[Tracy Yaklyvich, MBA]

??Good afternoon.  We entered about 150 fixed assets with the incorrect acquisition cost.  We are thinking we need to update the acquisition cost for each item.  Does anyone know if this will cause any issues?  Thanks!

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
tyaklyvich@ashp.org
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[Kyle Malone, CPA]

Hi ,
The acquisition cost field itself doesn’t hurt anything, update away.

However… What you’ll want to pay particular attention to is the ‘Cost Basis’ for the asset that can be found under the ‘Asset Book’ window.  Depending on your settings, when you setup the initial asset, you might be defaulting the cost basis from the acquisition cost that you entered.  If you later CHANGE the acquisition cost like you’re about to here, the system WILL NOT go back and automatically update the cost basis for all of the books that you’ve setup for the asset.

Point is, go ahead and update the acquisition cost but then I’d recommend double-checking that your cost basis is correct and/or updating the cost basis for all books that are setup.

Let me know how it goes or if you have any further questions.
Thanks,
Kyle?

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Kyle Malone, CPA
GP Admin – CGB Enterprises, Inc.
Lead Consultant/Blogger – http://ALaCarteGP.com
Chapter Leader – Louisiana (New Orleans)
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[Tracy Yaklyvich, MBA]

?Thanks for the reply Kyle.  Is depreciation based on the cost basis or the acquisition cost?  We need to update the cost so depreciation is recalculated properly.

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
tyaklyvich@ashp.org
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[Kyle Malone, CPA]

, cost basis. Everything in that Asset Book window is what matters most, the Asset General Information window just defaults the Asset Book window.

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Kyle Malone, CPA
GP Admin – CGB Enterprises, Inc.
Lead Consultant/Blogger – http://ALaCarteGP.com
Chapter Leader – Louisiana (New Orleans)
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[Tracy Yaklyvich, MBA]

I believe, then, that we need to update the cost basis in the Asset Book window.  I would expect that depreciation would then be adjusted the next time we run the process.  Would you agree Kyle?  Thanks!

 

Tracy   J.   Yaklyvich , M.B.A

Controller/Director Office of Finance ASHP

4500 East‑West Highway, Suite 900

Bethesda ,  MD   20814

Phone: 301-664-8696 http://www.ashp.org tyaklyvich@ashp.org

 

@Tracy Yaklyvich, MBA, cost basis. Everything in that Asset Book window is what matters most, the Asset General Information window just defaults… -replied to the “Open Forum” community

Open Forum Post New Message   Re: Fixed Asset Acquisition Cost Reply to Group Reply to Sender Mar 19, 2019 8:33 AM Kyle Malone @Tracy, cost basis. Everything in that Asset Book window is what matters most, the Asset General Information window just defaults the Asset Book window. —————————— Kyle Malone, CPA GP Admin – CGB Enterprises, Inc. Lead Consultant/Blogger – http://ALaCarteGP.com Chapter Leader – Louisiana (New Orleans) ——————————   Reply to Group via Email   View Thread   Recommend   Forward   Flag as Inappropriate   ——————————————-

[Kyle Malone, CPA]

,
Yep!  When you adjust the cost basis, it’ll prompt you w/ 3 options.  LTD, YTD & Recalculate.  They’re a little misleading I believe but eseentially if you select YTD, it’ll auto-recalc the year to date & make an adjusting entry to depreciation expense; if you select ‘Recalculate’, it’ll take your increase/decrease in cost basis in spread it evenly among the remaining life of the asset.

I’d recommend increasing/decreasing 1, running depreciation & then viewing the impact before doing all of your updates.

Let me know how it goes!
?

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Kyle Malone, CPA
GP Admin – CGB Enterprises, Inc.
Lead Consultant/Blogger – http://ALaCarteGP.com
Chapter Leader – Louisiana (New Orleans)
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[Tracy Yaklyvich, MBA]

?thanks so much Kyle!

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
tyaklyvich@ashp.org
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[Josh Case]

Tracy, I don’t know how your Fixed Asset module is setup.  This is what happens in our system when cost basis is modified.

When we run “GL Posting” the value changes to cost basis get pulled from our Fixed Asset Clearing account.  If the value of these value changes you are entering into cost basis currently do not reside in the Clearing Account, this account may end up being off later. 

Hopefully, you won’t have any issues.  With what Kyle said, test 1 asset.  I would run the “GL Posting” to see what if any accounts get touched.

Josh

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Josh Case
Great Lakes Forest Products Inc
Elkhart IN
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