How to run Full year depreciation for Fixed Asset irrespective of Acquisition date?

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Posted on by Mohd saddaf khan

Hi Folks,

I have a requirement to depreciate the assets starting from start of Fiscal year.This is irrespective of the their acquisition date.

Depreciation profile is set up as 'Straight line service life' for Fiscal period.

Depreciation convention for an Asset is 'Full month'.

Let's say that, I have acquired an asset 001 as on 09/05/2018 and my Fiscal year starts from 01/07/2017(July-june)

Now, If I run the depreciation for Asset, it creates depreciation for 2 months i.e., for month ending on 31/05/2018 and month ending on 30/06/2018. This is correct as per the defined convention.

Do we have any convention which allows to do depreciation for Whole year? There is a convention in GP as 'full year All year' which allows to depreciation by start of FY, is something similar available for AX?

Or, can we achieve this with minimal customization?

As a workaround for this, we have a solution to change the Placed in service date to Start of FY(01/07/2017) date. But by doing so, system passes adjustment entry for previous period(for the period before acquisition date) instead of monthly depreciation entries.

Thanks!

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Khaled Alloud 3,658 on at

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Dear,

Have you checked FA journals > Lines > Proposals button > then Depreciation proposal option :

Here you can tell the system to retrieve for you all FA that are depreciated and you can select the acquisition date if needed, or you can select Created date filter to choose your year.

Thank you,

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Mohd saddaf khan 20 on at

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Thanks for your reply Kaled,

I think i have expressed myself incorrectly.

My issue is not with the selection of Assets for Depreciation. But with the Depreciation period that Asset considers for depreciation.

I want to depreciate an asset for a full year amount even if an asset is acquired on last day of FY.

e.g., My FY is 01/07/2017 to 30/06/2018, now if an asset is acquired on 30/06/2018(or any date in a fy) with rate of 100 with 5 year depreciation.

If I run the depreciation as on 30/06/2018, AX does the depreciation for 1 Month(or 1 day ,depending upon depreciation convention setup) and with prorated amount calculation as 20/12 * 1.

What I need is, AX should do the depreciation for all 12 months with total amount of 20.

Thanks!

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Khaled Alloud 3,658 on at

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- try changing the depreciation convention to None in the Value model and check the effect while running depreciation schedule.

- you can add screenshots for Value model depreciation section, and depreciation profile setup for more insight.

Best,

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Mohd saddaf khan 20 on at

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I have tested with all possible setups in depreciation convention.

My Asset Acquisition date is 09/05/2018 and Acquisition Cost is OMR 13418.750

Please see the below SS for the setups screen

VM Depreciation page

Depreciation proposal as on 30/06/2018 as per above setup. System calculates the depreciation value as per the start of Month it was acquired.

Depreciation proposal as on 30/06/2018 when changing the convention on Screen 2 to 'None'. System calculates the depreciation value as per the service date.

Depreciation proposal as on 30/06/2018 when changing the convention on Screen 2 to 'Full Month' and Service date as 01/07/2017.System passes adjustment value for prior period(01/07/2017 to 30/04/2018) .

As a workaround, this method works in terms of total expected depreciation amount. But I need to see the monthly values.

Another method which I tried. Depreciation proposal as on 30/06/2018 when changing the convention on Screen 2 to 'None' and changing Depreciation run date as 01/07/2017.

This gives me depreciation in months but with incorrect values. Depreciation is not calculated for 01/05/2018 to 08/05/2018 for month ending on 31/05/2018 as shown in below image. For other months too, values should be 223.629

I hope I have explained myself well enough to understand the issue.

Although Setting a service date as FY start date is a workaround to get the actual expected values. But it will be great, if there is any setup or Customization I can include to get the same value distributed over all months in FY.

Thanks!

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