Tax Depreciation Key Calculation for Malaysia - initial and annual allowance

[Radhika_Bandekar]

Hi All,

We have a requirement to calculate Tax Depreciation for Malaysia with reference to the Capital Allowance i.e. Initial & Annual allowances separately. The scenario is as below:

For Asset Class e.g.: Purchased Software Initial Allowance is 20% and Annual Allowance is 80%

That means depreciation will be calculated @20% on the acquisition value immediately upon acquisition for one time. Again depreciation @80% per annum will be calculated on the acquisition value for the balance year.

Example: Asset is capitalized at MYR 10,000 on 1.8.2024

First Initial Depreciation would be: 20% on 10000= 2000 in Aug 2024

Annual Depreciation for 2024 would be: 80% on 10000= 8000 and this will be in the same year end.

Depreciation Method is SLM

Can you please suggest how to create a depreciation key in SAP for this. For the same year using Multilevel method system calculates only the initial allowance of 20% is getting calculated. 

Early response will be helpful and appreciated.

Regards,

Radhika

[RaymondGiuseppi]

Look

• At this request Tax depreciation key (Customer Influence)
• Blogs or KBA on creation of depreciation keys: e.g. Different Methods of Depreciation Calculation