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Fixed asset depreciation reversal

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Posted on by Vinod Kumar Reddy

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Hi experts,

I am have one issue can anyone help me on this

FA has been purchased in 2020 and depreciation also run till date may 2021. We need to reverse last year depreciation because asset service yet.

How to reverse last year depreciation?

Regards

Vinod

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André Arnaud de Cal... 301,183 Super User 2025 Season 2 on at

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Hi Vinod,

The procedure depends on several factors. Can you first answer the questions below?

- Are the depreciations done in a current closed fiscal year? At what month do you start your fiscal year?

- On what date do you need to have the reversals posted?

- What is the depreciation method for this asset?

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Vinod Kumar Reddy 283 on at

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Hi Andre,

Thanks for the reply.

Below are the answers for your questions. Please help on this issue

- Are the depreciations done in a current closed fiscal year? At what month do you start your fiscal year? :- Yes depreciation done for 2020 FY (2019 April 1st to 2020 March 31st) which is already closed. Current year 2021 also depreciation done till May.

- On what date do you need to have the reversals posted? :- Is it possible to reverse in 2020? We need reverse in 2021?

- What is the depreciation method for this asset? :- Straight line life remaining

Regards,

Vinod

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Ludwig Reinhard Microsoft Employee on at

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Hi Vinod,

Wouldn't it be sufficient to post a single depreciation adjustment to get things corrected?

Reversing all transactions, adjusting something and then re-running depreciations involves a lot of work.

Best regards,

Ludwig

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Vinod Kumar Reddy 283 on at

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Hi Ludwig,

Could you please provide steps for both ways that will be very helpful.

while reversing we are getting below error message

the transaction for voucher XXXX can't be reversed

Reversal denied the transaction is in a previous accounting year.

Regards,

Vinod

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Elsa Guo on at

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Hello Vinod,

based on your description, seems by design issue. you may check below link.

Details for issue 423996 (dynamics.com)

if not suit your case just let us know.

Thanks.

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Ludwig Reinhard Microsoft Employee on at

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Hi Vinod,

A depreciation adjustment can be posted manually.

You calculate the difference between your actual net book value and the one you would expect and the difference is posted with the transaction type of a depreciation adjustment in a fixed asset journal.

Best regards,

Ludwig

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André Arnaud de Cal... 301,183 Super User 2025 Season 2 on at

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Hi Vinod,

I do agree with the suggestion from Ludwig to post a single value in the current fiscal year. Please evaluate this in a test environment first and ensure the remaining periods for depreciation is corrected. Then also check if new depreciation proposals will actually come with the correct depreciation amount.

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saurabh bharti 15,039 Moderator on at

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Hi Vinod,

You can post fixed asset journal manually with transaction type as "Depreciation Adjustment" (Make sure you have setup posting profile).

You can use start date of current year or current month which ever works with your customer.

For sure you can't use previous year date and also you can not use "Reverse transaction Button".

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