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

Similar Messages

Issue on migration of tax depreciation balances for group assets

Dear Experts,
My client is using group assets for tax depreciation report India.
The SAP implementation was done in 2006 during the data migration the
client was not clear of the values both individual asset wise and
group asset wise to migrate to tax depreciation area. So the tax
depreciation for some of the assets are migrated with some
(non caluclated) value.
Now the client want to see the tax depreciation group asset wise or if
possible individual asset wise.For this the group asset need to be
created and assigned to each individual asset in the asset master
record.
The fiscal year variant is v3, april to march with 4 quaters June,
Sep, Dec, Mar.
Now when the data migration for the current year come into picture
I can use AS81/AS82 for loading current year opening balance and
accumulated depreciation for all the group of assets as a whole. Or
I can use AS91/AS92 to load balances into tax depreciation of
each asset individually. But I am not sure whether this is correct.
And also what to do with the previous years balances. I am very
confused. Somebody suggest good solution.
When I create a legacy asset or group asset in AS91 and AS81
respectively the fields in the Takeover values screen are grayed
out and do not allow mw to input values. But I am able to enter
values by clicking the button Transactions in the Takeover values
screen and able to enter a value date , transacton type and amount
for tax depreciation area. Here again I am not convinced using 100
transaction type for current year opening balance. I used
transaction type 652(Unplanned tax depreciation on current year
acquisition) for accumulated current year dpereciation upto second
quarter septemeber 2008.
In asset explorer under "Planned values" tab the opening balance
must be visible under Fiscal year start column but it is displayed
under change column as I entered values for tax depreciation area
in AS81 in Transaction screen with asset value date as 01.04.2008
transaction type 100 and amount as xxxxxx and value date 30.09.2008
652 xxxxxxxx.
Need expert guidance on this
Rgds
Komal

Dear Experts,
Your inputs are awaited.
Rgds
Komal

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

Calculation of Tax Depreciation

can u tell me How Can we calculate Tax Depreciation with out posting in Financial Records...for Income Tax Purpose....plz give me the configuration steps
and also how can we show in reports,,....
Thanks in Advance....
Suresh

Hi Suresh,
I have set up a new depreciation are for tax reason you have to do the following steps:
V_T093C_08 Specify Transfer Date/Last Closed Fiscal Year
(Take over date, last day of the last fiscal year)
VC_T093U03 Specify Sequence of Depreciation Areas Set-up area 67
(plase the new depreciation area on top)
VC_ANKB_01 Determine Depreciation Areas in the Asset Class
(Assign new depreciation area to asset classes wirh default values
V_TABWA Define Transaction Types for Acquisitions
( Created transaction type to make a acquisition posting in only the new depreciation area)
V_T093_00 Define Depreciation Areas
(created new depreciation Area)
To run AFBN - New Depreciation Area to ad the new depreciation area's to the existing assets
I created 2 LSMW's
1. To up-date the assets from last year with the correct depreciation key, depreciation start date (when you chage this you have to change exp. UL live to blanc, SAP recalculate this) Do this upload not for deactivated assets this year. (the first collum is than not the new depr area in AS92
2. To uplad the acquisition value for the Capitalized assets this year (using the new tranaction type to post only in the new area) transaction ABSO.
The best is to test this first and to do year-end closing for this year.
Paul

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

Issue on asset tax depreciation balances

Dear Experts,
I have a critical issue to be resolved. Someone please guide me.
I want to change the opening balance, current year transactions
accumulated depreciation of year 2008 (Fiscal year variant V3 -
Apr to March) of group assets in tax depreciation area (15) using tcode
AS82. This is required because during data migration in 2006 the
tax dep values for group asset were not entered accurately. With
this the dep calculated was wrong resulting in wrong net bbok value
further wrong carry forward bal in 2007 Apr and so on. My client
now wants atleast correction of year 2008 values so that the future
calculations are right and done by SAP for tax report. What should I do
for this?
What impact would be there if I change Asset Transfer date because
when I go to AS82 to change the takeover values of a group asset in 2008
i get an error msg " Closed fiscal year doesnt agree with legacy data
transfer date" Transfer date is 31.07.2006. This is really critical
and I have been posting this from days but no response. Please help
me experts.Any help would be really appreciated.
Rgds
Komal

Not answered. Somebody throw some light on this. Your inputs are valuable.
Regards
Komal
Edited by: Komal on Feb 2, 2009 7:14 AM
Edited by: Komal on Feb 2, 2009 7:14 AM

Asset value for Calculation of Tax Depreciation

We have been told that many of the assets created as of 1/1/2008 have a different (lower) tax value than their beginning book value. Book value is correct for standard book depreciation.     Is there a process to update the tax value of assets created in SAP similar to the transaction AS92 used to update values for Converted Assets?
It was suggested that we use the method of Unplanned Depreciation tcode ABAA with TTY 642/652 to change the tax value of the asset. When I tested this I found the various tax depreciation methods were calculated based on the beginning book value for year 1 and not using taking the special depreciation into consideration until subsequent years.   This is using Depreciation Area 10, MACRS, Dep. Key M200.
Is there a better method of altering asset book value for tax purposes or a better way to alter the tax depreciation calculation so it takes Unplanned Depreciation into consideration during year 1?
Current simplified tax depreciation example:
Beg. BV $1,000
unplanned dep posted $100
tax depreciation for year 1 $100
tax depreciation for years 2-10 $88.88
The preferred depreciation is $90 years 1 - 10.
Thanks for your assistance,
Jeff

I think I had the cart before the horse on this problem. The correct way to look at this is what is the best way to get the correct "Net Book Value" and not the correct tax depreciation posting as it never actually gets booked.
By knowing the incorrect Beginning BV, the rate depreciation is applied in year 1 and finally the desired Net BV value at the end of year 1 for tax purposes I am able to calculate the correct Unplanned Depreciation for tax to make everything work out correctly.
correct beginning tax BV $1,200
Beginning Asset Book Value $1,800
depreciation $360 (20% of BV)
Unplanned depreciation $?
Net BV for tax at end of Yr1 $960 ; or 1,200 - (1,200*.2)
With the know values above that makes my unplanned depreciation for Yr 1 to be $480. Year 1 and all following years depreciate correctly after the Unplanned Depreciation is posted.
I am marking this as resolved unless someone sees an error in my thinking.
Thanks,
Jeff

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

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

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

Tax Depreciation

Greetings All,
My client has a lean asset implementation. They calculate book depreciation "01" with standard depreciation key "LINA". This amount is posted to GL.
Now the requirement is to enable in SAP calculation of tax depreciation for all assets. This amount is not to be posted to GL in any form and is for internal reporting purposes only.
How to enable this functionality?
Thanks much,
Rajiv

Please add standard depreciation area "10" Federal Tax ACRS/MACRS. In OADB, the GL posting indicator should be set to "0".
Make sure this depreciation area is in all asset master records.
Then execute any asset report / depreciation simulation reports to get the depreciation per Federal Tax calculation.
Cheers

India Tax Depreciation (group asset)

Hi FICO experts,
    I'm having some problem with depreciation calculation for group assets to adhere to India IT Tax Depreciation regulation. As per IT law,
1. asset acquired <180days shall be depreciated at 1/2 of the depreciation rate for the fiscal year
2. asset acquired >180days shall be depreciated at full rate for the fiscal year
    I've created depreciation key with period control NL and IT, and configure 2 depreciaiton area i.e 01 for book and 02 for tax depreciation in India COD. 02-Tax depreciation is configured as managed at Group asset.
    I created 2 Assets i.e Asset A and Asset B and both linked to Group Asset C. Say the depreciation rate is 15%
1. Asset A - Acquired on P1 of 2008 --> INR10000
2. Asset B - Acquired on P9 of 2008 --> INR10000
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     When I view Group Asset depreciation, I noticed that the deprecition for 2008 computed as (1000015%)+(1000015%). Thus, although Asset B is still being depreciated at full rate of 15% instead of half of the rate.
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rgds
WJ

Hi,
If you want to adhere Indian IT laws then follow the below mentioned steps:
1. Maintain a relationship of 1:1 of AS01 & AS21, means when you create a new normal asset it should be tagged with a new group asset.
2. Try to use SAP standard delivered dep. keys.
3. Change asset value date determination in SPRO.
4. Tagged group asset into the normal asset master.
5. Check tax dep.figures under group asset.
Regards
Anuj Agarwal

Tax depreciation calculation requirement

Hi
I am working on tax depreciation area for new roll out project. In this requirement we need to give two allowances in the year of purchase (acquisition) of the asset, one is Initial allowance and another one is yearly allowance. Then subsequence years only yearly allowance. In the last year may be on sold or scrapped there is no allowance.
I am very much comfortable till first year of acquisition and subsequence years with change over method. But I am struggling with the last year, because it is not only on the end of useful life, but also for sales and scrapping in between.
Please help me.
Regards
Padma

Please add standard depreciation area "10" Federal Tax ACRS/MACRS. In OADB, the GL posting indicator should be set to "0".
Make sure this depreciation area is in all asset master records.
Then execute any asset report / depreciation simulation reports to get the depreciation per Federal Tax calculation.
Cheers

Income Tax Depreciation-India

Hi,
You all might be aware To Evaluate the Income Tax Depreciation in Asset Accounting we have got 2 options:-
1.   By Adopting Addittional Depreciation Area (Depreciation Area 15 (Depreciation as per Income Tax
      Act 1961)
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2.   Secondly we can use Group Assets to derive I.T Depreciation I have done the necessary settings in OAYM but when Iam creating a Asset Master the Group Asset field is disabled I have checked the settings in AO21 and made Group Asset field optional but still that particular field is greyed out.
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Regards
Sunil

Dear Ramesh,
   Thnx a lot it has worked and my problem has been solved.
Regards
Sunil

What-if Depreciation Report

Hi,
I need to build the Fixed Assets 'What-if Depreciation Report' as a BI-Publisher report containing additional data not displayed in the standard report. This report is kicked-off together with running the 'What-if Analysis Program' from a form in FA, but I can't find where the concurrent program is registered to run together with the analysis program generating the data in order to replace the RDF with the my custom RDF. Does anyone know where this is done?
Regards,
Arthur

Julie,
In note 30260 point 3, you get the explanation.
The reporting without the option 'posted values' calculates the
asset history sheet as if the catch up method is switched on.
When you use catch up, you have even no problems in comparing the
asset history sheet with the planned values in AW01N.
When you use smoothing, you get a difference between planned and
posted values, as soon as you have postings in the current year,
change the depreciation method and so on.
When you use smoothing, you have to use the indicator 'posted values'
in reporting.
You will find the indicator 'smoothing' or 'catch up' in the IMG of
asset accounting - Integration with the General Ledger - Specify
Intervals and Posting Rules
Best Regards,
Blaz.

Problem in Tax Depreciation Report

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