Hi

@Richard BrunsonYou are doing it correctly, per your post, so that leads me to this question: What do you mean by "but we don't get the result we are looking for".

Can you elaborate on the Result you are looking for?

Also, don't use Straight Line Remaining Life, try Straight Line Original Life and see what happens. Here is an outline of how the Straight-Lines work in GP:

**Straight Line Orig Life**: (Cost - Salvage Value - Special Depr Allowance) / Original Life in Years

NOTE: If the Original Life includes days, the days will be converted to a fraction with days as the numerator and 365 as the denominator

**Straight Line Remaining Life** (Cost - Salvage Value - (LTD Depreciation Already Taken Amount - YTD Depr Amount) / Remaining Life in DAYS

NOTE: This calculation determines the daily depreciation rate, which must be multiplied by thte number of days in the year. This method is NORMALLY used when selecting the "Switch to Straight Line Option". But this is talking about the "

**Switchover**" field NOT when you actually just start using Straightline.

Try using Straight Line Original Life with NO SWITCHOVER as the depreciation Method and see what results you get. Please be mindful that the Averaging Convention also plays into when depreciation is taken.

Let us know how it turns out by changing it, and also what results you are Expecting.

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Original Message:

Sent: Jan 07, 2020 04:21 PM

From: Richard Brunson

Subject: Change in Useful Life of Asset

We are using Dynamics GP 2016. We have a number of assets that were originally placed in-service 5 years ago with an original useful life of 20 years. We use the straight-line original life depreciation method. Due to new regulations issued in 2020, the remaining useful life of these assets is now only 5 years (as opposed to 15 remaining years as currently showing in GP). Is there a way to change the asset cards so that the current net book value of the asset will be depreciated evenly over the revised remaining life of 5 years? We don't want the system to change any prior depreciation calculations, we only want the change to be effective from 1/1/20 forward.

As an example, assume the original cost basis was $1,000, with annual depreciation of $50 based on the original 20 year useful life. NBV after 5 years is now $750 ($1,000 - ($50*5) = $750). We want to change the annual depreciation going forward to $150 for the remaining 5 years ($750/5 = $150).

We've experimented with changing the Original Life (choosing Recalculate) and switching the Depreciation Method to Straight Line Remaining Life, but we don't get the result we are looking for.

Any suggestions are appreciated.

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Richard Brunson

SVP & Controller

Eastern Generation

Stamford CT

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