When a user makes a change to a depreciation-sensitive field within Dynamics GP in the asset book record then depreciation will need to be recalculated. Changing any of the fields listed below will require GP to recalculate depreciation:
|Amortization Code||Amortization Amount/Percent||Averaging Convention|
|Cost Basis||Depreciation Method||Luxury Automobile|
|Original Life Year, Days||Place in Service Date||Salvage Value|
|Special Depreciation Allowance||Switchover|
The following fields are automatically recalculated when changes are made:
|Depreciated to Date||Life to Date Depreciation||Year to Date Depreciation|
From the Asset Book window of GP when a change is made to one of the depreciation sensitive fields and the user selects save then the following window will pop up. Select “yes” if the user did intend to intentionally make a change to a depreciation sensitive field.
After selecting “yes” the window below will follow.
Here the user will have three options to pick from on how they want the change reflected with their depreciation calculations. Below is a breakdown of each option:
- Reset Life – This option recalculates depreciation from the date the asset was placed in service through the period the asset has been depreciated. GP will create an adjusting entry in the current period to catch up depreciation. Depreciation adjustments will be made for each period, however, the depreciation does not have to be posted to the GL for each period. Instead the user can use the Fixed Assets General Ledger Posting window to select the range of periods from the financial detail file, then post the entire amount to the period of the recalculation date.
- Reset Year – This option adjusts the current year’s depreciation by calculating a new yearly depreciation rate and then uses the new rate to recalculate depreciation from the beginning of the current year through the period the asset has been depreciated. The depreciation does not have to be posted to the GL for each period. Instead the user can use the Fixed Assets General Ledger Posting window to select the range of periods from the financial detail file, then post the entire amount to the period of the recalculation date.
- Recalculate – This option will calculate a new rate of depreciation using the new cost basis data, however, does not make adjusting entries for depreciation already taken. The new rate will be used the next time deprecation is completed. GP spreads the reset adjustment (the difference between the new yearly rate and the current year to date depreciation amount) over the remaining periods in the current fiscal year.
Once the user has decided and made their selection they will then hit save back on the Asset Book window and can then close the window.