on 04-26-2016 3:14 AM
Hi,
There was a asset to which wrong Depreciation area was assigned and depreciation was calcualted and posted in 2013. This asset was sold in 2014. However, this mistake was noticed in 2015 and management wants to correct this (wrong depreciation posting) in 2015 through Asset Accountiong (not JV). Also, JV through Asset Accounting cannot be posted as Asset is already sold.
What are the option to correct this mistake? Please suggest.
Regards,
Bijay
Hi
you may check if you can reverse the asset retirement by sale and change the deprecation key assigned or simply post manual deprecation or write ups ( as the case needed) then run AFAB aging to adjust the asset carry value , then do the sold again ..
in my opinion you can adjust the posting to asset retirement gain/loss by JV in much easier.
Regards
Mahmoud
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Hi BIjay,
If the asset already retired, then no need to post any entry. Because the impact for wrong depreciation got adjusted automatically. I will explain here clearly. Suppose the asset APC is 10000 and its accu.depreciation 1000 and sale value is 8000. Then the entry at sale is:
Customer/Bank A/c Dr 8000
Acc.Dep.A/c Dr 1000
Asset A/c Cr 10000
Gain/loss on sale Dr 1000
If the depreciation is wrongly charged and no depreciation will applicable on the asset. Then the entry at sale will be:
Customer A/c Dr 8000
Asset A/c Cr 10000
Gain/loss on sale Dr 2000
If there is no depreciation charged, then gain/loss is 2000, if we charge depreciation then the gain/loss is 1000 and depreciation is 1000, total 2000 will charge to P&L A/c. So ultimately there is same impact in P&L A/c and in balance sheet account i.e.accumulated depreciation the impact is reversed by sale transaction.
I hope you understand it.
Regards,
Mukthar
Hi Bijay
I would prefer not touching it as it belongs to Previous Years
Also, as Mukhtar rightly said, your APC Value got charged off to P&L, partly in the form of Loss, partly in the form of Net Book Value
Ajay M
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