Additional Depreciation on Asset

[venkat]

Hi Friends,

I am having an Issue in Fixed Assets Module. Can any body help me out?..


We want to calculate the Additional Deprecation on Asset in Tax Books for fist year only. Second year on wards the deprecation will be base deprecation only. Example

Asset Cost is : 3000
Base Deprecation Rate is : 20% (Straight Line Bases)
Additional Deprecation is : 10%

For fist year the Deprecation should be calculate 30% ( Base 20% + Additional 10% )
Next year onwards the deprecation rate should be 20% Base rate only

I am requesting you please give me setup steps for this issue

Thanks in advance

Regards,

VENKAT

[anuragagarwal1980]

Hi Venkat,

Either you can define a table based depreciation method wherin you can provide depreciation rates for different year. Incase of your example give 30% as for first year and 20% for subsequent Year.

But remember total depreciation in this case should be equal to 1.

Secondly you can use the concept of Bonus Depreciation or Unplanned Depreciation.

Regards
Anurag

[venkat]

Hi Anurag,

Thank you very much for your update.

I have tried as per your suggestion but as per the requirement there is no asset life specification. So, we are not able to go for Table method. Now I am using Flat rate.

As per your second suggestion I have tried but it is calculation like as follows:

Asset cost is 3,000
Base Deprecation rate is 20%
Bonus Deprecation rate is 10%

Base Depreciation rate calculation is taking 10% and bonus deprecation rate is taking 10% all together it is taking 20% only not 30%

I am expecting 30% in fist year and from next year onwards 20%

Regards,

VENKAT

[anu_uma]

Hi Venkat,

U can Enter the Depreciation Percentage for the first time as 30% and later you can change it to 20% (ur normal %)...

Change of depreciation method can be considered for eg : Changing the Depreciation method from 30 to 20% when the asset is depreciated for the first time.

This is a suggestion,,,, pls try and reply with the results


Thanks,