Depreciation Calculation Upto Fixed Asset Sale date

(0) Share

Report

Posted on by Samanth

517

Hi All,

When i am posting Fixed Asset Disposal Sale journal, System is not posting depreciation till date. Its only reversing till last depreciation amount.

For Example, I have an asset purchased on 16th September for 10,000/-. For first month the depreciation is 138.89 (Since it was purchased mid of month). Calculation is correct.

And second month it is 277.78. Calculation was correct.

Total Depreciation till now is 416.67. Net book value is 9583.33.

Now i decided to sell the asset for 9900. Sale date is 15th November.

When i posted sale journal. It is showing the Profit as only 316.67. Whereas it should show 455.56. Because system should also post depreciation till November 15th.

can anyone please help me in seting up the system to post depreciation till sale date ?

Note: Am using AX 2012 R3 CU10.

Thanks,

Samanth Aluvaka

*This post is locked for comments

I have the same question (0)

All responses (10)

Answers (1)

Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi Samanth Aluvaka,

Can you provide us some Information on your Parameter Setup especially whether or not the parameters 'create depreciation adjustment with basis adjustment' and the 'calculate prorated depreciation' are activated?

Ludwig

Was this reply helpful? Yes No
Samanth 517 on at

Like (0)

Report

Hi Ludwig Reinhard,

Yes both the parameters - 'create depreciation adjustment with basis adjustment' and the 'calculate prorated depreciation' are activated.

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi Samanth Aluvaka,

Can you check in addition the depreciation convention that has been setup? Is it set to 'none'?

Ludwig

Was this reply helpful? Yes No
Samanth 517 on at

Like (0)

Report

Yes it is set to none.

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi,

I tried replicating your issue with a fixed asset that has the following value model Settings

When I sell the fixed asset, I get a depreciation adjustment posting of around 140$

resulting in a Profit that is approx the one you specify.

Please compare your Parameter Settings

and value model settnigs with the ones in those screenshots.

Might be a small Parameter Settings that is missing

Can you verify that AX created a depreciation adjustment when you sell the product?

Ludwig

Was this reply helpful? Yes No

Samanth 517 on at

Like (0)

Report

This is the exact result i need. Will test the same in my system. Meanwhile can you please share the screen shot of Fixed Asset posting profile - Disposal Sale also.

Was this reply helpful? Yes No
Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi,

I just used the standard contoso usmf posting setup.

Here are the posting profile screenshots for the SLSL value model that I used

Best regards,

Ludwig

Was this reply helpful? Yes No
Samanth 517 on at

Like (0)

Report

Awesome. It worked. Thanks a lot Ludwig. I missed the check box in first screen shot.

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hey, great to hear :-)

Would be perfect if you could verify the answer to get this closed.

Many thanks and all the best,

Ludwig

Was this reply helpful? Yes No
Samanth 517 on at

Like (0)

Report

Additional information to people reading this post.

In order to work above scenario, the "calculate prorated depreciation" parameter has to be enabled.

And before enabling that have a look on what "calculate prorated depreciation" is. So that you will not get confused on how system will calculate depreciation during depreciation proposal.

Was this reply helpful? Yes No