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
------------------------------
Mohammad Fozail
Corterra Solutions
Lisle IL
------------------------------