Fixed asset acquisition after depreciation

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Posted on by Gilbert Khayat

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After the fixed asset is acquired and depreciation started few months back when I add additional acquisition cost to the asset I noticed that system during depreciation proposal ignores the new acquisition amount and calculates based on the old acquisition amount. how can I fix this?

The fixed asset acquired July 1st
first depreciation ran July 31st
2 additional acquisition added via investment project Aug 31st by two elimination

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Community Member on at

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Hi George,

Can you provide details as to how you added the additional costs to the fixed asset? Did you use a fixed asset journal to add the additional cost to the asset?

Thanks,

Fahad

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Ludwig Reinhard Microsoft Employee on at

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Hi Georgek,

In addition to what FAD1 already mentioned, can you share your setups for that fixed asset, especially the value model settings that are made in the different tabs.

Many thanks,

Ludwig

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Gilbert Khayat 3,254 on at

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I am using project accounting to add additional cost. Using the 200_sllr book from demo. USMF

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Ludwig Reinhard Microsoft Employee on at

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Hello Georgek,

Thank you for that information.

In addition, we need to know things such as

- when the orginal acquisition was posted

- when depreciations were run

- what postings have been created so far

- when the transfer from the project to the fixed asset occured

It would be great if you could share some screenprints.

This would make things easier to identify.

Many thanks,

Ludwig

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Frank Hamelly | MVP... 46,627 Moderator on at

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Is the flag 'Create depreciation adjustments with basis adjustments' on in your value model?

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Gilbert Khayat 3,254 on at

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I added additional information hope this is sufficient. thank you all for your help

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Gilbert Khayat 3,254 on at

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Hi Frank, would it be possible to shed more light on this flag? thank you

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Frank Hamelly | MVP... 46,627 Moderator on at

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Hi George, I see in your second screenshot that the flag is set to yes under the Depreciation tab. There's a flag in the Value model (or Book, depending on your version) that defaults this value to all assets if it's switched on. It's designed to automatically calculate depreciation on the new asset value after an adjustment to acquisition price is posted.

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Gilbert Khayat 3,254 on at

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It does calculate automatically when running a proposal however the proposal amount is based on the original acquisition amount and ignores the additional acquisition amounts.

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Ludwig Reinhard Microsoft Employee on at

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Hi Georgek,

Can you create a depreciation proposal for 31 August?

This proposal should include your additional acquisition costs recorded.

Alternatively, you can also check the profile (button) in your book, which gives you a preview of the net book value and depreciations that will occur in the future.

Best regards,

Ludwig

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