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Block depreciation key and Income tax depreciation key

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Dear Experts,

i have one dought in depreciation..

since we are going to use the Block wise depreciation what is the use of income tax depreciation key,

Please can anyone explain

Rgds,

Naru

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi Naru,

You will need dep key for Income tax purpose, because the Period control is different in case of Income tax dep and even for block of assets, you will need to charge depreciation.

However, SAP has introduced new solution for India- Income tax depreciation with EHP5 (Refer SAP note  738919) and SAP's recommendation is not to use Group Asset solution for Income tax anymore.

Regards,

Kavita

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Hi Kavitha,

thanks for your repoly

is it required to maintain depreciation key for income tax in the asset master, since we are going to us block wise depreciation.

Rgds,

Naru

Former Member
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Hi,

Each normal assets are linked to group asset while creating master and your group asset will need the depreciation Key.

Refer to the thread where I have answered about Group Asset.

Thanks & Regards,

kavita Agarwal

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Hi Kavitha

As you said group asset concept is very useful....... but we are not going for group asset, we are going for Block wise depreciation calculation for new implementation.

Please suggest.....

Rgds,

Naru

ajaycwa1981
Active Contributor
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Hi Naru

If you go with the new solution of EhP5, I think you dont need to have multiple dep areas in asset master. That means you dont need to have IT Dep Keys in asset master

SAP has published a document on the new solution.. I think I have it in my personal laptop.. Can share it by EOD

Br, Ajay M

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Hi Ajay,

Please can you update.

Rgds,

Naru

Former Member
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Hi Naru,

Please check this link if you want Group Asset configuration for Income tax depreciation Area : http://scn.sap.com/thread/2107144

Kind Regards,

Prakash Kumar

Former Member
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Hi Naru,

Please check this post : http://scn.sap.com/thread/3496094

In India, depreciation on assets for the purpose of computation of net income as per the Income Tax (IT) Act 1961 is calculated over a block of assets instead of individual assets as allowed under the Companies Act 1956.

In order to peform this SAP has provided us with asset block feature. See this : Assign Asset to Asset Block (J_1I_UPDBLKTOAST) - Depreciation - SAP Library

Kindly give reward points if it helps to resolve this query.

Thanks and Regards,

Prakash Kumar