Income Tax Dep. In asset accounting

[Former Member]

Hi All,

Can any one help how to solve this. At least i want to whether it is possible or not. Please help me on this.

We are using group asset for calculationg Income-tax depreciation.As

per Indian income-tax act if the asset used more than 180 days we can

avail 100 % other assets we can avail 50% dep. only.

For example Group assets for 10% Block.In this block of asset we have

assigned two main asset. One asset has purchased on 01.04.2008 and one

more asset on 11.11.2008.

For the first asset system is calculating Full Dep. When i Post the 2nd

asset system suppose to calculate half of the Depreciation. But in this

case system calculating full dep. for the assets as per income tax

dep.area.

Please suggest me how to solve this issue.It would be very help ful if i am getting any answer.

Thanks

Sriram.

[Former Member]

No need to create two different block of assets.

Only Create two diff period control and assign to two different depr key having same rate.

Now if the asset is purchased on or before 30.09.08 then assign the 1st depr key

if purchased on or after 01.10.08 then assign the second depr key. Both the key's having same rate.

Then depr will be posted for 365 days for 1st one & for 6months for the 2nd one.

Regards,

alok

[Former Member]

Thanks for your all support Alok.

Time being i am leaving now. Tomorrow i will test this.'

If i am not able to do i will get back to you.

Once again my sincere thanks

Sriram.

[Former Member]

Dear Alok,

As per your advice i have created two dep. key.

I have created two main asset. This two main asset i have assigned to one group asset.

I have assigned the different dep.key for IT dep for that two main assets.

But still it is calculating the dep for the whole year. Since i have posted the first asset as on 01.04.2008.

When i post the second asset on 01.12.2008. it is calculating dep. for whole year. But it suppose to calculate half of the percentage. (less than 180 days)

Please look in to this and suggest me to handle this issue.

Thanks

Sriram.

[Former Member]

IT NL keys are given by SAP which is to be defined against your fiscal year variant. Use that. It will calculate exactly as per your requirement.

Regards,

[Former Member]

Please use different period control and assign to the It Depr Key

Regards,

Alok

[Former Member]

Alok,

Could you please explain me elaborately. It woluld be very help ful for me. I have configured seperate Dep.key. Please could please read my question again. I am looking forward your answer.

Thanks

Sriram.

[Former Member]

Please go to AFAMP and create a period control method 6/6/2/2 and 7/7/2/2

Asign this period control to depr Key for <180 and >180 respectively.

Regards,

Alok

[Former Member]

Alok

Thanks for immediate reply.

Please go to AFAMP and create a period control method 6/6/2/2 and 7/7/2/2

It means that we should maintain two depreciation key that is one for less than 180 days and one more for more than 180 days. If i am wrong please correct me.

Asign this period control to depr Key for <180 and >180 respectively.

As per your explanation i understood i need to configure two group asset that is one for Group asset >180 days and one more for <180 days. Please correct me if i am wrong.

Also i am awaiting for your reply eagerly

Thanks.

Sriram.

[Former Member]

Alok

Thanks for immediate reply.

Please go to AFAMP and create a period control method 6/6/2/2 and 7/7/2/2

It means that we should maintain two depreciation key that is one for less than 180 days and one more for more than 180 days. If i am wrong please correct me.

Asign this period control to depr Key for <180 and >180 respectively.

As per your explanation i understood that i need to create two group asset that is one for Group asset >180 days and one more for <180 days. Please correct me if i am wrong.

Also i am awaiting for your reply eagerly

Thanks.

Sriram.

[Former Member]

Absolutely correct.

Please do it and test.

Regards,

Alok

[Former Member]

Dear Alok,

If we are doing maintaining two group asset at the time retirement for examble u are selling the one asset from <180 days Group Asset.

For examble the total of the particular Block of asset is Rs 100000.( 4 assets)

We are selling one of the asset for Rs 150000. In this case we should not calculate any dep. as per IT act.

My doubt is if we are maintaining two group asset called >180 and <180. Will it be possible to handle the above point.

Please correct me if i am wrong. Please consider this as.

Thanks

Sriram.