Trade law in "Book depreciation area per trader law"

Hi team gurus,
when i try CJ88 settlement (settlement from AUC to final assets), i found the amount  according to trade law (assets) doesn't equal to the amount in Val/CO Area.
And i found book depreciation area per trader law was mentioned many times according to the search result via Google.
Could you please kindly help me with what is trader law and what use of it in asset accounting?
Many thanks in advance!
Regards,
Felix Shi

Hi Felix,
I face the same problem like in your post.
Did you find the reason for this or a solution to avoid it?
Thanks,
Adriana Ioan

Similar Messages

  • Link-Group Asset Class, Depreciation Area & Depreciation Key

    Dear Experts,
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    Now the questions are :
    1) Do we need to create different Asset Class for different Group Assets or to create just 1 Asset Class for all Group Assets.
    E.g. I want to calculate Depreciation As per income Tax Act on Gross Block of Building, Furniture & Fixture, Motor Car, Vehicles etc. So I need to create separate Group Asset Class for each one of above or just to create one Group Asset Class.
    2) If we need to create just one Asset Class for all Group Assets; how to maintain a Depreciation Key in OAYZ as there are more than 1 Depreciation Keys?
    3) is there any other method / functionality to calculate Depreciation as per income Tax Act or Group Asset is the only functionality?
    Thanks & Regards,
    Reshma

    Dear,
    Reshma.
    Looking at your Questions let us take explanation for Group Assets :-
    1 ) We need to create new different asset class for Group Class in OAOA. Then permit the depreciation area for only Group Asset in OAYM as it is in your current scenario India  is Depreciation Area 15 Just select your company code in OAYM and check the Grp Asset field for respective area 15. Then go to OAAX here we have to maintain the assets classes particularly for Group Assets. So check your Group Asset classes for Group Assets. Cerate different Group asset classes for your said requirement.
    In these depreciation areas, it is then possible to make an assignment to a group asset.  You make this assignment in the specifications for the depreciation area in the asset master record.  When you post an acquisition to this kind of asset, the system duplicates the line items from this depreciation area on the given group asset.
    2 ) According to me you have to create different depreciation keys for Group Asset classes. Assign the Depreciation keys to your newly created Group Asset Classes in OAYZ and make sure you are deactivating 01 area which is Book Depreciation area.
    3 ) As far as I know this is the only functionality available to handle Group Assets. How ever SAP does not have any standard Group Assets functionality. SAP does not supply asset classes to be used solely for group assets. It is we have to determine as per varying Business Process.
    I hope this will clear your doubt makes you to understand. Please revert back for further clarification. Welcome you.
    Regards,
    Pankaj A Bhalerao.
    Edited by: pankaj_ab on Feb 3, 2010 8:26 AM

  • Cross-System Depreciation Area Transfer

    Hi,
    I need to execute inter-co asset transfer between COD that have different depreciation areas.
    For eg,
    COD 1 - book depreciation area 01, tax depreciation 02
    COD 2 - book depreciation areas 01, US tax depreciation 10, 11,12,13
    Can anyone advise how do I configure the above? The transfer to book area should be using gross method and to tax area should be net method.
    Thank you.

    HI,
    Following are the steps required for the configuration as per your requirement
    1. define cross syteme depreciation area for both book of depreciation and tax of depreciation  in each company company code and as per the requirement mentioned check tax depreciation area  in COD 1 whethere any functionality (properties)of the tax  depreciation area mentioned in COD2 ma tches if it matches then we can mapp the cross system depreciation area to that particular depreciation area.
    2. check comapny id : whether it is legal entitiy( company code assigned to same company)
                                         whether it is independent legal entity ( company code assigned to different company)
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  • Depreciation areas

    hi all,
    in asset asset accting 01,02 ,03,10 dep areas we use like book dep ,special tax,special reserve &book dep can any body  explain with examples about that dep areas

    Hi Savvy,
       If you have one fixed assets, you need to show the valuation of that fixed asset according to Companies act, Income tax act & some information purpose(like Group  Consolidation).
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    For the  same asset also Depreciation  percent will differ from one depreciation area to other depreciation area.
    So we will create depreciation keys for individual depreciation area wise.
    So we will maintain the depreciation for the particular asset with individual depreciation keys(for each depreciation area).
    So that we will know the asset value as per the requirement if you select the Depreciation Area.
    Chandra(Prasad)

  • How to post depreciation to different depreciation areas

    Hi,
    Can any body explain how to post depreciation to different dep areas other than 01 book dep,
    and how to take the reports according GAAP and IAS.
    Regards,
    prasad

    Hi,
    When you create depreciation areas like Book, Tax, Costing etc., the system posts values like APC and Depreciation simultaneously in all the areas. You don't need to do any thing.
    Just posting values through F-90, F-92, etc and for Depreciation AFABN.
    This above holds good as long as you are posting to a single ledger.
    The above answer is slightly different in case you are having parallel ledgers. Let me explain by taking an example.
    Lets assume you are implementing for an Indian client whose parent compnay is in Dutch.
    As per Indian GAAP you need to submit the local reporting on April to March basis and for Ducth Jan - Dec.
    Assets in Indian GAAP are capitalised with values including frieght, Installation and trial run till Commencement date lets say @ 20%
    Assets in Ducth GAAP are capitalised with only Cost, Frieght & Insurance (This is only an example) and the depreciation rate is 15%.
    In this scenario you will be creating two ledgers(IN SAP sense and not the accounting GLs)  with different fiscal year variants and will be defining Leding ledger and Non leading ledgers and Ledger Groups.
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    When you post using the transation code FB01L you will be using ledgers or ledger groups that are effecting with this transaction.
    If you use the regular T codes without using the Ledger Groups, System posts the transaction to all ledgers simultaneously.
    When You want to post the transaction as I said in the above example, you will be using FB01L like capitalising total cost in "LeadingLedger" and upto CIF value to "Non leading ledger"
    NOw from the configuration front you will be creating seperate set of Depreciation keys for each GAAP and will be creating a  depereciation area for Dutch GAAP.
    You will also need to create a derived depreciation area which is the difference of Book Dep Area (as per Leading Ledger) and teh Duthc GAAP depreciation area (Non leading ledger). You can use the Wizard here which will guide you.
    For Book depreciation are its always realtime posting and for other areas its periodic posting. i.e. as a monthend process you need to do,
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    ASKBN checks for the difference in APCs, Depreciations, Loss or gain on account of retirements differently for diffrent depreciation areas and posts the values.
    When it comes to reporting all Standard reports will give you the flexibility of taking the reports based on Depreciation areas.
    You have a TCODE "OARP" where in you will get all the asset related transaction reports.
    The above scenerio is explained with an assumption of you using SAP Version above 4.7EE.
    Reward if you find this explanation useful.
    Sarma

  • Use of Different Fiscal Year Variant-Statistical Depreciation Area Postings

    An existing Company Code in SAP is going to have Fixed Assets implemented.  This Company Code is setup just like the others in our SAP instance: Same Chart of Accounts, Same Fiscal Year Variant, Fixed Asset procedures, etc.  For purposes of this question our company's Fiscal Year is from August 1st to July 31st.  In addition, this Company Code will post Fixed Assets just like the other SAP enabled Company Codes into Book Depreciation Area 01.  The company I work with is on ECC 6 but we use the Classic Ledger for Financials, and the Special Ledger is posted to but not really utilized.
    For the Country Specific/Tax Reporting purposes within Fixed Asset Accounting we have created a Statistical Depreciation Area 03 (I will call it Tax) with its own Life and Depreciation Key assignments with a setting of 0 in OADB-No Posting in GL for this Fixed Asset go-live, so I think we are set there.  The tricky part comes in the reporting.  The country in question requires information to be generated on a Calendar Year basis, which is obviously different than the Fiscal Year outlined above.  To my knowledge we would have to assign Tax Depreciation Area 03 to the Calendar Fiscal Year Variant: Financial Accounting>>Asset Accounting>>Valuation>>Fiscal Year>>Fiscal Year Variants>>Specify Other Versions on Depreciation Area Level. 
    The other piece of this is to get the Fixed Asset Reporting for Tax Depreciation Area 03 to work on a Calendar Year basis for the Company Code in question.  When I did some research I stumbled upon the link below.  In summary it says that you have to manipulate the standard Fixed Assets reports in Excel for Asset Acquisitions and Depreciation, and setup a new Retirement routine/transaction for posting into the Special Depreciation Area.
    http://help.sap.com/saphelp_46c/helpdata/en/05/bc0bf3d8f811d1953e0000e82debf7/content.htm
    My questions are:
    1) Besides assigning a different Fiscal Year Variant for Tax Depreciation Area 03, is there anything else I need to worry about on the setup end?
    2) Is the article I posted accurate when it comes to how the reporting works and the need for setting up a Calendar Year specific Asset Retirement Routine?  If so, what are the configuration steps for setting up a Calendar Year specific Asset Retirement Routine?
    3) Is there anything else that I need to consider for enabling Fixed Assets at an existing Company Code with different Reporting requirements for Book/Tax purposes?
    Thanks in advance for all responses.  I am willing to answer any other questions on this subject if needed.
    Roman

    Hello Rio.  In our scenario, we still had to load assets in the legal entity with this issue.  When we loaded the fixed asset data into SAP we did with data accurate as of December 31, 2011; which for book purposes is 5 months into our company's fiscal year, and for tax purposes is the end of the 2011 calendar year.  The calendarized reporting for the tax depreciation will need to be pieced together manually using the SAP recommended methodology of combining report values, which I have pasted below.
    Since this is the only SAP-enabled entity that has this scenario right now we are in wait and see mode to see if this sufficient.  In the end the SAP path for Dual Calendar was too much of a risk.
    I hope this helps.
    Roman
    Asset Acquisitions 
    Run the acquisitions list. Report date: 7/31/2012. Posting Date: 1/1/2012 to 7/31/2012. Export the report to MS Excel.
    Run the acquisitions list. Report date: 7/31/2013. Posting Date: 8/1/2012 to 12/31/2012. Export the report to MS Excel.
    Add the values of both reports together, using MS Excel.
    Asset Retirements
    Run the retirements list. Report date: 7/31/2012. Posting Date: 1/1/2012 to 7/31/2012. Export the report to MS Excel.
    Run the retirements list. Report date: 7/31/2013. Posting Date: 8/1/2012 to 12/31/2012. Export the report to MS Excel.
    Add the values of both reports together, using MS Excel.
    Depreciation
    Run the depreciation list. Report date: 7/31/2012. Export the report to MS Excel.
    Run the depreciation list. Report date: 12/31/2011. Export the report to MS Excel.
    Run the depreciation list. Report date: 12/31/2012. Export the report to MS Excel.
    Using MS Excel functions, subtract the second report from the first, and then add the third report (I - II + III).

  • Posting entry in one depreciation area

    Hi
    I am capitalizing one expense in company's act depreciation area (i.e. book depreciation area) and capitalizing it in another depreciation area (say IFRS depreciation area)
    How to do this in SAP
    Because i need to create asset master in one depreciation area and post acquisition and depreciation in one depreciation area.
    How to handle it in SAP asset Accounting

    Does it mean i need to create one transaction type and i need to limit it to one depreciation area   YES
    With the limtation from a new transaction type to that depreciation area you want to post to it is only posting in that depreciation area.
    It is not relefant if there are other depreciation areas in the master data from your asset for the posting

  • Different Settlement Across Depreciation Areas

    Hello Experts.
    Does anyone know if the following is possible:
    - Within depreciation area XX I would like to capitalise to an AUC.  Costs may sit within the AUC for a long period of time (up to 2 years) without depreciation.
    - Within depreciation area YY i would like to capaltise direct to a Fixed Asset and commence depreciation immediately.
    The asset initially should exist only in GL accounts specific to area YY. 
    When subsequent settlement is run a further asset should be created specific to the accounts in XX.
    I cannot consider the option of creating the asset in both areas and simply not running depreciation in XX.  My client has an important requirement to mantain the asset as AUC within XX but also charge depreciation in YY.
    Any help or comments would be greatly appreciated
    Regards
    Ronan.

    you post the values to book depreciation area.
    remaining depreciaton areas get the acquisition value from the book depreciation.
    change the configuration
    prasad

  • Posting for different APC values to different Depreciation Areas

    Hi All,
    I am trying to manage in ECC 6.0, different APC values for different depreciation areas, i.e. APC values differ from one dep area to another. I need to post the APC to GL only (i.e. for the 01 i.e. Book Depreciation area). For the remaining depreciation areas for the purposes of reporting I need to maintain different APC values.
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    Krishna

    Hi,
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  • Parallel Currencies and Depreciation areas

    Hi all
    I have a simple question. When we maintain multiple currencies for a company code, what are the requirements for maintaining depreciation areas? Do we need to maintain a seperate depreciation area per currency? I am unsure of the link between multiple currencies and depreciation areas.
    Need ur expert help to help me understand this better.
    Thxs in advance.
    Hrishi

    HI
    Any Depreciation Posting should automatically post to all the currencies that are active for a company code. In your case Parallel currency. Depreciation area has no link to the currency.
    Regards

  • Assets: synchronising two depreciation areas which post to G/L

    Hi All,
    For assets, I've three depreciation areas:
    - Book depreciation (posts to general ledger),
    - Spec.tax depreciation (posts to general ledger)
    - Cost-accounting depreciation.
    I have to make the depreciation posting in first and second areas synchronised. For example, If, for a ceratin asset, I set a percentuage depreciation of 10% in the Book depreciation area, and a percentuage depreciation of 10% in the Spec.tax depreciation area, I expect that the depreciation process lasts 5 years.
    How could I obtain this way to do?
    Thanks
    Gandalf

    Hi Gandalf,
    Use transactions OABD and OABC to achieve your purpose. In transaction OABD depreciation terms in the given depreciation area can be transfered to another depreciation area. In transaction OABC - one depreciation area adopts the value of another depreciation area.
    Hope this helps.
    Cheers
    Samir

  • Parallel depreciation area not posted  when trying to settle an order.

    Hi,
    We have requirement of using parallel currencies in one of the cocode.So I havee set up parallel currencies in AA as well.
    We have three currencies EUR as Local currency, USD as Group Currency and CHF as Index-based Curremcy.
    I have set up Depreciation areas
    01 Book depreciation areau2014posts in real timeu2014leading ledger 0L
    02 Book depreciation area for CHFu2014posts Dep only u2013Z1 european ledger
    10u2014Statutory Depreciation areau2014Do not post
    19u2014Derived Dep area (01-10)
    29u2014Dervied dep area (02-01) Posts APC onlyu2014Z1 european leading ledger
    30-Consolidated Balancesheet in local currencyu2014do not post
    31u2014consolidated balance sheet in group currencyu2014do not post
    32u2014Book dep in Group currency u2013do not post--assigned USD in OABT
    42-Book dep in Group currency-do not post --assigned CHF in OABT
    I have selected Indentical and TTr check box for dep areas 02,31,32, & 42.
    I have done the consistency check and it shows no errors in depreciation area set up.
    When Trying to settle an internal order in KO88 to a fixed asset I am getting the below error message.
    *Data inconsistency: Parallel depr. area is not posted Message no. AAPO104*
    Diagnosis
    For chart of depreciation ZCH, you defined this area (or these areas) as parallel depreciation areas for depreciation area 01. In the current transaction, however, not all of these areas are posted. This is not allowed.
    Procedure
    Check if the transaction type is limited to certain depreciation areas. If there is such a limitation, add the missing depreciation areas for the transaction type.
    Check if the asset that is being posted manages all these depreciation areas.
    I have checked the transaction types and they are not limited to any depreciation areas. I have activated depreciatio areas in the asset class and maintained the account determination nad assigned g/l accounts.
    Please help me if I have missed any settings.
    Thanks & Regards
    Nirmala

    Hi,
    AAPO104 is generally a customizing error:  the check points to consider are generally the following regarding parallel currencies: I think you have checked most of them already...
    * The parall. dep. area must have the same settings as the original area (e.g. allowing APC).
    * The parall. dep. area must set for identical values take over.
    * The parall. dep. area must set for identical parameter take over.
    * The parall. dep. area must be assigned to the currency type which is defined as parallel in FI in trx. OB22 (e.g. 30).
    * The parall. dep. area must be activated in the asset class (transaction OAYZ)
    Furthermore, a problem can also be that in OABT you have a parallel area customized, taking value from another area, which is customized and seen in T093. If for example this parall.area is missing on your Asset Under Construction but is there on the final asset this obviously will create the error AAPO104, too.
    In any case check your settings are correct in regards to parallel depreciation areas. They must manage same values as original areas. If they don't it cannot be a parallel area.
    Maybe you also need to consider the information in SAP note 317806.
    Also, looking at your different depreciation areas above, it looks that you have set up a ledger scenario (areas 01 , 02 and 29). I wonder, do you have a correct set up for the parallel currency for your ledger scenario? If I am not mistaken, I don't see a derived parallel currency area. Could this be the problem?
    Regards,
    Brigitte

  • Cost-Accounting Depreciation area?

    Why is it that the cost accounting depreciation area is posted with a lower depreciation as compared to Book Depreciation area?

    It is not about the currency part, currency is the same [EUR], but in general, whenever you post, say, unplanned depr, you would post a lower amount in this area as compared to book depr area. why?
    I can think of one reason being that since cost accouning depr is for internal management accounting purpose. The unplanned depr is posted by many companies at a higher value to get the tax advantage as higher depr would reduce the book profits [taxable profits]. This is because book depr is for external reporting purpose. Now, cost accounting depr requires to be posted for internal purpose and hence is posted at a correct value [not a higher value] as the idea is to know the costs involved and not any financial gain.
    Kindly confirm, or if there is any reason, please suggest.
    Thanks.

  • Changes to Tax depreciation as per Law

    Hi Friends,
    We are following January-December Fiscal year, as per the country law we need to make some changes to Asset values for the TAX (book 10), book 11 and book 12 Depreciation areas now. It should not effect Book Depreciation 01. What are the possible methods to do this changes to all Asset balances.
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    Thanks

    Hi,
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    I hope this clarifies further.
    Best Regards,
    Brigitte

  • WHAT IS THE DEPRECIATION AREA

    WHAT IS THE DEPRECIATION AREA

    Hi
    Depreciation areas are used to valuate fixed assets according to different purposes / requirements. In broad terms we can identify two different depreciation areas are Book Depreciation, Income tax depreciation and consolidated depreciation.
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    In SAP, we can calculate depreciation for both the depreciation areas, but GL is updated as per Book depreciation. Income Tax depreciation is only for reporting purpose.
    assign points if useful

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