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Verified
Rachel Chen asked a question on 22 Mar 2015 11:45 PM

Hi,

I need to record an asset acquired in previous year. If I use the actual invoice date (purchase date) as acquition date in fixed asset register, will I be able to post journal for depreciation of prior year in current year?

For example, asset was acquired in period 9 last year but paperwork is only received in period 3 this year. If I use purchase date xx/09/2014, will a journal be created for depreciation for Period 9, 10, 11 and 12? Can I post the journal in current year? Will journal batch fail to be posted as last year has been closed?

Is there any difference of "Acquisition Date" and "Place in Service Date" in Fixed Asset Register?

Thanks,

Rachel

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Suggested Answer
Harry Lee responded on 23 Mar 2015 12:42 AM

Rachel,

My experience is, it is possible to enter an asset with a historical "Acquisition Date," and depreciate it up to the current period and post the entry into the current period.

You can also run the depreciation and GL Interface period by period, to post into prior periods, even in a closed year, if the financial module is not checked as closed in fiscal period setup (and posting in the year is still possible)

I would recommend setting up a test database to validate this, prior to implementing it in your production database.  

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Suggested Answer
Mahmoud M. AlSaadi responded on 23 Mar 2015 3:12 AM

Hello Rachel

I believe that this is a practical case that occurs quite often, nothing new or unusual about it.

Initially, allow me to distinguish between three different date; which are the keys to the process of adding an asset from the purchasing module.

1- Payable | Invoice Date: the date of the payable invoice based on which the liability of the company will be calculated. The due date will be calculated according to the document date as well, and more importantly the GL posting date (taking your setup into consideration)

2- Fixed Assets | Acquisition Date: it is simply the date at which the asset was acquired (regardless of the depreciation calculation and details). When adding an asset from the Purchasing module, the acquisition date will default from the payable invoice date explained above.

3- Fixed Asset | Place in Service Date: which is the driver for your depreciation calculation, based on which the depreciation amounts are calculated regardless of when the asset was acquired. So if you acquire an asset at 01/09/2014, the place in service data can simply be changed to 01/01/2015, and the depreciation of this asset will calculate starting from the place in service data accordingly.

Now back to your case, we all agree that the invoice date is xx/09/2014. and the Acquisition date will be xx/09/2014 as well. For the place in service date, you are the one that should know when the asset should start depreciation, and here I suppose two different scenarios

Scenario One

The asset should start depreciation from 01/01/2015. Therefore, you may simply change the place in service date to 01/01/2015.

Scenario Two

The asset should start depreciation from xx/09/2014, but the GL journals should be posted in 2015. In this essence, put the place in service date as xx/09/2014.

To generate the journal at the current year, change the posting date of the (GL POSTING) window (Microsoft Dynamics GP > Tools > Routines > Fixed Assets > GL Posting). The date at this window determines the posting date of the associated journal entry in the GL level. Here is a screen shot for the FA GL posting window and the associated date:

For further information, you may refer to the following detailed posts on how to add assets from the purchasing and payable module on a step by step bases

Adding Fixed Asset from Payable Management

Adding Fixed Assets from Purchase Order Processing module (Multiple assets per Shipment)

Your feedback is highly appreciated,

Best Regards,

Mahmoud M. AlSaadi

Dynamics GP Essentials |   mahmoudsaadi.blogspot.com

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Verified Answer
Rachel Chen responded on 23 Mar 2015 6:06 PM

Thanks Harry.

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Rachel Chen responded on 23 Mar 2015 6:08 PM

Thanks Mahmoud.

What if the journal batch for depreciation is accidently deleted? There will be variance between LTD accumulated depreciation in Fixed Asset Module and G/L. Do I have to do a manual general journal to fix? Or there will be some steps I can do in FA module to re-create a journal batch?

Regards,

Rachel

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Verified Answer
Mahmoud M. AlSaadi responded on 23 Mar 2015 6:17 PM

Hello Rachel

Well, there is definitely a solution to that, and you will not be doing it manually :)

Technically speaking, the Fixed Asset GL posting has a staging area at which the lines are prepared for being posted to GL, they got a flag to indicate at which status they are. So if you mistakenly deleted the batch, you will have to manually change this status on the SQL level. This has been thoroughly illustrated by Mark Polino in his Weekly Dynamic: Rerun FA GL Post Routine

Please let us know if you have any further inquires,

You may kindly be asked to close the thread once it is fully fulfilled and just in case you don't have any further concerns,

Best Regards,

Mahmoud M. AlSaadi

Dynamics GP Essentials |   mahmoudsaadi.blogspot.com

Reply
Verified Answer
Rachel Chen responded on 23 Mar 2015 6:06 PM

Thanks Harry.

Reply
Verified Answer
Mahmoud M. AlSaadi responded on 23 Mar 2015 6:17 PM

Hello Rachel

Well, there is definitely a solution to that, and you will not be doing it manually :)

Technically speaking, the Fixed Asset GL posting has a staging area at which the lines are prepared for being posted to GL, they got a flag to indicate at which status they are. So if you mistakenly deleted the batch, you will have to manually change this status on the SQL level. This has been thoroughly illustrated by Mark Polino in his Weekly Dynamic: Rerun FA GL Post Routine

Please let us know if you have any further inquires,

You may kindly be asked to close the thread once it is fully fulfilled and just in case you don't have any further concerns,

Best Regards,

Mahmoud M. AlSaadi

Dynamics GP Essentials |   mahmoudsaadi.blogspot.com

Reply
Suggested Answer
Harry Lee responded on 23 Mar 2015 12:42 AM

Rachel,

My experience is, it is possible to enter an asset with a historical "Acquisition Date," and depreciate it up to the current period and post the entry into the current period.

You can also run the depreciation and GL Interface period by period, to post into prior periods, even in a closed year, if the financial module is not checked as closed in fiscal period setup (and posting in the year is still possible)

I would recommend setting up a test database to validate this, prior to implementing it in your production database.  

Reply
Suggested Answer
Mahmoud M. AlSaadi responded on 23 Mar 2015 3:12 AM

Hello Rachel

I believe that this is a practical case that occurs quite often, nothing new or unusual about it.

Initially, allow me to distinguish between three different date; which are the keys to the process of adding an asset from the purchasing module.

1- Payable | Invoice Date: the date of the payable invoice based on which the liability of the company will be calculated. The due date will be calculated according to the document date as well, and more importantly the GL posting date (taking your setup into consideration)

2- Fixed Assets | Acquisition Date: it is simply the date at which the asset was acquired (regardless of the depreciation calculation and details). When adding an asset from the Purchasing module, the acquisition date will default from the payable invoice date explained above.

3- Fixed Asset | Place in Service Date: which is the driver for your depreciation calculation, based on which the depreciation amounts are calculated regardless of when the asset was acquired. So if you acquire an asset at 01/09/2014, the place in service data can simply be changed to 01/01/2015, and the depreciation of this asset will calculate starting from the place in service data accordingly.

Now back to your case, we all agree that the invoice date is xx/09/2014. and the Acquisition date will be xx/09/2014 as well. For the place in service date, you are the one that should know when the asset should start depreciation, and here I suppose two different scenarios

Scenario One

The asset should start depreciation from 01/01/2015. Therefore, you may simply change the place in service date to 01/01/2015.

Scenario Two

The asset should start depreciation from xx/09/2014, but the GL journals should be posted in 2015. In this essence, put the place in service date as xx/09/2014.

To generate the journal at the current year, change the posting date of the (GL POSTING) window (Microsoft Dynamics GP > Tools > Routines > Fixed Assets > GL Posting). The date at this window determines the posting date of the associated journal entry in the GL level. Here is a screen shot for the FA GL posting window and the associated date:

For further information, you may refer to the following detailed posts on how to add assets from the purchasing and payable module on a step by step bases

Adding Fixed Asset from Payable Management

Adding Fixed Assets from Purchase Order Processing module (Multiple assets per Shipment)

Your feedback is highly appreciated,

Best Regards,

Mahmoud M. AlSaadi

Dynamics GP Essentials |   mahmoudsaadi.blogspot.com

Reply