Tax Allowances in Depreciation
I Have a scenario. in company code country we have two types of depreciation. 1) Book Depreciation and 2) Tax Depreciation. Tax depreciation is only for reporting purpose hence it is not posted in G/L after depreciation run executed. To handle this i have created two depreciation areas 01 & 02 Respectively. Book Depreciation is working absolutely fine but we are having issues in Tax Depreciation. Following is the scenario:
Tax Depreciation is to be charged on a particular asset at 15% in the first year and then 10% in the remaining years until the life of asset. For this i have done following settings in multilevel depreciation
Acc Year Year Prd Base Value Percentage Remaining Life
9999 01 24 15
9999 999 24 10
The issue here is that system keeps calculating depreciation on 15% and does not change the rate in subsequent years. Basically this 15% is initial allowance provided by tax authorities. can any one share their experience in handling this or what i need to do in order to make above multilevel settings work.