We are based in Australia and have been implementing NAV across 20 group companies over the last 12-18 month.
We are having a problem with the Depreciation of Fixed Assets as there are a couple of special rules regarding low value plant (plant with a value of less than $1000)
In the first financial year of depreciation it is depreciated at 18.75% and the rest of the depreciating life it is depreciated at 37.5%, similarly when a plant’s/asset’s book value goes below $1000, it is moved to low value plant and depreciating the remaining value at 37.5%, but NOT adjusting previous years depreciation values.
So how do we get NAV to calculate the depreciation on the book value rather than the acquisition value? When I have tested by changing the depreciation rate on the Asset Card, the depreciation is not correct as it doesn’t use the book value to calculate the depreciation.
I’m sure there are plenty of other Australian companies who has to accommodate this requirement, but our NAV partner, didn’t know of a solution off by heart and said that companies probably just live with the way NAV does it… But that is not really acceptable for auditing and tax purposes.
Hope someone are able to help ASAP as we have quite a few assets to move to low value as of July for our new financial year.
Are there anyone out there who are able to help???[:^)]
Have you tried USER DEFINED depreciation method in Navision?
No, looked at it, but the way I understood it, I would have to set up a different table for each asset, we are depreciating monthly, and we have A LOT of assets which has to be dealt with, I can just see a lot of room for errors, when it has to be set up for each asset and it seems very time consuming???
Maybe I’m wrong? Should I have another look at it?
Apparently our Partners asked Microsoft Dynamics Australia, and they haven’t made a localized solution for this issue in NAV, only for AX, but they will put in on the list now - not sure how long that will take before it will be in production though…
Have you been able to find a solution for this issue?
If not, I’d like to suggest taking a look at Foxtrot by EnableSoft. It’s an automation technology that would automate this process if you are having to handle it manually. Foxtrot will work with virtually any system you can run on a Windows environment including NAV.
Would be happy to share more details if you are interested.
If you talking about first year having 18.75% and the balance by something else, I would think it is still achievable, using the Depreciation Table, It won’t be lots of work since you can work out a formula using Excel and import back into the “Depreciation Table” via "RapidStart Configuration Package. But I do not know if your 1875% is straight line or also base on NBV. If both is base on NBV, then it is straight forward, don’t have to bother about it, but if first year is Straight line and the balance is base on NBV, then the trouble would be have to change the depreciation method once the assets became one year old. Base on NBV, that is reducing method.
However, if you are talking about once after the asset gets depreciated until NVB became 1000 or lower, I don’t think Nav can handle, you have to identify it manually. If you carries Jet Report, then you can write a report to show you which are the assets that their NBV is getting lower than 1000 after this month, then you got to change the depreciation method manually.
For any situation, changing the depreciation method won’t affect your previous accumulated depreciation. Hope my information does help.