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) / Allowable Depreciation...
Microsoft Dynamics GP (Archived)

Allowable Depreciation methods and conventions

(0) ShareShare
ReportReport
Posted on by Community Member

Is there a resource that shows what allowable combinations there are between depreciation methods and averaging conventions?

For example.  If one Selects ACRS Personal for a depreciation method, only "none" is allowed for the averaging convention, but when one goes to that field, all are available, but a message pops up if one tries to save it with a different convention.  

When working with customers, it would be helpful to convey what are appropriate/allowable combinations.

*This post is locked for comments

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,325 Super User 2025 Season 1 on at
    RE: Allowable Depreciation methods and conventions

    To add to Leslie's excellent advice, the reason None is the only option you can use with ACRS is because there is no averaging convention when depreciating via ACRS.  ACRS is strictly a percentage-based method, regardless of when during the year you acquire the asset.

    Your clients' tax advisors should be consulted when setting up tax depreciation for them.  In fact, I've trained clients' tax people how to set tax depreciation in GP so they can maintain it.

  • L Vail Profile Picture
    L Vail 65,271 on at
    RE: Allowable Depreciation methods and conventions

    Hi,

    With all respect I advise you to not make accounting and/or tax accounting recommendations unless you are in that business. ACRS was Adopted by the U.S. Congress in 1981 as part of the Economic Recovery Tax Act, it has nothing to do with GAAP. Our job, in my opinion, is to explain how GP calculates depreciation,  GP does an excellent job of handling ACRS and MACRS rules, but it is not infallible. GP does not handle the income forecast method, as an example.

    I am most likely hypersensitive to this sort of thing because I am a CPA and must be very careful not to cross the line and start giving tax and accounting advice.

    Kind regards,

    Leslie

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

Daivat Vartak – Community Spotlight

We are honored to recognize Daivat Vartak as our March 2025 Community…

Announcing Our 2025 Season 1 Super Users!

A new season of Super Users has arrived, and we are so grateful for the daily…

Kudos to the February Top 10 Community Stars!

Thanks for all your good work in the Community!

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 292,575 Super User 2025 Season 1

#2
Martin Dráb Profile Picture

Martin Dráb 231,493 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans