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Agreed. There are instances where the asset is written off and even retired
in the books, but continue to depreciate in the tax areas. And, in some
cases of acquisition of business, there could be difference between book and
tax due to adoption of purchase accounting or revaluation
(step-up). Tax will be based on historical cost and books on revaluation.
That said, when new assets are acquired, there should be no requirement to
post different APC values. The depreciation base can be and should be
managed using depreciation terms.
Tax areas are generally set to take over APC value from the book area. With
such a setting, it would be possible to integrate Purchasing, GL and AA.
Changes to APC for tax area can, of course, be done independently in AA,
losing the benefit of integration. But such a requirement for new asset
additions is unheard of. No law in any land will say that a dollar in the
books actually spent is worth any different for tax purposes. A dollar is a
dollar. Period.
| | | ---------------Original Message---------------
From: Sharad_Vimadalal
Sent: Tuesday, March 08, 2011 1:38 PM
Subject: Can we create assets in SAP with different book and tax values?
Hi,
*I do not agree with the general sentiment that we should not inflate or
deflate the values for different areas.*
Actually the purpose of the functionality and features is to allow you to do
it if business needs it. If business needs it they also know that it is
legal to do it. There are laws in many countries that allow a depreciation
on a higher base or other accelerated depreciation charges (e.g. energy
saving investments). I such cases you have to have different values
specified in different areas to calculate different depreciation either
posting to different ledgers or creating a report.
SAP is a fully law compliant system and will not offer a functionality if it
is not legal to do the business in different ways or report transactions in
different way for different purposes. |
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