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Rectification of Tax Depreciation Values and setting

Oct 20, 2016 at 06:52 AM

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Hi SAP Gurus,

I have an interesting situation at one of my clients. They are using SAP for a long time, and slowly bringing their global businesses into SAP platform (ECC6 - Ehp5 upgrading the Ehp8). During one of the roll-ins which happened on 1st Jan 2016, they activated tax depreciation (Depr Area 15) for one of the country/company code, made it Real Depreciation Area and with indicator 3 Area Posts Depreciation Only to a Local Ledger.

But while uploading the values to Tax Depr Area, they uploaded the same values as for Book Depreciation. These values were totally incorrect as far as Tax Depr was concerned - issue 1.

They also used the same depreciation key for both Depreciation Areas. This key does not fulfill the Tax Depr requirements - issue 2.

Now the requirement is to rectify the opening balances in Tax Depr Area, to correct the Depr Key and to correct/adjust the current year depreciation so that the closing balance of the accumulated tax depreciation by Dec 2016 is correct.

While working on the solution, we found few more issues. They have already posted Tax Depreciation month by month till date for last 9 months - issue 3.

They have used the Depr Key with "depreciation to the day" indicator for all the assets, for the Tax Depr Area 15. The new Depr Key needs Period Control to fulfill legal tax depreciation requirements. This is also a mismatch - issue 4.

Breaking my head over how to work out a solution that does not make more mess..

Regards, Anurag Bhandari

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Hi SAP Gurus,

As a solution to the above issue, I have to create new Depr Key(s) with Period Control 06/06/08/08 to handle Tax Depreciation requirements. But these can not be assigned to the existing assets as the current Depr Key has "Depr to the day" indicator. The only solution SAP seems to suggest is "Transfer Assets" option - which implies that we have to transfer some 8-9 thousand assets??? Is there some another solution to this?

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1 Answer

Bernhard Kirchner
Dec 05, 2016 at 03:54 PM
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Dear Bhandari,

Issue 1:

The posting sign should have no influence for the posting in a special depr. area or a certain leder.

It could be that your ledger settings are wrong.

A example of a typical dep.area setting for a parallel ledger at you is like:

RealPosting to G/LLedger

Area 01 X 1 0L

Area 15 X 3 TL (your ledger code)

Area 16 6 TL (your ledger code)

You can limit a transaction type to a certain area.

Issue 2:

If you change the depreciation key, the depreciation will be adjusted for all open fiscal years.

Issue 3:

See issue 2.

Issue 4:

Please see note 1795678 - AA 662

Best regards

Bernhard

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