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author's profile photo Former Member
Former Member

Asset poted with wrong values.

Dear All,

one asset was posted wrongly in previous year Ie., posted twice and dep run is completed and and year closing was dun in AA and FI .

it is purchased fron vendor.

Now how to rectfy this one .

Thanks,

Srini.

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    author's profile photo Former Member
    Former Member
    Posted on Jul 25, 2008 at 12:42 PM

    Hi Srini,

    Depreciation once posted cannot be reversed. Only adjustment to the useful life or depreciation key can be done to adjust the depreciation.

    There are two solutions to your problem:-

    1) The best solution is retire the duplicate asset. Create one clearing asset account (should be BS and should fall in asset accounting account group, and ensure that it is not a recon account). Adjust the loss or gain on scrapping the asset, depreciation posted till date and the clearing GL account. This form a journal entry. After this lock the GL account so that no one posts to the entry again. Entry will be debit clearing account and credit the excess depreciation posted.

    This will help you to nullify the excess depreciation posted and will keep the balance sheet intact. Also issue a credit memo to the vendor if you have booked the invoice twice.

    2) Open the closed asset fiscal year using transaction code OAAQ, provided you have not posted depreciation in new year. Then you can retire the asset and post adjustment in 13th period in FI. However there will be problematic issue if you have closed FI and published the results to outside party and hence not recommended.

    regards

    Pawan

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