Fixed Assets bugs when UEL has expired
Problem reported by Robin Shuff 1 month ago
I've spotted a couple of bugs with Fixed Assets when the Useful Economic Life has expired. I think one of these is just incorrect information displayed whereas the other appears to be a behaviour which will affect depreciation and therefore the value of company's assets as reported in their accounts.
I have noticed these issues in the last day when I have come to account for the disposal (sale) of two fixed assets.
The problems are as follows: We have two fixed assets (of many) Asset A and Asset B. Both have a Useful Economic Life (UEL) set to 5 years which has expired for both.
1) The first problem affecting Asset A is the less serious. It was created in March 2013 with a UEL of 5 years and Reducing Balance depreciation at 20%. When I see this asset listed in the standard table view under Fixed Assets, the cost column shows £140.00, NBV £46.83, & Dep value £93.17. At a quick glance this looks fine. However, if you then click on the asset, the top row of the deprecation table shows that this asset was fully written off in March 2018 (Depreciation amount £46.83, Accumulated depreciation £140.00, Net book value £0.00). This is the correct behaviour; the asset reached the end of it's life and Clear Books wrote it off automatically, BUT it is not displayed correctly in the main table view which might catch some people out. After disposing of this asset and Archiving it, I can confirm that the same problem exists when viewing the table in Archived assets. I can confirm the same behaviour for some other assets we have that have also reached the end of their UEL.
2) The second problem is more serious and affects Asset B. It was created in October 2013 with a UEL of 5 years and Reducing Balance depreciation at 20%. The main table view shows a cost of £336, NBV £112.39 & Dep value £223.61. When I click on the asset, the top row of the depreciation table shows that the last depreciation even happened in Sep 2018 (5 years after creation) but with depreciation of £2.30, Acc dep of £223.61 & NBV of £112.39. This matches the main table view, but this asset has not been automatically written of at the end of it's UEL, unlike Asset A. Worse, it stopped being depreciated at this point (after 5 years) so there is a larger value for this asset than there should be in our accounts.
EDIT: Problem 2 seems to occur on assets that come to the end of their UEL AFTER some time between Sept 17 and Sept 18. (We have an asset which came to the end of it's UEL in Sept 17 which was automatically written off (as per Problem 1) and another asset that came to the end of it's UEL in Sept 18 which just stopped being depreciated and wasn't automatically written off (as per Problem 2). Other assets that have expired since Sept 18 all display Problem 2).
Can I please ask that this is looked at with some urgency?!
I have posted here to alert others to the potential issue and to find out if anyone else has a similar issue.
I'm happy to provide any other information, screenshots, etc.
Thanks! Robin Shuff Idium Technology Ltd.