Tax Depreciation running

Hi
I have done configurations for Depreciation calculation. I have three depreciation areas : Book depreciation, tax depreciation and cost accounting depreciation.
By running AFAB, I can view the book depreciation and post it also.
I am unfamiliar about the tax depreciation running and posting. I request your comments on this urgently.
Please tell me about the pre-requisites for doing this also
Regards

Dear Babu
Its like this, In Indian context you will create say maybe 13-14 group assets through AS21.like
Plant & Machinery 15% GroupAssetNo 1001
Plant & Machinery 80% GroupAssetNo 1002
Plant & Machinery 100% GroupAssetNo 1003
Building 5% GroupAssetNo 1004
Building 100% GroupAssetNo 1005
Building - Roads 10% GroupAssetNo 1006
etc.
In the"Allocations" layout you have field Group asset. Enable this field. While creating the asset through AS01, if it belongs to class Plant&Machinery then give it an appropriate Group Asset number 1001,1001, 1003 under the allocations tab. At the end of fiscal, listing of Group Asset 1001 will provide you the details of Block of P&M to be depreciated at 15%. Further transaction listing will provide you the list of additions / disposals to the block.
The only issue you will get stuck is that not more than one person can work with a single Group asset i.e if someone is processing GA 1001 then company wide no one else can work on that. So you need to create group assets quite intelligently.
Hope that clarifies.
Regards
[Virendra Malik|http://www.linkedin.com/pub/6/b53/549]

Similar Messages

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

Change in start date of tax depreciation not for posting in mid of year

Hi Experts,
Tax depreciation area is not for posting. The fiscal year is from Jan to Dec. I want to calculate tax depreciation from May 2011 based on Net Book Value of tax depreciation as on 30.04.2011. But once I change the start date of tax depreciation in asset master to 01.05.2011, the system ignores the previous depreciation so I am not getting the NBV of tax depreciation of 30.04.2011.
Is any setting is required to get this. I can not do changes in posting rules since this tax depreciation is not for posting any thing.
The fiscal year 2010 is closed and NBV of tax depreciation as on 31.12.2010 of one asset is 80000, If I change the start date of tax depreciation from 1.1.2011 then system correcly take NBV of 31.12.2010 for further depreciation calculation. But if i change the start date of depreciation in between of year the system is calculating depreciation based on NBV of 31.12.2010 but ignores the tax depreciation from 1.1.2011 to 30.04.2011, which I previously run using AFAB.
Need your assistance to know is it feasible to do this.
Thanks and Regards,
Harshad

Hi Harshad
The behaviour of the system is very much correct, it is designed to behave that way...
One, you should not have changed the dep start date....
two, NBV in SAP is always taken to be NBV @ the start of the year....
The best wayout I can suggest here is, if you are on EhP4 and EA-FIN active
a. Change the Dep Key in the asset... You can maintain Time Dependant Dep Terms in asset master i.e. Dep Key X from Jan-Apr and Dep Key Y from MAy onwards
b. This will however, calculate dep based on NBV at the start of the year, but based on new useful life
c. Considering your eg: The system is posting more depreciation i.e. 5333 instead of 5155.... So, calculate this amount outside the system and post a Manual Write up ABZU inorder to reduce the Dep and increase the NBV
Even if you are on not on EhP4, you can follow the same approach as above.... i.e.
a. Change the Dep Key in asset master.... This will throw up new dep figure, on the basis of New Useful life and NBV at the start of the year
b. Post a write up from ABZU....
No need to do Asset to asset transfer in my opinion
Only diff between EhP4 and Non EhP4 is that the differential depreciation would be lesser if you are on EhP4... i.e. instead of 5333 now, system may throw up depreciation amount of 5666.. So, you may need to post write up of 5666-5155
br, Ajay M

Change in start date of tax depreciation in mid of year

Hi Experts,
Tax depreciation area is not for posting. The fiscal year is from Jan to Dec. I want to calculate tax depreciation from May 2011 based on Net Book Value of tax depreciation as on 30.04.2011. But once I change the start date of tax depreciation in asset master to 01.05.2011, the system ignores the previous depreciation so I am not getting the NBV of tax depreciation of 30.04.2011.
Is any setting is required to get this. I can not do changes in posting rules since this tax depreciation is not for posting any thing.
The fiscal year 2010 is closed and NBV of tax depreciation as on 31.12.2010 of one asset is 80000, If I change the start date of tax depreciation from 1.1.2011 then system correcly take NBV of 31.12.2010 for further depreciation calculation. But if i change the start date of depreciation in between of year the system is calculating depreciation based on NBV of 31.12.2010 but ignores the tax depreciation from 1.1.2011 to 30.04.2011, which I previously run using AFAB.
Need your assistance to know is it feasible to do this.
Thanks and Regards,
Harshad

Hi Harshad
The behaviour of the system is very much correct, it is designed to behave that way...
One, you should not have changed the dep start date....
two, NBV in SAP is always taken to be NBV @ the start of the year....
The best wayout I can suggest here is, if you are on EhP4 and EA-FIN active
a. Change the Dep Key in the asset... You can maintain Time Dependant Dep Terms in asset master i.e. Dep Key X from Jan-Apr and Dep Key Y from MAy onwards
b. This will however, calculate dep based on NBV at the start of the year, but based on new useful life
c. Considering your eg: The system is posting more depreciation i.e. 5333 instead of 5155.... So, calculate this amount outside the system and post a Manual Write up ABZU inorder to reduce the Dep and increase the NBV
Even if you are on not on EhP4, you can follow the same approach as above.... i.e.
a. Change the Dep Key in asset master.... This will throw up new dep figure, on the basis of New Useful life and NBV at the start of the year
b. Post a write up from ABZU....
No need to do Asset to asset transfer in my opinion
Only diff between EhP4 and Non EhP4 is that the differential depreciation would be lesser if you are on EhP4... i.e. instead of 5333 now, system may throw up depreciation amount of 5666.. So, you may need to post write up of 5666-5155
br, Ajay M

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

Revaluing of tax depreciation

Hi,
Our company was bought in 2005 and I now need to ?revalue? all our assets for tax depreciation to their Original book value and restart the Tax depreciation. We kept our SAP system, so the tax depreciation in still calculating like there was no sale. We have gone through 1 year and calculated the tax depreciation manually, so I need to post this somehow in SAP so that when I run the tax depreciation this year it knows the corrected starting value, the accumulated tax for year 1 (done manually), and the tax for year 2.
I tried to do a test in the test system by changing the depreciation start date, but the system indicated that any posting in the previous period wont be allowed. The previous period posting is not allowed per corporate standards.
I appreicate your help.
With regards,
Shiva

What you are describing, as I have seen it in the US, is a major undertaking. There is a program RAAUFW02 that can of assistance but you still have quite a bit of data collection to take care of.
-nathan

Asset tax depreciation transfer

Hi Folks,
My business need is to transfer separate value for tax depreciation than other depreciation areas during intercompany transfers. Is this possible in ABT1N?
If we are transferring an asset with a gross/net or new value method, we do not want the entered revenue or nbv to be taken by tax depreciation area in new asset, we need it to be a different value... how can we achieve this?
Thanks.

You need to use the derived depreciation arera concept of SAP.
You need to create a document type for Periodic posting to dep are tax and need to say in how dep areas are posted as "2" (periodicallly).
Then you need to create a derived depreciation area the number of which should be more than the book and tax dep areas (Assumption is 01 is book 15 is tax then the derived area number should be >15), Use depreciation wizard for creating a derived area. you can give different GL accounts for different dep ares in AO90 for posting.
You do your transactions as per the process and need to execute ASKBN for periodic values to be posted. After that you run AFABN to realise the values differently.
This should siolve your requirements.
Reward if useful.
sarma

Tax depreciation for fixed asset in Singapore

Dear all,
One of our client in Singapore want to run tax depreciation in fixed asset module as below .
They want to run depreciation with stright line method pro rata by the year of useful life
and the depreciation will be posted only once a year at the first period of the year that acqusition.
(No matter when they acqusition the asset)
For example : if they do acqusition an asset = 300,000 S$ on any date in year 2009 with useful life 5 years,
the depreciation should be posted as below:
Depreciation per year = 300,000/5 = 60,000
31-Jan-09     Depreciation should be posted = 60,000
31-Jan-10     Depreciation should be posted = 60,000
31-Jan-11     Depreciation should be posted = 60,000
31-Jan-12     Depreciation should be posted = 60,000
31-Jan-13     Depreciation should be posted = 60,000
How shuold I can do the configuration for this requirement ?    Please kindly advise.
Mary_K

Hi Mary,
I'm from Singapore. Here's how you will configure the system.
Create a dep area for Tax depreciation. You should create new Period Control Method (AFAMP) where you will assign 06 period control to acq, add, ret, trn. 06 means start of the fiscal year.
After that, you create a "Dep Key" to assign this period control method. Then in the dep area per asset class, assign this dep key to the tax dep area.
The system will default the start of dep for tax the start of the fiscal year regardless of when it was acquired within the FY.

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

Depreciation run issue.......

Hi,
I am trying to re run the depreication as it calulated wrongly for last 2 months. Now when i am executing it through AFAB T.code, it is giving me an error that posting period is not open for period 1. Our fiscal year start in Oct and ends in Sept. I checked the OB52 settings and there it is shoiwng that currently period 3 is open.
So is there any other way through which i can re run the depreciation posted. I don't think business will agree to open the closed period.
Please suggest.
Regards....

Hi
To post an acconting document in a particular period, that period should be opened. And in case of depreciation run also, accounting document is generated by the system. So it's necessary to open the period to execute depreciation.
Otherwise you can correct the incorrect depreciation in current period if it's ok as per your management.
Rajib

Error while running Depreciation Run in FIXED ASSETS

Hi All,
When i am running Depreciation program for any book in FIXED ASSETS (R12.1.3), I am getting following error...
FADEPR module: Depreciation Run
Current system time is 19-OCT-2011 17:59:42
Depreciation Program Exception Report
APP-FND-01564: ORACLE error 6550 in FADEPR
Cause: FADEPR failed due to ORA-06550: line 1, column 32:
PLS-00302: component 'FAZCBCSOB' must be declared
ORA-06550: line 1, column 14:
PL/SQL: Statement ignored
The SQL statement being executed at the time of the error was: and was executed from the file .
Can any one help on this please.
Thanks,
Naveen Kumar.P

Please see (Depreciation Fails with Error :PLS-00302 and ORA-06550 [ID 1094183.1]).
Thanks,
Hussein

Repeat depreciation run can change cost center in GL a/c or not?

Hi Gurus,
I have hit the following issue.
Fixed Asset 1 originally assigned to CC-01 for month of March.
And my user has run depreciation for March already.
Later she changed cost center to CC-02.
Then she repeat depreciation run for the month of March, from the depreciation result shows the new cost center CC-02.
But there is no document generated and thus from corresponding GL account, there is no change, still point to CC-01.Which means CC-02 has not been posted to GL account yet.
May I please know if repeat depreciation run can change cost center in GL a/c or not?
If cannot, what should be the correct way to post the new cost center in GL?
Thanks a lot.
Best Regards
Li Juan

Hi, I have tried the method you mentioned.
I managed to generate the new document (Message shows: Document is posted under number 7500000000).
So can I say that repeat depreciation run cannot change cost center for corresponding cost element?
Everytime user has to do manual posting.
Thanks a lot.
Rgs
Lijuan

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 running

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