In accordance with Latvian tax requirements, the income tax for a company is adjusted using asset depreciation, and the income tax is calculated using the tax depreciation method. The tax depreciation method is an extension of the reducing balance method, which is used in Latvia to determine the income tax for business organizations.
Before assigning the value model to a fixed asset, you must set up a depreciation profile and a value model for tax depreciation.
For more information, see (LVA) Set up a depreciation profile for tax depreciationand (LVA) Set up a value model for tax depreciation.
Click General ledger> Common Forms> Fixed Asset Detailsto open the Fixed assetsform.
On the Overviewtab, select the fixed asset for which you want to assign the value model.
Click the Othertab. In the Categoryfield, select the value model for the fixed asset.
Press CTRL+S or close the form.