What is the best option for adding an asset in GP 2016 where depreciation has already run (manually) but we want the system to properly calculate the length of time and ongoing
depreciation? Looking for minimal /none impact to P&L.
Thank you!
*This post is locked for comments
I was recently faced with a similar situation during an implementation. An asset had been partially disposed of, and the Excel spreadsheet was never updated, so we needed to calculate the remaining value and life of the asset in order to correctly account for the remaining value going forward. Once you have the actual current NBV and remaining useful life calculated, you can enter these values into the corporate book, with a current Placed in Service Date, as if it were a new asset. GP will then calculate exactly what the depreciation rate needs to be based on those data points (and other settings in GP). All that being said, prior to resetting depreciation for assets, and/or catching up depreciation, you should discuss the problem and your proposed solution with your accountant(s), and read IRS Publication 946, prior to implementing them.
This would be a great process if we had manually booked the deprecation through June 2018 ME using the correct values. Another layer to this issue is that we didn’t accrue enough deprecation on these assets on a monthly basis from April 2009 until June 2018. This is why I was trying enter the current Cost basis (NBV) in the Book card – something we don’t normally do when setting up as asset.
My thought was this would tell the system that we currently have $XXXX value left on the asset – then there is XXX time left on deprecation – now calculate and book deprecation needed to move the cost basis to $0 over that time period. Then we would be spreading out the catch up deprecation needed over the remaining life of the assets
Do you know if setting the system with my parameters would work to solve this issue?
Thanks!
The typical approach we use in such situations, which are common when cutting over to GP from another system is to add assets accurately to the corporate book (i.e. Acquisition Cost, Placed in Service Date, Depreciation method, etc.) and then run depreciation in Dynamics GP to the date you have currently depreciated to in your GL. Usually, you've been booking depreciation as a GL entry, after calculating it from a spreadsheet or Fixed Asset software like FAS. After running depreciation, you then run the GL Posting Routine through the depreciation date, and post the transaction in Fixed Assets. This will create a GL Batch with all of the fixed asset additions and depreciation transactions you entered into GP in step one. You then delete the batch, rather than posting it to the GL. Of course you need to make sure you reconcile your fixed asset additions and depreciation to your original data (my experience is you'll uncover an interesting divergence or two, which will need to be sorted). So, this should be done in a test company prior to doing it in production.
#1
André Arnaud de Cal...
292,489
Super User 2025 Season 1
#2
Martin Dráb
231,305
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (
