You’re offline. This is a read only version of the page.
15
Hello all,
I have the following situation within the fixed assets module and am trying to figure out if the issue I am facing is a bug, designed functionality, or system gap.
My client often has the following situation (using sample dates and amounts):
An asset is acquired on March 30, 2022 with a placed in service date of November 1, 2021. March 30 is the first day of Period 4 for this example company.
The asset above, because it has a posting date of 3/30/2022, shows that depreciation will first be run for this asset on 4/5/2022 (they have a weekly calendar for FA depreciation) in the fixed asset profile. This amount on 4/5/2022 includes the depreciation adjustment of covering the period between PIS and acquisition.
During P3 close (which occurs the first week of P4, they run depreciation on all assets for P3 (create a depreciation proposal with date of 3/29/2022). For example purposes, let's say they run this proposal for P3 on 4/1/2022, which means it was after the cost was added to the above asset. The asset above should be ignored because it's posting date and first depreciation run according to the schedule is in P4, not P3.
However, when I run this depreciation proposal, a journal is created for this fixed asset. This journal includes a depreciation adjustment for the above fixed asset, although it was acquired in P4 and the profile shows that depreciation won't start until 4/5/2022.
This journal is odd - it includes a line for the depreciation adjustment up until 3/29/2022 and a blank line for depreciation (because the acquisition date hasn't yet happened. Therefore, without modification, the journal fails to post.
For this reason, I believe this to be a bug - I don't think depreciation should be picked up until the first day on the profile.
What's worse, if I delete the blank depreciation line in the journal above and post the depreciation adjustment on 3/29 (one day before acquisition date of 3/30), the profile for this book becomes completely off, including a balance at the end of the service life, evidenced by the screenshot of the END of the profile.
Anyone have any thoughts on the example above? It's a common scenario for them to be continually adding cost to assets during all portions of the period - this company has 100k fixed asset records.
Your placed in service date is what determines when the asset starts depreciating - not the acquisition transaction.
Share
Report
All responses (
Answers (
