on 09-02-2011 9:50 AM
In India, there is a requirement that the Depreciation for Income Tax should be calculated based on the date of Acquisition. If an asset has been acquired before or on completion of 180 days of a Financial Year, than the calculation of Depreciation is allowed for full year. If the asset has been acquired after 180 days , depreciation is allowed only for 180 days. Hence for an asset acquired on 25/09/2009, system should allow calculation of depreciation from 01/04/2009, assuming that the fiscal year starts from 01/04/2009 and ends on 31/03/2009. However, if the asset is acquired on 07/10/2009, the system should allow depreciation from 01/10/2009. Sap has delivered standard depreciation keys for the same in reference chart of depreciation for India 0IN.
But if the asset has been acquired on 01/10/2009, still the asset has to be depreciated from 01/04/2009, since the asset has been acquired for less than 180 days into the fiscal year. The system is working fine for asset capitalized on 25/09/2009 and 07/10/2009. But we are not able to map the same if asset is capitalized on 01/10/2009 and 02/10/2009. For these two dates, the depreciation should start from 01/04/2009.
I have checked the period control setting and calender assignments and everything seems to be in place. How can we tackle the issue?
Regards
suprita
New Assets Held for Less Than 180 Days
If you purchase an asset less than 180 days before the end of the fiscal
year(financial year) , you are only entitled to depreciate it at half of the normal rate of
depreciation.
the example, on 1 oct 2011 its coming less than 180 days so according income tax we have to pay half of depreciation again next year its continue full depreciation you sell a truck for
IN 30,000. On 31 March the following year, instead of posting INR 3,000
depreciation, you can only post half of that, INR 1,500.
How to default setting this requirement
The system handles this requirement by taking half the acquisition cost and
calculating depreciation on that
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Hi,
If you are using april to march then your setting will be
FV Period Control Month Day Period
V3 IT 1 31 6
V3 IT 2 28 6
V3 IT 3 31 6
V3 IT 4 30
V3 IT 5 31
V3 IT 6 30
V3 IT 7 31
V3 IT 8 31
V3 IT 9 30
V3 IT 10 31 6
V3 IT 11 30 6
V3 IT 12 31 6
Assign IT (Period Control) in AFAMP against the Period control which you use in Dep key of IT dep against Acq and Addition.
Hope this will help.
Regards
Shayam
1) BASE METHOD(IND1):type of dep:ord dep & method stated dep
Dep. after plnd.life end:no
Dep.below NBValue zero:no
Curb:no
2)IDefine Declining-Balance Methods:(I02)
10%
3)Define Declining-Balance Methods(M2), VALIDITY start(2 ordinary dep)
base value:01
4)PERIOD CONTROL/; IT
OAVH: SEP TO MAR MENTIONED 6 PERIOD
Dear shayam,
plz tell me how to over come this issues trying its not coming.
1) BASE METHOD(IND1):type of dep:ord dep & method stated dep
Dep. after plnd.life end:no
Dep.below NBValue zero:no
Curb:no
2)IDefine Declining-Balance Methods:(I02)
10%
3) multi level method:
Ordinary depre start date
basevalue 01& %
4)period control: acq: IT
add:IT
ret:IT
trn:IT
OAVH(sep to mar i mentain period 6)
REQUESTING U how to over come this issues.
regards
suprita
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