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Depreciation Calculation for Tax purpose

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I am not able to run the depreciation proposal for an Asset, when I select the posting layer – "None" system doesn’t show any journal in drop-down, I tried creating Journals in General Ledger module but couldn’t create.

In the scenario, I have created two books for the asset - Reducing Balance, which is tagged to Posting Layer – None and hence the GL posting is disabled for this asset.

For another book – SLM the GL posting is enabled.

I want to calculate the depreciation for both the Books mapped with this assets but only SLM related entries will hit GL, Reducing Balance related entries are only for tax reporting purpose and should not hit GL.

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Ludwig Reinhard Microsoft Employee on at

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Hi Nakul,

I think that your problem is related to the posting layer 'none'.

I don't know how you realized that but would like to ask you changing that to an existing posting layer.

Once you changed this configuration things should work out of the box without problem.

Best regards,

Ludwig

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saurabh bharti 15,039 Moderator on at

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Hi,

Please use Tax layer for depreciation calculation for tax purpose.

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Community Member on at

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Hi nakul_waghe,

Use Tax layer for depreciation calculation for tax purpose. If not resolved your issue, can you try the steps bellow;

Run a depreciation proposal for the book - SLM that i believe is linked to your current layer and depreciates the fixed assets.

Once this is done you create a second fixed asset journal that is linked to the tax layer. There you run another depreciation proposal for your tax layer and post it.

Please share if this is answered to your question.

Thanks,

Ajit Ranjan Dhal

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Junaid Idrees on at

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Hi Nakul,

For your 2nd book where you don't want to hit GL, just simply go to that Book and disable the posting to GL for that book by setting the Post to general ledger field to "No" This is how the Posting layer field will be automatically set to None. We usally use this book for tax reporting purpose.

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Community Member on at

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Hi All,

Thanks for your respones and sorry for late revert from my end. The requirement here is to calculate the depreciation for Accounting purpose for which I have selected Current layer and the Tax purpose without any GL posting, but if I select Tax layer and disable G-L Posting then system changes the layer to None.

I am not clear then how will I run a depreciation for tax purpose which should not have any G-L impact.

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saurabh bharti 15,039 Moderator on at

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Hi Nakul,

Please read here how can we have without having GL impact :

exploredynamics365.home.blog/.../

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simonsmith101 2 on at

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Hi Junaid,

If you do as you suggest you are not able to run a depreciation proposal on this book. Would welcome your comments re this ? Thanks for posting

SImon

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