Reversing: Asset with Correction Items
Use
In accordance with § 44 (2) UStDV (German law), an adjustment of the input tax deduction is not required for a calendar year in the input tax adjustment phase under certain conditions.
These conditions are put into a concrete form by making the following settings in the Real Estate Customizing:
An input tax adjustment is not required if:
the average option rate of a calendar year differs from the base rate by less than 10% and
the correction amount of this fiscal year amounts to less than USD500 the same time.
Since the threshold values refer to a calendar year, these values are only checked at the end of a calendar year. If the calculated values fall below both threshold values, a reversal of those trivial amounts is performed.
Features
This function uses one single offsetting entry to neutralize all input tax postings during the correction period for all line items.
Activating
You start this function only once at the end of each calendar year for the correction items in the input tax adjustment phase.