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Finance | Project Operations, Human Resources, ...
Suggested Answer

Fixed Asset - Does change in quantity change the depreciation of the asset?

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Posted on by 10

Hello,

I am reviewing my company's fixed assets and a particular assets needs to have the quantity changed. My concern is if I change the quantity, from 1 to 2 or 3, does the depreciation change for the asset? Another concern, if I change the quantity, do I need to update the acquisition cost per asset? I.e., if my acquisition cost is $20,XXX.00 for "1 equipment" do I need to update the cost to $10,XXX.00 for the equipment of two?

Thank you

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  • Hokuminaria Profile Picture
    2,950 on at

    Hey Pmara,

    Based on your question, it sounds like you are wanting to partially retire the asset. Please review the article below.

    community.dynamics.com/.../how-does-fixed-asset-handle-partial-asset-retirements

    If you change your Quantity, it will not change your values. If you change your Acquisition cost, it will change your depreciation going forward. It could also change your prior depreciation depending on what you choose for the reset option that pops up when you change a depreciation sensitive field.

    I highly recommend you test your changes in testo see what the end results are.

    I hope this helps!

    Thank you!

    Brandon | Microsoft Support Engineer.

  • Suggested answer
    DAnny3211 Profile Picture
    11,397 on at

    hi

    If you change the quantity of a fixed asset in Dynamics GP, the depreciation amount for the asset will change, as depreciation is calculated based on the acquisition cost and the quantity of the asset.

    When you change the quantity of the asset, you will also need to update the acquisition cost per asset. This is because the acquisition cost for the asset should reflect the total cost of all the assets, and not just the cost of one asset.

    To update the acquisition cost per asset, you should divide the total acquisition cost by the new quantity of the asset. For example, if the total acquisition cost of three assets is $60,000, and you change the quantity to two, then you should update the acquisition cost per asset to $30,000.

    Once you have updated the quantity and acquisition cost per asset, you will need to recalculate the depreciation for the asset. To do this, you can run the Depreciate Fixed Assets utility in Dynamics GP.

    It's important to note that changing the quantity of a fixed asset can also impact other areas in Dynamics GP, such as General Ledger and Accounts Payable. You should review these areas to ensure that they reflect the changes you made to the fixed asset.

    DAniele

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