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