Depreciation posting as per Income tax act.

[former_member288278]

Dear All,

As requested by our client we need to configure depreciation as per IT act .We are using fiscal year variant K4 (Oct to Sept) in our company code but as per specification from client we need to use fiscal year variant (April to March) for reporting purpose as per IT act. As per configuration I am using 01 Book depreciation area (Post to GL01) and used depreciation area15 (Post to GL 02) for tax purpose. Created Block for assets and assign asset to asset block along with WDV. After capitalization of asset through F-90 I found planned depreciation amount (AW01N) for Dep.area01 and 15(Dep.Key as DG20 and IN2) for the current period, when I try to post the depreciation in depreciation area 01 through AFAB I haven’t found any asset or depreciation amount  for Blocks and same for ASKB I tried to post amount for Depreciation area 15 but haven’t found any asset or depreciation amount there also.

Please let me know if there is any cofiguration mistake or step which havent been taken care of for depreciation posting in Book depreciation area 01 and IT Depreciation area 15. 

[former_member198650 · Accepted solution]

Hi Ujay,

1. First check settings maintained for the dep.areas for depreciation posting in OABN.

2. Have you assigned GL accounts for depreciation in AO90

And also check error log of the depreciation run.

Regards,

Mukthar

[former_member288278 · Accepted solution]

Hello Mukthar,

Thank you for the reply I am able to post the depreciation now .One mistake from my side as per configuration I have used depreciation area15 (Post to GL 04 Area Posts APC Directly and Depreciation).While Afab run amount has been posted for both the depreciation area 01 and 15 along with individual GL account given in AO90.When I run Askb it has posted the Apc value only.When I sold an asset I found depreciation is being posted for dep.area15 through Askb as ordinery dep where different.But I am not able to see the updated depreciation amount posted in the report (J1INBLKTRNS - Update Asset Transaction Details at Block Level).

Can you please help me in that.

[former_member288278]

Hello Prabhakar,

Thank you for the reply I have checked my configuration as per that I have uploaded asset block data,Opening WDV,Assign asset to block below is the screen of maintain Asset block details is below

I have posted the depreciation for the current month through AFAB  but in Income Tax Depreciation Calculation Report(J1IDEPCALPOST) I am not able to see the posted depreciation insisted of it its showing me the depreciation amount 10% of opening WDV below is the print screen

can you please help me in that.

Regards,

Ujay.

[Former Member]

Hi Ujay-

Post a transaction in asset module and execute below t-code.

Update Asset Transaction Details at Block Level (J_1I_UPDBLKTRNS) -

only then Income tax tables will be updated with transaction details.

Regards,

Prabhakar

[Former Member]

Hi Ujay - Once transaction is captured in asset module, that needs to be updated at block level under income tax enhancment / tables. This is the t-code and path.

SAP ECC menu	Accounting ® Financial Accounting ® Fixed Assets ® Information System ® Reports on Asset Accounting ® Taxes® Country Specifics ® India ® Update Asset Transaction Details at Block Level
Transaction code	J1INBLKTRNS

1.     On the Update Asset Transaction Details at Block Level screen, make the following entries:

Field name	Description	User action and values	Comment
Company Code		XXXX
Block Key		Block Key number	For example, 1001 For an update run, no block key should be entered
Fiscal Year		Current fiscal year
Period		Current period
Test Run		Select if needed

Check and confirm whether this helps.

[Former Member]

Hi Ujay,

SAP has realeased IT specific notes and configuration steps, its on EHP5 platform.

Hope you have made all configuration specific to IT act.

First assign the WDV at block level.

•   Assign Opening WDV to the Asset Blocks (J_1I_UPDBLKOWDV)

For every transaction in FI-AA module, you need to run the below t-code to update the IT Tables.

•   Update Asset Transaction Details at Block Level (J_1I_UPDBLKTRNS)

this has to be done for every month so that all transactions are updated at block level.

If you want to see the values - launch below t-code.

•   Display Transaction Details Asset Level (J_1I_DISPLAYBLKTRNS)

Once you confirm the transactions details are validated, you can launch calc t-code.

•   Income Tax Depreciation Calculation Report (J_1I_UPDDEPCALPOST)

These are basic steps to view IT books update.

Hope this helps.

Prabhakar

[former_member1245763]

Very nice writeup. Understandable to a functional guy also