Related topics

Resetting Depreciation

Reset Affecting Depreciation

Reset Depreciation Window

Follow the guidelines provided below to complete the fields on the Reset Depreciation window.

Items in this window

Item Notes
Select a Book Use the check boxes in this field to specify the books for which you want to reset depreciation.
[Select All] / [Unselect All] Select this link to either select the check boxes for all available books or to clear the check boxes for all available books.
Reset Date Use this field to specify the date to which you want to reset depreciation.
Placed-in-Service Date Select this option button to reset depreciation to the asset's Placed-in-Service Date. Selecting this option resets all depreciation figures to zero (the amount of depreciation on the date the asset was placed in service). The amounts in the Period Close fields, if any, will be set to zero also. Select this option if critical depreciation values, such as the acquired value or depreciation method, were entered incorrectly. In this case, you need to reenter the beginning amounts and other values after resetting depreciation and before executing the Depreciate command.

Note: You cannot reset depreciation to the Placed-in-Service Date on an asset that was created as the result of a transfer. The system cannot reset depreciation prior to the asset's Beginning Date.
Beginning Date Select this option button to reset the current depreciation fields to the beginning date of the asset (if applicable). Selecting this option resets depreciation figures to the amounts entered in the asset's beginning depreciation fields. The amounts in the Period Close fields, if any, will be deleted. This is the default. Select this option when the beginning values are correct but the current or period close depreciation figures are not. After you reset to the beginning depreciation amounts, you can change asset data as needed and recalculate depreciation by executing the Depreciate command.

Note: If there is no date in the Beginning Date field, the system automatically resets the asset’s depreciation to the Placed-in-Service Date.
Period Close Date Select this option button to reset depreciation back to the last period close date. Selecting this option resets the current depreciation figures to the amounts entered when the last period close was performed.

Note: If there is no date in the Period Close Date field, the system automatically resets the asset’s depreciation to the Beginning Date (if one exists). If there is no date in the Beginning Date field, the system resets the asset’s depreciation to the Placed-in-Service Date.
Clear Convention? Select this check box if you want to change the averaging convention (from the half-year convention to the midquarter convention, or vice versa) on qualifying MACRS property when you reset depreciation. Qualifying MACRS property is generally property types P, Q, A, and T, as well as those property type R assets that do not use the midmonth convention. You must also change the averaging convention in the Edit Company window (on the Book Overrides tab) before you recalculate depreciation. You can clear the convention only when you select the Beginning Date or the Placed-in-Service Date options; you cannot clear the convention when you select the Period Close Date.

Important! If you are resetting depreciation and you need to change the averaging convention, it is much easier to use the MACRS Convention Switch option, located on the Depreciation menu. For more information, see Performing a MACRS Convention Switch.