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Former Member

Depriciation as per income tax


we want to calculate depriciation as per income tax, you may aware of the calculation methodology iis for more than 180days and less than 180 days etc., and also i need a report which shows the WDV as on date with additions, disposals etc.,

can any one worked on this,


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  • author's profile photo Former Member
    Former Member
    Posted on Sep 14, 2009 at 06:33 AM


    There will be 2 main depreciation areas: i) Book Depreciation area 01 (as per companies act) with real time postings ii) Tax Depreciation Area 15 (as per IT Act 1961) with statistical postings.

    The depreciation calculation as per IT act can be done by creating new dep.keys or using standard depreciation keys.

    Standard depreciation keys IN1 to IN9 have been created for India Tax depreciation. You can choose the required keys for the depreciation area 15 or copy them and modify accordingly.

    Actually the period control methods assigned for the IT depreciation keys will trigger the internal calculation key for the tax depreciation as per IT Act.

    The IT Act prescribes certain rates of depreciation to be used under the Written Down Value (WDV) method over the asset blocks to compute depreciation.

    There is a standard report for Year End Income Tax depreciation reporting "J1IQ" which is now obsolete in ECC6 and can be used upon requesting the same from SAP support.

    Otherwise the following standard group assets report can be used to extract the balances:

    S_ALR_87011903 Asset Balances for Group Assets

    S_ALR_87011978 Asset Balances for Group Assets

    Thanks & Regards,

    Lakshmi Prasanna

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    • Former Member


      thanks for reply, my issue is we want to take a asset report which shows the net value, additions before 180 days and aditions after 180 days and depriciation for these etc.,

      before this how to calculate depriciation as per this requirement, because allready we have assigned one tax dep key for all assets, is there any need to create one more deprication key and changes to asset master to fulfill this requirement.


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