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Anne King

Record catch up depreciation in current period, and show that catch up in the current period, not prior period

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I often have new additions that have a in-service date from several months ago, but the cost was not recorded until the current period.  I know that I can back-date the acquisition date and/or the in-service date and catch up depreciation will be calculated through the current period.  However, when I create a rollforward using the FA Summary Report, the catch up depreciation is shown in the prior period.  How can I get the FA Summary to show all the depreciation in the current period.

Example:

Invoice for machine received in Sep-15 with invoice date (in-service date) of 5/30/15. 

Asset cost is $60,000 with a 5 year life

I need to show on the FA Summary that all $4000 of accum depr is in the current period, not $3000 in Prior.  This is the only way I can tie the rollforward accum to Depr Expense because all $4000 is booked in GL in Sep-15

  • 0
    Hello Anne King,
    Without knowing exactly what your year end is set to in the company and what information you use when inputting an asset its a bit tricky to answer the immediate question accurately with the information that you provided.
    What month is your year end?
    Here is an example:
    Company fiscal year end is June
    Asset to be added has a service date of 5/30/2015 and using SL depreciation method.
    The added asset only gets 1 month of depreciation for the month June as the cut off date for any depreciation to be taken for the service month is from the 1st - 15th. Any service date between the 16th and the end of the month will start depreciation in the following month of the service date given.
    If you know what the depreciation is for that month and the following months to the most current depreciated period you can manually enter this onto the asset record as to circumvent having the prior accum show on the Fixed Assets summary report.
    Here is what you would do in that case:
    On the asset in question locate the beginning date
    Beginning date would be entered as 9/2015 or 9/30/2015
    Beginning YTD and Beginning Accum you would enter the same amount of the months from the service date or the month that the depreciation started from to 9/30/2015.
    When that has been entered you can run the depreciation calculation so that the application is updated with the manually entered depreciation amounts.
    This will yield a $0 prior accum on the fixed assets summary report.

    Please let us know if we can be of further assistance to you.

    ~ Lovisa

*Community Hub is the new name for Sage City