Asset Capitalisation issue
We have created a regular asset in the system, which was bought some times ago and later realized that asset was not used in operation but it was already capitalized and depreciation charged for four months. Now the factory accountant wants to reverse the depreciation charged for this asset and convert this asset to a AUC status as this asset still laying in warehouse without using to operation.(GR is carried out, PO raised and payments has been made )
What can be done from the system to correct this issue? Is there any way that we can covert a regular asset back to an AUC and stop charging depreciation for following months?
Srinivasa Maruvada replied
If your changes are in the current year then change the depreciation start date in Asset Master and re run the AFAB. Depreciation already posted gets corrected and adjsted automatically. You need not post anything manually.
If it is not in the same year then open the previous year posting periods and do the same process. However your accountant may not agree to adjust the accounts which were already closed. In such case you need to do adjustments in the current year iteself.