Issue with F/A depreciation

cyberscout

Active Member
Hello,

For a financial reorganization of a customer we had to restate the fixed asset tax values (ledger D2) and adjust them to the commercial values (AA). For that we posted a standard JE entry with asset item number so they can be included in F1202. The assets contains the following depreciation rules:

AA 48 months N R
D2 9999 months W C 40%

They idea was that both ledgers start with the same value. So far everything was ok. Now on the D2 the system calculated the depreciation amount for the whole year and readjusts our correction in the next period. So it does not take the new net book value as a new base.

The following chart shows the values, the AA ledger on left and the D2 ledger on the right:

31.12.2009 Purchase 10'000 10'000
31.01.2010 Depreciation -208 -333
28.02.2010 Depreciation -208 -333
31.03.2010 Depreciation -208 -333
31.03.2010 Revaluation 0 +375
30.04.2010 Depreciation -208 -708

We tried all combinations of the fields Initial Term and Compute Directions but could not find a solution. Maybe someone here as an idea how we could solve this?

Best regards
 

ccornagg

Well Known Member
Hello,

it'a not 100% clear how your depreciation rules are setup. For example you did not provide info on formulas you are running.
For sure you have to take into consideration the "C - Current Year To Date" Compute Direction you are mentioning for D2 ledger type is not correct if you adjusted your Accumulated Depreciation account during the year.

The C Compute Direction, alfter calculating the depreciation for the year (stored into F1202.POU field), is adjusting your AD account looking at all bookings (see F1202.CHCD = '2') within the Fiscal Year.

Kind Regards,

Carlo
 

cyberscout

Active Member
Hi,

Thank you for your answer.

The depreciation rule behind the D2 ledger type has been setup as follows:

Formula: 600, Item Balance % of Basis
Base formula: 504, NBV Beg Year Primary

I know that the current year to date does not work but I could not find a better rule.

Basically we should have a rule which takes the NBV at 30.09.2010 as the new NBV. Then the 40% will be calculated for the the 3 remaining months.

Do you have an idea? Maybe this is not possible at all. In this case we probably would finish this year with manual depreciations and then start next year with the C rule.

Best regards
 

ccornagg

Well Known Member
Hi,

indeed if you can evaluate whether it's much easier to manually book depreciations for current year, and start over again next year with C rule.

The other option you can evaluate, is to play with the P (period) rule and the base formula. It seems to me the base formula should consider current year and not previous year NBV.
You can create your own formula within P12853 and alphanumeric code leaving the standard code unchanged (600 and 504 in your example).

Kind Regards,

Carlo
 
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