what is depreciation? what are depreciation methods? please
explain those method? can any one reply urgently?

Answer Posted / rajesh

HI

WHEN AN FIXED ASSET IS PURCHASED IT HAVING SOME LIFE, WHEN
WE USE THE ASSET THE LIFE IS REDUCE THAT CALLED DEPRECIATION

REASONS ARE WEAR AND TEAR, ACCIDENT, OBSOLENCES ETC.

THERE ARE SO MANY METHODS TO CALCULATE DEPRECIATION


BUT IN SAP ALL METHODS ARE IN DEPPRECIATION AREAS

AS PER INCOME TAX RULES WE FOLLOW STRIGHT LINE METHOD

FOR MANAGEMENT PURPOSE WE FOLLOW WRITTEN DOWN VALUE METHOD

FORMULA FOR STRIGHT LINE DEPRECIATION IS

COST OF ASSET - SCRAP VALUE / LIFE OF ASSET

SO THIS WILL CLEAR TO UR DOUBT

IF NOT SEND THE RIGHT ONE IMMEDIATELY

Is This Answer Correct ?    101 Yes 28 No



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