Tax Depreciation

[Former Member]

Hi Experts,

i have a requirement in asset accounting.

1. ASSET VALUE 2 QTY = 100

book depreciation tax depreciation

10 15

Net block of asset after depreciation is

90 85

asset value q1 is

45 43

sold out qty 1 for Rs.35

35 35

profit & loss 10 ?

Net Block 45 50

this will affect normal accounting processing. if i use tax depreciation is it calculate like this in SAP

How system take tax deprecation and how it will calculate at the time of selling the asset.

Please clarify my doubt.

Thanks

Raj..

[Former Member · Accepted solution]

For this you use 2 depreciation area's one for book and one for tax. The manage the values separate.

See the examples sap delivered in the system and the SAP help.

There are different options how it post. You set this up in the depreciation area. (real posting or only statistical)

[Former Member · Accepted solution]

Thanks for your reply

actually my question is

The SAP system posts the amount being retired from the 01 book depreciation area online automatically within the framework of the retirement transaction.

is same will effect TAX DEPRECIATION ????

what is the effect if asset retirement

Raj..

[Former Member · Accepted solution]

There are some options:

A depreciation that:

post in FI and CO

post in FI

is only statistical.

In the most cases are 01 is posted online and the tax area periodical

In the case with 2 depreciation area's that make postings you have to set-up 2 sets of G/L accounts

For every asset posting it create 2 postings (book and tax) For the tax area you have to set-up an ofset account.

For the periodical postings you run a program on the end of the month

[Former Member · Accepted solution]

Hi,

Please give me configuration steps for the above.

Raju