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author's profile photo Amarnath Raveendranath
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Amarnath Raveendranath
May 05, 2014 at 01:33 PM

Is Tax Depreciation Area mandatory for European Countries

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Dear Colleagues

I am implementing Asset Accounting for a client who has operations in several European Countries.

Ex: Germany, Belgium, France, Italy etc.,

Per customer requirement, We have made the Leading Ledger "0L" as US GAAP accounting principle.

I would like to seek your expert opinion regarding Depreciation Area.

  1. The customer does not know anything in SAP as they are greenfield.
  2. For Asset Accounting, they are asking if Tax Depreciation Area is mandatory or optional?

For this, I told them it is a business call during all these years if they have maintained separate books of accounts for Tax purposes, then I said yes we need Tax Depreciation Area which will be mapped to new Non Leading Ledger "ZL - For Tax".

However, the client is asking for confirmation from us, stating if it is mandatory then we will create Tax Depreciation Area and link to Tax Non-leading Ledger else it can be ignored.

Pls advise.

Thanks in Advance