Dynamics Community Forum Thread Details

Difference when comparing Fixed Calculation to end of life to cost basis when Original Life Changed

I'm struggling with a Fixed Asset Problem. The lease term required us to change original life of our leasehold assets to all end on 12/31/24. We have currently depreciated our LH assets through 8/31/20. We took the following approach:

First, we backed into the what the Original Life Year Days should be for each asset in order to end up with Remaining Year Days for each asset to be. In this case all asset should have Remaining Year, Days = 4,122 (9/1/2020 - 12/31/24)

Next, when changing the Original Life, we chose the LIFE calculation as we wanted to take the entire adjustment in the current period.

Herein lies the problem. When I take the (Cost Basis - 0 Salvage - LTD Depreciation = Net Book Value) / the days remaining which is 1583 (4yrs, 122days = 1583 days (2024 is a leap year)) Using this info I get a different daily rate than what Fixed Assets calculates. So, of course, if I extend the daily rate in FA * days remaining each item is under depreciated.

As a side note, I was sure to use the LTD Depreciation AFTER I changed the Original Life Year Days and selected Life recalc so that recalc number is included in the LTD Depreciation. And, there's no correlation between the depreciation difference and the Adjust form the Original Life change

I've attached a spreadsheet showing my logic. If anyone can HELP me PLEASE I sure would appreciate it.

Peggy Aitken

Aitken Business Systems

Leasehold-Improv-Depr-Variance-vs-Manual-Calc.xlsx

Categories:

Microsoft Dynamics GP

Hello Peggy,

This question is best answered through a Support Case as more information would be needed to back into a specific Assets calculation.

We would need to see the Calendar that you are using. Also, what options you have selected for the Asset in question, such as Depreciation Method and Averaging Convention.

I would also need to know if any manual entries were done to Depreciation. If there was, these get wiped out when you process a reset on an Asset if that year is included.

We can certainly wait and see if the community has additional information. If not, please create a support case so we can back into the calculation for one specific asset you are questioning.

Microsoft Support Engineer | Brandon Jarrett.

Quick Links

Leaderboard