spanek Posted January 31, 2014 Report Share Posted January 31, 2014 Hi,We have been using AssetManage for a few years and were recently instructed by our auditors to change the useful life of some of our assets. I understand how to change the the useful life (by adjusting category properties), but I don't know what needs to be done in order to prevent prior depreciation from being recalculated. At the bottom of the window (on the depreciation tab of an assets detail window) there is a check box and a space to enter the amount of prior depreciation as well as the prior period end date. I have checked the box, entered the prior deprecation, and the end date but the depreciation report is not generating values that match my manual calculations (or those provided by our auditors).I believe this is what is happening, example:Fiscal Year begins July 1stAsset purchased for $100Purchased July 1, 2010Original useful life 7 yearsNew useful life 3 yearsChange in Useful life took place between 6/30/2011 and 7/1/2011Accumulated depreciation as of 6/30/2012 = $14.29What I did:- Changed useful life of the asset by changing the corresponding category's property- Selected the check box for prior depreciation- Entered $14.29 for the value of the prior depreciation- Entered the date 6/30/2011 for the Prior period ending date- Saved changes and regenerated all depreciation infoAssetMange Depreciation Report Output:- Annual Depreciation 7/1/2010-6/30/2011 = $14.29 Book Value = $85.71- Annual Depreciation 7/1/2011-6/30/2012 = $33.33 Book Value = $52.38- Annual Depreciation 7/1/2012-6/30/2013 = $52.38 Book Value = $0.00What it should be:- Annual Depreciation 7/1/2010-6/30/2011 = $14.29 Book Value = $85.71- Annual Depreciation 7/1/2011-6/30/2012 = $42.86 Book Value = $42.86- Annual Depreciation 7/1/2012-6/30/2013 = $42.86 Book Value = $0.00I believe that AssetManage is depreciating the remaining book value (present at the date of change) by taking the purchase price ($100) divided it by the new useful life (3 years), so $33 per year. When the asset reaches the end of its useful life (6/30/2013), asset manage is lumping the additional remaining book value into the final month's depreciation.I would like to be able to force the system to calculate depreciation by depreciating the Net book value as of the date of change (6/30/2011) evenly over the remaining useful life.- Net book = $85.71- Remaining Life = 3 -1(prior depreciation) = 2- Annual Depreciation = $85.71/2 = $42.86- Monthly depreciation = $42.86/12 = $3.57How can I do this?Thanks for the help!- Simon Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.