Sunday, December 9, 2018

Cost addition is 0 for Alternate Method

1. Create Asset type under > Fixed Assets> Set up> Asset Type> New

2. After saving Go to the Other Method tab> Add Default Alternate Depreciation
---Depreciation 1
---Depreciation 2

3. Create JOurnal entry to create fixed asset
---Date 8/10/2012
---Amount = 1000

4. Propose the asset under Fixed Assets> Transactions> Asset Proposal

---Once you see the journal entry> Mark it as selected and Generate Assets

5. Open the create Fixed asset> Go to Tax Method> FAM- Alternate Depreciation
---Click on New FAM - Alternate Depreciation
---On the Alternate Method Select Depreciation 8

6. After adding the new Alternate method> Generate the Asset Register
--Fixed Assets> Reports> Asset Register
---Select Subsidiary
---Select Depreciation method 1
---Start date = 1/1/2012
---End date = 12/31/2012
---Click on Generate

Results: New Assets has cost addition of 1000

6. Generate Asset Register for Depreciation method 8

Results: New Asset cost addition is 0

Why is the new Cost of addition 0 for the Alternate method?

Cost of Addition is the cost of acquisition.

For Alternate Depreciation this is not from the FAM – Alternate Depreciation tab but instead from the Alternate Depreciation History tab.

If you view the Fixed Asset FAM000155> Tax Method tab> Acquisition is only for the following Depreciation method:
---Depreciation Method 1
--- Depreciation Method 2

To add cost of addition you have to add Depreciation Method 8 on the Alternate Depreciation History tab.

To add:
1. View any Asset record with Alternate Depreciation History> of Depreciation for Depreciation Method 8
2. On the Edit FAM - Depreciation History> Hit Save and Copy
3. On the New FAM - Depreciation History> On the Asset field select Asset created
---Change the Transaction type to Acquisition
---Set the correct date, Transaction amount and Net Book Value
4. Save
5. Again view the FAM000155> Tax Method tab> Alternate Depreciation History> Notice that the Acquisition for Depreciation 8 is now posted.
6. Now run the Asset Register
---Fixed Assets> Reports> Asset Register
---Subsidiary: US – West
---Depreciation Method
---Period Start date 1/1/2012
---Period End date 12/31/2012

Asset will now have cost additions of 1000

Note that step # 3 is just an alternate solution to enter the Alternate Depreciation History.

This is because the following fields are greyed out for new Alternate Depreciation History
-Alternate Depreciation
-Alternate Method
-Actual Depreciation Method

Another alternate solution is to add Depreciation Method 8 to Asset type.
1. Go to Fixed Assets> Setup> Asset Types> Edit IT Equipment> Other Method
2. Click on New Default Alternate Depreciation
---Alternate Method = Depreciation Method 8
3. Save
The next time you create asset acquisition for Depreciation 8 this will be automatically created Tax Method tab> Alternate Depreciation History.

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