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Mar 18 at 01:06 AM

Doubt in the Fixed Asset Clearing Account and revaluation transaction in SAP B 1


Dear Expert,

I am writing to seek clarification regarding the journal entries created during asset revaluation and the netting off of the Fixed Clearing Account.

Specifically, I have a doubt regarding the journal entries created when an asset with unplanned depreciation undergoes revaluation resulting in a decrease in value. As per my understanding, the reduction in value will be used to decrease the revaluation reserve, and any excess will be recognized as unplanned depreciation and taken as a loss. The system will create the following entries:

CR Asset A/C DR FA Clearing A/C CR Accum Depn A/C DR Depreciation A/C

I would like to know if there will be any difference in the journal entries if the asset had undergone planned depreciation only. As per my understanding, in such a scenario, the journal entry will be CR Asset A/C and DR FA Clearing A/C only. Kindly confirm if my understanding is correct.

Additionally, I would like to know how the system nets off the Fixed Clearing Account, which is a suspense account in the balance sheet. From my understanding, the account should be reconciled to ensure a zero balance is reflected in the financial records. However, I am curious to know if it shows only a single entry without any offsetting, will the account continue to have a balance in the General Ledger indefinitel Kindly provide your insights.

Thank you for your time and help.

Kind regards,

Helen Jim