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Include Tax into Fixed Asset Value

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Posted on by MahGah 15,407
Hey everyone
 
Per GAAP in USA /Fixed assets should be recorded at cost of acquisition. Cost includes all expenditures directly related to the acquisition or construction of and the preparations for its intended use. Such costs as freight, sales tax, transportation, and installation should be capitalized. /
 
But in BC when we add Fixed Asset in Purchase Order as Taxable and with Tax Area Code then after posting BC only post the $ Excluded Tax as a the value for Fixed Asset. But we want the Tax also be included in the value of FA.
 
Is this possible and if it is not what is the reason?
 
Note: I know if you select Use Tax in Purchase Line then system does the right behavior but that only can be used if vendor did not charged for tax.
 
Thanks for your help
Categories:
Financial Management
  • MahGah Profile Picture
    MahGah 15,407 on at
    Include Tax into Fixed Asset Value
    I have tried that many time but it get stuck and just showing spinning wheel :( 
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 4,486 Super User on at
    Include Tax into Fixed Asset Value
    Valentin Castravet  
     
    Awesome. That works perfect. Thanks for the suggestion. 
     
    Great! Please mark the post as verified
  • MahGah Profile Picture
    MahGah 15,407 on at
    Include Tax into Fixed Asset Value
    Valentin Castravet  
     
    Awesome. That works perfect. Thanks for the suggestion. 
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 60,859 Super User on at
    Include Tax into Fixed Asset Value
    How about using FA Journal for adjustment? But this requires manual adjustment every time.
    For example,
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 190 on at
    Include Tax into Fixed Asset Value
    Hello MahGah,
     
    I am unfamiliar with US GAAP accounting rules, so please let me know if I am wrong.

    From the below sample, it look seems like you can account it without posting to tax account.
     
  • Verified answer
    Valentin Castravet Profile Picture
    Valentin Castravet 4,486 Super User on at
    Include Tax into Fixed Asset Value
    If you go to Tax Jurisdictions -> Tax Details, there is an Expense/Capitalize field. If you make this true then the system will include tax as part of the fixed asset acquisition cost.
     
    To make this work you can setup a separate Tax Group Code that is used for fixed asset acquisitions and has the Expense/Capitalize set to true. 
     
     

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