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Former Member

Configuring Depreciation Key as per Ind-AS requirements

As per Indian GAAP subsequent acquisition on an asset was required to be depreciated over remaining useful life of that asset. But now as per new Indian Accounting Standards (IND-AS), the same needs to be depreciated over original useful life of that asset. For e.g. An asset was acquired on 01/04/2012 for Rs. 10,00,000. Useful life of the asset is 10 years. On 01/04/2016, subsequent addition was done on same asset for Rs. 6,00,000. Now as per our current SAP settings of Depreciation Keys & methods, Depreciation is coming Rs. 2,00,000 [1,00,000 on original asset (10,00,000/10) and 1,00,000 on subsequent addition (6,00,000/6)]. But as per Ind-AS depreciation should come to be Rs. 1,60,000 [1,00,000 on original asset (10,00,000/10) and 60,000 on subsequent addition (6,00,000/10)]. Please advise on configuration changes in SAP to achieve this.

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