Internal Book

The Internal book is for asset depreciation as needed for the company's internal accounting. The system default information, based on the Tax book, conforms to Generally Accepted Accounting Principles (GAAP). The application uses data from this book in certain reports, such as the FASB 109 Projection Report. The Internal book fiscal year does not need to be the same as the Tax book fiscal year.

Guidelines for internal book depreciation, as outlined by GAAP, tend to be far less restrictive than for tax depreciation. GAAP requires only that depreciation be a systematic and rational measure of asset wear and tear and that any selected depreciation method be applied consistently. Some rules are, however, quite specific, and you should refer to the GAAP guidelines for detailed information.