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Issues: Update of Fixed Asset useful life in AX

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Posted on by faiz7049

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Hi Experts,

We have updated the useful life of PPE in Fixed asset groups set up. However, the update was reflected only to new assets added in 2022 but not to assets already existed in FA register.

Please check the below screenshot

Fixed asset group

Test Equipment (existing PPE)

Test Equipment (added in 2022)

Currently, the depreciation run is computed generally based on the formula (Acquisition / useful life). However, due to the update, it is recommended that the existing assets must be depreciated based on the (Net Book Value of Assets / remaining useful life).

Otherwise, depreciation expense will be over or understated based on assets remaining useful life. See below sample.

Thanks

Faiz

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faiz7049 2,234 on at

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RE: Issues: Update of Fixed Asset useful life in AX

Hi Darryl,

I want whatever (New or Old ) Fixed Assets under Fixed Assets group the useful life change automatically after changed in Fixed Assets Group.

Thanks,

Faiz
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Darryl_Hastie 20 on at

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RE: Issues: Update of Fixed Asset useful life in AX

Hi Faiz,

The values on the fixed asset group are defaults that are applied to new assets as they are created.

An individual asset can be changed to have a useful life different from the asset group.

This is expected behavior.

You'd need to change the useful life on each asset for the depreciation to be calculated differently.

Regards,

Darryl
faiz7049 2,234 on at

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RE: Issues: Update of Fixed Asset useful life in AX

Hi Experts,

Looking for your input.

Thanks,

Faiz