FA Depreciation

[Josh]

Hi List,
Our client receives assets from other group companies. They are passing JV debiting Asset Cost, Crediting Accumulated depreciaiton & crediting Group company account for the NBV. Asset ID is put while creating entry & posted to GL, FA afterwards. But when we run depreciation for the current period, it reverses the accumulated depreciation to the extent of current depreciation & credits depreciation expense account.
What is the way to get the correct depreciation for the current year.
E.g Asset cost 12000 & Acc Dep is -8000. When we run depreciaiton (R12855) it debits acc depreciaiton by 7250 & credits depreciation expense account by 7250.
(Other method we tried was beginning balance. It works fine in that case, but client may not desire the same)

Josh
8.10 Functional Consultant

 

[ajit_nadgouda]

Hi Josh,

It seems that, as per the depreciation calculation rule that must have been set up, the depreciation might be coming to 750. Now JDE finds that there is already accumulated depreciation of 8000. So now it needs to reverse the depreciation to the extent of 7250, so as to leave a depreciation balance of 750 as accumulated depreciation.

The solution could be bring into the books of accounts the net cost to the company i.e. 4000 (i.e. 12000-8000). This would calculate the depreciation on 4000 instead of 12000. Also, you need to check the depreciation start date etc. Basically need to check the depreciation calculation rule.

Best regards,
Ajit

 

[Josh]

Thanks for your reply Ajit.
What we have done, that for the transferred in asset, for that period, we enter the depreciation JV manually.

 

[ajit_nadgouda]

If that is working then its fine. But sometimes JDE calculates depreciation in the next month in such as way so that the effect of manual adjustments of earlier months are nullified.

Ajit