The business scenario is client send some LCDs as FOC items to its dealer. As per management decision client takes them back. Now question is how to get these assets back to inventories. Depreciation for 7 months has been charged on these assets. Please guide .
You can do the asset retirement without revenue. Here one balancing account will have the value of asset as per the setting in AO90. After this make MB1C for taking the inventory in. This will effect the initial inventory upload account. Now nullify the initial inventory account with the asset balancing account with accounting entry.
Will this process convert asset to invetory at its Net book value or Acquistion value. Management wants it to be in inventory on acquistion cost basis. Please guide.
If you are taking inventory at asset acquisition cost, then initial upload will have the balance, which will be equal to deprecaition charged till date. This amount you need to cahrge to p&l account. This is the apposite effect of depreciation charged to p&l.
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