Adjustment to Balancesheet item(Plant & Machinery)

[Former Member]

To all in this community,

I was using Tally before migrated to SAP in my work place.My external auditors came with some adjustments to be made on Account of completed year 2010 and those adjustments are to hit in 2011, i mean on SAP now. I then have challenges on how to make entry like this:

Dr. Purchase Account(P & L)

Cr. Plant and Machinery (B/S)

Being adjustment to correct wrong capitalised matrerials during the period.

[Former Member · Accepted solution]

Had you been able to pass the needed entry in SAP in 2010, you would have debited some P&L account. This P&L account balance would have added up in the Retained Earnings account and the amount would have carried forward as a part of the Retained Earnings Balance in 2011.

Accordingly, you can pass the following enter in 2011:

Dr Retained Earnings a/c

Cr Plant and Machinery a/c

Hope this helps.

[Former Member · Accepted solution]

Tks for your response.

I have passed that entry but i got a message that Plant & Machinery can not be posted into directly.

I also used a particular Plant & Machinery item : Gas Generator 550kva, i got the same message that ' it can not be posted into directly'

Pls what next????????

Someone to guide, plsssssssssssssssss.

With all regards.

[Former Member · Accepted solution]

Well, it appears that you are using Asset Management and hence your P&M account is set as a REconciliation account. Dont worry, here instead of crediting the P&M account directly, you should credit the individual Asset(s) whose value is to be brought down. Use posting key 75 for crediting the assets.

[Former Member · Accepted solution]

Tks for being there.

I should tell you that I have took the following steps:

I have used FB01l

pstky 40 with retained earnings--- Debiting this.

pstky 75 with Gas Gen 550kva---- Crediting this (Asset) with

the statement from the system is that assset 20005 can not be posted into directly.

asset 25005 in my COA is for GAS GEN 55okva.

Which way forward.

Tks for your quick response.