Disposals

Question

Hello, 
 When we process disposals between periods, the Internal depreciation calculation will not calculate for the disposed assets. The depreciation is calculated for Tax. Has anybody experienced this before? 
 Thank you,

Delray · Answer

Hello marker63 
 I am going guess and say you are running depreciation on a quarterly basis? 
 The thing you need to remember is that a Disposal is a calculation of depreciation so that once the disposal has been entered in the first or second month of the quarter; the Current Through date on the disposed asset is the end of the month of the disposal. It is no longer the prior quarter end. 
 To get the proper final calculation on that asset you would need to run depreciation to the prior quarter end, before running for your current quarter. 
 ~Delray

Delray · Answer

Then that would depend on your depreciation method. If it is SF, then that is exactly as it should be since SF takes no depreciation in the month of disposal. 
 What is your depreciation method in the Internal book?

marker63 · Answer

We figured out what is happening. We use Straight Line. We found out some assets were calculating and some were not. FAS will only calculate depreciation on a disposal when the placed in service date is before the 15th and the disposal date must be at least two weeks after the current through date. 
 Thank you,

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