fixed assets depreciation to the current layer and to the tax layer

 

How to post fixed assets depreciation to the current layer and to the tax layer in Microsoft Dynamics AX

In many countries, companies have to maintain records of fixed assets acquisition and fixed assets depreciation for tax purposes. To post fixed assets depreciation to the current layer and to the tax layer in Microsoft Dynamics AX 4.0, follow these steps:

1.       Define two new value models. For example, define the TEST value model and the TEST_TAX value model.

2.       Click the Derived value models tab, and then link the TEST_TAX value model to the following transaction types:

1. Acquisition
2. Depreciation
3. Disposal
2. Create a group that is named TEST, and then link the TEST value model to the TEST group. Make sure that the TEST value model and the TEST_TAX value model are attached to the group.
3. Create a new item, and then link the TEST value model to the TEST group. Make sure that the two value models are attached to the new item. Check whether all the relevant information is updated. Relevant information includes the service life and other details.
4. Create an appropriate journal, as follows:

1. If you want to run an acquisition proposal, create a Fixed Asset Acquisition journal for the acquisition. Then, a derived value model appears on the Value model tab. This acquisition proposal is accepted because the acquisition amount is the same for the current layer and for the tax layer.
2. If you want to run the usual depreciation for the current layer, create a Fixed Asset Depreciation journal. After you do this, a TEST_TAX value model appears on the Derived value models tab. However, the layer for the Fixed Asset Depreciation journal is the current layer. The Fixed Asset Depreciation journal should use the TEST value model instead of the TEST_TAX value model. Therefore, you must remove the TEST_TAX value model from the Fixed Asset Depreciation journal.
3. If you want to run the depreciation proposal for the tax layer by using the TEST_TAX value model, create a Fixed Asset Depreciation for Tax layer (FAD_TAX) journal. The depreciation proposal for the tax layer is acceptable because the layer for the FAD_TAX journal is the tax layer.
5. Post the Fixed Assets transactions to the current layer and to the tax layer.

Note If you use the Fixed Asset Depreciation journal to post depreciation to the current layer, make sure that you remove the TEST_TAX value model from the Derived value models tab.

How to post fixed assets depreciation to the current layer and to the tax layer in Microsoft Dynamics AX