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IT Depreciation - India

Hi All,

We are trying to configure IT depreciation for India and we have an issue. This is an implementation project

Version: ECC6.0 EHP4

We have performed all the configuration steps for groups assets

Depreciation Areas:

01-Book Dep u2013 Uses Straight line method u2013 Posts to GL.

02-IT Dep u2013 Group asset concept and depreciation as per income tax u2013 Does not post

We have 2 normal assets:


Acquisition Date: 01.05.2010

Acquisiton Value: 12000


Acquisition Date: 01.10.2010

Acquisiton Value: 12000

We have assigned these 2 normal assets to a GROUP ASSET: 10

Depreciation Rate: 5%

For year April 2010 u2013 Mar 2011, system shows total depreciation of 1200.

Dep for Asset1: 600

Dep for Asset2: 600

As per u201CNew Assets Held for Less Than 180 Daysu201D rule, Asset2 acquired on 01.10.2010 should be depreciated at half rate 2.5%

The Ordinary Depreciation Start Date in GROUP ASSET 10 is set as 01.04.2010 when we purchased the asset using F-90.

The depreciation key am using is IN1. The multi level method in this dep key is M1.

The settings in M1 are as follows:

Acquisition Year: 9999

Year of Validity: 999

Base Value for dep calc: 27

Percent: 5%

Please advise if i have to change the multi level method or do any additional configuration settings.

Thanks, Ashok

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2 Answers

  • Posted on Feb 15, 2011 at 03:19 AM

    Hi Ashok

    Since you are in implementation phase, let me show you the right path

    SAP has stopped supporting the Group Asset Feature for Indian Income Tax... They have provided a new solution in EhP5 which I guess is released in Dec 2010

    Please ask your BASIS guy to implement EhP5 and go with the new solution...

    you may raise an OSS message to SAP and check the same

    Br, Ajay M

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 15, 2011 at 06:30 AM

    Hi Ajay,

    Thx for the info!!

    However we may not be going for EHP5 at this stage.

    Group asset concept is still not obsolete. We can still use it and we wanted to know if any configuration is missing based on issue what we have.

    Please advise if any configuration is missing or any steps need to be done.

    Thanks, Ashok

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    • Hi Ashok,

      The solution for IT dpereciation which uses Asset Groups is not supported any more. You are right that Group Assets are not obsolete. But the IT depreciation solution report which was using Group Asset is obsolete.

      SAP supports the new solution for IT Depreciation Solution, which is independent of Asset Groups and uses Asset Block cocepts.

      The solution is avaialable with EA-APPL EHP5.

      This solution is designed to meet all teh needs of IT ACT 1961 and has no ,limitations as compared to the old solution.


      Praveen Kumar

      Edited by: Praveen Kumar on Jan 22, 2012 3:48 PM

      Edited by: Praveen Kumar on Jan 22, 2012 3:49 PM

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