I apologize in advance that I'm so new to this -- technically this should be our FI/CO team asking the question -- but I'm tired of waiting for answers and need a solution fast.
Because the US company that I work for formed in April fo 2006, that has affected the way we must account for Tax Depreciation going forward... trouble is, I can't seem to figure out how to configure SAP to account for these changes. I suspect it has something to do with Period Control Method.
Normally, a 7-yr MACRS asset would depreciate at 14.29% in year one. But in our case, that same asset can only depreciate at 8/12ths of 14.29% for year one because the company was only in operation for the last 8 months of 2006.
In year two, this asset depreciates at 4/12ths of 14.29% and 8/12ths of 24.49%. Ultimately, we get to take that full 14.29%, but it is pro-rated and spread out across Year 1 and Year 2.
This calculation will continue on all assets acquired as of start-up in 2006 thru December of 2006 until those assets are fully depreciated. For any assets acquired from Jan 1, 2007 and later, this is not a problem.
Another way to think of this problem is this ---
Our company started in April, but operates on a Calendar Year Fiscal Year... January to December. What I essentially need to do is figuratively "shift" the fiscal period for Tax Depreciation to a "May to April" year.
I'm under incredible pressure to get this fixed asap, so any help / advice / solutions you can offer is MOST appreciated!!!