Fixed Asset WriteOff-Subsidiary Company Sell Off 1

[m1b2tran3]

Hi All,

Our company is selling off our subsidiary company. We used SL and MidMonth Convention(15th). There are numerous assets still depreciating left. How do I accelerate the depreciation so that all assets have zero Book value in our Fixed Asset Module? Cutoff date is 12/9/08. I don't what is the rule how the new purchased company determine these assets. Obviously when they bought the company as a whole these assets are included. Your help and suggestion is greatly appreciated. Thanks a bunch in advance.

 

[VictoriaYudin]

Why not use the Fixed Assets Retire transactions for this?

Victoria Yudin
Dynamics GP MVP 2005 - 2008
Flexible Solutions - home of GP Reports

http://www.flex-solutions.com/gpreports.html

blog:

http://victoriayudin.com

 

[m1b2tran3]

Hi Vic,

Thanks for the reply. I tried to deprec and do mass retire. But my problem is with the GL accumulated depreciation bal vs. FAS accum depr bal. Doesn't match because I depreciate to 12/9/08 and FAS pick up entire month. Both balance doesn't match. So I just used the GL balance & manually input the number as follow:
DR CR
Accum Dep $xxx
Gain on Asset Disposal $xxx
Equip $xxx

All fixed assets has zero bal.
Is that the way to do it. I'm still puzzled why FAS vs GL balance doesn't match. So odds.....

 

[m1b2tran3]

Woops....my JE was wrong.....

Equip(orig Cost) 357k
Accum Depr 200k
NBV 157K

I was told to dispose these assets???

DR CR
What do I Debit???
Accum Depre 200K
Equip 357K
Gain on Sale 157K

 

[VictoriaYudin]

Did you run the GL Posting routine after the retirements in Fixed Assets? That's when the GL transactions are created to reflect the Fixed Assets subledger activity.

Separately form that, I do not believe there is any way to have GP's Fixed Assets module 'prorate' the depreciation for a partial month for you.

So you may need to do this in 2 steps:
1. Get the assets 'out' of the Fixed Assets module by retiring them, they should be depreciated through 11/30.

2. Make a GL adjustment to reflect whatever it is that needs to be shown in the GL. I can't tell you what accounts or amounts to debit - that's something that should be answered by your CPA. If they do, indeed need to be depreciated for a partial month, that would need to be a reconciling item.

Victoria Yudin
Dynamics GP MVP 2005 - 2008
Flexible Solutions - home of GP Reports

http://www.flex-solutions.com/gpreports.html

blog:

http://victoriayudin.com