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kai wen

Fixed Asset Depreciation

SOLVED
Posted By

I am using Sage Fixed Assets - Depreciation (Version 2014.1)
there is an asset that does not seems to depreciate
it is the last cycle, but it cant seems to be fully depreciated
is there anyway to solve?

I have tried forced depreciation, but it cant seems to fully depreciate
other assets of the same time, could be fully depreciated where their NBV = 0

  • 0
    SUGGESTED

    Hello Kai Wen,

    While there are many reason for an asset to Stop depreciating, usually the way to fully depreciate the asset is the same: See How to fully depreciate an under depreciated asset?

    One of the methods in there is to force the depreciation, but you said they did not work for you. So then the question becomes: does the Beginning Accum amount equal the Acquisition value of the asset? Unless it is, the NBV cannot be zero.

  • 0
    Hi Delray,

    I tried changing the method to "RV", but I still couldn't get it to depreciate the last cycle.
    there is choice to if I wish to "RV Override"
    do I choose yes ?
  • 0
    SUGGESTED
    Hello Kai Wen,

    The RV override is not what you are looking for here. The RV in RV override means Replacement Value which has something with Insurance, while the RV Depreciation Method means Remaining Value over Remaining Life.

    To be able to fully depreciate an asset using RV, the trick is to get the correct Estimated Life on the asset. The Estimated Life is always calculated from the Place In-Service date of the asset. The Estimated Life needs to be the amount of time from the PIS date to the Beginning Date plus whatever amount of time you wish to take the NBV over.

    If I knew the asset's book details, I could tell you precisely what that would be.
  • 0
    Hi Delray
    The asset has already bypass its useful life for a few months,
    it should be fully depreciated in April this year.
    till Oct, a month worth of depreciation not done.
    is there any way I could send you the screenshot to help me on it?

    thanks
  • 0
    Hi Delray
    the Placed in Service date is on 14April2006
    the beginning date I presume you meant the the date of acquisition which is also 14April2006
    Current through date, is April2006
    I wish it could be depreciated by 30Nov2016 (the estimated life is 10years)

    I am located in Singapore, hence I think we have about 12 hours difference or around 12 hours.
    I wont be in office when its morning at your side, as it will be night time here.
    sorry

    Thanks
  • 0

    Hello Kai Wen,

    Yes, that's how under depreciated assets normal behave. If there is Beginning Date and a Beginning Accumulated Depreciation amount that is less than the amount of depreciation that the program would have calculated over the same period of time from the Placed in Service date and the Beginning date, the asset is considered under-depreciated, and stopping to depreciate once they reach the end of life is typical.


  • 0
    Hi Delray

    I am sorry, I was looking at the wrong column.
    Beginning date: 10/2016
    Placed-in-Service date: 04/14/2006
    Current through Date: 11/2016

    Nope, this asset is not a transfer
    sorry that I gave you the wrong information on the dates

    Thank You
    Kai Wen
  • 0
    verified answer

    Hello Kai Wen,

    Well, a 12 hour time difference would, indeed, complicate things.

    First, the Beginning date and the PIS date are not the same thing: The Beginning date is near the bottom above the blue numbers and represents a manual override of depreciation which is usually the cause for these discussions.

    Second, if this asset has been calculating depreciation, the Current Through Date (the top line in the blue numbers) should not be 4/2006 and if it is then this is a completely different issue. What is the Business Start Date (File, Edit Company)? Assets PIS prior to the Business Start Date will not calculate depreciation. See Transfer To: company not available in the transfer list for more information which also bring up another potential complication: Is this a Child of a Transfer? if so, you will want to refer to Beginning Date is the only option when changing Critical Fields for the required process.

    Lastly, for an Estimated life of 10 years to work with RV your target date would have to be March of 2016 which mean a Beginning date of 2/2016. For the November date to work with a 1 month Remaining life the Beginning date has to be 10/2016 and the Life 10 Years 8 Months.

  • 0
    Hi Delray

    does it matter if my method of depreciation is Straight line or the RV method?
    currently mine is RV, as I the last time I change was to try the method above that you mentioned.

    thanks!
    so sorry that this keeps getting longer and longer...
  • 0
    SUGGESTED

    That quite ok Kai Wen, there are always a lot more moving parts to this process than people think there is. The thing to remember is when making changes to an asset - You must know the current state of the asset and it is the second question that is the important one: See How to change critical depreciation fields for more information on changing critical values.

    So then, you can either:

    Use 10 Years 9 Months life - answering Yes-Beginning Date to the questions - then the asset will fully depreciate in November.

    Or

    Change the Beginning date to be 9/2016 Checking the Beginning YTD and Beginning Accum is the correct amounts for September, use 10 Years 8 Months life and the asset will fully depreciate in October.

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