Depreciation when multiple addition in Fixed Assets

mgmuthamgmutha Member Posts: 55
I have been facing one issue in Fixed Assets Module.
Scenario: Acquisition of multiple fixed assets with different dates.
Details of Scenario:
1) Purchase of Fixed assets @ 3000 at 10% Straight Dep. on 01st April 10 with same starting date of dep.
2) @ 300 Depreciation calculate on 31st Mar 11 (365 Days)
3) Addition/Appreciation in same Fixed Asset during the year let says on 30th June 11 @ 500
4) Now, we are calculating Dep. On 31st Mar 12
a. System is taking Acquisition Cost = 3500 for calculating Dep. > No Issue
b. System is calculating Dep. for 264 Days instead of 365 Days > Here is the issue.

• Here, I want to know why system is not calculating Dep. for 365 Days on 3000 and 264 Days on 500?

• I know the workaround to resolve this issue i.e. before making any addition in the same assets calculate dep. and post it.

• If system is not able to calculate correct dep. in such case then by default system should not allow to further addition to the fixed assets if certain condition not fulfilled?
Manish Mutha


  • Options
    mgmuthamgmutha Member Posts: 55
    Hi Experts,

    Can anyone guide/suggest/explain me on this topic ????
    Manish Mutha
  • Options
    ssinglassingla Member Posts: 2,973
    NAV assumes any new entry means that the asset has been revalued. So the solution for your problem are :
    a) Create separate FA for every new purchase. You can use Main Asset and Component linking.
    b) Calculate and Post depreciation till the date of acquisition and then post the acquisition.

    I recommend method (a) which is easy to manage and end user training.
    CA Sandeep Singla
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