NetAsset - Tax Engine Setup

Overview

NetAsset has the ability to determine alternate tax depreciation methods according to the asset type. If you are interested in this add-on feature, please reach out to your account manager. 

Configure System Setup 

  • Navigate to NetAsset > NetAsset Setup > System Setup > System Features and check the "Tax Engine" box and the "Alternate Schedules" box in the Enable System Features Section. 
    • If Multi-Book is also enabled in the system, then the "Tax Multi-Book" box will also need to be checked. The "Tax Schedules" box indicate whether Tax Specific fields such as, bonus depreciation for sections 168 & 179, should be enabled. 

  • Select "Save".

Asset Type Setup

  • Enabling the tax engine adds an additional field for Tax Classification to each asset type. 
  • To set this up navigate to NetAsset > NetAsset Setup > Manage Asset Types & Mappings. In the Tax Information section, select the desired property type for the Tax Classification field. This will override any tax alternate schedule defaults. 
  • Select "Save". Alternatively, tax classification can be uploaded using a CSV upload.

Depreciation Method Setup

  • Now that the Asset Type record has the appropriate tax classification, the Depreciation Method record also needs the tax classification.  Navigate to NetAsset>NetAsset Setup>Manage Depreciation Methods.
  • This page will hold a list of all the depreciation methods available. By default, many of the tax schedules, such as MACRS, will already be included.
  • However, you also have the option to upload your own tax depreciation methods. See the Configure Depreciation Methods article to walk through how to manually create a depreciation method.
  • Select "Edit"  next the depreciation method that needs to have the tax classification added. 

  • Under the Tax Informationsection, there are three fields available. 
    • TAX CLASSIFICATION: This is where the specific tax classification that relates to this depreciation method will be selected. 
    • TAX YEAR: This field provides the option to have this depreciation method only apply to a specific tax year. If left blank, it may be applied to any year depending on whether that tax classification is necessary. 
    • MACRS SELECTION: This fields specifies which quarter/half year is being used with this method. NetAsset has the ability to look at the start date of the asset and determine which quarter/half year should be used when the tax schedules are generated. 

Permissions Setup

  • Once the tax engine has been set up, there are new permissions that are added to the system. Users who use the tax engine must be set up with access to the following permissions:
    • NetAsset Tax Rule
    • NetAsset Tax Year

Taxpayer Setup

  • Tax years are applied to assets one Taxpayer at a time, so before we can proceed to that step, users have to set up their Taxpayer records. Please note that every subsidiary must be connected to a single Taxpayer. If this step is not setup correctly, users will be unable to apply any Tax Years.
  • Let's start by configuring your Taxpayer records. Begin by searching for "NetAsset Taxpayer" and select "Page: NetAsset Taxpayer." 


  • This will take you to your list of NetAsset Taxpayers. These Taxpayer records are used for NetAsset purposes only. To create a new Taxpayer, click the "New NetAsset Taxpayer" button. 

  • The only required field is the "Name" field. Once you have given your Taxpayer the appropriate name, "Save" your changes. Create as many Taxpayers as you need for all your subsidiaries.

  • Once all Taxpayers are created, the next step is to tie these records to your subsidiaries. Navigate to Setup > Company > Subsidiaries. Click "Edit" next to the subsidiary record you want to connect a Taxpayer to. 

  • Once the subsidiary record opens up, you should see a new "NetAsset Taxpayer Mapping" field. From the list, tag the appropriate Taxpayer for this subsidiary and save your changes.

  • Now, if you navigate back to your Taxpayer record, you will see the tagged subsidiary and its information under the "Related Subsidiaries" subtab.


Was this article helpful?