(CAN) Using Asset Management Options to Meet Canadian Requirements

This topic discusses how to use Asset Management options to meet Canadian requirements.

Page Name

Definition Name

Usage

Beginning of Year

CCA_UCC_BEGIN

(Optional) Change UCC beginning of year amounts or CCA amounts.

Update CCA Year End Page

AMCCAUPD_RQST

Run the CCA Year End Updates process (AMCCAUPD_RQST) to extract the components necessary for CCA calculation, and populate the CCA_YR_END_TBL.

This process uses the extracted data to calculate all CCA amounts that are required by the CCA report.

CCA Year End CAN Page

RUN_AMTX10CA

RUN_AM_TX11CA

Create the Revenue Canada Year End report. Also generate the CCA Year End Extract report.

Use the CCA Yr End - Canada Rpt (capital cost allowance year end - Canada report) page (RUN_AMTX10CA) to create the Revenue Canada Year End report. Also generate the CCA Year End Extract report.

Navigation:

Asset Management > Financial Reports > Accounting Entries > CCA Year End CAN

Asset Management enables you to calculate and report CCA amounts as required by Schedule 8 of Revenue Canada.

To calculate the CCA:

  • Set up or modify CCA tax classes on the Tax Class page, and specify the CCA percentage rate.

    Asset pools or classes and CCA rates are set by governmental regulations. In the year that assets are acquired, 50 percent of the normal rate should be used. The value that you enter for an asset tax class for the CCA rate percent is used later when you run a process to calculate the CCA rate.

  • On the Asset Book Definition - Book Tax page, select the tax guideline class that reflects the CCA tax class to which the asset belongs.

  • For each reporting fiscal year, associate a CCA UCC beginning year value with a CCA tax class.

  • Run the CCA Year End Update process that extracts the data that is necessary for CCA calculation, populates the CCA_YR_END_TBL table, and calculates all amounts that are required by the CCA report.

  • Run the CCA Year End reports.

Use the CCA Year End Updates (capital cost allowance year end updates) page (AMCCAUPD_RQST) to run the CCA Year End Updates process (AMCCAUPD_RQST) to extract the components necessary for CCA calculation, and populate the CCA_YR_END_TBL.

This process uses the extracted data to calculate all CCA amounts that are required by the CCA report.

Navigation:

Asset Management > Taxes > Update CCA > Update CCA Year End

Enter the business unit, CCA book name, and applicable fiscal year. Select a process frequency. This process is iterative. Run it as many times as necessary to complete CCA reporting. To run the process for multiple business units, leave the Unit field blank.

The CCA Year End Update process populates the CCA_YEAR_END_TBL table with these values:

Business Unit

Acquisitions

Book

Adjustments

Fiscal Year

Transfers

CCA Tax Class

Net Proceeds

Currency Code

Capital Gains

The process calculates CCA amounts according to the following formula:

UCC = UCC beginning of year + additions +/–adjustments – retirements
CCA = UCC–(50% * addition) *CCA rate
UCC end of year = UCC–CCA