Parallel accounting for income tax

[Former Member]

Hello Experts,

Please explain configuration process for depreciation as per income tax.

we are using depreciation as per company act, need to extend parallel accounting (general ledger) for income tax.

Thanks & regrds,

Sachin

[sanilbhandari]

Hi

For Indian Income Tax Depreciation, you would have to create a new depreciation area. If you are on EhP 5, please have a look at the below business function:

FIN_LOC_CI_8

This business function would need to be activate in SFW5.

The below notes are also useful:

1964284

1997948

783919

Thanks & Regards

Sanil Bhandari

[suma_mani]

Hello Sachin,

Check mentioned SAP note can give more details

738919 - IT Depreciation for Assets India

Reagrds

Mani Kumar

[former_member193513]

Hi Sachin

Create a new depreciation area for income tax purposes

As you are aware, depreciation calculated as per income tax will not be posted in books of accounts

You can restrict this in the system by NOT selecting the income tax depreciation area as not real

Thanks

Prasad