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Jul 09, 2019 at 08:22 AM

Depreciation area as per local GAAP having different fiscal year


Hi ,

Main company code in India is having one more company in Japan . I have created two ledgers .One leading ledger with FY variant V3 ( April and March ) and local GAAP ledger ( Japan ) having fiscal year variant K4 ( Jan to December) . Till now I have created one depreciation areas 01 which will post to both the ledgers as per Indian GAAP is okay with depreciation keys used for Japan GAAP.

I noticed that if the asset is purchased on 1st July 2019 . System is calculating depreciation for the first year for 9 months ie from July to march as the FY variant of leading ledger is April to march . But this will not be accepted as per Japan GAAP as depreciation needs to be calculated for 6 months ie July to Dec as it is following Jan to Dec depreciation area .

Do I need to create one more depreciation area as per Japan GAAP which will post only depreciation to non leading ledger . But I am not sure that with this setting Depreciation in Japan GAAP will post for 6 month for 1st July purchase , Please confirm if 6 month depreciation will be calculated .

Do I also need to create a derived depreciation area for posting diferance between two GAAP.