01. GENERAL DATA

02. DESCRIPTION

The parameter MV_ATFCRAT defines how often the credits related to assets in Fixed Assets are recorded in the system, specifying whether to apply such credits monthly or annually.

Functionality:

• • It controls the accounting process of booking credits attributed to fixed assets, affecting the periodicity in which these credits are considered in financial statements.

Possible values:

• • 0 (Monthly): When set to this value, the credits on assets of Fixed Assets are registered monthly, allowing more frequent booking and a closer monitoring of variations in Fixed Assets.
  • 1 (Annually): When set to this value, the credits are registered once a year, resulting in less frequent booking and a simpler approach for companies that do not require detailed monthly control.

Application:

• • Companies with fixed assets subject to frequent variations, such as depreciation or revaluation, may choose the setting 0 to make sure credits are updated monthly, more accurately reflecting the financial status of the asset.
  • Companies with a less rigorous control of fixed asset variations may choose the setting 1, which may simplify the accounting process and reduce the number of entries to be made.

Example of Configuration:

• • MV_ATFCRAT = 0: The credits on assets of Fixed Assets are booked monthly, allowing a more up to date view of assets in the balance.
  • MV_ATFCRAT = 1: The credits on assets of Fixed Assets are booked annually, resulting in a simplified annual booking.

Importance:

• • Selecting how often to register credits on fixed assets may significantly affect the accuracy of financial statements and budget planning.
  • It enables companies to adjust their accounting processes in accordance with their specific financial management needs and reporting requirements.

Considerations:

• • Parameter settings must comply with the company's accounting policy and with local regulatory demands.
  • You must carefully plan and notify the accounting team of any changes to settings, to avoid discrepancies in financial records.

Relationship with other parameters:

• • It may be interlinked to other parameters that control asset depreciation and the booking of credits and debits in general, directly affecting the company's financial results and the statement of fixed assets in the balance sheet.

03. OTHER INFORMATION

Not Applicable.

04. RELATED SUBJECTS

• IR Credit Calculation (ATFA031 - SIGAATF)
• Correction and Depreciation using monthly variation of IPC - Chile (ATFA050 - SIGAATF)
• Annual Carry Forward (ATFA080 - SIGAATF)