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Fixed assets- adding tax books much later than GAAP book for same assets

Posted on by Microsoft Employee

I have a client that wants to add tax books for existing assets in GAAP book.  They did originally set up derived tax books (incl FED) for the GAAP book, but no transactions are in the tax books because they were not linked to each asset.

When I try to validate a fixed asset journal with the transaction type "acquisition" to the tax book, FED, I get the error: The transactions on voucher GL-0000862 do not balance as per 4/1/2019. (accounting currency: -23,045.67 - reporting currency: -23,045.67.)  The FED book is set to posting layer None and the status is "Not yet acquired" for this asset.  How do I acquire the asset in the FED book so that the tax depreciation can be run? In researching in the forums,  I found that this error usually has different amounts due to different currencies, however, they do not use multiple currencies. 

Any suggestions appreciated.

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Fixed assets- adding tax books much later than GAAP book for same assets

    Thank you.  I think the Excel addin may be a better option considering the situation and will consider creating a new tax book.  I appreciate your input.

    Kind regards,

    Tracy

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Fixed assets- adding tax books much later than GAAP book for same assets

    Hello Tracy,

    You can mass update your existing fixed asset books and add a tax book for example with the excel addin (if you do not have too many fixed assets affected) or data management. I am not sure whether the use of the existing tax book is a good idea because it seems that this book is already a bit messed up.

    Creating and updating a 'new tax book' might be the better option.

    Once you have the new tax book linked to your fixed assets you have to complete the posting setup and ensure that the ledger accounts are correctly configured.

    In addition, ensure that the 'key' transactions such as acquisitions, sales, acquisition adjustments, etc. between the GAAP book and the new tax book are linked in the derived book section so that future transactions are posted correctly.

    To get the current values (acquisition values and depreciation amounts) posted for the new tax book you have to prepare and post fixed asset journals. This might involve a lot of preparation work especially in regards to the identification and calculation of the values to be posted.

    Overall, adding a new book involves a lot of work and can be considered as a 'smaller' data migration that needs a good and thoughtful preparation.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Fixed assets- adding tax books much later than GAAP book for same assets

    Hello André, thanks for your quick response.  I'm working in their test environment which is version 10.  The error did repeat itself and referenced the offset which is the CIP account, but that account is active.  Do you know of a way to create tax books for existing assets systematically? If not, I will look at LCS.

    Best Regards,

    Tracy

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 288,459 Super User on at
    RE: Fixed assets- adding tax books much later than GAAP book for same assets

    Hi Tracy,

    Is there an offset account available in the journal? What exact version of Dynamics 365 are you running? There was a similar error in the past. Probably you can have a look at LCS issue search for known issues.

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