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Microsoft Dynamics GP (Archived)

Restaurants or Retailers using GP Fixed Assets - We need input on changing life of LHI prospectively.

Posted on by 10

If the life of an existing partially depreciated asset is extended on the first day of Q4 and depreciation for Q1-3 is 50k per quarter and the new life results in depreciation of 40k per quarter then the depreciation for year 1 of the change should be

50 x 3 + 40 = 190 (This is the desired result)

But GP Fixed Assets is adjusting Q4 such that year 1 depreciation is 40 x 4 = 160 by making Q4 depreciation be only 10.

50 x 3 + 10 = 160 (This is a problem because it causes an anomaly in financial reporting in Q4)

Year 2 depreciation will be recorded at 40 per quarter = 160 which is fine

 

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