Problem of IT deprecation

[Former Member]

Dear All,

We have 2 plant, X in which IT deprecation is applicable and Plant Y where IT deprecation not applicable , so in all the asset in plant Y deprecation key in IT Deprecation is 000 (No Tax).

There is one asset purchase in Plant X in 01.04.2010 at 10000Rs

This asset is transfer to Plant Y on 01.06.2010 at 10000 Rs.

System calculate Book deprecation properly

But in case of IT deprecation system send full value from sender asset but the receiving asset is having Zero deprecation key so system show no value.

We have used the asset for 3 month in plant X but system show no value of it.

I have tried to post unplanned dep also but it is not working .

Shayam

[ajaycwa1981 · Accepted solution]

Hi Shayam

Is this an Indian client?

In India there is block concept of depreciation... i.e. you manage assets by blocks and the rule of 180/365 days apply depending on when you acquire the asset...

Your asset must be tagged to a Group asset and it does the calculation on the basis of above said rules.. ofcourse, your dep key has to be Non-0000

br, Ajay M

[Former Member · Accepted solution]

Thanks for Reply,

No, issue is not what you understand, i will explain in detail again

No block asset concept or group asset implemented

Book deprecation and IT deprecation is implemented

In It Deprecation rule is if purchase before 180 days 100 % dep if purchase after 180 days 50% deprecation

(that is working properly, there is nothing to be done with this)

Plant X : For Machinery Asset Class

Book deprecation 10%(Dep key M10) and IT deprecation 20% (Dep Key I20)

Plant Y : : For Machinery Asset Class

Book deprecation 10%(Dep ke M10) and IT deprecation 0% (Dep Key 0000)

We purchase Asset in Plant X say asset code 1000 for Rs 50000 on 01.04.2010

We use it for 2 month and then transfer it to New Asset in Plant Y, asset code 1500 in same asset class for Rs 50000.

System show Deprication of 2 month as Book Deprication of 821Rs and IT Deprication of Rs10000. Which is correct.

But when we transfer This asset to new asset( Asset Code 1500 in Plant Y) where it Deprication Key = 000)

System Show Book Deprication of 821Rs but removed full value(Acquisation and Deprication Value) from IT value in Asset code 1000

And if we see asset code 1500 in plant Y system show correct Book Deprication and acquisation value but no value in IT Deprication Which is absulately correct.

Now the problem is if we use the asset 1000 in Plant X for 2 month then where is the Deprication value for that 2 month.

Client want the IT deprication value of 2 month to be shown in asset 1000 in Plant X which is currently blank .

Hope this will clear the issue

Regards,

Shayam

[ajaycwa1981 · Accepted solution]

Hi

As per Indian IT Act, 1961 - If you dispose off any asset in the year - The depreciation on the same is not allowed and the asset proceeds are deducted from the block value

You said you are not using Block concept... however, check your period control for Transfers of assets in AFAMP & OAVH

br, Ajay M

[Former Member · Accepted solution]

Thanks Ajay,

You are correct but i am not disposing off any asset, i am just transferring asset from one plant to another within Company Code.

In this case we should charge deprecation.

Regards,

Shayam

[ajaycwa1981 · Accepted solution]

Hi

Thats the reason I asked you to check Period Control... your period control for Retirements and transfers must be set up differently where as in Std System - They are delivered as same (IT/IT/NL/NL)

br, Ajay M

[Former Member · Accepted solution]

Dear Ajay,

Resolved by creating new period control.

Thanks

Shayam

[Former Member · Accepted solution]

Solved

[Former Member]

Hi, so now you want to 'recalculate' depr for these 3 periods?

You can change depr key in as02 and repeat depr run

[Former Member]

Hi, you need to customize transfer to not copy Depr key

IMG-Financial Accounting (New)-Asset Accounting-Transactions-Intercompany Asset Transfers-Automatic Intercompany Asset Transfers-Define Transfer Variants

[Former Member]

No the problem is different.

Assets are already created in plant Y we just transfer the asset from T-code ABUMN (transfer to existing asset , in receving asset the dep ket is 000).