This article applies to Microsoft Dynamics AX for the Indian(in) region.
Introduction
New depreciation provisions of 2013 Act are made applicable (w.e.f. 1 April 2014). The provisions should be complied right from April, 2014 mandatorily as the carrying cost is to be depreciated in remaining useful life of an asset as per Schedule II, and where remaining useful life is Nil, carrying cost (after retaining residual value) is to be recognized in opening balance of retained earnings.
Under companies Act, 2013, depreciation is required to compute on useful life of asset irrespective of method of depreciation used earlier.
Now where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately under component accounting. Similarly plant and machinery used under shifts computed depreciation would increase by 50% in case of double shift working and by 100% in case of triple shift working.
More information about Component Accounting
Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part should be determined separately. Hence, component accounting is mandatory pursuant to the introduction of Companies Act, 2013.
In application of component accounting, the first step is to identify key components requiring separate depreciation. Schedule II requires separate depreciation only for parts of an item of tangible fixed asset having: i) significant cost and ii) different useful lives from remaining parts of the asset.
See the article Microsoft Dynamics AX India Companies Act, 2013 for more information.
When depreciation is computed as per "Service life" or "Service life remaining" method.
Resolution
The changes in the hotfix enable this feature.
Hotfix information
A supported hotfix is available from Microsoft. There is a "Hotfix download available" section at the top of this Knowledge Base article. If you are encountering an issue downloading, installing this hotfix, or have other technical support questions, contact your partner or, if enrolled in a support plan directly with Microsoft, you can contact technical support for Microsoft Dynamics and create a new support request. To do this, visit the following Microsoft website:
https://mbs.microsoft.com/support/newstart.aspx You can also contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:
Partners
https://mbs.microsoft.com/partnersource/resources/support/supportinformation/Global+Support+ContactsCustomers
https://mbs.microsoft.com/customersource/support/information/SupportInformation/global_support_contacts_eng.htmIn special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.
Installation information
If you have customizations for one or more of the methods or the tables that are affected by this hotfix, you must apply these changes in a test environment before you apply the hotfix in a production environment.
For more information about how to install this hotfix, click the following article number to view the article in the Microsoft Knowledge Base:
893082 How to install a Microsoft Dynamics AX hotfix
Prerequisites
You must have one of the following products installed to apply this hotfix
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Microsoft Dynamics AX 2012 R3
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Microsoft Dynamics AX 2012 R2
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Microsoft Dynamics AX 2009 SP1
Restart requirement
You must restart the Application Object Server (AOS) service after you apply the hotfix.
File information
The global version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.
