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Fixed Asset Acquisition Adjustment- Depreciation Amount remain same as previous

Dynamics 365 for Finance and Operations Forum

Ramit Paul asked a question on 13 Jun 2019 3:05 PM
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Hello,

I have a situation

I had Fixed Asset previously with amount 100000, and then depreciated amount 20000 as well  as per setup with this FA(Straight line Percentage method 20% yearly).

However now I have made some adjustment in FIxed Asset Acquisition and the FA value is 800000 and as per the setup Depreciation value should be 160000, however this is showing 200000 as per the previous setup.

I've realised when the depreciation is made and then Acquisition value adjusted then this context coming as wrongly, not sure why

But if Acquisition is adjusted firstly and then depreciation  is coming correctly.

Whats the logic ?

Version 10.0.1 PU25

 

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Verified Answer

Hi Ramit,

When you are using the depreciation profile 'straight line service life remaining', it will do the calculation as per your expectation. The default straight line will take the original amount and original number of periods for the calculation of the depreciation amount.

If you are not able to change the depreciation profile, you can test the next option (separate environment first): Enable the parameter on the value model 'Create depreciation adjustments with basis adjustments'. This parameter is used to post depreciation adjustments when a fixed asset acquisition adjustment is posted.

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Ramit Paul responded on 14 Jun 2019 12:52 AM
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Where is that parameter is located Andre, if you could let me know or any path would help.

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Eugen Glasow responded on 14 Jun 2019 1:51 AM

It's in the Value model.

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Ramit Paul responded on 14 Jun 2019 2:28 AM
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If you could give the path? like for vendors ; Accounts  Payable-> All Vendors->

please share

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Sourav Dam responded on 14 Jun 2019 3:04 AM
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Hi Ramit,

Fixed assets > Fixed assets > Select a fixed asset > Click on 'Books' (in case if you are using D365) / otherwise 'Value model' (if using AX2012) > Scroll down to Depreciation section. There you will find a check box as 'Create depreciation adjustments with basis adjustments'.

Also, while disposing fixed assets, you can create depreciation adjustment by setting 'Automatically create depreciation adjustment amounts with disposals' check box in fixed assets parameters form.

Best regards,
Sourav Dam

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Eugen Glasow responded on 14 Jun 2019 4:15 AM

Ramit, if you can't find any form, just type in the name (e.g. "Value model") in the bar next to magnifying glass (or right in the middle in v10). The system will suggest the path.

Moreover, a quick Google search for "Create depreciation adjustments with basis adjustments" gives a ton of hits.

This is stupid to ask for everything.

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Ramit Paul responded on 14 Jun 2019 4:25 AM
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Eugen, I think you missed to understand I am using D365 and I guess here is no option called value model.

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Ramit Paul responded on 14 Jun 2019 4:26 AM
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Thanks so much Sourav, it helped

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Eugen Glasow responded on 14 Jun 2019 4:34 AM

Yes, my bad, it's calls Books. The global "Book" has the default value for all new fixed assets.

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Verified Answer

Hi Ramit,

When you are using the depreciation profile 'straight line service life remaining', it will do the calculation as per your expectation. The default straight line will take the original amount and original number of periods for the calculation of the depreciation amount.

If you are not able to change the depreciation profile, you can test the next option (separate environment first): Enable the parameter on the value model 'Create depreciation adjustments with basis adjustments'. This parameter is used to post depreciation adjustments when a fixed asset acquisition adjustment is posted.

Reply
Sourav Dam responded on 14 Jun 2019 3:04 AM
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Verified Answer

Hi Ramit,

Fixed assets > Fixed assets > Select a fixed asset > Click on 'Books' (in case if you are using D365) / otherwise 'Value model' (if using AX2012) > Scroll down to Depreciation section. There you will find a check box as 'Create depreciation adjustments with basis adjustments'.

Also, while disposing fixed assets, you can create depreciation adjustment by setting 'Automatically create depreciation adjustment amounts with disposals' check box in fixed assets parameters form.

Best regards,
Sourav Dam

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