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Catch-up depreciation of prior years in the next month?

Dec 05, 2017 at 10:01 AM

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Former Member

Hi,

We have an asset that was aquired years ago. The useful life has been shortened which increases the depreciation. The depreciation is calculated: APC / useful life.

The depreciation of the closed years that should be higher now is not depreciated and remains obviously on the asset. Once the end of the useful life is reached the missing depreciation is posted in one sum.

However, business would like to have it posted in the next month instead of at the end of life. Can anyone recommend what we need to change?

Thanks,

Joachim

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2 Answers

Tammy Powlas
Dec 05, 2017 at 10:31 AM
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Joachim - this is what adjustments like ABAA (unplanned depreciation) are for - please ask your asset accountant to try it.

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Former Member

Hi Tammy,

Do I understand you correctly, that what I described below is standard behaviour, and after changes to the depreciation parameters such as useful life only the current fiscal year is subect to smoothing or not. Previous years are not touched by this. If required this can be achieved only by unplanned depreciation?

Thanks a lot,

Joachim

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Hi - it depends on the configuration of the depreciation key. But from what you are describing it sounds like an unplanned deprecation posting; I recommend trying the transaction in your test box and letting your accountants view the results.

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Former Member Dec 05, 2017 at 10:32 AM
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Hi,

You may consider to extend the useful life of that asset.

Thanks

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