Asset Retirement with Correction Items
Use
You can depict asset retirements with correction items using this function.
The turnover of an asset with correction items or its parts necessitates an end treatment of the dispatched input tax amounts. The new calculation takes place on exactly the same day at exactly the same time as the full or partial retirement of the asset.
Features
Put option rate
It is 100%for retirement liable to sales/purchase tax and 0% for retirement exempt from sales/purchase tax
Calculation in the input tax adjustment phase
The calculation is performed within a two time intervals in a different manner:
Until the retirement date, the input tax is calculated exactly to the day (including the retirement date) using the valid option rates calculated:
Full retirement
(Option rate - Base rate) x Inp.Tax from APC
Number of correction months/days until retirement
Partial retirement
(Option rate - Base rate) x Partial Inp.Tax from APC
Number of correction months/days until retirement
Full retirement
(Put rate - Base rate) x Inp.Tax from APC
Number of correction months/days to retirement
Partial retirement
(Put rate - Base rate) x Partial Inp.Tax from APC
Number of correction months/days to retirement
Calculation during the input tax correction phase
The input tax correction phase finishes on the day of retirement. The deductible input tax is calculated according to the formulas in the input tax correction phase (interval after the retirement) from the day of retirement onwards until the end of the correction period.
Calculation in the input tax revision phase
If the Put rate = 0% during retirement of an asset in construction, there no change of the ratio meaning the non-deductible input tax available at that time cannot be made applicable.
If the Put rate = 100% during retirement of an asset in construction then the total input tax amount of the AC/PC can be deducted meaning the input tax share discounted can be made applicable.
Activating