My manufacturing client is going live shortly, and we are adding their May-Aug fixed assets manually to check the depreciation process etc. They have a leased asset that they want to put in service for 1/24/2025 and have the Jan-May depreciation all book to May, as they received the invoice in May. With the 1/24/25 service date, the depreciation is booking to Jan-May. I cannot close January due to this asset not being depreciated for Jan. It would not load the asset with the May invoice date with a 1/24/25 in service date, so we used a journal entry with a January date.
The other issue is that I changed the 5-year Lease asset class Averaging Convention to Full day from Full period, and it is still calculating full period for this new asset. Their other 5-year leases (already in service) ‘caught’ the change to the averaging convention and shows the correct monthly depreciation amounts when we run calculate depreciation. But the new asset does not show the full day averaging amount for January.
I could just load the assets in up to the go-live date as a lump sum to work around this issue, but the client states they have this issue occasionally and need to know how to handle it.
Thank you!