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My client recently imported their fixed asset list.
When they ran the monthly depreciation, about 30 assets (roughly 10% of the total) either had zero depreciation or a very small amount. Most of the assets are very similar with straight line depreciation and 5 year life. The incorrect rates do not seem to be related to class or account group.
The basic problem appears to be the periodic rate is wrong. The annual depreciation rate is correct but the period rate is closer to the daily rate and the daily rate is just pennies. If I change the life to 4 years and click recalculate, the annual, periodic and dialy appear correct. If I change back to 5 years, the annual rate is corrrect but the other revert back to the wrong rates. If I try changing to 6 years liffe and recalculte, the annual rate again is correct but the periodic and daily rates are wrong.
Strangely enough, checking the same assets in the test company, the rates are correct and the settings seem the same.
Any suggestions a\on what to check?
Thanks,
Claude
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FA class or account group has nothing to do with depreciation amounts.
There are case sensitive fields in calculating depreciation i.e. depreciated to date, dep method, ave convention etc. plus your assets are imported, this may affect ytd and ltd dep during recalculation.
Pick one from your 30 assets and encode manually using FA gen and FA book GP windows. Off course use other FA ID as it needs to be unique. Try to perform depreciation and observe how the system calculates depr. I am certain that depr amount errors has nohting to do with using 5 or 6 years life. The system should calculate properly.
Don't focus on converting daily with periodic and yearly as number of days in a month\period may differ.
Try to run depreciation for full year, you will see that the rouding difference will be distributed evenly on the last 2 or 3 periods, being the full year depreciation amount correct if you calculate manually.
If you want to use real straight line, try to use amortization method.
I hope this helps
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