Asset Post capitalization.....

[Former Member]

HI Experts,

Please clarify me on the below issue...

1. Asset post capitalization means, if we forgot to capitalized asset for the closed fiscal year, then we have procedure to capitalize those assets... that will be calling as post capitalization of Asset..

Am i right?

2.Is it possible to create a sub asset (post capitalization asset) with the same capitalization date of main asset?

If it possible, is the system will calculate depreciation from the beginning?

Thanks in advance

satya

[Former Member · Accepted solution]

Dear,

Have a look at the below link.

[Former Member]

Hi,

1. you capitalize an asset for a fiscal year in which the asset was not originally capitalized. This posting, however, is to be made for a fiscal year that is already closed. This process would generally take place as part of a government tax audit.

2. Yes !!! but the depri will be calculated from the date of the capitalization on that part only, and balance for the previous asset which is already been capitalized will be calculated from the begining.

Thanks,

CVyas.

[Former Member]

Dear,

Post Capitalization is for.....

Post-capitalization represents subsequent corrections to the acquisition and production costs of a fixed asset. An example of when you need this type of correction is if you neglected to add expenditures and costs linked with the acquisition or assembly of an asset to its APC in a fiscal year that is now closed.

2.Is it possible to create a sub asset (post capitalization asset) with the same capitalization date of main asset?

Yes.

And it must calculate depreciation from that date.

Regards,

Chintan Joshi