Try Microsoft Edge
A fast and secure browser that's designed for Windows 10
Hi Fixed Asset users,
As you know the Fixed Asset module doesn't have many changes from year to year other than the Luxury Auto Depreciation changes for the new year. However, we still wanted to give you blog on Fixed Assets to answer some of your questions around year-end. I hope you find the below information helpful.
Does the Year-End Update include any changes for the Fixed Assets module?
There are changes to the Luxury Auto Maximum Depreciation Deduction Amounts as expected. The maximum depreciation deduction amounts allowed for luxury vehicles have been updated for assets placed in service in calendar year 2015 to comply with IRS Guidelines.
Is there any new functionality in Microsoft Dynamics GP 2013 or Microsoft Dynamics GP 2015 for the Year-End Closing (YEC) process?
In Microsoft Dynamics GP 2015, a Fixed Asset Year-End Closing report was added to the year-end close process. This optional report will print per Book, and show the Asset ID, Description, Cost Basis, YTD depreciation, Accumulated Depreciation, NBV, Placed in Service Date, Depreciated to Date, Quantity, YTD maintenance and Status for all assets impacted by the year-end close process. Now, in a single step, you can close the year and print a status report of all the assets that were affected by the close.
When should the Year-End close for Fixed Assets be done?
It is recommended to close all books in Fixed Assets after you close Payables Management, but before you close the General Ledger year. Below are other key points to remember:
•When you close the year in Fixed Assets, you have to do it for each book you have set up.•All books must be closed before you run depreciation for the new year.
What does the Year End Close Process do and /or affect?
•In the Asset General Window:•The YTD Maintenance amount is cleared from the Expand last Maintenance Date Window.•The Quantity is copied to the Begin Quantity field in the Expand Quantity Window.
•In the Asset Book Window:•The YTD Depreciation Amount is cleared.•Cost Basis is copied to Begin Year Cost field.•Life to Date Depreciation is copied to Begin Reserve field.•Salvage Value is copied to Begin Salvage field.
•In the Book Setup Window:•The Current Fiscal Year is incremented to the next year.
What steps should I take to close the year in Fixed Assets?1. You must process depreciation to the last day of the year* that you are closing before you close the year.2. Print all the reports that you will need for the year that you are closing before closing the year.3. **Make a backup!**4. Follow the steps in KB 865653: “The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP”.
NOTE: You must also close the year for all Books, however, you do not need to close them all at the same time. However, all books should be closed before processing any depreciation for the new year.
*NOTE: The last day of the Fixed Assets year can be confirmed by navigation to Microsoft Dynamics GP>>Tools>>Setup>>Fixed Assets>>Calendar.
REMINDER FOR MICROSOFT DYNAMICS GP 2010 USERS:
Mainstream Support for Microsoft Dynamics GP 2010 has ended. However, just a reminder for users in Microsoft Dynamics GP 2010 and prior versions, DO NOT manually edit the year in the Book Setup window so you can run depreciation for the next year and then set it back and proceed to close the current year. If you do this, the year-end process will set the YTD Depreciation field to zero and then at the end of the next year, the GP code will look to this YTD field to see if enough depreciation has been taken for the year and not see the depreciation you had already done in the new year. This will cause your assets to over-depreciate at the end of the next year to try make up for the missing amounts in the YTD field. For this reason, the Current Fiscal Year field in the Book Setup window has been locked down in Microsoft Dynamics GP 2013 and later versions.
Assistance for Fixed Assets Year End Close:
•Microsoft Dynamics GP Blog - https://community.dynamics.com/product/gp/gptechnical/b/dynamicsgp/default.aspx
•Microsoft Dynamics Community - https://community.dynamics.com/default.aspx
•Microsoft Dynamics Support - https://mbs.microsoft.com/support/newstart.aspx
If you are creating a case with the Technical Support Team, please refer to the routing below to ensure you are routed to the correct Professional for assistance:
Support Topic Selection: Financial – Fixed Assets
Sub-topic Selection: Year End Procedures
Year-End Close Resources:
• KB 865653 - Year-end closing procedures for the Fixed Assets module in Microsoft Dynamics GP
• Here is a link to the 'standard' Year-End Close Procedures that generally do not change from year to year.
Be sure to check back to the 2015 Year-End Blog Schedule page to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.
Have a great Year-End!
Cheryl Waswick | Microsoft Dynamics GP | Senior Support Engineer | Applications Support Team
Cheryl, thank you for your blog posts. They are very helpful.
I have a question about Fixed Assets, related to year-end. I am wondering if there is a way (report?) for GP to tell me the effect of retirement in each Book?
As an example, lets say I have a Corporate Book, and a Tax Book setup in the FA module. In the Tax Book of a particular asset, I've entered the amount taken as Section 179 (in the Asset Book ITC window), and any remainder has been depreciated according to the tax rules. When I retire that asset, I would like to know if there will be "recapture" on the Tax Book from having taken the Section 179 (or perhaps Bonus Depreciation) on that asset, and if so, how much that recapture should be.
This would be really helpful in not only preparing the tax return, but also reconciling the gain/loss on disposal in the GL to the tax return.
Thanks in advance for your help with this.