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Reduce a Lease Asset capitalization value where depreciation is ran.

Nov 15, 2016 at 04:43 PM

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Hi gurus

I have a scenario where we capitalized a leased assets in Jan-2015 for $ 500000 and based on maintained interest rate accrual postings are also created on monthly basis for 48 months. We were paying $ 10415 to the vendor monthly. After 21 months we realized that the capitalization value is incorrect and it should be $ 300000. So we passed JV for the previous period to the vendor account for the over paid amount so far.

But is there any way which will reduce the Capitalization value as well as the accrual posting value automatically. Also we need to rectify the depreciation value as well after reducing the capitalization value.

Please suggest.

Thanks

Subrata

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