Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Fixed asset disposal a...
Microsoft Dynamics AX (Archived)

Fixed asset disposal and depreciation adjustments

(0) ShareShare
ReportReport
Posted on by MrAxapta89 975

Hi All,

I have a question in regards to how depreciation adjustments are calculated by the system. The fixed asset in question was placed in service on 10/1/13 and the acquisition date is 12/1/13.  In this example the depreciation per month should be -$9.37. The depreciation for the previous 2 months, -$18.74, shows up as a depreciation adjustment when the depreciation process is run on 12/31/2013. My understanding is that this amount of $18.74 should show up as "depreciation" instead of "depreciation adjustment". The issue here is that when we disposed of the fixed asset on 12/2/2014, the depreciation adjustment amount is not calculated in the profit/loss. The loss on this asset is -$120.59 when it should actually be -$139.33 (120.59+18.74). In the transactions screen it looks to me that the depreciation from previous years is "reversed". Can anyone please help me understand how depreciation adjustments work and why this is not included in the profit/loss?

(We are using AX 2012 R2 RTM)

Thanks in advance for your continued help!

*This post is locked for comments

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Fixed asset disposal and depreciation adjustments

    Placed in service date also needed, when you purchase an asset and you will use it in a future date.

    e.g:- A server is purchased on 1/1/2016, but you will start using it on 3/31/2016.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Fixed asset disposal and depreciation adjustments

    This scenario is needed in Opening Balance for the system, as you need to upload the Fixed Assets master data with it's placed in service date to verify that that the Acquisition Value, NBV, and Accumulated Depreciation balances are as correct as GL CoA opening balances.

  • lally Profile Picture
    lally on at
    RE: Fixed asset disposal and depreciation adjustments

    Hi Daxer ,

    Can i know one thing Ax calculates the depreciation based on the placed on service date or acquisition date  ?

    How the placed on service date is prior to acquisition date ? Why we need to maintain like service date is prior to acquisition date for an asset ?

  • Verified answer
    Daxer Persson Profile Picture
    Daxer Persson 3,005 on at
    RE: Fixed asset disposal and depreciation adjustments

    The transaction type of Depreciation adjustment is because depreciation starts before acquisition date (so if depreciation starts after acquisition there will only be depreciations).

    There is no parameter for changing this.  

  • MrAxapta89 Profile Picture
    MrAxapta89 975 on at
    RE: Fixed asset disposal and depreciation adjustments

    Hi Daxer,

    Thanks for your response. After recalculating you are correct $120.58 does seem to be the correct amount for P/L. It was confusing to me because it was showing up as a depreciation adjustment rather than standard depreciation. Does anyone know why it shows up this way? Is there some parameter that I can choose to ensure that this will show not show up as an adjustment in the future?

    Thanks again Daxer!

  • Verified answer
    Daxer Persson Profile Picture
    Daxer Persson 3,005 on at
    RE: Fixed asset disposal and depreciation adjustments

    By time of disposal the transactions have been : 251-9,37-18,74-11*9,30.

    This gives a net value of 120,58 which is the same calculated in your screen (except for rounding issue). Seems ok to me ?

    The transaction type of Depreciation adjustment is because depreciation starts before acquisition date. Not sure why AX wants to state this as depreciation adjustment rather than just depreciation.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Congratulations 2024 Spotlight Honorees

Kudos to all of our 2024 community stars! 🎉

Meet the Top 10 leaders for December

Congratulations to our December super stars! 🥳

Start Your Super User Journey Pt 2

Join the ranks of our community heros! 🦹

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,820 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,514 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans