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Initial Mass Copy Example

You add an asset to your CORP book in the AUTO.DELIVERY category on 01-OCT-1994. You then continue depreciating your CORP book. You run initial mass copy for OCT-94 to your FEDERAL book. Notice that the asset has not yet been depreciated in the FEDERAL book.

  CORP FED
Cost 12,000.00 12,000.00
Net Book Value 10,000.00 10,000.00
 

Choose the first period for your tax book

Choose the period you begin your tax book carefully. For example, assume that 1994 is the current fiscal year in your corporate book, and you want to calculate your federal taxes for 1994. Also, assume you use a monthly calendar in your corporate book and a quarterly calendar in your tax book. If you start your new tax book for the end of the last quarter of 1993, you can reconcile your new book with the audited results from the accounting system you previously used to calculate your tax depreciation. This provides you with a verified starting point.

Use the Book Controls window to create a new federal tax book with Q4-93 as the Current Period Name. Enter 1993 as the current fiscal year for your tax book. When you run Initial Mass Copy, it copies all active assets from your corporate book, as of the end of 1993, into the Q4-93 period in your federal tax book. When you run the depreciation program, it calculates the net book value of each asset in your tax book using the depreciation method you specified in the Asset Categories window for the tax book. Reconcile these results with those of your previous tax system.

Verifying initial mass copy

To verify that all assets were processed successfully, review the log file for your initial mass copy concurrent request. The log file lists the assets and transactions that did not copy into your tax book, the reasons why, and the actions you must take to resolve the problem.

After you run the program, run the Tax Additions Report to verify that initial mass copy added all the assets to the tax book. When you are satisfied with the information copied into your tax book, run depreciation to close the initial period and open the first period of the next fiscal year, 1993.

Now you can run Periodic Mass Copy. Since the corporate book uses a calendar fiscal year, run Periodic Mass Copy for JAN-93, FEB-93, and MAR-93 for the tax book while Q1-93 is open.

Note: You can use Periodic Mass Copy to populate a new tax book only if you added all your assets to your corporate book in the period for which you are running Mass Copy.

See Also

How Initial Mass Copy Works

Periodic Mass Copy Example

Tax Additions Report

Defining Depreciation Books

Updating a Tax Book with Assets and Transactions

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