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Sally_Hicks's avatar
Sally_Hicks
Contributing Partner
3 months ago

Fixed Assets changes in depreciation

Hi All,

We are importing Assets from an existing system into Advanced.  The issue we have relates to tax book depreciation regulations that have changed over time. Originally an asset would be straight line at 2% so accumulated depreciation had been calculated on the old system.  Then at some point, the tax depreciation rate changed to zero for a number of years and is now about to change back again.  After importing the asset, the first calculation of tax book depreciation, the system assumes the depn is incorrect and recalculates it for the periods that it should have been zero. These are large cost assets so the calculation created very large discrepancies in the expected deprn value.  The normal way to address this would be to suspend the asset, however this is awkward as suspending it stops any depreciation from being calculated for both tax and accounting books.  If it could be suspended by book it would be a much better option. Straight line and useful life makes it difficult to calculate what the settings should be used to stop the system from calculating the depn for the 0% periods.  I am suggesting we duplicate the assets by having a tax book asset and an accounting book asset to work around this. Has anyone else experienced this issue and if so how did you address it. Appeciate any feedback.

 

fixed assets

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  • LeanneB_Horizon's avatar
    LeanneB_Horizon
    Trusted Partner
    2 months ago

    First you setup an asset as DV method for instance (current method) and the %, and  put the cost and Accum depr. and last period in the balance that matches the current data while not connected to the GL.

    Then when u use run depreciation process (or calculate), the system calculates what the depreciation should be up to that period, and the difference from what was posted to what is calculated, will be posted into the first period after.  It has been doing this for some time now.  So its like an adjusting entry, and there is nothing you can do to stop it. 

    What you could do is load up two assets for the one asset, so the second asset's cost is actually the remaining value when the new method started.  that would be your only way to do it as Myob simply does not do that process of changing methods mid way through.

    • Sally_Hicks's avatar
      Sally_Hicks
      Contributing Partner
      2 months ago

      Thank you for your responses. since the assets were such large values, we brought in the current book value and then calculated tax depreciation with the current SL rate from here on in. A note was assigned to those assets with the original values and previous depreciated values for reference.

       

    • Will_H's avatar
      Will_H
      MYOB Moderator
      2 months ago

      Hi LeanneB_Horizon ,

      Just to check my understanding, as said I'm sure you're more active in Fixed Assets than I am on the regular.

      Doesn't the Depreciation Table Methods (FA202600) feature allow for this, admittedly by requiring you to specify the depreciation for the foreseeable future of the asset manually?


      Curious if you've tried the feature mostly,

      Best Regards,
      Will Howard
      Senior Product Platform Liaison (Enterprise)

  • Sally_Hicks's avatar
    Sally_Hicks
    Contributing Partner
    3 months ago

    Hi Will, Thank you for your response. I am a MYOB Consultant, I thought the MYOB community was also MYOB consultants (this is my first time accessing the community), but it would appear not.  Even with the changes that have been made, it is an issue that we cannot suspend by book as changing the %'s for straight line appears to recalculate the depreciation values.

    • Will_H's avatar
      Will_H
      MYOB Moderator
      3 months ago

      Hi again Sally_Hicks ,

      Sorry about that, I didn't realize you were a partner consultant.  Your access should have been set up as part of your certification/onbaording at Acclaim, but obviously that didn't happen in this case.

      I've upgraded your access so you can now reach the partner boards, and have moved your post in to the Advanced Business Information & Hints board, whcih is partner specific.

      I'll hope one of the other partners/consultants has a detailed answer for you, as I'm a bit rusty in that area of Fixed Assets. (Last implemented it in 2019.. And there were some changes since)

      As said, I think Depreciation Table Methods might do the trick, but I don't have capacity to research it fully.

      • Sally_Hicks's avatar
        Sally_Hicks
        Contributing Partner
        3 months ago

        Thank you Will have been trying to get access to this for 5 months so happy you could resolve for me. Much appreciated.  

  • Will_H's avatar
    Will_H
    MYOB Moderator
    3 months ago

    Hi Sally_Hicks ,

    Sorry I don't have an answer for you, I'm a few years out of date on the fixed assets module and I know we've had good changes (Which I believe will help you) since then. 
    I recommend checking up in with your consultant, as they're likely to have handled this situation more recently than me.

    My gut feel is that you could look into the Depreciation Table Methods, as they allow different depreciation year on year:
    FA202600

    But that feature is newer than the last time I implemented FIxed Assets.

    If you want to do all of the technical learning yourself, the Fixed Assets training from Acumatica is very detailed.  -  https://openuni.acumatica.com/learning-paths/implementation-consultant-learning-paths/fixed-assets/
    (I appreciate this is probably a bit further than you want to go.

    Really hoping someone with more recent experience than me can chime in to help.