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Parallel accounting for income tax

Hello Experts,

Please explain configuration process for depreciation as per income tax.

we are using depreciation as per company act, need to extend parallel accounting (general ledger) for income tax.

Thanks & regrds,

Sachin

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3 Answers

  • Posted on Jul 25, 2014 at 06:38 AM

    Hi Sachin

    Create a new depreciation area for income tax purposes

    As you are aware, depreciation calculated as per income tax will not be posted in books of accounts

    You can restrict this in the system by NOT selecting the income tax depreciation area as not real

    Thanks

    Prasad

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  • Posted on Jul 25, 2014 at 07:24 AM

    Hello Sachin,

    Check mentioned SAP note can give more details

    738919 - IT Depreciation for Assets India


    Reagrds

    Mani Kumar

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  • Posted on Jul 25, 2014 at 07:25 AM

    Hi

    For Indian Income Tax Depreciation, you would have to create a new depreciation area. If you are on EhP 5, please have a look at the below business function:

    FIN_LOC_CI_8

    This business function would need to be activate in SFW5.

    The below notes are also useful:

    1964284

    1997948

    783919

    Thanks & Regards


    Sanil Bhandari

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