Depreciation Below 5000/-

santhanak

Hi all

we are into Navision 2009 Indian Version.

In India there is rule if the asset value is less than Rs.5000/- we need to depreciate in same year. so is there any options available in NAV2009, where we can set this up?

how to solve this?

thanks & regards
Santhana

ssingla

Define 100% in the depreciation rate in the FA Card.

David_Singleton

santhanak wrote:

Hi all

we are into Navision 2009 Indian Version.

In India there is rule if the asset value is less than Rs.5000/- we need to depreciate in same year. so is there any options available in NAV2009, where we can set this up?

how to solve this?

thanks & regards
Santhana

Hi Santhana, are you an end user or a consultant working at a partner?

ssingla

David Singleton wrote:

Hi Santhana, are you an end user or a consultant working at a partner?

Not sure of current status but earlier he used to work with a partner. Will that change something?

David_Singleton

ssingla wrote:

David Singleton wrote:

Hi Santhana, are you an end user or a consultant working at a partner?

Not sure of current status but earlier he used to work with a partner. Will that change something?

I think it makes a huge difference.

If he was an end user, then the question makes sense, EXCEPT that it is a question that should have been addressed during the initial pre-implementation analysis, and then been included as a part of training. And if this is a new user at the customer, then it indicates that someone was thrown into the job with insufficient training. So either way the question should have been addressed at the partner, since the partner should already have covered this and will have documentation for the client on how they do it in their company.

If he is working fr a partner, then it would be the usual scenario, of a/ why has he not been trained in something that is so fundamental and basic. This is a very common process in most countries and he should have been taught how to do this. b/ if he is new then why doesn't he have a mentor to guide him and seniors to call on when he needs help. c/ the instant depreciation of assets is handled differently by different companies depending on the requirements of their auditors, so really the question should have been asked not in relation to how it is done in India, but also with reference to the specific business needs of the client.

Obviously you can see that of late I am getting very very angry with the level of support that some partner are providing for their employees, rather than investing in training and support, they simply throw a new bee consultant into a customer site with the instructions that if they have any questions, simply ask them on mibuso.com

That must stop!

ssingla

I fully agree with your view point on both the scenarios (Partner & Client0 but the question in this case is a bit different from the rest of the posts.
NAV has been localized as per Indian requirement and most of the things are setup oriented. In this particular case nothing has been done by MS India and the end user has to take manual action. There is no documentation and implementer has to use his skills to idnetify the method for solving the query which I am afraid to say that many are unable to do.

Being a very specific question regarding a undocumented localization requirement, I feel it may not fall in the category of post which I normally ignore.

ssingla

There is a requirement as per Indian Companies Act that all assets having individual value of less than 5000/-should be depreciated in the first year. All the companies have to follow this.

santhanak

Sandeep - thanks for your suggesstion.

David - i was working under Partner and now i joined directly to the company as a consultant and our Partner is from US.

Here auditors are pointing it out as a loop hole that system is not supporting this kind of restrictions in the Localization and the user has to do this Manually into the system. so it made me to throw the question in the Forum to know as how others are suggesting to their clients.

thanks & regards
Santhanak

David_Singleton

santhanak wrote:

Sandeep - thanks for your suggesstion.

David - i was working under Partner and now i joined directly to the company as a consultant and our Partner is from US.

Here auditors are pointing it out as a loop hole that system is not supporting this kind of restrictions in the Localization and the user has to do this Manually into the system. so it made me to throw the question in the Forum to know as how others are suggesting to their clients.

thanks & regards
Santhanak

So why not post that information in the original post?

David_Singleton

Sorry just to clarify. Often the reason WHY you want to do something can be the most important factor in giving you a proper answer. Knowing that this was a question directed from an Auditor, is a good reason to use the forums, because although your partner may have an answer that works for you, When Auditors are involved its good to get a few more opinions.

So had you stated the question such as "I am working with an end user, and we have just had our auditors in to review business processes, and they had some questions ... we would like to hear form others in a similar situation how they have... etc.


For me its very annoying the amount of posts where the poster seems to assume that everyone is a ind reader, or worse is just too lazy to post all the required information in the initial post.

ssingla

One of the important feature missing in FA module of NAV is its inability to manage quantity. The Indian law requires indiviual asset less than 5000/- should be depreciated 100% in the 1st year and it will difficult to customize a setup because the quantative information is not available in FA ledger entries.

David_Singleton

Again if you read the original post, there is no mention what so ever of quantity. The answer is to send this person back and do some homework, and when they have a COMPLETE understanding of the issue THEN to start asking questions.

rsfairbanks

Why capitalise them in the first place?

ssingla

Again requirement of India Law : You cannot simply debit them in Revenue/Expenses account but has to captialize and then depreciate them.

kitik

If Indian localization has so many requirements that no one but them know... I think that someone should ask the Administrator to open a sub-forum for the Indian localization.

Just an idea...

Salut!

ssingla

Unfortunately even I (after being around for 11 years) can claim 100% knowledge of Indian taxation laws. My knowledge is limited to the type of companies I have audited or involved in ERP implementation and that too in the region in which those companies are ](*,) ](*,) .

Subforum won't be of any help as then the call for sub-subforum will raise like taxation, finance, company law etc..... ](*,)