Fixed Asset Wrong Assets Depreciated

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Posted on by Richard Wheeler

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I have a question regarding our fixed asset system in Great Plains. It has come to our attention that there are a few assets that were entered and depreciated in 2010 that should not have been capitalized.

I’ve worked with the fixed asset system for a few years now and don’t know of any way to delete an asset and reverse the depreciation that was taken. Especially when it is from the prior year. One suggestion that was made was to retire the assets, but I’m not sure if that will give us the results that we want.

Could you let me know the best way to handle a situation such as this one?

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Re: Fixed Asset Wrong Assets Depreciated

Richard,

You can undo the depreciation of the asset by specifying the target date in the past. You will need undo depreciation upto the “Placed In Service Date” of the asset to completely reverse the depreciation. Use the post to Fixed Assets General Ledger Posting window to post the undo depreciation transactions. If periods are already closed, you can post summary transaction in one period. If periods are not closed, you can post each period’s undo depreciation in corresponding period.

You will need to manually enter a GL adjustment entry to reverse to any remaining transactions related to the assets. You can use the Fixed Assets to General Ledger Reconciliation report (Reports >> Fixed Assets >> Activity >> select Fixed Assets to General Ledger Reconciliation) to get details of transactions. Enter the Asset ID in report restriction. Prepare the adjustment entry before deleting the asset because once asset is deleted, you will not be able to generate the report for it.

You can use the Asset Delete Utility window (Microsoft Dynamics GP menu >> Tools >> Utilities >> Fixed Assets >> Delete) to delete the asset. Please note that this window only removes the asset related records from Fixed Assets module.

Rubal,

http://dynamicsgphelp.com/

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Richard Wheeler 75,848 Moderator on at

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Re: Fixed Asset Wrong Assets Depreciated

Thank-you for the information. I’m not sure where I would go in the Fixed Asset System to select ‘undo depreciation’ though. So if I need to reverse 2010 depreciation and 2010 is already closed I would need to post the total amount in one period? Most likely Dec. 2010.

Also, I assume I would reverse the depreciation and then delete the asset. Are there any other steps?

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Re: Fixed Asset Wrong Assets Depreciated

Y6685.Report2.pngou can undo depreciation using the Depreciate Asset window (Microsoft Dynamics GP menu >> Tools >> Routines >> Fixed Assets >> Depreciate One Asset). Just enter the target date in past.

You can undo depreciation for one asset at time. You cannot undo depreciation for multiple assets at a time.

Also, you can only undo deprecation of asset for current year only. You will need to change the year in Book set up window for backing out depreciation of last year.

Summarized steps are:

1. Use the Depreciate Asset window (Microsoft Dynamics GP menu >> Tools >> Routines >> Fixed Assets >> Depreciate One Asset) to undo depreciation up to 12/31/2010.

2. Change the Current Fiscal Year to 2010 using Book Setup window(Microsoft Dynamics GP menu >> Tools >> Setup >> Fixed Assets >> Book)

3. Use the Depreciate Asset window (Microsoft Dynamics GP menu >> Tools >> Routines >> Fixed Assets >> Depreciate One Asset) to undo depreciation up to Placed In Service Date.(I am assuming assets were placed in service in 2010)

4. Change back the Current Fiscal Year to 2011 Book Setup window(Microsoft Dynamics GP menu >> Tools >> Setup >> Fixed Assets >> Book)

5. Post the undo transaction to GL using the Fixed Assets General Ledger Posting window(Microsoft Dynamics GP menu >> Tools >> Routines >> Fixed Assets >> GL Posting)

6. Use the Fixed Assets to General Ledger Reconciliation report (Reports >> Fixed Assets >> Activity >> select Fixed Assets to General Ledger Reconciliation) to get any other transactions details

a. Generate report summary format for assets you want to delete

b. You will need to reverse the account balance displayed in report. I have added screenshots of the report below

7. Enter the GL adjust for transaction prepared in last steps

8. Delete the asset using Asset Delete Utility window (Microsoft Dynamics GP menu >> Tools >> Utilities >> Fixed Assets >> Delete)

You can test these steps in Test environment before making changes in live company.

Screenshots

Note: depreciation and accumulated depreciation are zero after undo depreciation.

Rubal,

http://dynamicsgphelp.com/

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Richard Wheeler 75,848 Moderator on at

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Re: Fixed Asset Wrong Assets Depreciated

Rubal, thank you for your prompt and thorough explanation. I do not do much with Fixed Assets so I was bit lost here.

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Re: Fixed Asset Wrong Assets Depreciated

You are welcome!

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Richard Wheeler 75,848 Moderator on at

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Re: Fixed Asset Wrong Assets Depreciated

Rubal, I have a follow up fixed asset question. This is regarding depreciation methods. Since I’ve been using the system I’ve set up all assets as per below.

I’ve always used ‘Full Period’ for the averaging convention. Now we are being asked to set up just one asset and calculate mid-month depreciation.

I noticed that I can select ‘Mid-Month (15th)’ for my averaging convention. The place in service date will most likely be the 11th for this particular asset.

My question is can we have just one asset set up with Mid-Month depreciation while the rest are full period?

Also, would the Depreciation Method remain ‘Straight-Line Orig Life’ and the Switchover ‘No Switch’.

I just wanted to check with you since I’ve never had any assets set up this way.

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Re: Fixed Asset Wrong Assets Depreciated

Richard,

Yes, you can set up one asset with averaging convention ‘Mid-Month (15th)’ while others with full period. Just set/change the Averaging Convention to ‘Mid-Month (15th)’ using Asset Book window (Cards >> Fixed Assets >> Book)

Even when assets are depreciated in group, depreciation is calculated based on each asset’s Depreciation Method and Averaging Convention.

Depreciation Method depends upon how you want the depreciation amount is calculated. You can read Depreciation methods and calculations in fixed asset documentation for information related how monthly depreciation is calculated for each depreciation method.

You can use the ‘Straight-Line Orig Life’ and the Switchover ‘No Switch’ with the Averaging Convention to ‘Mid-Month (15th)’.

Rubal,

http://dynamicsgphelp.com/

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