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Fully depreciated asset still has remaining Net Book Value (NBV) amount in Fixed Assets

My client has 3 Fixed Asset Books: CORPORATE, FEDERAL, AND AMT. Corporate being the one posting to G/L and these assets are correct.

I need to make changes to both the FEDERAL and AMT books for a list of assets the clients accountant said should be fully depreciated. I created an Asset Group for each book, selecting the assets that should be fully depreciated. I then performed a MASS CHANGE on the 1st group (thinking they somehow got messed up in prior years) and reset the life (knowing since it wasn't the corporate book it wouldn't hit G/L) I did this and the LTD did not change, they still had a remaining NBV. I tested a few assets using a depreciation calculator and realized they would never zero out using the methods 150% DB and 200% DB. I researched further and found that in GP using these methods you must use the SWITCHOVER and choose straight line in order for the assets to zero out completely with the system deciding when to switch over the method.

I did the mass change and these assets now have a NBV of $0 which I thouth was good. I then tested a few Asset Cards and.....

FEDERAL assets method now shows Straight-Line Rem and Switchover shows Straight-Line

and

AMT assets method now shows Straight-Line Rem and Switchover shows No Switch

Is this CORRECT? It actually switchs the method in the Asset Card from the original 150% DB and 200% DB? And why does AMT show No Switch?

I took screen shots on each mass change screen making sure I selected the correct Asset Group, Book ID and made sure I checked off the Switchover to be Straightline and checked Reset Life.

Am I doing something wrong?

Any comments would be appreciated.

Thanks,

Dawn

Dawn,

You did one heck of a job here, really!

I don't think you're doing anything wrong. Since you were so careful about how you went about making the changes, I have discounted the possibility there was a problem with that process.

Have you run through the depreciation calculations on the assets in question and compared them for differences? Things like cost basis, original life, averaging conventions, salvage values can and do result in calculations which produce distinctly different results.

Here is a neat post on how GP handles switch over. GP does its best to ensure depreciation is maximized and weighs current methodology against the planned switch. I believe the reason your AMT book had the same setting, but wound up with No-Switch, GP found the switch would not produce more depreciation.

alldynamicsgp.com/.../changing-fixed-asset-depreciation-method-doesnt-save

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