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Function documentation Minimum Tax Book Values Locate the document in its SAP Library structure

Use

According to the tax law, an asset’s tax book value must never fall below a certain percentage of its acquisition and production costs (APC), so the Property Tax Report never posts a book value below that. For this purpose, you define a cutoff value key.

Activities

Define the percentage rate in Customizing for Financial Accounting (FI), by choosing Asset Accounting  ® Depreciation  ® Valuation Methods  ® Further Settings  ® Define the Cutoff Value Key.

Do not add the cutoff value key to any depreciation keys.

Example

You purchase an asset for JPY 1,000,000. Later in the asset’s life, you make an adjustment posting to reduce the asset’s starting tax book value to JPY 30,000, which is 3% of the asset’s APC. Assuming that an asset’s tax book value may not fall below 5% of its APC, the report still sets the asset’s tax book value to JPY 50,000, to bring it up to 5%.

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