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[Mohammad Fozail]

I need some guidance as how to setup Tax book for fixed asset. I did some web research and found help but not getting the full picture. Basically, when a fixed asset is created, it depreciates on straight line method at the month end, posted to ledger. We also need the depreciation amount for the Tax book(e.g. if we use Reducing Balance depreciation method) and this is not posted to the ledger, just for the tax reporting purpose.

I don’t think we need to post the tax book entries. It is only needed for the tax reporting purpose. When I set up the Tax Book, I see the option ‘Post to general ledger’ which I selected ‘No’. By doing that, I can’t select ‘Tax’ in the Posting Layer. It remains ‘None'(may be it is the right way). Article also mentioned to create new journal names for the Tax book. My question is when we run the acquisition and depreciation proposal, we will select the journal name which is set for the straight-line method then how the accounting entry will be generated for both books.

My next question, what would happen if I select ‘Post to general ledger’ radio button to ‘Yes’ and select ‘Tax’ in the posting layer. I believe journal will be posted to Tax layer.

I am sure many of you have Tax book for the fixed asset and know the entire process. If someone guide me the setup, I really appreciate it.  

Mohammad Fozail

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Mohammad Fozail
Corterra Solutions
Lisle IL
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[Arush Kuthiala]

Hi Mohammad

Either option will work. If you set none it will be reporting only, if you set it to Tax then it will post to an entirely separate layer called Tax which you can run financial reports on. 

The key will be setting up journals whichever option you take. In the journal setup there is a field called “Posting Layer”. If you choose the former option setup a journal with the option of None, if you choose the latter then choose Tax.

Thanks, 

Arush

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Arush Kuthiala
Western Computer
Toronto ON
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[Wendy Muar]

You will actually post the Tax journals, likely on an annual basis.  They will post to the Tax Layer though.  Be sure you do not include the Depreciation Transaction Type on the Derived Books setup on each Book at the bottom of the screen, only Acquisition and other adjustments…never Depreciation.

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Wendy Muar
Lead Functional Consultant
GraVoc; Peabody, MA
http://www.gravoc.com
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