value + Excise + 2 * VAT). Where as the propser calculation should be (Base Value + Excise + VAT).
For example -
Base Value - 1000
Excise (BED + ECS + SECESS) - 10.3
VAT (4%) - 4
Sub Total - 1014.30
Entry tax (2%) - 20.29
Where the entry tax getting calculated is 20.37 considering VAT as 8 (2 * 4). We want the entry tax as 20.29.
How can we achieve this?
Regards,
Prashant

Hi Vikas,
Please check in OBQ3 what is the "From" field of JEC1 and JSEP. This should be the step denoting JMOP.
Regards
Binoy

Calculation of Tax Depreciation - India

Hi,
We are following the New GL Accounting setup to our US based client in India.
My Leading Ledger (US) is Jan u2013 Dec and Non-leading Ledger (India) is April u2013 March.
We also created different Fiscal Year variants (Year Dependent) as S1 and IN for both the Co codes.
I have defined and activated Non-leading ledger for India Company code.
All the transactions were posting correctly as per Leading and Non-leading ledgers except Tax Depreciation in Fixed Assets.
I was able to post correct depreciation for India Company Act Depreciation area with a stated percentage. But the Tax depreciation area calculation is incorrect.
Required Depreciation Calculation for Tax Depreciation Area as below:
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%.
I already copied India standard setting IT & NL to my fiscal year variant in Calender assignments of Period controls. But when I tried to post the Tax Depreciation in the month of March as per Non-leading ledger, the system is calculating full Depreciation as per Rule1 instead of 50% of stated Percentage in Rule2.
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 as per above requirement. I have been working on this since one week. Please help me.
Thanks for the help.
Regards,
JBC

I am not sure if this work.. but give it a try.
In your multi-level method line 1 put Acq yr = 9999, Year = 999, Per = 6, Percent = 50
line 2 put Acq yr = 9999, Year = 999, Per = 12, Percent = 10
Now what i dont understand from your question is that is this rule for the first acquisition year only?
If so, also try with Acq yr = 9999, Year = 1 (so only the first acq yr will get calculated based on the percentage).
Try this in your sandbox and let me know if it works or not!!

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

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
Ajay

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

Tax depreciation for vehicles from limited value in Poland

Hi,
for a polish company I have to define the depreciation for cars. In Poland is for vehicles the start value for calculation of the tax depreciation lower then the acquisition value of depreciation area "book depreciation". The tax value is limited.
The sample chart of depreciation for Poland is defined:
01 Book depreciation
02 Depreciation on tax limited value (cars)
03 Non-deductible tax depreciation (cars)
In rules for takeover was defined that depreciaition area 02 adoped the values of depreciation area 01.
Depreciation area 03 is not a real depreciation area it is defined: 01 Book deprecition - 02 Depreciation on tax limited value (cars).
I don't know the legally rule how to define the limitec tax value.
My question is, how can I define the calculation of tax depreciation from a limited value?
Thank you!
Best regards
Hubert

Hi,
this is not the aswere of my question.
E.g. I have a care with acquisition of 25.000,-. The start value for calculation in depreciation area 01 is 25.000,-.
The start value for calculation in depreciaiton area 02 is 20.000,-.. The tax limited value is 20.000,-.
How can I define the system to calculate in deprecition area 02 with limited tax value 20.000,-?
Thank you!
Best regards
Hubert

Depreciation calculation for Indian Tax Depreciation Area

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