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Former Member
Apr 21, 2010 at 08:19 AM

Capitalization & Reversal

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Dear All

Scenario: Asset Accounting

For Civil works/Electrical works invoices are not received from Vendors. The amount incurred against Civil/Electrical need to be capitalized by raising provision against vendor.

This is provision for un received invoices from suppliers. Assets need to capitalize in current year.

Note: We have not received invoices from suppliers and assets are put in use.in this case i have gone for provision entry.

Step 1: Reversible Provision entry 31.03.2010(FBS1)

70 CWIP Dr

31 Vendor Cr

Step 2: Capitalization of CWIP 31.03.2010(AIAB, AIBU)

70 Final Asset Dr(Put in use)

75 CWIP Cr

Step 3: Reverse the Provision entry on 01.04.2010(F.81)

24 Vendor Dr

75 CWIP Cr

Step 4: Regular Vendor Invoice on or after 01.04.2010(MIRO)

70 CWIP

31 Vendor.

This is the exact client requirement.

I made entries in current fiscal year and made capitalized and when I try to reverse the provision entry on 01.04.2010

system throwing error as: AA 453: Reversal not possible(Asset Value Date in diff. Fyear from posting date)

Regards

venkataswamy

Edited by: venkataswamy bathini on Apr 21, 2010 12:45 PM