Question: Can you specify the Configuration steps required for Fixed Assets Depreciation (Tax)?

Answer1:

Specify the depreciation area type - type of depreciation area – OADC
Define Depreciation keys –AFAMA,
Define Declining Balance Methods in – AFAMD (say for Tax Purpose)
Note: Calculation Methods are assigned to Depreciation key, and the Depreciation key is assigned to the Asset Master Record, Asset master is assigned to an Asset Class, which will govern how system will calculate Depreciation on that Asset.
Use transaction - OAAR to open Book 10 (tax book), to make changes. (See details in OSS note -646691.

Answer2:

Opening a New depreciation area in SAP in post-Production environment
- Assign Financial Statement Version to company code and deprecation area – OAYN
- Make Depreciation Key default available for change by Screen Layout – AO21
Drill into screen layout rule, and then check ‘Asset class’ to maintain at the asset class level
- Assign Tax book to Asset Classes – OAYZ
1. Activate the new depreciation area in the existing asset classes you have as need be. Uncheck the deactivate box and then enter any default depreciation terms and screen layout for the depreciation area in the asset class. These values are proposed when creating the asset and can be overwritten if need be. You must go into each asset class that you want the depreciation area activated in and uncheck the deactivated box. The default depreciation terms are not required.
2. Be sure to activate on the AUC asset class, so APC values can flow from investment measures (WBS or Internal Orders) to the fixed asset.
- Change name of Tax book (optional) – OADB
- Specify the depreciation area type - type of depreciation area - OADC
- Specify rules for value takeover - OABC
Determine how the depreciation area is to get their APC values. They get their values from another book (book X) (most of the time, it comes from book 01). Then determine if new book is to be identical to book X (with No Changes allowed).
Book X being the depreciation area the new book is taking the values from.
Specify depreciation area applicability for transactions
Menu path: Asset Accounting (Lean Implementation) - Depreciation Areas - Specify Allowed Depreciation Types for Depreciation Areas
1. Make Tax book applicable for all activities used by book 01
(Deselecting ‘Ident’ (for identical) here allows different depreciation schedules to book 10 vs. book 01)
- Set Transfer of Depreciation Terms - OABD
You do the same thing for the depreciation terms and the rules of takeover, and you also determine if you want the new book to be the identical to book x (with No changes allowed). Again, book X being the depreciation area new book is taking the values from. If you have more than one Tax book, it is advisable to have the second Tax book take over values from the first so that Tax only adjustments flow automatically to both books.
Create Tax Adjustment Transaction Type(s) for new book
- Copy 100 to Z transaction type - AO73
- Restrict to Book 10 - OAYA
- Determine if you want that depreciation area to calculate ordinary depreciation - OABN
- Same thing with Special Depreciation - OABS
- Determine order of ordinary and special depreciation calculation - AOBK
- Assign accounts for special depreciation if depreciation area will post and have any - AO94
- Determine Unplanned Depreciation - OABU
- Assign accounts for Unplanned Depreciation if necessary - AO95
- Post-Production: Activate on existing asset base - AFBN (program RAFABNEW)
Note: Once the depreciation area is configured to your specifications. You will then need to run a program in the environment. This program is the program that inserts the depreciation area into your existing assets that are already active in your system. It does not insert the depreciation area into assets that have already been deactivated (retired). The program can create the depreciation area with or without values depending on the setting you choose when you run the program, and according to the configuration settings made in OABC (as for what values it will take). You can also copy the depreciation keys from the existing depreciation area into the new depreciation area. If you need to open the new depreciation area on existing AUC assets, you will need to run an SAP-supplied alternate program. Create and run a Z program based on SAP note 317806. It is possible that the settlement from an existing WBS to the final fixed asset will not post to the new depreciation area unless this step is taken.