Hello Acoria,

The new estimated life sound to be correct based on the service date entered on the asset. What ss the beginning date (3-4 rows above the current through date line) set to on this asset record for the book that you changed? If that date is showing 8/31/2017 that is most likely the reason that the asset is not progressing in the depreciation. Change the beginning date to 7/31/2017 or just 7/2017. If you happen to use the Premier Depreciation application then do you use an accounting cycle other than monthly? What is your set fiscal year end in the Depreciation company (entity)?
Without more detail I would not be able to say for sure why it currently does not work as you expect it to. Perhaps you may want to consider calling into our Fixed Assets support center for additional assistance. The phone number that you can use is 800-331-8514. Our support hours are 9am-8pm EST Monday - Friday. When you call have your account number handy.

Respectfully,
Lovisa
Principle Customer Support Analyst
Product Mentor

An asset is capitalized because it contains future value which is recorded on the balance sheet.  An asset is expensed when it is consumed within one year.  The amount paid for that asset is then written off on the Income Statement as part of doing business for that year.

You intended to capitalize these assets because you entered a life of 5 and a half years when you initially put them into service last January.  But now, something has happened to these assets, and you want to record them as fully depreciated by next week.  In other words, they reached their obsolescence in only 8 months.

And though you have found from past experience that changing the depreciation method to RV worked for you to accelerate depreciation on other assets, that's not the issue here.  Rather, the problem is trying to change the life to something less than one year.  The program won't let you do that because the asset no longer meets the definition of a capitalized fixed asset.

Therefore, these assets need to be expensed rather than capitalized.

What about the amount of depreciation you've already posted to your General Ledger (which was probably through July)?  You'll need to make an adjustment to your G/L to account for your YTD accumulated depreciation.  Then, using the Reset Depreciation tool, reset depreciation to the Placed in Service Date, and change the depreciation method to NO.  This will erase accumulated depreciation and prevent the asset from contributing any further to your depreciation expense.

I also recommend that you add a note to the asset record explaining why the asset was consumed in 8 months instead of lasting 5 1/2 years. At some point later, an auditor might ask that very question.

I assume this was done for reasons related only to financial reporting.  Therefore, the asset will continue to depreciate in the tax books to the end of its life as set by the IRS.

Thanks, i got it figured out.