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Hi,
Can you explain on Derived Value Model & Derived Depreciation Books set up in Value Model... What are all the things need to be added in Derived Value Model... My issue is 'In value Model for Tax posting not accruing depreciation correctly" it showing zero balance in depreciation. Please explain...
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Hello,
I hope I am able to understand the issue correctly, you are looking to have tax-layer depreciation show up that is similar to the current-layer depreciation? If yes, read on.
From an accounting perspective, usually there is no need to track depreciation on both current and tax layers unless they are follow different depreciation profiles and you end up with different values on both layers. Otherwise, it's just a waste of data space and a pain to reverse out if the business later decides to drop the tax layer.
Also, if you are using depreciation profiles, you shouldn't have the need to use depreciation books. That's just my two cents, you might want to verify that with the business.
IF however, you are looking for different values on both layers (current and tax), then derived value models will help you immensely. The purpose of the derived value model is to enter a journal entry to the right GL account for tax depreciation when you run the monthly depreciation proposal for your assets. For this to occur, you must ensure that there are multiple depreciation profiles (like Straight line and Reducing Balance). You must also ensure that you have GL accounts to support these entries - very crucial. This goes back to how your Chart of Accounts (COA) is designed.
From what it looks like, it seems that the posting profiles may be the culprit here. And as I said before, COA needs to have appropriate GL accounts that have the correct posting type specified for them.
Hope this was somewhat helpful.
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