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why is A/D from transfer not being reduced on current year depreciation

Dear experts, we have a problem with a transfer that was done from one asset (in a different class with different useful life) to another. It was a partial transfer and brought some accumulated depreciation with it. But when the new asset depreciation was calculated, it didn't take this transfer of 1,625.02 into consideration and adjusted the current year depreciation to be posted. The total should just be 34,242 (1,438,172 / 7 yrs straight line for just 2 periods in 2015). So I would expect only 32,617 to be booked since 1,625 was already booked on the other asset.

Can anyone explain if my thought process is wrong, or if we posted this transfer incorrectly?

Thanks for your help!


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    Posted on Oct 01, 2015 at 05:04 AM

    Hi Julie,

    Yes, your thought process is wrong. When you do transfer posting, the APC & accumulated depreciation has transferred from old asset to new asset. So the depreciation which has carry forward to new asset is already charged for old asset. When you run depreciation for new asset, the system will calculate the depreciation either on APC value or NBV. But it wont possible to deduct the depreciation which was carried to adjust in current year depreciation. However, either you cannot charge any depreciation for old asset, in this case there is no carry forward the depreciation or write up the posted depreciation for the new asset by ABZU.



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    • Former Member Mukthar Ali Ahamed N

      Not sure if you meant the value maintenance section for unplanned depreciation but I caught that after I sent the message and changed it to allow either positive or negative values. I was then able to post ok. Thanks.

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