cost accounting values

[Former Member]

depreciation area represent the valuation of the asset for the given purpose 1.book depreciaton 2. tax depreciation, 3. COST ACCOUNTING VALUES, pls i have request what is " cost accounting values", what is purpose. PLZ GIVE THE BRIEF IDEAS,

[Former Member · Accepted solution]

Madhu,

For management/cost accounting purposes, the depreciation calculation/methods/useful life/rates can be different than that of the book and tax areas. These parameters are defined in the Cost Accounting values area.

Thanks

Jagdish

[former_member712491]

Hi Madhu,

We need to calculate different types of values for assets based on our requirement. Cost Accounting Depreciation Area is one such type. This is mainly used for the following three scenarios:

i)<i><b>Whenever you want to maintain a negative book value:</b></i> Sometimes you may have to allow management of negative book value in your depreciation area. Eg: Could be when you do not want to include APC Costs, Investment Support Scenarios etc

ii)<b><i>Whenever you want to calculate replacement values for assets:</i></b> The replacement value can be used in certain situations as the basis for depreciation for reasons say In certain countries, where the rate of inflation is very high, depreciation based on replacement value is allowed. Current depreciation based on the replacement value is then periodically transferred to cost accounting when you carry out the depreciation posting run.

iii)<b><i>If you do not want to capitalize leased assets</i></b>, choose this depreciation area and posting to general ledger: inactive

Hope this helps!

Kindly let me know if this helps.