Message - "You have changed a depreciation sensitive field. This will result in depreciation values being recalculated. Do you wish to continue?" occurs after changing the depreciation method on my asset in the Asset Book window. If I click Yes, I am prompted to choose from three different reset options.
The message is confirming that a depreciation sensitive field has been changed on the asset and depreciation will need to be recalculated. If you want to change the field, click Yes and you will be prompted to choose one of the following three options.
Life : Recalculates depreciation from the Place in Service Date forward to the date the asset has already been depreciated. If there are adjustments to the depreciation for any period, they will be written to the Financial Detail File. Prior year depreciation is posted into the current fiscal year to the prior year depreciation account. It will NOT be posted into the prior year.
Year : Recalculates depreciation from the beginning of the year forward to the date the asset has already been depreciated. If there are adjustments to the depreciation for any period, those adjustments will be written to the Financial Detail File.
Recalculate : Calculates a new rate of depreciation using the new Cost Basis. It does not make adjusting entries for depreciation already taken. The system will use the new rate of depreciation the next time the depreciation routine is run.
This article was TechKnowledge Document ID: 31829