Skip to Content
0
Former Member
Aug 28, 2012 at 01:45 PM

IT dep Plant and mach 15% +20% extra

19 Views

Scenario : According to Income tax law in India for group asset acquired before 01.10.20** should calculate full dep and asset acquired after 1.10.20** should calculate half dep .

For example

Case 1

If asset is acquired on 30th Apr 20** for amount of 1000

Then dep calculation should be

Acquisition value 1000

Depreciation percentage 35%

= 1000*35/100

=350

Case 2

If asset is acquired on 30th dec 20** for amount of 1000

Then dep calculation should be

Acquisition value 1000

Depreciation percentage 35%

= 1000*35/100

=350*6/12

=175

This scenario is working fine for asset which having single level entry in multilevel method but which multi level method which are having more than one level in our case plant and machinery we have 2 level as below there we are facing problem system is not valuating correctly

Acq.year Year

9999 1

base percentage

24 35.0000

9999 100

24 15.0000





Period control configured as per SAP delivered IT IT NL NL there is no changes done in std

Base method used is IND1 standard delivered by SAP

System is valuating dep wrongly in the first year of acquisition system is calculating as below

Dep amount should be like 1000 *35% *12/12 =350 for the first year of acquisition and for subsequent next year it should be 650*15%*12/12=97.5

But here system is using both level dep rates I.e 35% and 15% and making it as 250

(If it uses both level rate then we should have to make first level rate as 20% and second level rate as 15% The dep will be 1000 *20%*12/12=200 &1000*15%*12/12=150 adding both will be (200+150=350)) it tried this but system is dividing by 6/12 what ever date may be it acquired this scenario helped period control is not working

Please share how to deal with this scenario

Regards

Santosh.P.R