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Acquisition Asset Depreciation

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Hi.

 

I have a question relate to acquisition asset depreciation question.

Let me see if I can explain it correctly.

I have assets from an acquired company that I need to put into SAP.

Let say, asset 101 has original value of $10,000.

Original asset depreciation start date is 1/1/14.

My capitalization date is 3/1/16 (acquired date).

Useful life is 5 years.

For depreciation area 01 (book depreciation), I can add what the value is as of 3/1/16 and it calculate depreciation correctly, but I have an issue with Federal Tax (area 10) depreciation.

Tax department wants add original value of $10,000 for fed tax area and original depreciation start date.

We are using depreciation key Z200 (200% declining balance to straight line - HY).

When I add original depreciation start date to 1/1/14, it does only depreciate 3 more years (2016, 2017, 2018), but it doesn't calculate depreciation

based on last 3 years of calculation, but based on first three years of calculation.

 

Does anyone have idea how I need to do this, so that depreciation for tax area will calculate correctly?

 

Thank you.


John


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