We are trying to use Australian Diminishing Value in Fixed Assets, however system forces us to use ‘useful Life Year’.
This method is only capturing the place-in-service date, the cost and the percentage per year.
So it does not make sense to have years against each asset, as it’ll change the method.
Can someone assist and let me know how you imported your assets using this method?
Hi Foujan, are you trying to change the depreciation method on the Balance tab on the FA?
Do you have full access rights?
Hello Foujan, seems like that is correct behaviour as it will calculate percentage for first year from total of useful life year.
So does that mean I should put a random useful life year and the max?
Cause now if I put 8 years, I am using 25%, and the Cost is $34,364. It passes 8 years…So system does not allow me to keep depreciating the asset, unless I put a useful life year for more than 23 years.
1DPE800 has been depreciated at 25% per year for around 12 years. A rough calculation of that gives a remaining value of (75%)^12 = 3.167%.
The stated net value of $1,085.30 is 3.158% of the original $34,364. So that’s consistent with what I’d expect, accounting for timing and rounding errors.
The current financial year had an opening net value of $1,370.90.
25% of that is $342.725, so $28.56042 per month, rounded to $28.56.
10 months of depreciation so far = $285.60, leaving a current net value of $1,085.30
It’ll be depreciated another $28.56 in May and $28.56 in June.
Then from July to next June it’d be depreciated at $21.42 per month...etc.
Honestly declining balance method is not just used in Australia. It is one of the GAAP accepted methods and is very obvious how it should work. I am in Canada and over a year ago I had the same discussion 4 times with Acumatica team. Not sure why it is too difficult for them to understand “Declining Balance DOESN’T have year” it is just based on PERCENTAGE and net book value at the beginning of each year.
long story short we were forced to enter fictitious nonsense years.
what you can do is to enter a crazy year, setup the rest as it should and when you wrapped things up, do a little bit of customization to “Hide” the useful life year for declining methods. Out of sight, out of mind.
@aaghaei , I was questioning my knowledge and our client’s knowledge in this regard :)))
We came up with 2 solutions:
Then they won’t face any issue with the auditors.