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Change Fixed Asset Acquisition Cost

  • 1.  Change Fixed Asset Acquisition Cost

    Posted May 30, 2013 11:07 AM
    I have three credit memos that I need to apply to already partially depreciated assets.  Can I go in and change the acquisition cost?  Will GP then adjust the depreciation going forward for the credit memo on the remaining life?  How does GP handle the depreciation when the original purchase was made in the prior year?  We use GP 2010.

    Thank you!

    -------------------------------------------
    Debbie Sly
    Controller
    Tri-County Health Care
    Wadena MN
    218-632-8714
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  • 2.  RE:Change Fixed Asset Acquisition Cost

    Posted May 31, 2013 10:26 AM
    Hi Debbie,

    Yes, you can change the acquisition cost in Asset General Maintenance, but that doesn't affect any depreciation amounts that have been taken for the asset. If you want to update the depreciation, you can change the cost basis for the asset book record. When you change the cost basis and click Save, you are given three options on how you want the change to affect the depreciation amounts:

    If you select Reset Life, then the system will go back and back out all depreciation entered for the entire life of the asset, and re-enter new depreciation transactions using calculations based on the new cost basis from the beginning of the asset's life through the current depreciated-to date.

    If you select Reset Year, then the system will back out all depreciation entered for the asset back through the beginning of the current year, and re-enter new depreciation transactions with the new calculations only from the beginning of the year through the current depreciated-to date. All depreciation in prior years remains the same.

    If you select Recalculate, then the system won't back out any depreciation that has already been taken for the asset. It will just recalculate the periodic depreciation that needs to be taken going forward from the current depreciated-to date to account for the change in cost basis. 

     So you have options on how you want the change to affect any depreciation that has already been taken.

    -------------------------------------------
    Jared Hall
    Program Manager
    Microsoft
    Fargo ND
    701-492-6523
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  • 3.  RE: Change Fixed Asset Acquisition Cost

    Posted 9 days ago
    Edited by Pervez Iqbal 9 days ago
    Hi Jared,

    Can you show me an example that how system calculates the depreciation  when Reset year value option is selected in Fixed Asset in GP.  or How Reset life works . Please include the formula and example to define all three Reset Life, Reset Year and Recalculate options for calculating depreciation value.

    Thanks for your cooperation in advance!!

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    Pervez Iqbal
    Rochester Midland
    Rochester NY
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