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Former Member
Apr 07, 2014 at 08:59 PM

Reduce the value of a captalized and already depreciating asset

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Hello all,

We have an asset that is capitalized in 10/2013. The actual value of the total amount capitalized should be 20% less than what it is actual now in the system. This 20% should go to VAT receivables . I am not sure how to reduce the value of an asset that is already capitalized in prior year and also depreciating. What should be the entries..what kind of effect it will have on the next depreciation run. Anyone who have come across a similar issue, please share your thoughts and ideas.. Thank you in advance..