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Client not only wants to change their fiscal year to calendar they also want the depreciation of their fixed assets to now reflect the change in fiscal year. Is this possible? If so, how do you accomplish this?
Thanks for your invaluable help. This now in the owner's hands. If all looks good we move onto doing this in production. I will keep you posted.
Doing this in a test company is always the best path to take. You are correct that changing the calendar year will not impact depreciation already taken and will only impact future depreciation. I recommend that you focus on one asset only and see if you can get it to depreciate the way the owner (or accountants) expects it to. Then once you nail it down, you can focus on the other assets. Unfortunately, my current workload won't allow me to take on anything new, but I am available on this forum to help.
They have supplied the spreadsheet. There are 995 assets dating back to 1999. If I were to get involved with I could spend weeks if not months on this. The only person I have spoken to about this the owner. I do not know if he has pulled any accountants in on this. I will allow him to reviews the assets and see how he wants to proceed. This was all done in a test company so whatever I have done can easily be rolled back. Let me know if I am correct in this thought. Changing the calendar year really does nothing to what has already been depreciated. It will affect only the depreciations going forward. If he wants to get deep in the weeds with this and you want to assist send me a PM and we will connect and setup up a relationship.
The Dynamics GP Fixed Assets module can easily depreciate assets and send that information to the general ledger. If you want to see what future asset depreciation will be you can run a depreciation projection report. Running a projection is like 'try before you buy' it won't commit anything to the system.
There are two steps to running the depreciation projection report:
To do an actual depreciation:
Depreciating the assets is simple. Just navigate to: Routines >> Fixed Assets >> Depreciate. Select the book(s) you want to run the depreciation for, and the “depreciate to” date. If you go back and look at an asset you will see the individual depreciation records created for each period.
Show the projection results to the accountants and see what they say. If things are looking good then you are done. If not, then there will be work to do. How do you know that the current FA setup is right? Is every single asset properly configured? Look at the Asset Book screen shot below, all the fields must be correct for the depreciation to work. Have the accountants validated everything is spot on?
Ask the accounting team to provide you a complete Excel file with all the fixed assets and all the relevant columns as seen below in the Asset Book screen shot. You need a column for the Placed in Service data, Depreciation to date, Begin Year Cost...etc. They need to fill in everything. Do not proceed until they furnish you with this. You can go to: Financial\Utilities\Fixed Assets\Asset Import/Export then click Help\About this window. You'll get the following help screen. From there click Field Mapping.... and it will give you the column layout needed.
The accountants should also provide for the depreciation they are expecting to happen (so you can compare it to how GP is doing the depreciation). Basically, the accounting team needs to roll up their sleeves and get heavily involved in order to make FA work correctly. There are some good YouTube videos on FA, watch them to give yourself some familiarity.
OK, I have followed these instructions so now do I know if anything has changed? I am not a FA person and I am really not sure how changing the fiscal year will impact any fixed assets.
Thank you for this detailed explanation. This is my job for this weekend. I will provide an update.
Depreciation of fixed assets is a bit fiddly, hence I recommend that you make a copy of your database and do this in the copy so you can test things out.
Once you get the copy of the database ready Go to the Financial module > setup > Fixed assets > Calendar and setup your calendar year
Next: Click Transactions, point to Fixed Assets, click Select Assets, and then click New Group.
Name the group, and then click OK.
Under Current Groups, click the newly created asset group, click to select the assets for which you want to reset the life, and then click OK.
Click Transactions, point to Fixed Assets, and then click Mass Change.
Select the newly created asset group ID, click the Book tab, select the book ID, select Reset Life, and then click Apply Changes.
In the following message, click OK:
Are you sure you want to apply changes to group (New_Group_Name)
Do all this in test and see how it goes. This link might help: www.crestwood.com/.../
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