Fixed Asset Depreciation - First Depreciation after Acquisition = Full Value of Asset

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Posted on by BarryR

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Hello All -

After acquiring an asset with a posted date of 2/5/2023 and then generating my first depreciation proposal with a date of 2/28/2023 the journal has created a credit for the full value of the asset ($2,000,000). I would have expected the first depreciation to calculate at $23,810.

What would cause this? Where could I have gone wrong in my setups?

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André Arnaud de Cal... 291,703 Super User 2024 Season 2 on at

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Fixed Asset Depreciation - First Depreciation after Acquisition = Full Value of Asset

Thanks for providing your update. I have marked your reply to set this question to the status answered.
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BarryR 162 on at

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Fixed Asset Depreciation - First Depreciation after Acquisition = Full Value of Asset

Andre -

Capitalization threshold is set to $1,000 on fixed asset parameters. However, the depreciation convention was set to None. Rookie mistake on my part. This post can be closed.

Thanks for your reply though.

Best,

Barry
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André Arnaud de Cal... 291,703 Super User 2024 Season 2 on at

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Fixed Asset Depreciation - First Depreciation after Acquisition = Full Value of Asset

Hi Barry,

What amount do you have on the Fixed asset parameters in the field Capitalization threshold? If this is having a value of 2 million or higher, this would be the culprit. The Capitalization threshold field is used to fully depreciate an asset if the acquisition value is below this amount.