Entering content frame

Procedure documentation Posting Acquisition and Production Costs Locate the document in its SAP Library structure

Use

Under the Singapore Income Tax Act, not all acquisition and production costs can be used as a base for tax depreciation. This holds true for commercial buildings in particular. You can customize the way the system determines the base amount in the Implementation Guide. However, the base amount is not stored in any table and is calculated only at runtime, for example, when you execute a depreciation run. This will affect system performance adversely while running asset reports relevant to capital allowance. To improve system performance, you can store the costs directly in the acquisition costs field when you post an acquisition. How you do so depends on whether you settle the costs from investment measures, or directly, in Asset Accounting (FI-AA).

Settlement of Costs from Investment Measures

When you settle acquisition and production costs to assets by means of investment measures, you use the capitalization key to post partial acquisition costs to different depreciation areas (for more information, see Structure link Periodic Settlement to an Asset under Construction).

Direct Posting of Costs in Asset Accounting

If you post costs directly in FI-AA, there are two ways of recording the tax depreciation base. You can either make use of a user exit, or you can use the manual posting transaction.

User Exit

If you want to post acquisition costs directly to Asset Accounting, we recommend that you make use of user exit AINT0004, an enhancement for changing line items. To include it, proceed as follows:

  1. From the SAP Easy Access screen, choose Tools ® ABAP Workbench ® Utilities ® Enhancements ® Project Management.
  2. Create a customer project.
  3. Assign enhancement AINT0004 to the above project.

    4. Note that you can only assign the enhancement to one project.

  4. Maintain and activate include ZXAPCU05.

    5. You can base your code on the sample provided.

  5. Go back to the main screen and activate the project.

Manual Postings

Alternatively, you can post manually to acquisition and production cost line items upon acquisition using transaction code ABZO. Note that for these purposes you cannot use the Enjoy version of this transaction, ABZON.

 Leaving content frame