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Depreciation on Asset for current period..?

Hi Experts,

i have a question regarding depreciation on asset. My fiscal year is apr-mar. Suppose i purchased asset(Ex:machinery) this month(december). So from When can i run depreciation on that particular asset.?

Thanks in Advance,

Regards,

Rajesh.

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3 Answers

  • Posted on Dec 07, 2011 at 09:39 AM

    As per law, you have to start depreciation from the date when it was first put to use.

    Srinivas

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 07, 2011 at 09:50 AM

    dear

    you can start depreciation from december place the depreciation start date in as02

    keep posted

    regards

    rohit

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 09, 2011 at 11:51 AM

    The asset depreciation starts when it is put to use

    Reagards,

    amit Shinde

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    • Former Member

      You have really asked two questions, and I don't know that the answer for both is the same throughout this world.

      1 When must statutory depreciation start for taxation purposes, such as for the IRS regulations if in the US? This is probably NOT depreciation area 01 in SAP, but a derived area maybe.

      2 When must financial accounting depreciation start, such as for US GAAP or for IFRS rules. This usually involves depreciation area 01 in SAP, plus other DA's for revaluations and/or for subsidiary company financial reporting in other currencies.

      Probably both are when the assets are placed into service, or some other consistent project milestone that approximates in-service dates. But check with your accountants/auditors for DA01, and check with your statutory tax personnel for non-financial areas.

      Regards

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