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Depreciation Reversal

  • 1.  Depreciation Reversal

    Posted Aug 16, 2019 01:09 PM
    Hello,

    We are currently running GP2013 and there is an option for mass depreciation reversal.  In order to do this, it is my understanding that you have to create a group that includes all of the assets you want to reverse depreciation on.  I did this and reversed depreciation as of 11.30.18 (all the assets that are in the book I am trying to reverse depreciation on all of Placed in service dates of 12.22.18 and greater).  The process of reversing the depreciation completed.  However, when I look at a couple assets as examples, the depreciation did not completely back out.  I would have assumed the YTD and LTD Depreciation would have been zero and the NBV would match the cost basis (see screen shot below).
    What am I doing wrong to essentially wipe out/reverse depreciation entirely?  We have to change the lives on all of the assets and thought the easiest way would be to reverse any depreciation currently taken and then provide IT with an upload to change the asset lives to the correct lives.

    Thanks in advance for any help you can give me! :)


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    Ashlie Carey
    Tidewater Barge Lines
    Vancouver WA
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    Conference-GPUG_200x200


  • 2.  RE: Depreciation Reversal

    TOP CONTRIBUTOR
    Posted Aug 20, 2019 08:39 AM
    Hi @Ashlie Carey

    The Averaging Convention in the Book setup for the assets will determine when the asset starts depreciating based on the Place in Service Date, so depending on that setup  some of them may have depreciation still even though you set this before the PID.

    Here is some "canned" information about how the averaging conventions work:

    The following averaging conventions are available in Fixed Asset Management.

    Half-year   Assets begin depreciating on the Place in Service Date. In the year of disposal, assets are retired on the last day of the first half of the year.

    Only half of the depreciation amount is taken in the year an asset is acquired. This also applies to the year in which you dispose of an asset and to the year in which the life is complete, based on the original life of the asset. The asset doesn't depreciate after the first half of its final year.

    Modified Half-Year   Assets that are placed in service in the first half of the year will begin depreciating on the first day of the year.

    Assets that are placed in service in the second half of the year will begin depreciating on the first day of the next year.

    Assets with a retirement date in the first half of the year will be retired on the last day of the previous year.

    Assets with a retirement date in the second half of the year will be retired on the last day of the year.

    Mid-month (1st of month)   Assets that are placed in service in the first half of the month-days 1 through 15-will begin depreciating on the first day of the month.

    Assets that are placed in service in the second half of the month-day 16 through end of month-will begin depreciating on the first day of the next month.

    Assets with a retirement date in the first half of the month-day 1 through 15-are considered retired on the last day of the previous month.

    Assets with a retirement date in the second half of the month-day 16 through end of month-will be retired on the last day of the month.

    Mid-month (15th of Month)   Assets that are placed in service at any time during the month will begin depreciating on the 16th of the month. Assets that were placed in service in February will begin depreciating on the 15th of the month.

    Assets retired at any time during the month will be retired on the 15th of the month of the retirement date. Assets retired in February will be retired on the 14th of the month.

    Mid-quarter   Assets that are placed in service at any time during the quarter will begin depreciating on the middle day of the second month of the quarter.

    Assets retired at any time during the quarter are considered retired on the middle day of the second month of the quarter.

    Next Month   Assets that are placed in service at any time during the month will begin depreciating on the first day of the next month.

    Assets retired any time during a month will be retired on the last day of the month.

    Full Month   Assets that are placed in service at any time during the month will begin depreciating on the first day of the month.

    Assets retired at any time during the month are considered retired on the last day of the previous month.

    Next Year   Assets that are placed in service at any time during the year will begin depreciating on the first day of the next year.

    Assets retired at any time during the year will be retired on the last day of the year.

    Full Year   Assets that are placed in service in the first half of the year will begin depreciating on the first day of the year.

    Assets that were placed in service in the second half of the year will begin depreciating on the first day of the last half of the year.

    Assets with a retirement date during the first half of the year will begin depreciating on the first day of the last half of the year. Assets with a retirement date during the second half of the year are considered retired on the last day of the first half of the year.

    Full Year All Year   Assets will begin depreciating on the first day of the year.

    Assets with a retirement date anytime during the year will be retired on the last day of the previous year.

    None   Assets will begin depreciating on the date it was placed in service and will be retired on the retirement date.

    Next Period   Assets that are placed in service at any time during the period will begin depreciating on the first day of the next period.

    Assets retired at any time during the period will be retired on the last day of the period.

    Full Period   Assets that are placed in service at any time during the period will begin depreciating on the first day of the period.

    Assets retired at any time during the period will be retired on the last day of the preceding period.

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    Conference-GPUG_200x200


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