Budgeting Runs 

Use

Cost center managers can use the Property Tax Report to forecast how much property tax to budget for (a) in the tax declaration year and (b) the year afterwards.

For example, if you execute a budgeting run in 2005, the report forecasts how much property tax you will have to pay in 2005 and 2006.

Features

You can execute two types of budgeting runs, depending on whether you have already executed the final tax declaration that year (see also the example below).

If you have not yet executed a final tax declaration, execute a type A budgeting run. The report calculates the assets’ taxable values, recalculating all of the data for the tax declaration year and the year afterwards. It also applies any additional depreciation and special rules that apply.

If you have executed a final tax declaration, execute a type B budgeting run, which does not recalculate any data for the declaration year. It does however forecast additional depreciation for the following year on the forecast additional depreciation rates.

Assume that you have not yet prepared the final tax declaration for 2005 and you want to execute a budgeting run for 2005 and 2006. You execute a type A run. The report bases its forecast on the latest depreciation rates from the Add-In for 2005 and 2006.

Now assume that you have already prepared the final tax declaration for 2005. You execute a type B run. It does not calculate any new values for 2005, but it does for 2006, using the additional depreciation rates that you have entered in the Add-In.

Note that you cannot save budgeting runs. You can execute budgeting runs after January 1 of the declaration year.

Activities

Customizing

If you want the report to calculate additional depreciation or apply special rules, implement the depreciation rates Business Add-In in Customizing for Financial Accounting (FI), by choosing Asset Accounting  ® Information System  ® Property Tax Report  ® Add-In: Depreciation Rates. You can maintain separate depreciation rates for the tax declaration year and the year afterwards.

Periodic Processing

On the Property Tax Report selection screen:

...

       1.      Enter which assets you want to select, for example, all those belonging to your cost center.

       2.      Enter which tax declaration year you want to see the forecast for.

       3.      Select Budgeting Type A or Budgeting Type B.

The output list shows two lines for each asset. The line with run type 3 shows the asset values for the tax declaration year, and the line with run type 4 shows the values for the year after.