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Fixed Asset Setup in March but need to run depreciation for Jan-Feb

  • 1.  Fixed Asset Setup in March but need to run depreciation for Jan-Feb

    TOP CONTRIBUTOR
    Posted Apr 03, 2019 12:46 PM
    ​​We need to create a Fixed Asset - called Building for 100,000.00 to be depreciated in 6.17 years (74 months)- the Fixed Asset will be created in March, 2019 (we have not close the book for March yet).

    The issue is that we need to have the depreciation for this Fixed Asset to start recurring as of January 2019

    The books for January and February 2019 is already closed.  I know we can run the depreciation for March 2019.

    How can we setup the Fixed Asset that the depreciate will run from January ? Since the book is closed for January and February - we cannot back post anymore to these month.

    We want this asset to be included when we run the recurring journal for the depreciation.

    What is the best way to handle this?

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    Berlinda Yap
    IT Service Manager
    Foremost Groups, Inc.
    East Hanover NJ
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  • 2.  RE: Fixed Asset Setup in March but need to run depreciation for Jan-Feb

    TOP CONTRIBUTOR
    Posted Apr 03, 2019 12:57 PM
    If I understand you correctly, you actually placed an asset in service in January however you just became aware of it in March.

    Since you need to have the depreciation start in January, you will setup the depreciation book on the asset with a January Start Date. For the following to work, your acquisition cost must be dated in January. When you calculate depreciation for this asset in March, the March depreciation entry will include what you did not post for depreciation in Jan and Feb, and current depreciation for March. This total will post using the date on the FA GL Entry you just created (March.) This is by design. Your depreciation will "catch up" but all will post in March.

    Please confirm this is what you intend provides the explanation you are looking for.


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    Cynthia Priebe MCP, DCP
    Senior Analyst and Project Manager
    Liberty Grove Software
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  • 3.  RE: Fixed Asset Setup in March but need to run depreciation for Jan-Feb

    TOP CONTRIBUTOR
    Posted Apr 03, 2019 02:09 PM
    ​Dear Cynthia,

    I think that is why my accounting is looking for - will try what you suggested and let you know if this is what they wanted as the result.

    Thanks

    ------------------------------
    Berlinda Yap
    IT Service Manager
    Foremost Groups, Inc.
    East Hanover NJ
    ------------------------------



  • 4.  RE: Fixed Asset Setup in March but need to run depreciation for Jan-Feb

    TOP CONTRIBUTOR
    Posted Apr 03, 2019 02:37 PM
    ​Dear Cynthia,

    We tested it and this is what my accounting is looking for.

    Appreciate it very much.

    Thanks

    ------------------------------
    Berlinda Yap
    IT Service Manager
    Foremost Groups, Inc.
    East Hanover NJ
    ------------------------------



  • 5.  RE: Fixed Asset Setup in March but need to run depreciation for Jan-Feb

    TOP CONTRIBUTOR
    Posted Apr 03, 2019 02:48 PM
    Great, happy to help!

    ------------------------------
    Cynthia Priebe MCP, DCP
    Senior Analyst and Project Manager
    Liberty Grove Software
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