Tax Departments usually do not have the resources or the necessary in-depth SAP expertise to review the Fixed Asset system on an on-going basis.

The consequences can include incorrect depreciation terms (depreciation methods, useful lives, depreciation dates), inaccurate depreciation amounts, wrong asset classifications, etc. Fixing these errors proves a costly undertaking since the prior fiscal year is already closed and/or assets may have already been disposed of or transferred.

To address this problem we now offer a new service to our clients:
Quarterly SAP Fixed Asset Tax Review Sessions

During these sessions, Michael Management Consultants extract the prior quarter's Fixed Asset activity (including new asset master records, acquisitions, disposals, transfers, etc.) and perform thorough reviews of the data. We search for inconsistencies and other potential problems so that these can be addressed and fixed early & easily. We then provide a detailed report to the tax department and work with the client's tax partner on any required corrections.

Together with our clients we develop a comprehensive review list and focus on areas that have caused issues for the tax department before. These areas could include items like:

• check for back-dated transactions, asset master records and catch-up depreciation

• check new assets' depreciation terms for consistency with class defaults

• check for correct asset class assignments

• check for proper treatment of intercompany transfers, disposals, other adjustments

The cost for this service is minimal when compared to the alternative of having to fix asset records & depreciation amounts for prior, closed fiscal years. Depending on the scope and volume of our reviews, most quarterly tax review sessions take only 2-3 days of consulting time!

Interested? Contact us to discuss this service with us!