Performance Improvement 

Purpose

If you have a very large number of assets, you can improve performance and save memory by running the report for a limited number of company codes at a time.

Once you have run the report for all of your company codes, you run it once more to recalculate the decided values for each tax office correctly (see the example below).

Process Flow

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       1.      You run the report in test mode for a limited number of company codes.

Only enter as many company codes as you feel the system performance can allow. If you have posted asset transfers, select all of the company codes involved in the transfers.

       2.      When you are satisfied that the results of the test run are correct, run the report again for the same sets of company codes, but this time in update mode.

The report calculates all of the values for each asset and saves the data.

       3.      Repeat steps 1 and 2 until you have run the report for all of your company codes.

       4.      Run the report again. This time:

¡        Do not enter any company codes.

¡        Select Recalculate at Tax Office Level.

The report reads all the data for each asset. It compares the total tax book values and total tax evaluation amounts for each tax office and recalculates the decided values, the taxable values and so on.

Example

Development Company Ltd. has three company codes, one for each business area. One of the company’s premises is registered with the Chuo-ku tax office in Osaka, and another is registered with the Bunkyo-ku tax office in Tokyo.

Since Development Company Ltd. has such a large number of assets, it runs the report in update mode three times, once for each company code (steps 1–3 from the process above). It has made no intercompany asset transfers.

In the first run, for company code 1, the report calculates that the tax book value is the decided value. In both of the next two runs, for company codes 2 and 3, the report calculates that the tax evaluation amount is the decided value. However, the decided values calculated at company code level are inconclusive. The decided value depends on the values of all the assets in the jurisdiction of the municipal tax office.

The company then runs the report again, once for each city (step 4). This time, the report adds up all of the assets’ tax book values and all of their tax evaluation amounts for each city, and compares the two figures to determine the decided value:

·        For Chuo-ku, the tax evaluation amount is higher than the tax book value, so the tax evaluation amount is deemed the decided value for the Osaka tax office.

·        For Bunkyo-ku, the tax book value is higher than the tax evaluation amount, so the tax book value is deemed the decided value.

The system saves the new data for all the assets.