[Matt Kress]

Hello all.

We have been maintaining our fixed assets in software other than NAV but are not wanting to incorporate them into NAV.  We have been successful in importing the assets, acquisition values/dates, useful lives,  accumulated depreciation and book value, but are having an issue when calculating depreciation for the first time.

When calculating depreciation, it appears that NAV is using the book value of the asset as of the date of import rather than the acquisition date.

We are having no luck in determining what is causing the issue, but would appreciate any help provided.

Thanks all.

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Matt Kress
Controller, Rupp Seeds Inc.
Wauseon OH
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[Sue Barrett]

I’m not sure that this is the right answer but this works for me.
When I import to the FA Journal – I import as follows;

a)  Acquisition Cost entries
– FA Posting Date = Acquisition Date
– Posting Date = Last Day of Month prior to go-live cut-over
b)  Depreciation entries
– FA Posting Date & Posting Date = Last Day of Month prior to go-live cut-over

This has always worked for me.

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Sue Barrett
Consultant
Sudbury
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[Colin Swinburn]

Hi Matt

NAV uses the current book value and the remaining asset life to calculate depreciation. If you think about it, that is the correct way to do it. Spread the remaining value over the remaining life.

I hope this helps….It sometimes takes a bit of testing to understand the calculations but NAV does get it right.

For new Assets, NAV will use the original cost and the life of the asset for the initial calculation. Thereafter it will use the book value and the remaining life of the asset.

Rgds
Colin

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Colin Swinburn
Project Director – NAV
Charterhouse Print
Hatfield, Herts, England
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[Michael Carr]

Colin,

Actually, that is not a correct statement under GAAP (US).

Original cost is divided by total useful life # of acctg periods and that is the amount used for period depreciation.

Current value  / remaining life is not correct for this method.

see https://www.aipb.org/pdf/DEPRECIA.pdf

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Michael Carr
VP , Finance
Philadelphia Scientific LLC
Montgomeryville PA
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[David Wiser]

During a fixed asset session at the recent Focus 2017 event, this scenario was discussed.  One of the solutions presented was to add your assets with their original acquisition cost and date.  Then let the system calculate the depreciation up to the current period.  You may need to adjust your G/L balances to match this new calculated NBV/accumulated depreciation, but the system would be properly calculating depreciation.  One key to this approach is to turn off the G/L Integration flag while performing the catchup depreciation and then turning it back on when complete.  This way, the system won’t try and post to the G/L into period you already have closed.

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Dave Wiser
Controller
Beckwith & Kuffel
Seattle WA
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[Sophia Gjorgievska]

I agree with Dave.  Typically, we turn off the integration to G/L, bring in the assets with the original acquisition date and a cutoff date for the accumulated depreciation; then, when all that information is in, we turn the integration to G/L back on.  

This has always worked for our clients with no issues.

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Sophia Gjorgievska
Senior Consultant
Socius
Brecksville OH
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[Michael Carr]

I agree with Dave.

In this manner , which does really vary much with the way we brought over accounts receivable, payable and inventory balances with an ongoing balance sheet. The asset values and accumulated depreciation are on your books so you should match acquisition costs , of course. The system calculates depreciation up to current date from acquisition date and you would adjust your accumulated depreciation as of the conversion date.

Simple as reheating pie ( never baked one ….so that’s the best I know!)

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Michael Carr
VP , Finance
Philadelphia Scientific LLC
Montgomeryville PA
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