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Hi Sharad
That is news to me !
I have seen different norms (such as estimated life, depreciation start
date, depreciation key , different rates of depreciation etc) adopted for
different depreciation areas and reported using different financial
statement versions. Usually I have seen cases where the quantum of
depreciation and the net book value differing in different depreciation
areas at a given point of time. However, I have not had an opportunity to
see the original purchase cost (A P C) of a single being presented
differently in different depreciation areas. Even in the cost depreciation
area one changes the annual net book value ( and computes depreciation
accordingly ) using an index series and not by inflating / deflating the
original acquisition cost. I have always thought that the original cost is
booked at actual and that this is imperative to the norms of consistency and
conservatism usually adopted in accounting.
Anyways, what you mention is news to me and I would like to learn more about
it, please.
Regards
VidhyaDhar
| | | ---------------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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