How many fiscal years need to create

Hi All,

The main Company is in US.It is doing an Indian rollout. For Income tax requirements in India,the FY has to be ‘April-March’.We are trying to implement the Asset Accounting module alone for India.

Now,

1.The global fiscal year variant is ‘Jan-Dec’.But for the India company code,for tax requirements depreciation calculatioin has to be done as per fiscal year’April-March’.

2.As per the Indian Companies Act,depreciation is charged as per straight line method to date.Hence under the Companies Act,for a leap year,the number of days is 366(eg. FY-2012 Jan-Dec)

3.For tax depreciation area,the same FY(i.e 2012-13 April to March) has 365 days for depreciation calculation.

India & US companies would be in one database only , So my question is how many fiscal calendars or fiscal years need to create in one data base to calculate the depreciation as per india and US ?

Thanks in advance.

India and US companies must be a separate entities i believe. You can create different fiscal calendar for both the entities and attach their ledger setup.

Pranav…

Thanks Pranav,

I have one more question is When it comes to india , is the FA depreciation monthly based or day based ?

Could you clarify ?

Hi Lally,

I am not sure but probably it’s on daily basis. You need to confirm this.

Pranav…

Look in the value model and the depreciation profile. Standard lowest is monthly, but there maybe an Indian localization if by day is required (the calculation itself is of course different from “when” you depreciate)