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Differing asset tax book and accounting book when the currency is foreign

Hi Asset Gurus,

My company has this requirement that when the asset is acquired in foreign currency there will be acquisition posting on Accounting Book (area 01) but zero on the Tax Book (area 15). They said this is in conformance with the reporting standard. Can anyone give me an idea how can this be done in the asset accounting? Do I need to setup new depreciation area just for this requirement?

Thanks,

Aloy

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Feb 24, 2009 at 05:09 AM

    hi

    you have to maintain parallel currencies for the company code

    you have to define the depreciation area for this parallel currency.

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    • Thanks AP for your reply. Please bear with me a little bit as I still don't see the complete picture. Currently this is what's happening:

      When the acquisition is made in foreign currency, both depreciation area 01 (accounting book) and area 15 (tax book) gets updated with local currency value (APC). Now the requirement is to make tax book area not posted to everytime this situation happens. We don't really need to have the foreign currency amount reflected in the asset.

      Given the requirement description above, do you still think parallel currency in FI and additional depreciation area would be the solution? If yes, could you kindly expound further on that solutions please?

      Thanks a lot for your help.

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