Hello Asimpson08,

I am bit confused by the question. Tax rate, to me, implies something to do with the depreciation method or life not the value and the Tax depreciation has nothing to do with the GL unless you are putting Tax methods in your Internal book which can lead to some rather confusing conversations, since the GAAP rules and Tax rules are very different.

Regardless, when it comes to changing Book information, the question always is: What effect to you want to have on that asset as a result of the change? See How to change critical depreciation fields for the basics.

Note: These are general guidelines for the Tax book, details in the asset or your desired effect could have a different answer:

To repeat the article: After making a change, you will be asked two questions, the answer to which in combinations means: Do you want to keep the current depreciation no not? There are no one size fits all answer.

When it comes to Tax book, for current year assets, the recommendation is to answer Yes and then select the Placed-in Service date and Click OK on the questions. There are a lot of tax rules to be followed which would make that a requirement.

If it is not the first year of life, with depreciation ran for the end of the Prior Fiscal year, the recommendation is to answer Yes then Current Thru Date (default) and click OK to the questions.

~Delray

Hello DELRAY,

Thank you for your response.

The issue with the tax rate is for capitalization, we self asses tax for the value of the asset before adding the asset into FAS as the total acquired value.  The wrong rate was calculated for the total acquired value and this is for all books the acquired value is the same, just the depreciation methods are varied.  I need to adjust the total acquired value to reflect the corrected rate assessment. 

O’ One of those. A “Corrective” asset to adjust a total, Yeah, I hate those things.

Here’s the thing: You are troubleshooting a total which is not possible. Sure, you can do a calcu figure the difference between what the program shows and what you want to appear in the program, enter some sort of adjusting asset, and, if that makes sense to you, go right ahead, but no transaction will ever truly be accounted properly, and I cannot see a way for the 4562 to be entirely accurate.

(I may be a little paranoid.) 

Digging into the details, adjusting specific assets to appear as they should, resetting and recalculating the current year assets would be only recommendation I could make.

~Delray

so calculate depreciation to prior period, adjust the value of the assets individually and then rerun depreciation through April?

If they are not current year asset, yes.

~Delray

they are last month assets

The Tax book does not care about months, it is the Year to date that counts - If the asset was Placed in Service in the current year, the recommendation is to answer Yes and then select the Placed-in Service date and Click OK on the questions. There is no need to run to a prior date.

~Delray

what about internal books

Again, that is dependent on the effect you want to have on the asset.

the asset acquired value is changed.

thank you for your guidance, much appreciated.  Tax depreciation has been run for internal books, as we do that monthly.

the asset acquired value is changed.

thank you for your guidance, much appreciated.  Tax depreciation has been run for internal books, as we do that monthly.