Posting depreciati​on for partnershi​p firm as per IT Act

[Former Member]

Dear Experts,

Our client is a partnership firm & their requirement is to calculate & post depreciation in SAP as per IT Act. We are going live in ECC 6.00 EHP 7.

So we need to calculate depreciation for 12 months if the asset is acquired between April to Sept & 50% depreciation if it is acquired between October to March. So the depreciation posted in SAP should match with the depreciation calculated as per Block Assets concept.

Would appreciate if you could help with the detailed steps of configuration to be done in SAP & the details of how depreciation keys, period control, multilevel methods, etc. to be done to achieve this in SAP

Melvin

[ajaycwa1981]

Hi Melvin

The new solution provided by SAP starting EhP5, just calculates the Depreciation perfectly.. It does not post into FI-GL..

If you need posting, you need to post it manually through FI-JV

There is no way you can post it in FI-GL through system, because of the peculiar requirement of Block assets in Indian Income Tax

Moreover, there is no law which necessitates you to do this.. Companies Act just asks you to post the depreciation as per Companies Act in FI-GL... It is enough if you provide the IT Dep in the form of report

Br. Ajay M

[Former Member]

Hi Ajay,

As mentioned above, the depreciation calculation as per Block Assets is working perfectly & is not the point in question. Moreover, it cannot be posted manually via JV as Block asset functionality does not give Cost Center wise & Asset code wise breakup hence it is not useful in that sense.

Our client is a partnership firm and the law itself requires partnership firms to post depreciation as per IT Act.
Hence it is a legal as well as audit requirement to post depreciation which matches with IT Act.

Companies Act does not apply to partnership firms, it applies only to Pvt. Ltd & Limited companies.

Any solution on this issue would be highly appreciated.

Regards,

Melvin

[Former Member]

Hi Melvin,

In T code AFAMA, depreciation keys Y005 to Y100 are for various IT depreciation rates.

You can assign it straightaway to the assets.

If you want some other depreciation rate, you just clone any of the above dep keys and create a new Multilevel mthod in AFAMS and assign it to the newly created dep key.

Hope it is clear.

Regards,

G.Sethuraman

[Former Member]

Hello Sethuraman,

I have copied Chart of Depreciation from 1IN Sample Chart of

Depreciation - India and I am not able to see depreciation keys Y005

to Y100 as mentioned by you.

Would appreciate if you could help me further to get the solution.

Regards,

Melvin

[Former Member]

Hi Melvin,

You can refer the following link

Income tax depreciation in india | SCN

Regards,

G.Sethuraman

[pankaj_pandey2]

HI Melvin,

SAP has provide a new solution for IT depreciaiton, you have to activate business funtion FIN_LOC_CI_8.

SAP Note 738919 is for your reference.

You can check below link for your referecnce.

Below are the upload process provided by SAP.

J1INBLK - Uploading Asset Block Data

J1INTRNS - Uploading Opening WDV

J1INBLKTOAST - Assigning Assets to Blocks

Hope thsi would help you.

Regards

Pankaj Pandey

[Former Member]

Dear Sethuraman,

The period control as mentioned in the link does not calculate depreciation as per 180 days concept required as per IT Act. Hence we cannot post depreciation as per IT Act for the partnership firm. Inspite of maintaining the calendar assignments, SAP is calculating depreciation on a pro rata basis.

Would appreciate help on this issue.........

Regards,

Melvin

[Former Member]

Dear Pankaj,

This note helps in calculating depreciation as per IT act in a report form which has been already configured by me for the client.

The requirement is that we need to post depreciation in SAP which should match with Block Assets concept.

Can you guide me on this please.

Regards,

Melvin

[RamanKorrapati]

please repost your query at below forum.