on 09-11-2014 1:17 AM
Hi Everyone,
I am doing a legacy asset transfer these days,its during the fiscal year transfer and I am testing and creating assets for checking. For 2014 acquired assets,I noticed that planned depreciation value is positive for one period, though system is calculating depreciation correctly but if I run depreciation run AFAB, system will post first deprecation as positive after I create legacy asset. I am not using smoothing,its catch up. I checked my depreciation key,its straight line depreciation method and should be simple. I am not sure what is wrong.Please help and give me some ideas.The screenshot is attached.Thanks
Regards
Shaun
Hi Mukhtar,
The useful life of asset is 5 years.What I understood by investigating the issue is system calculating half year of depreciation in first year and remaining half in last year of asset.and thats why its posting a positive value in next period.
We are not using half year convention. we are using full year depreciation means if an asset is acquired in 2014 at cost of say 25000, life 3 years..the system should post 5000$ depreciation for the current year, but in my case system is trying to post 2,500$.
could someone guide me to define a depreciation key using straight line method with depreciation starts in the month of acquisition and depreciate full year not half year.Thanks for your reply.
Regards
Shaun
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It seems you have not loaded the AS91 figures correctly.
Please recheck your last depreciation posted setting, take over date setting.
If your capitalisation date is in current year, enter the acquisition as a transaction.
Current year depreciation should not be entered as accumulated depreciation, instead you should enter it as depreciation posted.
Please recheck.
Thanks Ravi for your comment.
In AS91 I have entered depreciation as ordinary not accumulated for last 9 periods. My take over date is 08.31.2014 and last posted depreciation period is 09/2014. We are using fiscal year from Dec-Nov. ( Dec2013 is first period and 08 August is period 09,2014).
In AS91
APC= 40,518.13
Ord.Dep= 6,077.72 ( 9 periods)
Date:06.11.2014
system showing depreciation for current year as 4,051.82 which is half of 8,103.62 and in final year of asset, system depreciating remaining 4,051.82 . It seems system applying half year convention and thats not my requirement. The asset should be depreciated by 8,102.63 at year end.
Any help please how to achieve it.Thanks.
Regards
Shaun
Your capitalisation date is 06.11.2014 that means you can only post the depreciation for 3 months
June, July, August (675+675+675) = 2025
Because you have entered 6075 (rounded to the nearest 5), the system is writing back the figures, which is correct.
6075 - 2025 minus another 675 (which is the depreciation of the September month)
From October and November, the system is now calculating correctly at 675.
My question, when your capitalisation date is 06.11.2014, how are you able to post the depreciation of 6075 in 3 months (June, July and August). Please enter the depreciation take over amount as 2025 instead of 6075, that would resolve your issue.
Ravi,
We are using catching up for depreciation,even asset is acquired in june,2014 . The system suppose to catch up depreciation from start of the year and post 9 months of depreciation at the time of legacy data transfer.
I checked with 2025 and system now depreciating 675 for remaining three months. But problem is its still calculating as half year depreciation 4051.82 , it should be 8,103.62.
Do I need to define new key? The screeen shot for the key that I am using is attached.
Please check your AFAMP settings they should be from the year beginning
Your drop downs should be 06 but not 01, that is the reason it still calculates like that.
Meanwhile also you can play around smoothing check box in OAYR
In my system for LINR the period control is 0002
In AFAMP for 0002, acquisitions showing 04 (half year), I would expect this to be 06
Thanks Shaun.
The system suppose to catch up depreciation from start of the year and post 9 months of depreciation at the time of legacy data transfer.
Why are you expecting the system to post the 9 months depreciation during legacy data transfer.
This is something you must enter during AS91.
Ravi,
I have copied LINR depreciation key and assign the period control 06-Start of the year. and system now calculating depreciation on all 12 periods from beginning of the year,no matter what time of the year asset is placed in service.
for example if asset is placed in service in june,2014, system calculates the deprecation from start of the year.
Is it possible to get the ODep start date as of when asset placed in service with correct depreciation. value intact.
if I change the ODep. date manually in "Depreciation Area tab". to the asset value datelike in June,2014.The depreciation becomes incorrect and system calculates for only 6 periods.
Can I get depreciation start date as of asset value date and have system calculate on all 12 periods.It will solve the issue.Thanks for your help.Really appreciated.
Regards
Shaun
Please also check your multilevel method, there should be couple or options, whether from capitalization date or from depreciation start date, please play around with them and see if there is any change comes in the depreciation calculation.
Usually, the period control controls from when the depreciation to be started, if you have given as 06 then it would be taken as the first date of the fiscal year instead of capitalization date.
Hi,
I think you have updated excess depreciation for period 9. Due to this system has adjusted it in period 10. As you said you are using straight line depreciation and I suspect its use full life is 10 yrs., then depreciation per annum will be 40518.13/10 = 4051.81. So system is calculating the depreciation correctly.
Please check the depreciation uploaded for period 9.
Regards,
Mukthar
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