Property Taxes in the U.S. On Your Fixed Assets: Make Sure You're Paying The Correct State

  • by Charles Powell, Asset Management Manager
  • Bofen Judy Lee, Finance Specialist
  • April 15, 2003
Homeowners in the United States know all too well the bite of location-specific property taxes. However, that's just financial pain. Accountants in companies with physical sites in multiple locations know the annual mental pain of compiling a list by state of the assets. Not just "property" assets such as land and buildings, but all fixed assets, including plant equipment and machines.

Homeowners in the United States know all too well the bite of location-specific property taxes. However, that’s just financial pain. Accountants in companies with physical sites in multiple locations know the annual mental pain of compiling a list by state of the assets. Not just “property” assets such as land and buildings, but all fixed assets, including plant equipment and machines.

The R/3 system’s Fixed Asset Master helps here to some degree, because it allows you to include the plant or the cost center that you want to associate with any given fixed asset. However, be careful when you run that standard report of your assets by plant or cost center. Can you be confident that the “owners” shown are correct and that, therefore, you are paying the right taxes to the right states? If you are in a company that has lots of long-term capital projects going, and if you use the CO module’s WBS (work breakdown structure) to represent their in-progress costs, we want to warn you about an unpleasant surprise.

Charles Powell

Charles L. Powell has more than 30 years of experience with applications. He is currently using SAP to manage the equipment and asset records for a large telecommunications Internet company in Dallas, Texas. He has published a book, SAP Data Warehouse Manual, that shows the major SAP modules' main table relationships with key fields for SAP (www.dendrites.com/sap.html). He has a degree in finance from the University of Oklahoma.

See more by this author

Bofen Judy Lee

Bofen Judy Lee has seven years of experience in the telecom industry focused on project management and Material/Inventory Management. She has a B.A. degree in economics and a master’s degree in science of management. Charles L. Powell has more than 30 years of experience with applications. He has published a book, SAP Data Warehouse Manual, and has a degree in finance from the University of Oklahoma. You may reach him at cpow@attbi.com.

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.