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After the fixed asset is acquired and depreciation started few months back when I add additional acquisition cost to the asset I noticed that system during depreciation proposal ignores the new acquisition amount and calculates based on the old acquisition amount. how can I fix this?
Can you provide details as to how you added the additional costs to the fixed asset? Did you use a fixed asset journal to add the additional cost to the asset?
In addition to what FAD1 already mentioned, can you share your setups for that fixed asset, especially the value model settings that are made in the different tabs.
I am using project accounting to add additional cost. Using the 200_sllr book from demo. USMF
Thank you for that information.
In addition, we need to know things such as
- when the orginal acquisition was posted
- when depreciations were run
- what postings have been created so far
- when the transfer from the project to the fixed asset occured
It would be great if you could share some screenprints.
This would make things easier to identify.
Is the flag 'Create depreciation adjustments with basis adjustments' on in your value model?
I added additional information hope this is sufficient. thank you all for your help
Hi Frank, would it be possible to shed more light on this flag? thank you
Hi George, I see in your second screenshot that the flag is set to yes under the Depreciation tab. There's a flag in the Value model (or Book, depending on your version) that defaults this value to all assets if it's switched on. It's designed to automatically calculate depreciation on the new asset value after an adjustment to acquisition price is posted.
It does calculate automatically when running a proposal however the proposal amount is based on the original acquisition amount and ignores the additional acquisition amounts.
Can you create a depreciation proposal for 31 August?
This proposal should include your additional acquisition costs recorded.
Alternatively, you can also check the profile (button) in your book, which gives you a preview of the net book value and depreciations that will occur in the future.
Hi Ludwig, the profile does consider the new acquisition amount under the posted value. however notice the screen shot I added the depreciation amount is still $10 and this is my issue. if I ran the proposal or check the profile the depreciation amount is $10. I would think the amount will increase to accommodate the new acquisition correct?
I had a look at the FA group and the postings made and got something similar in my demo system. The issue in this case seems to be with the depreciation convention (half year) and the depreciation profile (200%).
I tried using the straight-line depreciation convention with a 'full month' depreciation convention and the depreciation amounts were adjusted. Can you test this alternative setup in your demo system?
Do you actually have to use the 200% depreciation profile, which seems to be something US/tax specific?
Hi Ludwig, I don't have to use 200% so I changed it to SL_service and it seems its working now. I will run few more test but in theory it seems to be working with straight line. thank you!
I was able to test the multiple acquisition example that you used with the SL_remain depreciation profile.
Do you mind to test this once again, ideally with a 'fresh', that is newly set up fixed asset?
If you still expierence the same issue, then please post some screenshots about the steps you followed so that I can try to replicate this on my machine.
Many thanks and best regards,
Hi Ludwig, yes it worked for me as well and no issues. I just by mistake posted hour journals that are not capitalize. that was my issue :)