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afatta

incorrect purchase price entered for asset

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Our company has been using Sage Fixed Assets for about a year.  When I was gathering all my info for entering the assets in for the first time, there was an issue with the previous software and the result is that an asset was entered with a purchase price exactly doubled from what it should be ($60,000 instead of $30,000).  The initial depreciation that was entered was more than the actualy purchase price.  How do I correct this?  I tried to change the purchase price and got an error message saying that it would leave me with a negative book value.

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    Hello afatta,

    To accurately answer any calculation question, I do need all the book information of the asset and sometimes the Calendar information from under Edit Company, but if I had to guess:

    I would say the Depreciation Method on the asset is MA200 or some other +168 Allowance method and the error is referring to the amount of calculated depreciation on the asset is now higher than half the new value of the asset, unless the asset was Placed in-Service at the end of 2010 or anytime in 2011 when the 100% 168 Allowance was in effect. At that time, there was nothing left to take.

    I would recommend when making the change in value to answer Yes-Placed-in-Service date to the questions, then re-run depreciation and see what you get. If you do not like it at that point, then you can always manually override the Accum amount using the Beginning Information.

    ~Delray

  • 0
    Thank you very much, I have made the correction and am now ready to depreciate for September!

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