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Asset Depreciation Key, Useful Life, Depreciation Expense, Depreciated Too Early

Hi Folks,

I hope all is well. Your CSUS College Student back at it again with another question. I work for the State too and they messed up their Depreciation Key when creating Assets. Now, I have to figure out how to fix deprecation for Assets.

Originally Assets were created with Depreication key LINR. LINR, regardless of the month that the Asset is purchased in, depreciates the first year in full and then uses the straightline method to calculate deprecation moving forward.

We updated the configuation and changed the deprecation key to ZINA, ZINA uses the straightline method from the month that the Asset was purchased and depreciates it monthly using the straightline method. This is what we want.

So, 1 solution is to Retire all of the Assets that have the LINR deprecation key and do a complex posting to the new assets using the ZINA deprecation key. However, this process was ruled out. We don't want to retire the Assets to fix them.

Now, we have Assets that have Depreciated too much. And, we have Assets that have fully depreciated when in actuality they still have a useful life. So, my question is how do we debit the asset (GL 2349009700) and credit Depreciation Expense (9033245118).

For Example: Asset 9700000000, Capitalized on 6/15/2012 for $6,245.79 with a 3 year useful life is fully depreciated. The correct useful life is 10 years. So, this Asset is not supposed to fully depreciate until 6/1/2022. As of today it should have 74 more months before it fully depreciates and it should be depreciating at 52.04825 on a monthly basis (6,245.79 divided by 120 months). How do I post $3,851.57 (74 months * 52.05) back to the Asset so it can continue depreciating at the normal monthly rate?

Thanks in advance! Let me know if I need to provide any additional information.

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Former Member
Former Member replied

Change the depreciation key to your new depreciation key.

Change the UL of the asset

Calculate the expected depreciation of the asset as of the current year (2016).

Post a write-up to the asset to adjust the over depreciated amounts.

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