Fixed Asset automatically gets depreciated for the full net book value

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Posted on by Kathy Heal

Hi there

Could you please help explain why this happened in fixed assets monthly depreciation run ?

All fixed assets are depreciated on straight line basis and therefore should remain the same each month.

however some assets suddenly got depreciated the whole net book value in full and status changed to "closed" by itself.

Please see below yellow highlighted assets as an example.

I couldn't find anything incorrect setups in the "books" settings nor did I dispose of these assets.

Could you please advise why this happened and what is the best way to reinstate the assets? Thank you very much for your help!

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brjo on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Hello Kathy,

There are likely a number of reasons how / why this could happen. I'll propose one of them to you.

If you acquire an asset | depreciate it to a point | adjust the # of periods that are left to depreciate | then create another depreciation proposal which brings the # of periods left to depreciate to zero | you'll see that the last period's amount is equal to whatever is left to depreciate.

Example screenshot below:

In order to understand what happened, we can focus on just one of the assets.
You may want to look @ the Books for one of the assets. See how many periods are left to depreciate. Clarify if this value was changed at all during the asset's life.
You also may want to look at the transaction history for the asset; see if there were any adjustments to the asset's value.
Essentially you'll need to put a story together of the asset's history.

To fix this, you'll likely need to reverse the last depreciation amount. And then adjust the # of remaining periods left to depreciate. Once this is done, test if another month's depreciation comes thru with the expected amount (vs. the ENTIRE remaining value).

Please provide further context / screenshots if you need further assistance.

Thanks!

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Hello Kathy,

Can you share some details of what is setup in the books for the assets that suddenly got fully depreciated?

Some screenprints would help.

Also, do you know if somebody made some changes to the number of remaining depreciation periods in the books?

This seems to be a likely reason to me why this might have happened.

Best regards,

Ludwig

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Kathy Heal 10 on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Hi Brendan

Thank you very much for your detailed explanation.

These assets were bulk imported into D365 rather than manually set up in 2018, So there may be some error when we imported the assets to D365.

and I dont know how to go back to the past to see what is the previous "depreciation remaining periods ", now it's NIL.

Please see below screenshots as at now. Thank you.

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Kathy Heal 10 on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Hi Ludwig

Thank you very much for your reply and time.

These assets were bulk imported into D365 rather than manually set up in 2018, So there may have been some error when we imported the assets to D365.

and I dont know how to go back to the past to see what is the previous "depreciation remaining periods ", now it's NIL.

Please see below screenshots as at now. Thank you very much again.

-

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Good morning Kathy,

Thank you very much for this update.

The fact that the remaining depreciation periods field is empty and your previous comments indicate that something probably went wrong with the import of the fixed asset data.

You can track the previous data that were entered in this field only if you have the database log enabled or if you have a another system with an older copy of your environment.

Irrespective of that, do you know if the overall effect from a monetary perspective is large?

From your first screenprint I can identify a couple of thousand $.

If there are no other assets affected except the ones that you shared above then I would consider this as a rather small effect that is not material for the overall financial 'picture' of the company.

If it is not material then I would say that you don't have to correct it ;-)

Can you double check that with your colleagues / managers whether this is correct?

Best regards,

Ludwig

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Kathy Heal 10 on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Thank you very much for your reply Ludwig.

It did affect quite a few assets and the overall effect is around 47K. So what has been done is a manual general journal has been created to depreciation expense account and accrued expense balance sheet account.

We haven't done anything to the fixed assets nor the accumulated depreciation balance sheet account yet as we are not sure how to.

Could you please advise what should be done to fix it. thanks a lot.

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Good morning Kathy,

Many thanks for the update.

If the main effect that you see is a period shift within a single year- too much depreciation posted in Jul/Aug & too less posted in Sep/Oct/Nov - then I would also just post a GL journal.

Yet, if also other years are affected (2021/2022/...) and provided that the overall effect is large for those years then you might have to correct the depreciation postings directly in the fixed asset module.

This can be done by selecting the fixed asset/book, opening the transactions, select the wrong one and then click the reverse button.

Once that is done, double check and adjust your remaining depreciation periods in the respective field that you shared above and ensure that the status of the book is open so that future depreciations can be posted as usual.

Thereafter, don't forget to correct your posted GL journal; otherwise, you have corrected things twice!

Note: The manual correction in the fixed asset module might involve quite some work and if you can avoid it because the depreciation is just shifted within different months within a single year then I would rather not do unless your managers insist :-)

Best regards,

Ludwig

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Kathy Heal 10 on at

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RE: Fixed Asset automatically gets depreciated for the full net book value

Thank you very much Ludwig. This really helps!

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