Half-year convention rules for acquisitions, additional acquisitions, and disposals are available for Austria in Microsoft Dynamics AX 2012 R3

Distribution of depreciation amount in the first year of depreciation

In Austrian country context when the Apply specific rules for half year depreciation parameter is ON in Fixed asset parameters, the behavior of Depreciation convention Half year (start of year) is localized to accommodate local needs: increased depreciation amount is posted in the first period of depreciation (taking into account Placed in service date).

Example:

Fixed asset data:

Acquisition date 8/7/2014
Placed in service date 9/7/2014
Service life 3 years
Acquisition amount 72,000
(half year depreciation amount = 72,000/6 = 12,000)
(monthly depreciation amount 72,000/3/12=2,000)
Depreciation start date 7/1/2014

Depreciation amounts:
9/30/2014 6,000 (=2,000*3) - accumulated depreciation for July'14-Sept'14
10/31/2014 2,000
11/30/2014 2,000

Depreciation adjustment for FA disposal transaction

In Austrian country context when the parameter Apply specific rules for half year depreciation is ON in Fixed asset parameters, the behavior of the option Automatically create depreciation adjustment amounts with disposal in FA parameters is localized for FA with Straight line life remaining depreciation method and Half year (start of year) convention used, to meet local needs:

The depreciation adjustment amount which is posted automatically with the disposal, is calculated following Half year convention rules.

Example:

Fixed asset data:

Acquisition date 9/7/2014
Placed in service date 9/7/2014
Service life 3 years
Acquisition amount 72,000
(half year depreciation amount = 72,000/6 = 12,000)
(monthly depreciation amount 72,000/3/12=2,000)
Depreciation start date 7/1/2014
Disposal date 4/15/2016 (Sold at 40,000 )
Accumulated depreciation till 3/31/2016 (21 months * 2,000 = 42,000)

Disposal amounts:

Disposal-sale -40,000
Depreciation adjustment -6,000 (for months April'16 -June'16)
Net book value 24,000 (72,000-42,000-6,000)
Profit/loss 16,000

Half year depreciation on additional acquisitions

In Austrian country context, in Depreciation profile with Depreciation method Straight line life remaining, user can switch on the option Half year depreciation on additional acquisitions

If this option is switched on, depreciation convention Half year (start year) is implemented for additional acquisitions.

Example

Fixed asset data:
Lifecycle = 3 year (36 months)
Acquisition amount 72,000
Acquisition date/place in service date 15.02.2014
Depreciation start date 01.01.2014 (half year (start of year) convention)
Monthly depreciation 72,000/36 = 2,000

Transactions:
Half year depreciation on additional acquisitions AND Create depreciation adjustment with basis adjustment

If user switches on the option Create depreciation adjustment with basis adjustment on Fixed asset value model, Depreciation adjustment will automatically be calculated and posted with acquisition adjustment, following half year convention rules

Example

Fixed asset data:
Lifecycle = 3 year (36 months)
Acquisition amount 72,000
Acquisition date/place in service date 15.02.2014
Depreciation start date 01.01.2014 (half year (start of year) convention)
Monthly depreciation 72,000/36 = 2,000

Transactions:

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+Contacts

Customers

https://mbs.microsoft.com/customersource/support/information/SupportInformation/global_support_contacts_eng.htm

In 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.