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Former Member
Sep 16, 2011 at 05:37 PM

SORP system config - depreciation automatic entry hits retained earning a/c



Could anybody help.

Before :

When depreciation is run (AFAB) for a single asset, the following entries were created

Cr(75) - Accum Depr Account (B/S)

Dr(40) - Depreciation acct (P&L)

Then the user does a manual entry as below :

Cr(50) Depreciation account (P&L)

Dr(40) Capital Adj Acct (B/S)

This was fine -

Now the SORP config is done and there is a problem with depreciation postings :-

After SORP config :

All automated :

Cr(75) - Accum Depr Account (B/S)

Dr(40) - Depreciation acct (P&L)

Cr(50) Retained Earnings account (Statement of Movement on General Fund) (B/S)

Dr(40) Capital Adj Acct (B/S)

Any clue why is it happening ?

The second entry should be like the manual entry above .

But It Credits retained earnings account (not Depreciation account)

Checked all the account assignments - but I could not see anything there.

Any help would be appreciated.

Thanks in advance & regards