Hello there, @DP108.
Let me help and provide information on why FAM not depreciating your last year of assets correctly in QuickBooks Desktop (QBDT).
To begin with, your FAM may not have depreciated your last year's assets due to the setup of your depreciation method. Here are some of the methods:
- If your depreciation Method is the Straigh-Line Method (SL) it allocates an equal amount of depreciation to each time period.
- If Declining-Balance Method (150% & 200% DB) it allocates more depreciation expense to the early years of an asset's life, when it is new; since there should be less down-time and fewer repairs in early years, the company should get more use out of the asset in the beginning of its life.
- If MACRS (Income Tax Method) it uses the double-declining balance method, but you only take one-half year's depreciation in the first year, and then you switch to the straight line method in the middle of the asset's life, so a 5 year asset takes 6 years to depreciate.
For more information, refer to this article: Manage fixed assets using Fixed Asset Manager (FAM).
Also, I suggest consulting with your accountant to ensure that the method and numbers that you used are correct.
Additionally, you may want to check these articles that'll help you fix unexpected issues that result in the FAM and how to move or upgrade your fixed asset data.
Click Reply If you have follow-up questions about the depreciation methods. I will do my best to help you out. Have a great day!
