Manual adjustment of depreciation ,will it impact asset closure

[former_member565100]

Hello

In 2013 December,the business retired an asset on 01.12.2013 after the depreciation was run 15.12.2013 and hence then the GL period was closed for period 12/2013.Then the depreciation for an amount of $100 which was posted on 15.12.2013 for an asset got reversed automatically as the asset was retired as on 01.12.2013.Now we are planning to run the depreciation again for that particular asset so that depreciation for period 12 would be zero.

After this Business wants to post manual adjustment reversing the impact of the depreciation posted in period 12/2013.And then re-posting the adjusted entry i.e Cr Deprecation and Dr Asset account  in period 04/2014.For this we shall post manually to the asset account ,removing the recon indicator.Can you please let su know if this is going to cause an issue during 2014 closure as the balance int he asset and gl account will not match.Please advice how to match it.

Regards

[former_member351125]

Hello,

First you need to identify the expected accumulated depreciation and net book value of the asset as of 2014, then you should post an adjustment to the asset base on the variance between the expected and what is currently asset value. After correcting the asset, post adjustment on the GL accounts, again based on what is expected value.

Hope this helps.

Thanks!

jhero

[former_member565100]

But posting to asset recon account manually in 2014,will create difference between FI-AA,please confirm if this would cause an issue during asset year end closure.

[former_member351125]

Thats the reason why you need to post the adjustment both on asset and recon accounts. You need to post seperate adjustments on asset level and on GL accounts (recon) level. As long as there is no variance between asset recon accounts and asset you will be fine during year end close.

Thanks!

Jhero

[Former Member]

Hi

ABST2 is the report which gives you the FI-AA reconciliation.

Regards

Sowmya

[former_member565100]

Yes i have checked ABST2 and there is difference,but will this cause an issue in closing the asset fiscal year.

[Former Member]

Hi

I do not think that the differences in ABST2 will not allow you to close the Asset fiscal year. The asset fiscal year closing will be hampered if say a depreciation posting is pending on your asset. ABST2 is more from the reconciliation purposes i,e, the values in AA and FI will not match.

You can do a test run of AJAB and check.

Regards

Sowmya

[former_member188028]

Differences in balances between FI and AA module will not impact year-end closing for sure. But you need to make same balances in both modules for reconciliation matters. Rgds MBN

[former_member351125]

It will not cause issues during year end. Again as long as your asset and gl are equal (total in ABST2 is zero) then you are fine.

Thanks!

Jhero

[former_member565100]

In ABST2,there is difference.I checked AJAB in test run and didnt throw any issue in closure.

But in the previous note from Murali,he stated"Differences in balances between FI and AA module will not impact year-end closing for sure. But you need to make same balances in both modules for reconciliation matters. Rgds MBN"

Please advice.

[former_member188028]

I'm saying that when you execute ABST2 report there shouldn't be any difference ideally. If there is anything that means you have to adjust either in FA module or FI Module. Rgds MBN

[former_member565100]

Murali,

We are doing a posting manually and are fine with the difference in ABST2,i checked AJAB and it will allowing to close with out any issue.My question is inspite of havng the difference in ABST2,can i go ahead and close the AA Fiscal year.

Regards

[former_member188028]

Yes, You can.