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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Allowable Depreciation...
Microsoft Dynamics GP (Archived)

Allowable Depreciation methods and conventions

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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.

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  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,613 Super User 2025 Season 2 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

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