fixed asset

anjali
anjali Member Posts: 75
edited 2005-03-27 in NAV/Navision Classic Client
hello everyone,
i have a problem in fixed asset module.
whenever i select the depreciation method declining balance 1. the depreciation is charged using periodic activities calculate depreciation. but the problem is that dep. charged in the first year is alright but from the next year onwards the dep. calculated is same for the other years as in straight line method .
but really wht shd happen is .suppose asset cost 10000 and dep% is 10%then 1st yr- 1000
2nd yr-900
3rd yr- 810
and so on but this is not the way dep. is calculated.


plz help
anjali :?:

Comments

  • yngvih
    yngvih Member Posts: 5
    Hi.

    I have had this problem and what is probably missing in this case is that you dont have all accounting periods created. The deprication foundation is changed when the period changes.

    Hope this helps.
  • anjali
    anjali Member Posts: 75
    thanks for ur reply. but do u mean to say that if other fiscal years are created then if i post depreciation then the calculation will b right.

    plz reply
    anjali
  • Tarek_Ayachi
    Tarek_Ayachi Member Posts: 1
    hello,

    i have the same problem me also with fixed asset.
    i think you must choose the method Declining-Balance 2, you put then the declining balance %, the system will calculate each time based on the book value

    Tarek
  • philippegirod
    philippegirod Member Posts: 191
    I don't know if it's specific for each cuntry but, in France, the methods used are the next :

    Straight-Line : you divide the acquisition amount by number of period, each time you use the same depreciation amount.

    Declining-Balance (1 or 2, I can't remenber the difference) : you depreciate more in the beggining than at the end, the Straight-Line % is multiplicated by a coef. and the base amount is the acquisition amount - all depreciations.

    DB1/SL or DB2/SL : the same as previous one BUT the system compare Declinning Balance and Straight Line and use the more important depreciation. That means than at the end, this method will use the Straight Line system.

    Declinning Balance or DB/SL ?
    If it's DB/SL it is completely normal than in the last years, the amount depreciated is the same as the one calculated by Straight Line.
    My candle burns by both ends, it will not last the night,
    But oh my foes and oh my friends, it gives a lovely light
  • vipulchudasama
    vipulchudasama Member Posts: 17
    Hi Anjali,

    With FA experience, I can suggest following checkpoints to you:

    1. Set up for the fixed assets with Declining Balance -1 (If you are calculating Yearly only)
    2. Definition of Declining Balance %
    3. Calculate Depreciation batch with Option as per the book defined under relevant FA line & Posting Date as Fiscal Year end date.
    4. FA Journal getting updated with the same value.

    If above parameters are considered properly, It should work fine. I have worked out in 3.70IN version.

    Vipul
    VIPUL (NAVISION CONSULTANT)

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