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Feb 19, 2020 at 09:03 AM

Asset Depreciation working as per income tax act for Indian Partnership firm

221 Views Last edit Feb 19, 2020 at 09:11 AM 2 rev

Dear Experts,

Our client is a partnership firm & their requirement is to calculate & post depreciation in SAP as per IT Act.

We are doing a greenfield implementation of S/4 HANA 1909.

Here need to calculate depreciation for 12 months however if the asset is acquired between April to Sept so first year there would be a depreciation rate ( let’s say 10% ) for first six month then for the next six month there would be different depreciation rate ( let’s say 12% ) & then in the next fiscal year the rate would be again different for first six month finally there would be a fixed rate using which such asset will be depreciated throughout the tenure of asset.

Also the depreciation posted in SAP (Dep P&L GL a/c ) should match with the depreciation calculated as per Block Assets concept ( Income tax dep).

Would appreciate a help from an expert here with the detailed steps of configuration to be done in SAP to achieve this requirement & the details of how depreciation keys, period control, multilevel methods, etc. to be done to achieve this in SAP.