Apply credit from Investment Project to asset capitalized in a previous year? #COE #MODPIZZA

[Expert]

Hello,  We primarily capitalize assets using investment projects. This is both to allow us to capture costs/expenses related to projects for additional analysis and to continue to utilize the normal supplier invoice apps for invoice and credit memo entry.  We've recently received supplier credit memos related to assets which have been capitalized in 2018 or 2019. These have been coded to the appropriate investment project and settled from expense to the investment measure AUC.  The question from my users is ultimately how do we apply the credit from the project to those assets (and correct the value)? What are the process steps? We cannot settle directly from the investment measure to those assets without error because we either get a "Acquisition value negative in area 01" or "Transaction in area 91 contradicts the net book value rule" message or something similar.  As an example we need to apply a $47.53 credit to the value of this asset from the associated project.  Asset 301996 was capitalized on 8/13/2018, brought into our system via legacy data transfer as of 12/30/2019.  Original acquisition value was $2101.33.    01 depreciation area: 5 year useful life and SUL1 depreciation key (straight line current month) - currently has a NBV around $1315  90 depreciation area: 7 year useful life and S200 depreciation key (DB 200% Half Year w/Bonus) - currently has 0 NBV due to Special Depreciation applied  91 depreciation area: 7 year useful life and S150 depreciation key (DB 150% Half Year w/Bonus) - currently has 0 NBV due to Special Depreciation applied  92 depreciation area: 7 year useful life and S150 depreciation key (DB 150% Half Year w/Bonus) - currently has 0 NBV due to Special Depreciation applied  93 depreciation area: 10 year useful life and EP1 depreciation key (E&P S/L - Half Year - All Lives) - currently has a NBV around $1780  32 depreciation area: 5 year useful life andLINS depreciation key (Str.-line over rem.life pro rata to zero) - currently has a NBV of around $1315    How do we post the $47.53 from the project to this asset to correct all of the depreciation area values from capitalization forward?  Thanks,    Ryan

[Expert · Accepted solution]

Hello Ryan

looks like the AuC is already settled or has not enough positive amount left to balance the credit memo.

The typical remedy is to allow the AuC to become negative. You can set a switch per depreciation area: in the manage fixed asset app go to valuation -> additional parameters and switch on "Negative Values Allowed".

Best regards,

Günter

[Expert]

This is a re-posted Q&A of an earlier question on this community