Fixed Assets - Limited deductibility

In accordance with the Romanian laws, this functionality has been developed to establish the deductible value of depreciation for each Fixed Asset Posting Group, but also the G/L account used for non-deductible depreciation.

To setup Fixed Assets - Limited deductibility

I.FA Posting Group

1. Choose the Tell Me feature icon, enter FA Posting Group.
2. In the Deductible Depreciation Value field enter the deductible value for the selected FA Posting Group.
3. In the Nondeductible Depr Expense Acc field enter the G/L Account used to record the non-deductible amount of depreciation in accounting (the difference between the total amount of the depreciation and the deductible value).

II. Fixed Asset Card

1. Choose the Tell Me feature icon, enter Fixed Asset and open a Fixed Asset Card.
2. In Foreign Trade tab - check the Limited Deductibility field.

Posted Result

After the depreciation calculation, if its value is higher than the filled deductible value, the system will create 3 lines in the FA G/L Journal:

• the line containing the fixed asset;
• deductible expense line;
• non-deductible expense line.