Fixed Asset Mid-Quarter Convention Calculation

Owned by Claire Aleman
03 20, 2019

Issue/Symptom/Question

Two of our OUs share the same tax ID number and if my manual calculations are correct, the mid-quarter convention should be applied. PENTA is still using the half-year convention. Why is PENTA not calculating the fixed assets that qualify for Mid-Quarter Convention correctly? 

Applies To

PENTA for Windows

Mid-Quarter Convention Group Setup:

Finance & Accounting > Setup > Organization Units > Mid-Quarter Convention Groups

Assign Mid-Quarter Convention Group to appropriate OU:

Finance & Accounting > Setup > Organization Units > Organizational Units

Fixed Asset Class Setup:

Fixed Asset Management > Setup > Classes > Classes

Mid-Quarter Convention Identifier in Fixed Asset:

Fixed Asset Management > Asset Information > Depreciation tab

Resolution/Fix/Answer

When processing Depreciation Projection, PENTA automatically updates the Fixed Asset's Mid-Quarter Convention field from N to Y if the assets in the Mid-Quarter Convention Group qualifies. 

Review the settings below to make sure all information is correct:

1) Setup the Mid-Quarter Convention Group via Finance & Accounting > Setup > Organization Units > Mid-Quarter Convention Groups


 

2) Assign the Mid-Quarter Convention Group to the appropriate Organizational Unit (OU) via Finance & Accounting > Setup > Organization Units > Organizational Units

  • Query the OU that needs the group assignment
  • Add the group to the Legal Entity tab - Mid-Quarter Convention Group: field



3) Update the Fixed Asset Classes that should be included (N) or excluded (Y) in the Mid-Quarter calculation via Fixed Asset Management > Setup > Classes > Classes
  • Query the Asset Class or Classes
  • Update the Exclude From Mid-Quarter Convention as needed (N means it will be included, Y means it will be excluded)

If the above settings are correct and Mid-Quarter Convention is not calculating as expected, please open a Service Desk ticket and reference this article.