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Former Member

tax depreciation

what is Tax Depreciation for asset account cusomization, suppose if we implemented tax depreciation, what is requirement? steps, or method

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2 Answers

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    Former Member
    Posted on Aug 20, 2007 at 01:04 PM

    Hi,

    Basically, the depreciation rates applied as per Corporate Law and Income tax Law is different. For some Assets Tax Laws allow higher rate of depreciation.

    In SAP, we can configure multiple depreciation Areas like Depreciation as per Corporate Laws / Tax Laws etc. Hence, a new Depreciation Area has to be configured. Further, the depreciation as per Corporate Laws only will get posted in Books of Accounts. Depreciation as per Tax Laws is only for reporting purpose.

    Thanks

    Murali.

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    Former Member
    Posted on Aug 20, 2007 at 01:05 PM

    Hi Ameer

    Normally the tax dep area is created in order to cate to the tax requirements of the country where as you might want to maintain a different dep rates for your book depreciation. If the tax dep rates is different from that of the book depreication, you can have a separate dep area for the tax dep.

    Thanks

    Ashok

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