Change in Depreciation Area
My client dont want to capitalize the Assets intially,there is a reason for that as ownership of assets with government,down the line after few yaers most likey govt may transfers the ownership of Assets to my client.But my client wants to depreciate asset with out affect on books of accounts to keep track of Net book value of Asset till govt transfers the ownership,my client idea is to recognize Asset net book value and run regular depreciation at the point of time when govt tranfers the ownrership.
So I guess I can solve this by using Depreciation area other then Book depreciation area,but here my concerns are
1.Is system accepts to change depreciation area(for ex: from Cost/Tax dep Area) to Book depreciation in between.
2.If so, is system considers the Net book value as acquistion value (Start up value) when We change Depreciation area to Book depreciatio area.
Thanks in Advance to all experts who viewd and going to throw light on this,it will be greatly appreciated.
Siva Vank replied
One way to do it even it has 2 major steps,
create a new depreciation area and load the assets let them calculate depreciation and do not select a real depreciation area. this will track the net book value and depreciation, similar to the tax books.
when the company gets ownership do a legacy load to book 1 with the net book value.
i know its not an integrated solution, but it does get what you wanted.