Book Overrides Tab

Follow the guidelines provided below to complete the Book Overrides tab of the New Company window or Edit Company window.

The Book Overrides tab displays some of the default settings used to calculate the depreciation of your assets. You should review the Midquarter field annually to decide whether the midquarter convention applies to the current year asset additions. You can override any of the defaults on this tab by selecting another valid option.

The book default values for the fields are as follows:

• The application uses the half-year convention unless you specify the midquarter convention. See Midquarter Field for a detailed explanation of the midquarter convention and for an important note concerning this field.

• The application does not take a depreciation adjustment amount into the accumulated depreciation calculations. The depreciation adjustment amount is the difference between the user-entered beginning depreciation amounts and the amounts the system calculates for the same period.

• The application reduces the asset's basis in all books except the Internal book if you take full Investment Tax Credit (ITC) for an asset.

Follow the guidelines provided below to complete the fields on the Book Overrides tab. You may want to change the default settings applied by the application.

Items in this window

Item	Notes
Midquarter	An extremely important field that controls which averaging convention the system uses for the tax-related books.
Adjustments	This field allows you to specify how you want the system to handle assets that have a calculated adjustment due to user-entered depreciation amounts. Note that this option only affects assets that were underdepreciated before they were added to the application.
Reduce by ITC	The choice of reducing or not reducing the basis of assets qualifying for the Investment Tax Credit.