Depreciation books is a concept in Ax where in the system allows the users to maintain multiple depreciation books based on the requirements of the law. In India the companies can maintain depreciation as per Income Tax Act & Companies Act. Both the governing laws have different requirements when it comes to maintaining the depreciation by the companies.
Since Ax 2012 provides a feature of maintaining multiple depreciation books, it becomes easy for the companies to maintain the depreciation reporting as required by different laws.
To achieve this the users can create multiple depreciation books, and the depreciation book that is used for the Taxation purpose can be set to record transaction into the tax layer. Doing this will help the company to maintain the Depreciation transactions without impacting the general ledger entries.
To Setup Depreciation Books:
- Fixed Assets –> Setup –> Depreciation –> Depreciation books
- Click New to create a new depreciation book
- Depreciation Book: define the code for the depreciation book
- Description: Use this field to give a meaningful description to the depreciation book
- Depreciation: Use this check box so that the system can calculate the depreciation
- Depreciation profile: select a specific depreciation profile
- Alternative Depreciation profile: use this when there are 2 depreciation methods involved
- Round off depreciation: Defines the level of rounding.
- Leave Net book value: This field allows to define a minimum limit of an asset’s book value once the net book value of the asset does not reach this value the system shall keep on calculating depreciation.
- Calendar: Use this field to define the calendar used for calculating the depreciation.