Skip to Content
author's profile photo Former Member
Former Member

cost accounting values

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,

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jun 12, 2007 at 02:18 PM

    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

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jun 12, 2007 at 03:22 PM

    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.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.