How to adjust Bonus Deprecation (2010, 2011) in tax books in 2015.

[Former Member]

Hi Gurus,

My client had assets that are eligible for Bonus deprecation in 2010 and 2011, but they did not create the bonus deprecation keys in the system in 2010- 2011 and calculated the Bonus deprecation outside of SAP. Now they want to adjust the net values in Depreciation area 10 for such Bonus Deprecation.

So there are some assets that were purchased in 2010 and 2011 for which they were eligible to claim bonus deprecation. They did claim the bonus depreciation when filing the tax records, but did not create the necessary Dep key Z090 / Z091 in SAP. What are my options to adjust the values for such assets so that the Tax Area reflects the right values for these assets.

Here's what I have done so far. I have followed the blog by Nathan Genez on to create the depreciation keys. When I updated the asset with this key, the asset explorer shows deprecation calculation till 2013 only. Also it does not confirm the to the deprecation key.

May be I am doing something wrong or missing some steps. Please help.

[vivek_srivastava12 · Accepted solution]

Hi Nikhil,

We have the same issue in my current project.

Here is what we have done:

1. Created a New Dep. Key

2. Created new transaction type for Acquisition and Depreciation Posting

3. Posted adjustment at the end of 2014 ( in our case we are correcting Dep. Value from 2015), posting

    date selected end of Fiscal Year 2014.

4. There were many Assets which were Capitalize in 2014 but deactivated in 2015, we found the assets created through transfer, and corrected them.

Can you share the screenshot of the Depreciation Key?

Br,Vivek

[Former Member · Accepted solution]

Vivek, thanks for your reply.

1. So, we created Dep Key ZZ90, with the intention to be used only for Tax Area (10).

2. Did not do this as we will not be able to change 2014 values.

3. Do we have to post the adjustments to book depreciation area too. I mean is that what is going to drive the changes to the tax area?

Here is the depreciation key for 2010.

here is the mutli level config

[vivek_srivastava12 · Accepted solution]

Nikhil,

Here is the snapshot of Dep. Key in my system, but I have setup as Multi level,

We have not made any adjustment to Book Area, I have opened 2014 Fiscal Year for Tax OAAR, and created new Transaction type only for Tax Area.

Br,Vivek

[Former Member · Accepted solution]

So after opening 2014, do you plan to run program RAAFAR00 to run depreciation for tax area?

[vivek_srivastava12 · Accepted solution]

Yes, we have run AFAR to because depreciation values changed.

Br,Vivek

[former_member188063]

Yes! sequence 1-4 is correct.

Regards,

Sudhakar*

[former_member188063]

Hi Nikhil,

After you define and apply the New Dep Key to 2010-11 assets, you have to recalculate depreciation for those year. You have to reopen the fiscal years for the individual depreciation areas with transaction OAAR. In order to reset several years the last closed FY for a depreciation area for which recalculation is possible you may need the correction report Z_T093B_UPDATE and  Program RAAFAR00.

Go through Note -646691 - Recalculate depreciation for selected areas it will give you the needed information.

Regards,

Sudhakar*

[Former Member]

Thanks Sudhakar,

one quick question. When I run the Z_T093B_UPDATE + RAAFAR00, the bonus depreciation in 2010 will reduce the net value of the asset in 2010. I am guessing, I will have to run the depreciation for the years 2011 to 2015, so that the correct depreciation will be recalculated for these years.

So, will this be the sequence of activities,

1. Run Z_T093B_UPDATE to open the fiscal years, 2010 to 2014.

2. AS02, for putting the correct depreciation key.

3. Run RAAFAR00 to recalculate depreciations for 2010 - 2014

4. AJAB, to close the fiscal years after each run of depreciation.

does sound right?