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Hey All,
I have a question regarding FA convention method change. We changed convention method from half year to none and now when we see future projection depreciation of asset its calculating 1st period depreciation wrong. All other periods depreciation are calculating fine. We are using straight line remaining life balance method of depreciation.
Thanks
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Hi Andre,
You were absolutely correct. After changing date from 30 April to 28 it solved my problem.
Thanks Alot
Hi Naif,
I didn't mean to say to run a new depreciation for April 27 or 28.
You can check the Last depreciation date on the value model. To get the correct amount, change this from April 30 to April 28. It will not change previous postings, but will only have effect on the calculated amount. After the change, run the depreciation proposal for June 2.
Hi Andre,
Yes that is correct we are using 4-4-5 weeks calendar. Basically in old system we depreciated assets till 30th Aril and that balance we loaded as an accumulated depreciation as of 30th april. now according to the fiscal calendar next period comes on 6/2/18 as noted above. As you recommended I ran depreciation proposal as of date 27 and 28 in fixed asset journal but nothing came. But if I select next period date which 6/2/18 , transaction line came with $202.66.
I wanted to know is this a standard system behavior to screwed the depreciation of 1 period when we changed convention method to none.
Hi Naif,
When looking at the dates, I had to verify what type of periods you are using. I do think 4 and 5 weeks based on the duration of the month. Is the start date of depreciation or last depreciation date set to April 30? If so, try April 28 (end or start date of the period). It might think there is a broken month which then takes less days (33 in stead of 35 for 5 weeks).
Hi Andre,
Acquisition price was $12,896.60 , we uploaded AD balance $10,317.27 as of 30th April, remaining periods are 12. When we first loaded AD balances convention method was 'half year' attached which we changed into 'none. Now when we see future projected depreciation, it shows like that.
6/2/18 = $202.66
6/30/18 = $ 214.94
7/28/18 = $ 214.94
9/1/18 = $ 214.94
9/29/18 = $ 214.94
and so on. $ 214.94 is correct amount. Why its give variance of 5.71% on all assets as defined in above example.
I hope I clarified correctly. Your help will be appreciated.
Hi Naif,
Can you give an example of one asset with the current status (acq. price, depreciation amounts, remaining periods and what is being calculated now in the first month and the others?
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