Reversing Depreciation in Microsoft Dynamics AX 2012
Posted on: March 9, 2015 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
Reversing depreciation is never ideal and occasionally your company may be faced with these anomalies. However, it is not as painful as it may sound. Below, I will provide step by step instructions on the easiest and most efficient ways to post these reversing entries while maintaining a balance between your general ledger and subledger.
This first method is better suited for reversing depreciation of a couple transactions. If you need to reverse a larger number of deprecation transactions, then please scroll down and follow the second method.
Go to Fixed assets> Common> Fixed assets> Fixed assets
Find the asset and then click on the value models.
That will bring you to the value model form of the particular asset you selected. Choose the value model in which you would like to reverse the depreciation and select transactions.
In the fixed asset transactions form, select the depreciation transaction and then click Reverse transaction.
Click OK to confirm the reversal.
The second method is more appropriate for reversing a large number of depreciation transactions.
Go to Fixed assets> Journals> Fixed assets
Click New and select the journal in which you post your depreciation transactions. Add text to the Description such as the fixed asset group, fixed asset number, date, etc. Then click ‘Lines’.
Firstly, click the ‘Functions’ drop down and choose Retrieve fixed asset transactions.
In the voucher field, select ‘New voucher number per voucher’ and also click to select the Invert sign. Next, click Select to choose your criteria of which asset(s) depreciation you would like to reverse.
In this Inquiry form, first select Depreciation as the criteria for the Transaction type (you may have to add this field to your inquiry). Next, select which asset(s) you would like to reverse the depreciation (suggestion: choose the fixed asset group or the value model). Once you have selected your criteria, click OK.
Click OK again on the Retrieve fixed asset transactions form to load these amounts into the journal lines. It is important to note what depreciation you are reversing. The ending date shows the year in which that asset was depreciated. If you only want to reverse 2014 depreciation, then delete any of the lines with the date ending with 2013.
Also, you will see that amount in the credit field is negative, which essentially means it is debiting. If you want a cleaner look, simply delete the number in the credit field and enter the absolute value of that number in the debit field.
Once you are finished with your changes, validate and post.
One very important facet of reversing depreciation is to change the depreciation periods remaining and also the date in which depreciation was last run. This only has to be done when using the method of retrieving fixed asset transactions. These fields can be found in the depreciation tab of the value model of the fixed asset in which you reversed the depreciation. These fields determine how depreciation will be booked going forward so, it is paramount that you examine these fields and change them to your preference.