Asset Capitalisation issue

[Former Member]

Hi,

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?

R,

Gayani

[srinivasa_maruvada · Accepted solution]

Hi

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.

Cheers

Srinivas

[Former Member]

When it is in the same fiscal year you can change the depreciation start date and it will be corrected in the next depreciation run

[Former Member]

Hi Gayani,

Try posting a credit entry to the asset account and debiting the AUC account. Use the original Asset value date. Or use AB08 and reverse the entry posted in the Asset account.

Please try this and let me know whether this worked or not.

Regards,

Vinod

[Former Member]

hi,

by crediting the Regular asset and debiting the AUC account, the GL wise the entry will get corrected, but there will be inconsistency in Asset accounting and GL balance. we want to transfer from regular asset and keep it under AUC since the asset is intended to capitalize only on next year

Gayani

[Former Member]

What type of inconsistency do you think will be there? Its my understanding that when you post the entry as said by me, the system would automatically adjust the balance in both Asset accounting and GL accounts. I think you are aware of this, but still....while posting an entry to Asset module subledger accounts, please use posting key 70 for debit and 75 for credit, Transaction type 100 for Debit and 101 for credit.

If you have access to AB08, then try using this Tcode and reverse the entry from the Asset account.

Either of this should be able to resolve your issue.

Regards,

Vinod

[Former Member]

Hi Vinod,

I tried doing that then there is a error message saying "Line items reduce the cut-off value by 1.00",

but the account balance to zero, wht is this error message?

Gayani

[Former Member]

Hi everyone,

I have retired the asset and transferred the balance to AUC, issue solved. thanks all...

regards

Gayani

[Former Member]

This message was moderated.