web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Fixed Assets Depreciat...
Microsoft Dynamics GP (Archived)

Fixed Assets Depreciation Calculation

(0) ShareShare
ReportReport
Posted on by Community Member

Right now my company uses the next month averaging convention for depreciation but we want to change to none so that we start depreciation when the asset is placed in service. I'm trying to understand how depreciation is calculated right now with next month averaging but I'm having difficulties getting the exact formula that GP is using. I'm using the formula " (cost basis - salvage value)/((365*# of years) + days) " which works for most of our assets but others vary differently from this. We are also on a 4-4-5 fiscal year and I noticed that last year's current rate depreciation is higher than what it is for this fiscal year. Is there a consistent formula that is used for all of our assets?

*This post is locked for comments

I have the same question (0)
  • Community Member Profile Picture
    Community Member on at

    Rebecca,

    Try using this calculation: (Cost Basis-Salvage Value-(LTD Deprec-YTD Deprec))/((365*# of yrs)+# of Days) Adding the depreciation may fix the issue you are having with some of your assets.

  • Heather Roggeveen Profile Picture
    Heather Roggeveen 9,146 on at

    Hi Rebecca

    A couple of things that I can note (not helping with the formula, but how assets work).  Depreciation on an asset won't start until the place in service date.  You can add an asset and then put a place in service date into the future and depreciation won't start.

    Also with being on a 4-4-5 fiscal year, is your asset calendar also set up as 4-4-5.  If it is, use the "period" averaging conventions rather than the "month".  The first site I worked with that used 4-4-5, we ran into issues with two lots of depreciation being calculated in one period and none in another using the month averaging conventions.

    The last note - are all your assets on some form of straight-line depreciation?  If some are on diminishing values, then current depreciation in the new year will be less than the previous.

    Cheers

    Heather

  • Community Member Profile Picture
    Community Member on at

    Hi Heather,

    Thank you so much for responding to my ticket.

    Yes I use future placed in service dates for assets that we have not started using yet.

    To check that we were set up on periodic depreciation rather than monthly I went to Microsoft Dynamics GP->Tools->Setup->Fixed Assets->Book. This shows the depreciation period as periodic rather than daily. Also, our calendar is set up on a fiscal year rather than a calendar year ending on December 31st. Is there somewhere else that I would check for the averaging conventions?

    All of our assets should be on a straight line but I'm not certain how to check if they have diminishing values.

    I've spent a few hours already on the issues I am facing and what I've learned is that we are on straight line remaining life instead of straight line originating life. I suspect that this has something to do with the depreciation calculation being off. Also, when I change conventions in our test environment I am not seeing the journal entry that I would expect. I don't know if its a bug in our system or something else. Is there someone I can email about this?

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics GP (Archived)

#1
Community Member Profile Picture

Community Member 2

#2
mtabor Profile Picture

mtabor 1

#2
Victoria Yudin Profile Picture

Victoria Yudin 1

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans