There are a few confusing issues with MS Dynamics GP Fixed Assets. One of the most confusing is probably how FA integrates to GL. What entries are made and when into a GL posting batch created by FA?
First add an asset to FA. Go to Tools – Routines – Fixed Assets – GL Posting. Fill in the year and period range you want to post, and the date you want on the GL transaction that will be created.
From the result of this batch FATRX00000004 was created in GL with the debit to the FA asset account and a credit to the FA clearing account. Since there had been no depreciation run the only thing in the batch as the asset.
Next run depreciation for the asset. Tools – Routines – Fixed Assets – Depreciate One Asset. Normally you would depreciate all assets for a book. Enter the date through which to calculate depreciation, insert the book, and click Depreciate. You should get a pop up message saying Depreciation Completed.
At this point no depreciation entry has been created for GL. Run the FA GL Posting again. Tools – Routines – Fixed Assets – GL Posting for the through the period ending date for the recent depreciation run.
As a result of this process GL batch FATRX00000005 was created with a debit to the FA Depreciation Expense account and a credit to the FA Accumulated Depreciation account (or Reserve Account).
If you have closed the FA year and then you add an asset to that closed year you can run the GL Post to GL and capture the cost. However the depreciation expense will not be entered into the GL batch for the FA closed year. LTD depreciation on the Asset Book card is updated. The depreciation reports do show the depreciation for the asset. In this case you would need to make a journal entry for the expense either to the prior or future year GL depending on where you want the expense to show.
Remember the FA year and the GL year are not the same thing and are closed at separate times.