Assets > Transaction Processing > Asset Depreciation Adjustment

Asset Depreciation Adjustment

You use this program to adjust the accumulated depreciation for any depreciation book defined against an asset.

If a General Ledger account used in this program requires General Ledger analysis (General Ledger Codes or GL Structure Definition), then the GL Analysis program is displayed when you post the transaction, enabling you to enter the analysis details or to select to enter them later (see General Ledger Integration). General Ledger analysis entries are always distributed in the local currency, irrespective of the currency in which the original transaction is processed.

Asset Depreciation Adjustment

Field Description
Post

Select this to process the adjustment to the asset and to the General Ledger distribution file.

The following fields against the asset's value are affected by the amount you entered:

  • Depreciation this year is adjusted by the amount.

  • Current value is adjusted by the amount.
  • The depreciation amount for the period you select (i.e. Current, Previous 1 or Previous 2) is adjusted by the amount.

If you adjusted your Book value depreciation book and your Assets Register module is integrated to the General Ledger (General Ledger Integration), then General Ledger entries are created as follows:

  • If the adjustment amount is positive:

    Dr Depreciation Expense Amount of adjustment
    Cr Accumulated Depreciation Amount of adjustment

  • If the adjustment amount is negative:

    Cr Depreciation Expense Amount of adjustment
    Dr Accumulated Depreciation Amount of adjustment
Asset You use this field to indicate the asset for which you want to process depreciation adjustments.

Depreciation Adjustment

Field Description
Adjustment information  
Asset This indicates the code of the asset for which you are processing the depreciation adjustments.
Description This indicates the description of the asset.
Asset value This indicates the cost of the asset when it was initially acquired.
Asset quantity This indicates the current quantity of the asset.
Adjustment date You use this field to indicate the adjustment date. This defaults to the current Assets module period end date, but can be changed.
Adjustment period

You use this field to indicate the financial period for the adjustment.

This does not apply when your number of accounting periods per year is set to 12 (Company Maintenance - General tab), as the system calculates it from the Adjustment date entered.

However, when your number of accounting periods per year is set to 13, you must enter the purchase period as the system cannot calculate it based on the Adjustment date. The Adjustment period together with the Adjustment year govern the date manipulations, so you need to ensure that these are correct. The current assets period is displayed on the Current month tab of theAsset Register Setup program.

You can enter the Current, Previous 1 or Previous 2 period, however the period you select must be Open (Asset Register Setup - Periods tab).
Adjustment year

You use this field to indicate the financial year in for the adjustment.

This does not apply when your number of accounting periods per year is set to 12 (Company Maintenance - General tab), as the system calculates it from the Adjustment date entered.

However, when your number of accounting periods per year is set to 13, you must enter the purchase year as the system cannot calculate it based on the Adjustment date. The Adjustment period together with the Adjustment year govern the date manipulations, so you need to ensure that these are correct. The current assets period is displayed on the Current month tab of theAsset Register Setup program.
Comment This field enables you to enter free format comments relating to the adjustment. For example, the reason for the adjustment.

Depreciation Adjustment Details

You use this editable listview to enter the details of the adjustments.

[Note]

Only depreciation books with a Basis of depreciation of Period or Year (Asset Register Setup - Basis & Date Conventions tab) can be adjusted.
Field Description
Book This indicates the depreciation books currently available for adjustment.

Only depreciation books with a Basis of depreciation of Period or Year (Asset Register Setup - Basis & Date Conventions tab) are included.
Adjustment this year depreciation

You use this field to enter the depreciation adjustment amount you want to apply to the current year. This can be either a positive or negative amount.

This can only be entered if the Basis of depreciation is Period (Asset Register Setup - Basis & Date Conventions tab).
Adjustment accumulated depreciation

You use this field to enter the depreciation adjustment amount you want to apply to the accumulated depreciation. This can be either a positive or negative amount.
Cost/cash price This indicates the current cost value of the asset. This is changed by acquisitions processed (see Asset Acquisition).
This year depreciation This indicates the amount of depreciation processed against the asset for the current year to date in the depreciation book.
Accumulated depreciation This indicates the current accumulated depreciation for the asset in the depreciation book.
Current value This indicates the current value of the asset in the depreciation book. This is calculated as Cost/cash price less Accumulated Depreciation.

Notes and warnings

Restrictions and limits

  • Depreciation adjustments can only be processed for the current financial year.

  • Depreciation adjustments can only be processed for depreciation books with a Basis of depreciation of Period or Year (Asset Register Setup - Basis & Date Conventions tab).

  • Depreciation adjustments cannot be posted to an Asset Register period that is closed (see Asset Register Setup - Periods tab).

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the Electronic Signatures program.

eSignature Transaction Description
Asset Depreciation adjusted

Controls access to the Asset Depreciation Adjustment program.

Inserting Application Help

You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.

Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.

  1. Open the program for which you want to insert application help into a customized pane.

    This functionality is only available for a program that has panes.

  2. Right-click any form field.

    You can also click the triangle menu icon that appears in the title area of a pane.

  3. Select Insert Application Help from the context-sensitive menu.

    The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.

Removing the Application Help pane

If you no longer want to display application help in a pane for your current program, you can simply remove it.

  1. Select the Close icon in the right-hand corner of the application help pane.

  2. Confirm that you want to delete the pane.