Wrong Depreciation Calculation

Dear Gurus,
We have an asset and we have attached depreciation key S01 to it which is 4.75% straight method . But its calculate depreciation as 4.5% in stead 4.75 . Please guide me where I can check this error and solve it . I have tried in forum but not able to solve it . Please guide.

Dear Raj
Please check the Depriciation % u mentioned in the Multi level in T code AFAMS
and Check wheather you assigned the same in depreciation key in T code AFAMA or not
Regards
CA.Prasad

Similar Messages

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

Wrong depreciation calculated

Asset transfer date 03/31/02008
Ord Depr start Date 12/01/2007
Useful life 5years
Go Live 04/01/2008
APC transaction 238,397.18
Monthly depreciation shd be 3973.29
but for April 5297.67 as the system is dividing yearly depreciation by 8months
Now the problem is 5297.67 has been posted for April but going forward we want to show the correct amount 3973.29
I have changed the Ord Depr start date to 04/01/2008 so we have close fig 3807.79 how can we correct this??????

Dear Florence,
As said by you, the Ord Start date was 12/01/07 and the Go live date is 04/01/08.
The depreciation for the year should have been 47679.48 based on 3973.29 pm, However, it has calculated total depreciation to be posted from 12/01/07 and not 04/01/08, which is perfectly alright.
The reason for the higher depreciation p.m is because in the Posting rules, you would have ticked the 'Smoothing', which will result is distributing the extra charge over the full year. If you do not apply this tick, the excess is charged in the first period of depreciation and the subsequent periods would show a correct monthly depreciation charge.
Hope this makes your point clear.
Assign points, if useful.

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

Depreciation calculated wrongly

Hi guru's,
we are using SLM method and given 33.33% dep.but system calculating 33.2895% for this depreciation amount not matching with user file.any one tell me why this happen?
Thanks
Ravi

Hi
The system calculates the Depreciation based on the Useful Life.
As said by you , the system is calculating as 33.2895% , you want it to calculate it as 33.33%.
In Configuration Activate the Rounding for Depreciation Calculation , then you will get the desired.
Cheers
Venkat

Incorrect Depreciation Calculated by the system

Hi,
In Oracle Fixed Assets, the system is calculating wrong depreciation.According to the client, the actual depreciation should be x amount but the system shows some different amount.
Product details:
EBS Version : 11.5.10.2
Database: 9i
For example:-
Asset No. xxx
COST               6,206,674.00
Recoverable cost      5,586,006.60
Date in Service          01.04.2002
Rate of Dep ( % )     7.84
Open FA Period Jan-09
Amount calculated as per system:-
Accumulated Depreciation 4,601,802.45
YTD Depreciation 406,279.95
This is actual amount which
system should calculate.
Accumulated Depreciation 3,330,232.60
YTD Depreciation 40,794,682.72
Please let us know how can we check the formula used by the system in calculating the depreciation.
We checked the depreciation method from the system.Details are as below:-
Method Type: Flat
Calculation Basis: Cost
Depreciation Basis Rule: USE RECOVERABLE COST.
Depreciation in Year Retired(Checked)
Formula button is disabled.
Regards,
Carine.

we procure material on valuation type val100%. material is received in store and placed. after that it is issued from store from val100% valaution type.
after sometime user want to return the material to store again but he says that it can be usable, but its value does not remain 100%, so he return the material in store in val50% valuation type.
client wants this when user will return the material back to store in val50% valuation type, system should calculate the value from val100% valuation type MAP, and divide ty two so that it becomes val50% valuation type value at the time of return instead of this that user will enter the value ExtGA amount in LC in issuance screen.
Hope its clear nw.
Johi
Edited by: Johi Kapoor on May 4, 2011 9:44 AM
Edited by: Johi Kapoor on May 5, 2011 6:02 AM
Edited by: Johi Kapoor on May 5, 2011 8:31 AM

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

Adjust wrong depreciation problem

Asset A is purchased in 2007.1.1, useful life 10 years, straight line, no residual value, in 2009.1.1, it is transfered to asset B and asset A became zero, after transfered to asset B, should we adjust asset B useful life to be 8 years or should we adjust depreciation start day to be 2009.Jan .2?
Previously, we didn't realize this depreciation problem, thus we didn't adjust asset B, the depreciation is wrong, in Nov, we realize the issue, so how to adjust the wrong depreciation charge from 2009.Jan to 2009 Oct?

This calculation all depends on your depreciation keys and period controls. Does Asset A and B should have same depreciation key/ useful life? While transferring Assets A to B you could have transferred those depreciation terms too. If you want to correct depreciation in Asset B now you can use either Unplanned (ABAA) or write-up (ABZU) depending if you want to increase or decrease depreciation.

Depreciation calculated on credit memo is more than its own value

Hi,
We have noticed that the depreciation calculated on credit memo is more than its own values.
please refer the screen shot below:
24.05.2010     108,044.64     120     Goods receipt     108,044.64-     0     USD
24.05.2010     108,044.64     120     Goods receipt     108,044.64-     0     USD
24.05.2010     108,044.64     120     Goods receipt     108,044.64-     0     USD
09.06.2010     128,064.75     120     Goods receipt     128,064.75-     0     USD
22.06.2010     110,601.38     120     Goods receipt     110,601.38-     0     USD
22.06.2010     7,346.35-     105     Credit memo in acquis. year45,337.47     0     USD
22.06.2010     7,346.35     100     External asset acquisition     45,337.47-     0     USD
Please let us know the possible reasons...
Thanks a lot..

Hi,
Here are the details:
Depreciation start date:21.11.2004
Operating readiness: 23.12.2004
Asset value date: 16.08.2010
useful life: 01 period
Kindly tell me know in case you need further info
Thanks..
Edited by: FI User on Oct 21, 2010 9:47 AM

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

Indian Income Tax Depreciation Calculation

Hi
Can any of you please explain/tell me where are the exact SAP configuration settings for the calculation of depreciation calculation as per Indian Income Tax Act by meeting below requirements as per Section 32 of Indian Income Tax Act:
1. If the Asset is being purchased and used in a Financial Year for 180 Days or below 180 Days - Depreciation has to be calculated 50% of Annual Depreciation.
2.If the Asset is being purchased and used in a Financial Year for more than 180 Days - Depreciation has to be calculated 100% of Annual Depreciation.
Waiting for your valuable reply.
Thanks and Regards
P.V.S.R.Gupta

But if I follow your suggestion of taking Period Control Method 04, it would calculate 1/2 Year Depreciaton only
No. If the asset is in use for >180 days, then it's acquisition date must therefore occur in periods 1-6 which will set the depreciation start date to the beginning of the year. This will result in a full year's worth of depreciation.
If the asset is in use for <180 days then the start date is set to mid year which results in only 6 months worth of depreciation to be posted.
All of this can be adjusted per your FYV and on a yearly basis if the FYV is year dependent in the asset period control calendar assignments table.
I'll be the first to admit that I don't know the statutory requirements of India but I know how FI-AA works and can't think of an alternative solution for you.
-nathan

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 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

Config of Group assets - Tax Depreciation Calculation : India

Dear Seniors,
can you please explain the configuration of the Group assets and how exactly the tax depreciation calculation in India happens for the individual assets with scheme of entries.
Thanks and Regards
Sathish

Hi,
In India, depreciation on assets for the purpose of computation of net income as per the Income Tax (IT) Act 1961 is calculated over a block of assets instead of individual assets as allowed under the Companies Act 1956. Asset acquisitions and retirements are managed over the block level. The IT Act prescribes certain rates of depreciation to be used under the Written down Value (WDV) method over these asset blocks to compute depreciation.
The following are the customization settings that may be followed in the R/3 system in order to manage your assets in the income tax depreciation area.
1. Copy the standard chart of depreciation 0IN as provided by SAP and create your own chart of depreciation.
2. Use the depreciation area 15 for the purpose of management of assets under the IT Act. Make it statistical in nature. (Reference Transaction Code: OADB). Do not check the box negative net book value.
3. Specify that the Income Tax depreciation area takes over the APC from the book but not make it identical (Reference Transaction Code: OABC).
4. Create an asset class for the purpose of income tax blocks. This asset class will be used to create only group assets. (Reference Transaction Code: OAOA)
5. Specify that the depreciation area for income tax can be managed only for group assets. (Reference Transaction Code: OAYM). This would mean that depreciation for this depreciation area would be computed only at group asset level.
6. Specify that the asset class defined in (b) above will be used for creating group assets only. (Reference Transaction Code: OAAX)
7. Two period control methods (IT and NL) have been defined in the system for determination of start or the end of depreciation calculation at the time of a fixed asset acquisition or retirement. You may use these period control methods while creating the depreciation keys for the purpose of IT depreciation.
Calendar assignments have been made for the above mentioned period control methods in order to reflect valuation requirements as per the Income Tax Act (Transaction Code: OAVH). You may create your own period control methods depending on the fiscal year variant you use. The period control methods supplied are based on the fiscal year variant V3.
8. Depreciation Keys: The following depreciation keys have been created in the system. They correspond to the income tax blocks that are prescribed under Indian tax laws. They are as below:
Depreciation Keys:
1. IN1 - Tax Depreciation - 5% -
I Hope it will give you some basic guidance.
Regards,
Krishna Kishore

Wrong Depreciation Calculation

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