Overview:
If more than 40% of the total basis of property is placed into service during the last 3 months of the tax year, the mid-quarter convention applies. if configured properly, PENTA will automatically account for this rule, and calculate the appropriate depreciation adjustment when the mid-quarter convention applies. In some instances, two or more legal entity Organizational Units need to be combined prior to assessing this convention. The Mid-Quarter Convention Groups window allows you to define mid-quarter groups and link multiple Legal Entities together for mid-quarter convention calculation.
Benefits:
- System will automatically determine when a group of organizational units is subject to the mid-quarter convention and calculate appropriately
- Allows the grouping of multiple legal entities that are subject (combined) to this convention
Roles:
- Accounting Manager
- CFO
Location:
- Financial & Accounting > Setup > Organization Units > Mid-Quarter Convention Groups
Video: