Depreciation Profiles vs. Depreciation Books

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Posted on by D365problems

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Hello AX forum!

Previously I asked a question about depreciation and we've luckily gotten that issue resolved.

However, there is another issue.

Apparently, when the consultants set up the fixed assets and the depreciation books, they set up one book and called it Tax. They also set it up a double declining balance. That issue has been resolved.

But the new issue is there is a depreciation profile that is set up as Straight Line. As mentioned, we had a previous issue but that has been resolved.

The new issue appears to be that because the assets are pulling depreciation from the Depreciation Profile rather than a book, we are unable to utilize AX for transfers or disposals. The requests appear to go through but the Fixed Asset Journal Entries simply move the asset correctly then reverse.

If we go into the value models to by pass the transfer (because we know it does not work) we can correct the "location" but it does not correct the fixed asset journal entry when we propose the depreciation entry.

What is the difference between the depreciation profile and the depreciation book?

I've set up another "Month End" depreciation book that is straight line, with all the correct items, but without being able to transfer, what would be the easiest way to move the assets from the depreciation profile to the depreciation book?

Thank you in advance for any assistance.

Christine Ando

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Ludwig Reinhard Microsoft Employee on at

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Hello Christine,

There seems quite some mix of terms here and I am not sure if I understood everything you mentioned :-)

Let's thus try to focus on your main question.

Depreciation profiles define the method how a fixed asset is depreciated.

The next screenprint gives you an example of depreciation profile that does a straight line depreciation if it is associated to your fixed asset.

Depreciation profiles are - among others - linked to depreciation books

Those 'books' allow you calculating depreciation for example for tax purposes.

What makes depreciation books special in AX2012 is that they have not ledger integration.

That is, you can basically do whatever you like with your depreciation books because they will never hit your General Ledger.

This is different from value models; but that they are part of a different story.

Hope this answers your question.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello Christine Ando,

Has your question been answered or do you need any other information / help from the community?

Best regards,

Ludwig

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D365problems 105 on at

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Your answer sounds logical.

However, the issue we are having is we are unable to "transfer" assets.

We have closed a facility and many of the assets have been moved to other facilities. Last year, they attempted to transfer the assets but that simply added JE's to the general ledger but did not actually move the assets.

When I go into the Value Models, I can revise the location code but that does not revise the depreciation JE.

For the facility that was closed, there were a number of assets that were also disposed. Last year they attempted to scrap/sell those assets and there were many JEs that went into the general ledger. However, it removed the assets and then added them back. In the Value Models for the assets, each asset "Status" is "Closed" but NOT Scrapped or Sold. Although there is no depreciation for the "Closed" assets they need to be included when attempting to reconcile fixed assets.

Due to the fact that transferring assets or disposing of assets is not working, I'm wondering how we can work around the system to transfer or dispose of assets.

Thank you

Christine

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Ludwig Reinhard Microsoft Employee on at

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Hello Christine,

There seem to be a lot of issues included in your questions/notes.

Can we try to slice them down piece by piece to get thing clarified?

Let's try to get started with the transfer of your assets.

Can you provide more information on how this transfer is intended?

Do you want to transfer a fixed asset to a different legal entity, cost center, etc.?

What do you expect in regards to the historical ledger transactions that have been recorded?

Etc.

Many thanks,

Ludwig

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D365problems 105 on at

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Hi Ludwig,

The transfer is simply a change in cost center.

The physical assets have moved from one facility to another. No revision in legal entity, cost center only.

In regards to the historical ledger transactions, I would expect the total Acquisition Cost and Accumulated Depreciation to move to the new cost center. All prior depreciation expense will stay with the old cost center.

That is the expectation.

Thank you

Christine

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Ludwig Reinhard Microsoft Employee on at

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Hi Christine,

For the transfer between cost centers we have the transfer fixed asset feature.

This feature moves the net book value to the new findim.

The voucher created for this transfer ensures that the historical transactions are posted to the new findim.

This is done not for each transaction but on a summarized basis.

The next screenprint shows you an example:

Best regards,

Ludwig

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D365problems 105 on at

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Thank you Ludwig,

I will verify with the group if this was the technique they utilized last year when the facility closed.

If it is the same technique, it did not work.

I'm in the test database and it appears the transfer worked but I'm not able to see the JEs and I'm not able to propose depreciation. (I'll have to check with IT as to why it's not working.)

Thank you again.

Christine

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Ludwig Reinhard Microsoft Employee on at

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OK. Please keep us updated and note that the transfers and postings that I made were for fixed assets that had a value model attached for which previous vouchers were created. If you do some testing in your environment, double check that possibly in some of the MS standard demo companies such as USMF. This should help. Best regards, Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Good morning Christine,

Have you received some feedback from your IT and did you make some progress to get this issue fixed?

Best regards,

Ludwig

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D365problems 105 on at

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I have finally been able to test the transfers in AX.

I would like to announce that the transfers did work correctly.

HOWEVER, I would also like to announce that the depreciation proposal was not correct.

Although the assets transferred and when I look at the Value Models, Financial Dimensions, the Dept and Loc reflect the changes.

Does anyone have any suggestions as to what table I may look at for the depreciation proposal? It seems the depreciation proposal does not pull from the same table as the financial dimensions in the value models.

Thank you

Christine

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