Depreciation calculations error in Axapta, incase of multiple Acquisitions of assets

Hi Everybody,

I am facing an issue in AX 2009 SP1 RU7 applied. This is with regards Depreciation calculation incase of multiple Acquisitions of assets.

Following is the detailed scenario:

  1. Acquire an asset on 1st of April with a value of Rs. 100,000.
  2. Acquire another Asset on 30th June for a value of Rs. 5,000.
  3. Run the Depreciation Proposal for 3 Months (April to June).
  4. System calculates depreciation including the 2nd Acquisition also for the entire June month instead of only 1 day ( since the 2nd Acquisition is on last day of the month it has to depreciate for one day as per Accounting Standard -6).
    Thanks you in advance.

Hi Dinesh,

What is the Depreciation Run date for the second acquisition? System calculates depreciation based on Depreciation Run date in the value model of FA.

Thanks…

Hi Pavan,

Thanks a lot for your time.

The depreciation run date on the Value Model of the Asset is 01-04-11. as a result of which, the depreciation is calculating for the month of April.

Please let me know if you need somemore info.

Regards

Dinesh.

Hi Dinesh,

Pleae clarify one more thing. You have purchased FA1 on 01/04 with the transaction type as Acquisition. On 30/06, you are posting another transaction Acquisition Adjustment for the FA1. Now when you are running the depreciation proposal, system is suggesting you depreciation from 01/04?

Please let me know if you are following above steps or something different?

Pranav…

Hi Pranav,

On 30/06, i am posting yet another acquisition not Acquisition Adjustment.(not sure if this makes any difference). I have activated "allow Multiple acquisition’ on GL Parameter.

Further i am running depreciation proposal till the end of June.

rest of the steps remain same as mentioned by you.

Regards.

Hi Pranav,

Were you able to look into this issue. I have escalated this Microsoft, but they dont have any solution for this.

Hi,

I suggest you try this scenario with configuring depreciation along with Depreciation convention - Mid month(1st of month) or Mid month(15th of month) in fixed asset groups-depreciation books.

I hope this helps.

Thanks - JK

First of all JK , Thank you for your time.

I am using “Straight line percentage” method for calculating depreciation. when i tried to change the current Depreciation convention to Mid month of any other option, i am getting this error “The fixed asset xxxxxxxx for depreciation book Comp Act does not use a depreciation method that is valid for the depreciation convention”. May be we are not supposed to use any convection for Straight Line method of depreciation (Not sure).

Please let me know if this works for you.

Thanks & Regards,

Dinesh HC.