How-To Reverse Depreciate & Partially Retire Assets in Microsoft Dynamics GP 2015
Posted by Sean Casey, MCTS on March 9, 2016
If you use assets and depreciation in Dynamics GP, you are bound to run into an instance when you need to reverse the depreciation on an asset; such as:
- Incorrect information is set up and it isn’t caught until months later
- You need to make adjustments to assets, such as: Retirement, Additions, & Disposals
- Changing the depreciation method of an asset
- Changing fields related to depreciation in Dynamics GP, such as: Useful Life, Salvage value, & Placed in Service Date
Reverse Depreciation on One Asset:
You can run reverse depreciation on a single asset by going to:
Tools>Routines>Fixed Assets> Depreciate One Asset
In the depreciation target date, select a date prior to the most recent depreciation date. If you have multiple months of depreciation, you would want to do this one month at a time. After, you could partially retire an asset (see more information below).
Reverse Depreciation on a Group of Assets:
You can also reverse depreciation on several assets at a time by creating an asset group.
- To create an asset group: Transactions>Fixed Assets>Select Assets
- Next, click on the new asset group and name it.
- Now, select the assets you would like to add to the group
- The next step is to reverse depreciate the assets. Go to: Tools>Routines>Fixed Assets>Depreciate
- Uncheck “Depreciate All Assets” and look up your group.
- Check the box to reverse depreciation.
- Highlight the book you are using and insert it into the Selected Books.
- Choose the “Depreciation Target Date” to be the first date that you ran depreciation.
- Click on process. This will reverse depreciation for the selected assets and also create a reversing journal entry (after running the GL posting routine).
Note: Keep in mind that the depreciation will post in one month so you may want to do this month by month.
Partially Retire an Asset or Group of Assets:
After you reverse depreciate one or a group of assets, you can go in and partially retire the asset(s).
Go to: Transactions>Fixed Assets>Retire
- Choose your asset or group of assets
- Select a retirement date at the beginning of the year, retirement type and retirement code.
- Enter a quantity of one and the amount of the asset that you would like to retire.
- Set the Percent = 0 and retire.
It is recommended that you use a test company to try out your reverse depreciation and the partial retire processes first. That way, you can make sure it is working correctly for you. Here’s information on how to create a test company using your Dynamics GP data.
Watch a recording of our webinar “All About Fixed Assets” from February 2016. Just enter in your name and information, then you will be directed to the recorded session.
If you have further questions, or need assistance, please contact our support team at Support@Crestwood.com.