After creating a Fixed Asset in Microsoft Dynamics Great Plains (GP) based on the original amount paid for the asset, you receive a refund or rebate for the purchase of the asset or you receive an invoice for additional cost or an add-on for the asset.
How do you update the cost and the associated depreciation for the asset without adding another asset, but still track the change? You can update the Acquisition Cost on the General Asset card to track the change and update the Cost Basis on the Book Asset Card to update the depreciation.
To track the change in the asset cost
- Go into the Fixed Asset General Information (Financial, Cards, Fixed Assets, General)
- Find the Asset
- Click on the blue arrow besides Acquisition Cost
- Add a date and negative acquisition cost for the refund amount (or positive acquisition cost for additional amount paid)
- Click OK, and Save
- Go to Book
- Change the Cost Basis
- A distributions button will appear and display how the adjustment will be recorded the next time you run a depreciation.
- Click Save
You will receive a warning that you have changed depreciation sensitive field. Click Yes
In the message box that pops up, you will need to choose one of the following Reset options:
- Recalculate – recalculates the amounts going forward
- Year – reverses depreciation for this year and recreates based on changes
- Life – reverses depreciation for life of asset and recreates based on changes
Assuming this asset was placed in service this calendar year and depreciation has been processed for the asset this year – select Year.
Below is the updated Asset Book information for the asset.
In this scenario, we clicked on the blue link for YTD Depreciation. It shows the reversals and recalculated values. The next time depreciation is run these adjustments will be included in the GL Posting Entry that is created.
If you need additional assistance, then get in touch with our support team!