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The accumulated depreciation doesn't not contain depreciation adjustment in fixed asset scrap voucher

Posted on by 375

There is a depreciation adjustment posted for a fixed asset. When user scrap fixed asset, the voucher is wrongly calculated, it ignores the depreciation adjustment. The accumulated depreciation should contain depreciation adjustment. But it does not.

For example: Fixed asset balance before scrap as below
- Acquisition: 1000
- Depreciation: -955.11
- Depreciation adjustment: -44.89
- Net book value: 0

When fixed asset is srap, the voucher is posted as below:
Accumulated depreciation: 56.45 (Depreciation prior years)
Fix assets gain/loss: -56.45

Accumulated depreciation: 898.66 (Depreciation this year)
Fix assets gain/loss: 898.66

Tangible Fixed Assets : -1000
Gain & Loss - Disposal of Assets: -1000

(net book value =0 so there is no entry for net book value)

The total accumulated depreciation is: 898.66+56.45 = 955.11 <> Acquistion price = 1000
The total accumulated depreciation neglects amount of Depreciation adjustment = -44.89 (44.89 + 955.11 =1000)

I refer to this document. There is explanation for depreciation adjustment.
docs.microsoft.com/.../dispose-of-a-fixed-asset-as-scrap

Please help to advice. Any suggestion would be appreciated!

  • nopainnogain Profile Picture
    nopainnogain 375 on at
    RE: The accumulated depreciation doesn't not contain depreciation adjustment in fixed asset scrap voucher

    Thank you. I've marked it as answer.

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: The accumulated depreciation doesn't not contain depreciation adjustment in fixed asset scrap voucher

    Hi Rachel,

    If things work fine then please be so kind and verify the answers by hitting the little yes button right below the icon 'Did this answer your question'. Many thanks for your support and best regards,

    Ludwig

  • nopainnogain Profile Picture
    nopainnogain 375 on at
    RE: The accumulated depreciation doesn't not contain depreciation adjustment in fixed asset scrap voucher

    Thank you for your feedback. I've added depreciation adjustment this year and prior years in the posting profile setup and it works. Thank you very much!

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: The accumulated depreciation doesn't not contain depreciation adjustment in fixed asset scrap voucher

    Hi Rachel Dong,

    The voucher that is created when you scrap a fixed asset depends on how you configure the fixed asset posting profile.

    The example that is illustrated on the docs site that you shared is only an example.

    It does not include special lines for depreciation adjustments.

    This is something you need to add.

    This screenprint (dynamicsaxfico.files.wordpress.com/.../en_40_anhang_0055.png) shows you an alternative setup and gives you an impression what other lines might need to be added in your case to get the voucher created in the way you want.

    Best regards,

    Ludwig

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