Special tax bonus depreciation

Hi,
I am working on SAP 4.7. Has any one of you worked with Special tax depn in USA (30% and 50%). SAP note 505069 is not working as per requirement. With the depreciation keys M20S, ordinary and special depreciations are calculated correctly in the first year. From the second year, the ordinary depn is not calculated on NBV/remaining useful life for each year. Absolutely, there are no useful notes in SAP nor the documentation available. If some one of you worked on this, kindly advise.
Raghu

Hi Scott,
Try recalculation through Asset Explorer AW01N ( using the claculator like icon)
If this gives you the right dep amount you are looking for, you can save the rec-calculation from Asset Master AS02.
Regards
Sachin

Similar Messages

Special/Bonus Depreciation

Hi,
There is one asset on which special/bonus depreciation is applicable say @50% each year. Depreciation is calculated at the end of year. Both ordinary dep and special dep. are calculated correctly.
Now there is further acquisition in the next year to the same asset. At the end of 2nd year, when the depreciation is calculated, ordinary dep is calculated correctly but no special dep. is calculated.
The company is using declining bal. method.
What can be the error. Can anyone help me out.
Regards.

Hi
Acq yr. 2010 / no. of yrs 1,
Acq yr 2011/ no. of yrs 1,
Acq yr 2012 / no. of yrs 1,
With the settings that you have done above - you have told the system that for the Acquisitions done in 2010, Spl Dep is to be calculated for only 1 year.... Same for 2011 and 2012....
Thats the reason system is not calculating it in the 2nd year and onwards... If you want it to be calculated, Change the 1 to 2 or desired no of years.. If you enter 999, then it will be calculated each year and every year
br, Ajay M

Russian Bonus Depreciation

Hello,
For the Russian bonus depreciation we have tried to follow the configuration steps according to note 944927 but the configuration entry for the last step (Customizing for Financial Accounting -> Asset Accounting -> Information System -> Country-Specific Functiond -> Russia ->Investment and Improvements) is missing in our IMG. The highest installed Support Package is SAPKH60006.
Allthough we have tried to configure new depreciation keys for the bonus depreciation, this only works in association with linear depreciation methods. If we use non-linear depreciation methods the system calculates incorrect annual depreciation values.
Thanks in advance

Hi,
You don't need to create a special depreciation key for MACRS depreciation. If you are using the US depreciation chart, the key is already there. You do, however, have to set the calendar to the correct dates. But the standard depreciation key M200 works just fine. If you are not using the US depreciation chart, copy it in a testing environment and pull up depreciation key M200 in tx AFAMA and copy it from there. In this case, you would also have to adjust the calendar. I hope this helps.
Regards,
E.

Bonus Depreciation for the year 2010

Hello Gurus,
I need to configure for the bonus depreciation based on the newly enacted US law 2010. The requirement is, for the asset purchased between 3rd Jan 2010 through 07th Sept 2010, the bonus depreciation need to be calculated @50% as special depreciation. The balance need to be depreciated as ordinary depreciation for 2010 and the remaining periods. For the assets purchased between the period 08th Sept to 31st dec 2010, the bonus depreciation need to be100%.
Please let me know the step by step configuration that need to be done for:
1. Depreciation key M20S.
2. The base method to be maintained
3. The multilevel method
4. The period control method for depreciating the values for the above mentioned dates
5. The bonus depreciation need to be calculated only for 2010 and should not be calculated for 2011 and onwards.
Also please let me know if there is any SAP note for 2010 Bonus depreciation calculation
Thanks in advance.
Best Regards,
Sri

Hi Sri,
please check the OSS notes 1316999 and 1148489 in relation to your issue.
Please make sure the config is as per the note.
Maybe the following links are useful:
http://help.sap.com/erp2005_ehp_05/helpdata/EN/ec/bb6055ddbf4db2bc8ae129f0faab61/frameset.htm
http://help.sap.com/erp2005_ehp_05/helpdata/EN/95/24f5e1b4f743658d7f3cbffe708904/frameset.htm
http://help.sap.com/erp2005_ehp_05/helpdata/EN/ba/66a5ec7bbf4060a8eb0eee29e6b565/frameset.htm
http://help.sap.com/erp2005_ehp_05/helpdata/EN/8a/f5bbe8692943328f7cb6ee4b3cf344/frameset.htm
regards Bernhard

Bonus Depreciation

11.5.10.02
Hi all,
I need your input from you experts. My tax laws required for a 20% bonus depreciation in the first year along with the regular monthly depreciation. However, when the asset is place in service the middle of the year the application doesnt calculate the full 20% bonus depreciation in stead it is porate among the remaing months left in the financial year.
Ho do I set the my Tax book to allow for full 20% to be calculated on the assets no matter which period in the finanial year the asset is in service?
Please your ideas are more than welcome.

Well, the only thing I can think of is to look at the bonus depreciation rule assigned to the asset. Maybe the wrong rule has been assigned to the asset? Or the rule has been set up incorrectly? You would really have to supply detailed information about the bonus rule setup in order for us to give you any good responses. Otherwise we are merely speculating, which means you could be off chasing down dead end alleys and not figuring out the issue. There is no proration involved in the bonus depreciation rules window, but you do define a from year and a to year. So maybe from year is 1 and to year is 2? Don't know. Could be possible that you have run across an Oracle programming error. If the bonus rule looks ok, I would suggest reporting this to Oracle support.
John Dickey

Special-tax on asset

(one of the client is asking this question, but i don't know exactly what i say so I am asking ur soultion for this one):-
Question:- we are purchased the machine in September-1st; how we can calculate the special TAX for the asset what is the scanario?
2.Special tax is calculated the year wise or monthly wise. plz........ hlep

Hi,
When this is a % you can create a depreciation area with Revaluation.
In this area (statistical one) you have then a total from your aquasition value and tax. When you want you can create aother one with this area -/- the normal one with creating postings. Now you have the values in AM and the tax is posted
Paul

Full Bonus Depreciation irrespective of DPIS

Hi All,
We want the Full 50% Bonus Depreciation to be taken for the first year irrespective of DPIS, we want this only for Bonus Depreciation and not for the actual Depreciation for an asset having STL Depreciation Method, so we do not want to change the Prorate Date.
Is there any way to achieve this other than using unplanned or override depreciation. This link Re: How to Calculate Initial Depreciation Allowance for Assets? looked very relevant but the solution is not outlined. Please need your help and advise
Thanks,
Sarvesh

Hi All,
Please need your Invaluable inputs and advise.
Thanks,
Sarvesh

Bonus Depreciation for subsequent acquisitions in 2010

Hi all,
We have done bonus depreciation for 2010 and 2011 aand its working fine but for one scenario.
Assets acquired in 2009, had bonus depreciation calculated for 2009. But when there is subsequent acquisition in 2010, its not calculating bonus depreciation for the 2010 acquisitions. We are not using any sub asset concept but are adding to the original asset.
Please let me know how to ptoceed ahead.
Thanks a lot in advance,
Sajan

Hello Jay-R
I have the same question the multi level method maintained as below
My requirement is I need 50% reduction on the asset addition therefore for the year 2015 it should be 500 in reduction since there is 1000 addition to the asset. Please provide me your input on how I can achieve this.

Bonus depreciation Economic Stimulus Act of 2008 for FY Apr-Mar company

Dear SAP expert,
I tried to apply bonus depreciation by referring SAP note 1148489. But in some cases, I have a problem.
Our company's fiscal year is Apr.-Mar. Not Jan.-Dec.
I registered a test asset of acquired on 3/31/2008(eligible bonus dep.) and assigned depreciation key which is configured for the bonus depreciation to the asset in the master data. But when I tried to assign the dep.key, system shows error message.
Another case, asset acquired on 4/1/2008, system looks working properly.
I guess the system needs different configuration if company fiscal year is Apr.-Mar.
Could anyone help the above issue?
Yoshi

Thank you for your comment.
Is it multi level method? If so, I tried both 2008 and 9999. But it did not work same error(E651 SYST: Depreciation key ZTX1 is incorrect).
The definition is the following.
Acq.Year:2008
Years:0
Per:1
BaseVal.:01
Percent: 0.0000
Rem.Life: blank
Reduc.: 50.0000
Our system version is 470 Enterprise.
Yoshi.
Edited by: yoshiaki tsujii on Jun 11, 2008 11:17 PM

Bonus depreciation valid till 2010

Hi gurus,
I am still learning AA. I got business requirement to make bonus depreciation valid till 2010 where right now it is valid till Jan 2009. Please advise steps that need to be done to extend the bonus depreciation. <Please do not solicit points for answers >
Edited by: Arun Varadarajan on Mar 10, 2009 9:13 AM

Search the blogs. Nathan Genez wrote explicit instructions on how to configure depreciation keys that will calculate "bonus" depreciation for the U.S.

Bonus depreciation provisions -Asset Acconting

Hi,
I am configuring Assset Acccounting in my current project.I have one issue...Please clarify...
1.Where bonus depreciation provisions apply(50% allowance u/s 168K) - will they apply to all assets of the particular asset class.
2.please suggest me how and where to configure this?

Usha,
Please start a new thread. don't steal this one.
Thanks,
-nathan

How will effect the tax on depreciation ?

Hi Sap Gurus,
How will effect the tax on depreciation ?
what is the entry...
Thanks
Ramakanth

Hi,
Treatment of tax depreciation depends on how your client wants it.
Most client don't want tax depreciation to post to general ledger. Hence in the configuration, using transaction code OADX, the setting of tax depreciation is set to zero. This way real time tax depreciation is not posted to GL.
Depreciation keys specific to cater tax depreciation are either created and defaulted to asset classes where tax depreciation is present. Also useful life of an asset is changed in tax depreciation area. This ensures tax depreciation to be calculated normally while posting depreciation. Later on reports can be executed to get the value of tax depreciation during the given period.
regards
Pawan

Fixed Assets - Tax Book Depreciation Reset

Hello Fixed Assets Experts,
My company recently reorganized our parent company, and now has the following scenario:
Due to legal changes, we need to start over the useful life on our tax books (10 and 11) and restart the calculation of depreciation based on the net book value of the asset on 1/1/2008. Book 01 needs to continue as normal. We would like to use the current asset numbers and not transfer anything to new numbers. These are all of our FFE assets, so there are multiple depreciation keys and useful lives (i.e. computer equipment, property, etc). I have tried making custom depreciation keys and changing the useful lives to get the desired result, but can't seem to find a way to do it.
Here is an example:
Asset 1 (software), was capitalized on 06/30/2006 with a useful life of 3 years and has been depreciating since. It is scheduled for end of life in 2009. The net book value of the asset on 1/1/08 is 1219.97. I need to depreciate the 1219.97 over 3 years starting on 1/1/08.
Is this possible? We have not run our December 08 depreciation, but I am running out of options.
Thanks in advance!

Do you working on ECC 6 and activate the option EA-FIN. In that case it is possible to use time intervale in the tab Depr Areas (click 2 times on the line). This should solve your problem.
See the wiki about new depreciation
https://www.sdn.sap.com/irj/scn/wiki?path=/display/erpfi/asset+accounting

Taxes in depreciation posting

Hello,
we need to post the depreciation with a tax code for the Investment Support, do you know can we indicate a tax code in account in depreciation process?
Thank You very much

Hi,
yes we need to deduct. For exemple:
-CT   Account   Amount
-40   70000       100
-70   13100       76.92
-50   47400       23.08 (Tax 30%)
thank you
Edited by: SAP Grupo Iberostar on Sep 8, 2010 12:46 PM
Edited by: SAP Grupo Iberostar on Sep 8, 2010 12:48 PM

Special depreciation config

Dear all,
as per income tax, if we buy a new asset before september, the depreciaiton should be 10% and if we buy a new asset after september, the depreciation should be 20% in the first year.
Can anyone say in detail how it can be done in SAP? it would be good if anyone send me configuration steps for this process.
Will award good points.
Thanks in advance,
A.Anandarajan

Special Depreciation
Special depreciation represents deduction for wear and tear on an asset from a purely tax-based point of view. This form of depreciation allows percentage depreciation, possibly staggered within a period allowed by the tax authority, without taking into account the actual wear and tear on the asset.
There is no special configuration for Special depreciation, just indicate "S Special tax Depreciation" as value in Depreciation Type (V_T090NA_1-AFATYP)
This depreciation is customized as any other depreciation key.
Rgds
Philippe

Special tax bonus depreciation

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