Skip to Content
0
Aug 01, 2016 at 03:09 PM

Special Tax Depreciation

761 Views

Hi,

I have a scenario in which i have to configure special tax depreciation for reporting purpose only. To do so i have created a separate depreciation area and depreciation keys are maintained as well. The scenario is that i have to depreciation an asset on a special rate in the first year of its acquisition and on a separate rate for the remaining life of the asset. To achieve this i have configured multilevel depreciation for tax depreciation keys. system works fine as per the setting the only issue is instead of calculation depreciation on yearly basis its calculating them on period basis as mentioned below:

Deprecation for the first year 10% and 15% for the rest of the life. asset value 100,000 and capitalization date is 01.06.2016. Fiscal year is July to June.

As per my settings the system should calculate the depreciation for the first year as (100,000*10/100)/12 and post 833.33 for 12th period in fiscal year 2016.

For 2016 system should calculate depreciation as (100,000-833.33)*15/100) and post 14,166.7 for the complete year 2017. But instead system is calculating the depreciation as bellow

Depreciation for the remaining 11 periods of the 1st year (100,000-833.33)*10/100)/12 = 763.88*11 = 8,402.78

Depreciation for the remaining 1 period of current F.year ( 100,000-833.33)*15/11)/12 = 1239.58

So the total depreciation for fiscal year 2017 is shown in AW01N as (8,402.78+1239.58) which is wrong as per my requirement it should be 14.166.7 as shown above.

Any guidance on this how i can achieve this and what setting am i missing here.