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Hi Friends,
Is there any difference between three methods (like Acquisition adjustment, Write up adjustment and Revaluation) after posting against the asset.
because i am using Write up adjustment and using straight line depreciation method,
my issue is after Write up adjustment, when i do the depreciation system is not calculating the asset value correctly based on the remaining periods,
Example as below
Asset acquisition cost: (opening balance) 1sep2018-- 29,833 (remaining periods-16)
Deprecation as on 31Dec2018 (-1865 x 4 periods)---7,460
Net book value after depreciation as on 31Dec2018--- 22373
Revaluation of asset value on dt. 31dec2018 ---5000
After revaluation of asset on dt. 31dec2018 net book value is ---27373 (22373+5000) (remaining periods-12 periods)
now when i do Write-up adjustment on 31Jan2019 ax calculating value is 2177 but as per remaining periods it should be 2357 (27373/365 x 31 days=2357) or (27373/12 periods=2281), but system is calculating as 2177.
Like in the same way trying to reevaluate asset with above three methods but after asset adjustment posting depreciation is not calculating based on the remaining periods, Please suggest.
Thanks & regards,
Ramanadham.
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Hi Ramanadham,
For a one time correction I would use a transaction type that you usually do not use so that you can easily follow up things later on.
From what you write, I would personally use a write up adjustment.
From a system and posting perspective there is no difference in the 3 types that you mentioned except that they will be shown separately resp. in different sections of your fixed asset statement.
Best regards,
Ludwig
Hi Ludwig,
When i change the Depreciation method to Straight line Remaining life then system is dividing the deprecation into periods correctly.
so, while doing Asset adjustment i have tested in Acquisition adjustment and revaluation both what is the difference between this two Acquisition adjustment and revaluation?
User has posted deprecation for four months, later we have adjusted asset values ( due to audit requirement), now in this scenario which transaction type i can use to adjust the asset values?
Example:
Asset purchase Dated: Sep 2018
Deprecation run as on Dec 2018
In the month end date of Dec 2018 user want to adjust (increase) the asset values
so which transaction type we can take for asset adjustment like Acquisition adjustment / revaluation/ write up adjustment, what is the difference.
Regards,
Ramanadham.
Hello Ramanadham,
Did you have the chance to do some testing here and have you been able to find a solution that is acceptable?
Would be great if you could keep us informed.
Many thanks,
Ludwig
Hi Ramanadham,
Please test the change/use of a different depreciation method in a demo / test environment.
I believe that will be the solution to your problem.
About the different methods discussed, please check out the following sites, which say for
(a) the straight line option:
When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles form, the assets that have this depreciation profile assigned to them are depreciated based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.
(b) the straight line life remaining option:
When you set up a fixed asset depreciation profile and select Straight line life remaining in the Method field in the Depreciation profiles form, the depreciation of fixed assets that are assigned to this depreciation profile is based on the remaining service life of the asset. This generally is the same depreciation amount in each depreciation period.
Please see:
Best regards,
Ludwig
Hi Ludwig,
Thanks for your quick response.
Client is using straight line service life method and assets also depreciated now they will not accept to change the depreciation method, can we have another option other than changing the Depreciation method.
Is AX is will not support Straight line service life method for Revaluation or Write up adjustments?
Kindly suggest.
Thanks & Regards,
Ramanadham.
Hello Ramanadham,
Do you use "straight line service life" or "straight line life remaining" in the depreciation profile that is linked to your fixed asset value model?
If you use "straight line service life" try using the other one with the life remaining option.
This should make a difference.
Would be great if you could test and let us know.
Many thanks and best regards,
Ludwig
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