Question

Two Depreciation Book IDs on an Object

  • 14 February 2023
  • 2 replies
  • 116 views
S
Rank
Badge +2

Hi,

 

We are trying to correct depreciation for 2022 in 2023, and we want to see if it is possible to add two depreciation methods to an asset that already has one and is active. The asset in question was acquired in September 2021, and wasn’t put in service till June 2022. When it was put in service it put the depreciation as April 2022. We have already ran depreciation proposals for 2022 and Jan 2023, I have suggested Change Net Value to the users already, but the reason they don’t want to use it is because when audit comes around they will have to keep explaining why the depreciation start date is wrong. So I was wondering if there is another way to change the depreciation start date or add a new depreciation start date. 

 

I did see there is a reason code on the book tab for depreciation but I don’t exactly know what it is for. 

 

2 replies

G
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Userlevel 6
Badge +19

Hello @SAAKAGUILAR 

You can have multiple book IDs and different method for each book. See the example below.

 

You can calculate depreciation for all books, however creating posting is not mandatory. If you will have create accounting field TRUE on fixed asset books, it will create transactions when you post the depreciation. When it is FALSE, depreciation will be calculated but no transaction will be created.

 

 

As far as I understand, in your case you can either change net value to have correct net book value or cancel the previous depreciation for the fixed asset. Change the depreciation start date to April. Create new depreciation proposal for 2022. If you have still 2022 open then you can post to 2022, if not then you can post to 2023. Once 2022 depreciation is posted then you can calculate separately for Jan. 2023 and post it to accounting.

 

Transaction reason is used for when you change depreciation method . If you have Write Method Change Log field TRUE on Company> Fixed Asset then IFS will force you to enter a reason. If this field is FALSE then you dont enter. 

 

 

Hope this explanation helps

https://superp.solutions/
A
Rank
Userlevel 7
Badge +16

Hello,
Yes, I susbscribe to what @gumabs mentioned above - I think it is quite easy to rollback depreciation for single object till April 2022 (10 months in total) - and then reverse object activation and activate it again with new start date - and then redo depreciation for 2022 at least (if your year 2022 is closed already - you should book all thgese entries in first open period of 2023, February perhaps. Otherwise you should reverse/redo operations of 2023 in 2023 and 2022 in December 2022). 

You do not need to cancel entire proposals, just use rollback function for single object transaction per object a time.

 

Regards, Adam

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