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Fixed Assets - economic life 99 years

Question asked by Jessica Fang 3 years ago

In Asia, most of the fixed asset properties are depreciated in accordance to its remaining lease period ranging from 50 years - 99 years. But I understand that the fixed assets’ economic life of this software is limited to 50 years and therefore I am not able to use your auto-depreciation for my fixed assists.

I have to create a yearly recurring journal (various occurrence for different assets):- Dr Depreciation A/C Property 1 ; Cr Accumuated Depreciation A/C Property 1

With the above method, I am not able to view the fixed assets remaining balance because the accumulated depreciation does not reflect on its respective fixed assets.

In order for the properties to be created in your fixed asset, i am using the below method. Cost - enter the exact property cost Accumulated dep - enter the same value as the cost Net book value - nil

With this method, I will be able to view the full listing of my properties in the system but not able to see the accumuated depreaction value and its net book value too.

I would highly appreciate if you could advise a better solution at the soonest. Thank you.

3 Replies

Hi Jessica,

I am pleased to update you that it is now possible to set the economic life to infinite when the reduced balance depreciation method is being utilized.

Thank you for your continued support and patience.

Good Morning Jessica,

I can imagine this to be quite an inconvenience. This query has now been put to our development team to review the current limit (50 years) on the economic life of a fixed asset.

As soon as more information is available we will update you.

Hi Jessica,

I am pleased to update you that it is now possible to set the economic life to infinite when the reduced balance depreciation method is being utilized.

Thank you for your continued support and patience.

Hi Theo, Thank you for the update. What about the straight line depreciation method? I am not using the reducing balance method.

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