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[Kyle Everhart]

Hello – 

Our team has received a request from our Tax group to perform some adjustments to specific fixed assets in AX, spawned from the buying and selling of retail locations within our business. That said, we have relatively little experience with these types of changes and are looking for some guidance as to how we should approach each one of these requests. Can someone share the steps for performing each one of the below?

The tax books (no change to GAAP books) would need to be adjusted for the specific assets listed on the file for the following-

1. Need value adjustment (write up or down, depending on asset)
2. Change remaining lives
3. Remove tax accumulated depreciation

Thanks,

Kyle

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Kyle Everhart
DriveTime
Tempe AZ
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[Chris Rusing]

Kyle,

Firstly, what version of AX are you on?  This will help to determine what options are available to you.  AX has three different posting layers: Current – which is the default layer and what you would probably describe as your GAAP book, Operations – which is a layer meant for internal purposes and Tax – which is used for specific tax transactions normally related to tax depreciation of fixed assets.  Alternatively, users will adopt the depreciation books functionality to manage their tax depreciation.  Are you using the tax layer or the depreciation books to manage your tax books?  Also, are you utilizing the derived value model/ depreciation book functionality?  Do fixed asset transactions that post to the current layer also post to tax layer?

If you are using the depreciation books functionality, it is easy to write up/ down an asset and adjust accumulated depreciation by simply creating a journal entry through the depreciation book journal.  The lives remaining can be changed in the depreciation book in the asset record.  If you are tracking the tax books in the tax layer, you may have to create a new journal name that would only affect the tax layer.  Please reach out if you have additional questions.

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Chris Rusing
Logan Consulting
Chicago IL
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