How to undo the 168 allowance

If an asset is using a 168 method (MA, AA, SB), the asset can’t be disposed of in the year of service. The system will produce the message: Invalid Disposal Date. Assets Claiming a 168 allowance can’t be disposed of in their PIS year. To use the disposal date entered, you must change the depreciation method for all books to a non-168 method.

Before making any changes, create a backup. See 

The Depreciation Method determines if an asset uses 168(k) Allowance. To remove the 168(k) Allowance, change the Depreciation Method to a non-bonus method.

To change an individual Asset:

1. Go to the Asset Detail view of the asset to change.
2. Manually key in the appropriate non-168(k) Depreciation Method.
   Example: Change MA200 to MF200 to remove bonus
3. After changing the Deprecation Method, answer Yes and select Placed-in-Service date.
4. Recalculate depreciation on the asset:
   1. While in the Asset Detail view, go to Depreciation, Depreciate.
   2. Leave the group on (where ‘X’ is the system number of the asset).
   3. Select the desired Books, enter the desired Date, click Execute.

To change a group of assets:

1. If you need to change all assets for a given Fiscal year proceed to Step 2. Otherwise, Create a group containing only the assets to be changed:
   1. Highlight assets in Asset List.
      Note: There are limits on creating a group this way. If you need to create a larger group, see How to create a group
   2. Go to Asset, Save as Group, give the group a Name, click OK.
2. Go to Depreciation, 168 Allowance Switch.
3. Select the Group, select the Books.
4. Enter the Fiscal Year End the assets to change were Placed-in Service.
   Note: The 168(k) Allowance switch is a mass change of the Depreciation Method. It will only change qualifying assets Placed-in-Service in one Fiscal year at a time. Qualifying assets are Personal Property (P) using a MACRS depreciation method (MA/AA/SB) and aren’t Disposed or Transferred.
5. Under Allowance Percentage, select No Allowance.

How to create a group
How to back up a company