How is the Asset Clearing account derived in the Tax Book for assets from Project Costing?
Summary:
We have two FA books, one Corporate and one Tax. The Corporate Book does not send any accounting to the primary ledger. The Tax Book sends accounting to the secondary ledger.
When assets are pushed to FA from Project Costing (PPM) and capitalized, I expect the accounting to be:
Asset Cost account Dr.
CIP Cost account (used in PPM) Cr.
I get the above accounting in the Corporate Book. However, in the Tax Book, I get the following:
Asset Cost account Dr.
Asset Clearing account (from Asset Category) Cr.
My understanding is that the seeded SLA rules in FA ensure that the offset to Asset clearing in FA ensures that whatever account is debited in PPM and AP is zeroed out. Is my understanding correct? Or is the incorrect accounting happening in the Tax Book because there is no link between that book and Project Costing? If this is the case, how to resolve this?